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Recent Tax Law Changes Increase the Benefits of Planned Giving

Planned giving includes gifts of appreciated stock, donor advised funds, bequests, charitable trusts (remainder and lead), charitable gift annuities, gifts of retirement plan assets, gifts of life insurance policies, and gifts of tangible personal property.

Recent tax law changes lift limits on deductions for higher income givers and increase the benefits of some planned giving approaches.  

Always seek professional advice before making a gift.  We would be pleased to work with you and your advisors to structure a gift that best fulfills your charitable goals.  Please contact us at [email protected] or call (646) 369-0442.

Options to Give Now

Gifts of Appreciated Stock

A donation of appreciated stock can avoid capital gains taxes (state and local) and provide a deduction at the appreciated value.  With the loss of state tax deductions, this approach is even more valuable.

Donor Advised Funds

A donor advised fund allows donations to be made to the fund, then distrubuted to charities over time.  The deduction is taken when the gift is made to the fund, and can be “bunched” to meet limits.  Family Foundations may also wish to take advantage of donor advised funds ot help smooth out giving as portfolios move up or down.

IRA Charitable Rollovers

You may also be able to make a gift of up to $100,000 to GallopNYC with a distribution from your Individual Retirement Account (IRA), and take advantage of tax savings. This distribution to charity can be a significant benefit for IRA owners who are required each year to take minimum required distributions, which are included in their gross income for income tax purposes.

Giving through a Will or Bequest

Bequests from Your Will

Including GallopNYC in your will or trust is a meaningful way to help us continue to serve New Yorkers with disabilities and special needs. 

Ways You Can Give Through a Will or Trust: 

  • Leave a specific dollar amount or asset to GallopNYC.
  • Designate a percentage of your estate to be given through your will or living trust. 
  • Give only the remainder, or residue, of your estate, or that which remains after bequests to loved ones have been made.
Retirement Assets

Retirement assets are one of the most beneficial gifts you can give to GallopNYC. These funds grow tax-free until the time of withdrawal. With the innovative use of these assets, you are able to contribute generously to GallopNYC as well as provide for your loved ones. Many taxes on assets in retirement plans can be avoided or reduced through a carefully planned charitable gift. 

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Life Insurance

Life insurance is often overlooked as an asset that you can use to make gifts to GallopNYC. There are a number of ways to support GallopNYC’s programs with an insurance-related gift.

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Charitable Remainder Trust, Charitable Lead Trust, or Gift Annuity

A Charitable Remainder Trust (CRT) is a life-income arrangement that provides you and/or other beneficiaries with a stream of income for life or for a period of years. After the trust terminates, the principal, or “remainder interest,” goes to GallopNYC. CRTs are separately invested and managed trusts. GallopNYC does not manage these trusts for donors.

Charitable Lead Trust (CLT) is an arrangement that can be thought of as an inverse to CRT.  In a CLT, the charity gets an annual annuity and the remainder goes to trust for the donor’s family free of estate tax. Many additional benefits include  the tax treatment of the account and tax deductions.

A charitable gift annuity is a contract between a donor and a charity. As a donor, you make a sizable gift to a charity using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. 

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Fresh Idea for Family Foundations - a donor advised fund

Foundations may benefit by working in conjunction with donor advised funds. For foundations that  give a fixed percentage as per guidelines, distributions will vary. If the donor establishes a donor advised fund in conjunction with the foundation, they can use the DAF to smooth any lower dollar foundation withdrawals. 

The material presented in this website is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individuasituation.

DISCLAIMER

The material presented in this website is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.