In addition to the many personal rewards inherent in making a charitable gift, most gifts also provide a current charitable income tax deduction. Some charitable giving strategies also save capital gains taxes, increase income, and provide you, or whomever you designate, with an income for life. Additionally, these types of gifts may provide an estate tax deduction — an important consideration in planning your estate.
There are many different ways to make charitable gifts:
A charitable remainder trust or a charitable gift annuity will give you an immediate income tax deduction, a lifetime stream of income, and a waiver of capital gains taxes owed on contributed property.
A charitable lead trust creates an income stream to charity for a term of years with the remainder of the trust going to your children without any estate or gift tax consequences.
A private foundation offers you the considerable freedom to control amounts given by placing restrictions on how your gifts are used by charities.
A donor advised fund allows you to maximize your income tax savings on your regular monthly or weekly contributions to church or charities.
Pratt Law helps clients make charitable gifts and practice good stewardship in the most tax-efficient manner.