Planned Giving

Make a Gift That Gives Back to You, Your Family, and Your Community

Planned gifts are "win-win" arrangements that can satisfy your estate planning objectives, reduce your tax liabilities, and support high-quality human services in Morris County well into the future.

A planned gift differs from an outright gift in several ways:

• A planned gift usually consists of an asset other than cash.
• The asset may be conveyed either immediately or at a future time.
• Many types of planned gifts entitle you to immediate or future tax benefits.
• Many types of planned gifts entitle you or someone else whom you name to receive income, either for life or for a specified period of time.
• A planned gift often requires a legal instrument and the services of a professional.

Some examples of planned gifts:

• A Bequest to a charity through your will, which can reduce various estate tax liabilities.
• Life-Income Gifts, such as: A Charitable Gift Annuity, funded with cash or securities, paying partially tax-free income to you and/or another person whom you name, at a fixed rate for life ranging from 6% to 12%, according to the age(s) of income beneficiary(ies) at the time of the gift. Part of the amount funding an annuity can be taken as an income tax deduction in the year of the gift. An annuity funded with appreciated securities receives favorable capital gains treatment. Deferred annuities delay payments until a desired date at higher rates. Annuities can also be made through your will.
• A Charitable Remainder Trust can be formed either during your lifetime or at death through a will. It provides income to you and/or to others whom you name either for life or for a stated period of years at a rate that you select. It also provides favorable capital gains treatment with regard to the funding asset and a significant charitable deduction for income tax purposes. Income payments can be either fixed (Annuity Trust) or variable (Unitrust).
• A Charitable Lead Trust pays income to one or more charities that you name for a specified term of up to 20 years, resulting in an immediate tax deduction. At the conclusion of the term, the value of the trust is distributed to persons you have named. As with Charitable Remainder Trusts, income payments to charity may be either fixed or variable. Such trusts can be formed during your lifetime or through your will.
• Gifts of Life Insurance. Significant tax advantages can be gained by naming United Way of Morris County as irrevocable owner and beneficiary of either an existing or a new policy. Thus, future premium payments can be made to us to pay ongoing premiums while qualifying as an annual charitable deduction. An immediate charitable deduction, roughly equivalent to the cash surrender value of the policy, can be taken in the year of the transfer.
• Gifts of Retirement Plan Assets. IRAs and other retirement plans can be used to fund Charitable Remainder Trusts when certain requirements are met, resulting in favorable tax treatment.
• Gifts of Securities, which can also include stocks.

For more information about Planned Giving, email Molly Rennie, or call 973.993.1160, x113.