What is Planned Giving?
Planned giving is exactly what it sounds like: creating a structured method to donate to Aurora House over time or in the future. The simplest form of planned giving is a bequest in a Will, but there are several vehicles available by which to make your contribution. Some gifts happen over time, some provide life-long income to you, the donor, and other gift plans use estate and tax planning to provide for Aurora House and heirs in ways that maximize the gift and/or minimize the impact on your estate.
Types of planned gifts?
- Almost any type of asset or personal property may be gifted: stocks, real estate, artwork, life insurance and retirement plans, etc.
- Some gifts (certain trusts or charitable annuities) may return lifelong income or other financial benefits to the donor in return for your contribution.
- Bequests of all types made through your will or beneficiary designations.
The benefits of funding a planned gift may make this type of giving very attractive to you, your family, and Aurora House.
Potential Tax Benefits of Planned Gifts
- You can contribute appreciated property, like securities or real estate, receive a current charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.
- Individuals who establish a life-income gift receive a current tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.
- Gifts payable to charity upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.
Common Planned Giving Vehicles
- Bequest intention: a provision in your will directing that a gift be paid to Aurora House upon your death. The bequest can be very flexible and is controlled by the specific provisions within the document.
- Life insurance: another flexible option which allows you to donate your life insurance policy to Isaiah House or to make Isaiah House a beneficiary of your policy.
- Retirement plans: you may name Aurora House as a beneficiary of your qualified retirement account or make annual RMDs directly to Aurora House thereby reducing your taxable income.
- Charitable gift annuities and charitable trusts: in return for a contribution of cash, securities or other property you receive some combination of current income and income tax incentives depending on how the particular vehicle is structured.
Your tax advisor, financial advisor, and/or attorney can help you decide which planning strategy is best suited for you.
How can your business support our community
Aurora House is always in need of corporate support from local businesses. We rely on your commitment to our mission and appreciate the strong relationships we have built with you over the years. If you are interested in offering a sponsorship for an event or for a project, please see the contact information below.
If you wish to create a new partnership with Aurora House, we would love to talk with you about our House, our work, and our how you can become involved!