Charitable Giving Options
There are many ways you can make a gift to the charity of your choice. Here are some of the options.
Keep in mind, this is only a partial list of the many ways for you to make charitable gifts. A Thrivent Financial representative, together with your attorney and tax adviser, can help you understand the variety of charitable giving options that are available.
Outright Gifts
Write a check or give cash to a charity and take an itemized tax deduction. You will need a receipt from the charity for gifts of $250 or more.Will or Trust Bequests
Create a bequest by including a charitable gift provision in your will or trust document. Your estate could receive a charitable deduction for the value of the bequest.Beneficiary Designation Gifts
Name a charity as the beneficiary of your life insurance, annuity, trust, or IRA. Your estate could receive a charitable deduction for the value of your assets transferred to the charities.Life Insurance Gifts
Purchase and gift a new contract to a charity, or gift an existing contract. The contract's value and premiums might qualify you for an income tax deduction. Upon your death, the insurance proceeds go to the charity.Investment Gifts
Transfer your ownership of an investment (for example, land, a mutual fund, or a stock) to a charity. If you itemize tax deductions, you could receive a deduction for the gift you've made. You may be able to reduce or eliminate capital gains and estate taxation through this type of gift as well.Gift Annuity
Transfer money or property to a charity in exchange for a fixed income for your and/or a survivor's lifetime. Generally, you can receive an income tax deduction for the difference between the market value of the gift and the value of the retained annuity.Traditional IRA Gifts
Funds in a traditional IRA can be given to a charity through your IRA beneficiary designation. The IRA funds pass to your designated charity after death, escaping the income taxes due on the remaining funds. Your estate may receive an estate tax deduction as well.Zero Estate Tax Gifts
Your will or trust can be designed to pass along the maximum amount of estate assets to your children after death, estate tax free, through a family testamentary bequest. The remaining assets then are transferred to a charity through a bequest, also estate tax free. This plan may result in a zero estate tax due on your estate.Charitable Remainder Trusts
Give money or property to an irrevocable charitable remainder trust in exchange for an income during your life and/or the life of your survivor. After death, any remainder value in the trust passes to the charity or charities you've selected.
You could defer, reduce or eliminate capital gains tax otherwise due on sale of the assets. You also may receive an immediate charitable income tax deduction on the remainder interest of the property that passes to charity. Finally, the assets in the charitable remainder trust may escape some estate tax after your death as well.
Wealth Replacement
Life insurance can be used to replace the value of the gift to charity. You purchase life insurance on your life equal to the value of property you plan to gift. At death, the insurance proceeds pass to your heirs potentially income tax free. If a family member or an irrevocable life insurance trust purchases the insurance, then the proceeds may be estate tax free as well.Wealth Replacement Trust
Also called an irrevocable life insurance trust (ILIT). This living trust is created outside the donor's estate and is set up to own life insurance on the donor. The amount of life insurance the trust owns usually is less than or equal to the amount of property you plan to give to a charitable cause. Upon your death, your heirs, who usually are the trust beneficiaries, can receive the insurance proceeds from the trust both income and estate tax free.Donor Advised Fund
Administered by a community foundation, a donor-advised fund allows you to play an active role in the grant-making process, while foundation staff takes care of administrative chores. You (or a person you designate) recommend grants from the fund to the charities of your choice – at any time.Make Giving Your Priority
Contact a Thrivent Financial representative, attorney and tax adviser, about how you could make the most of these and other charitable gifting options.
Remember: Thrivent Financial for Lutherans and its respective associates and employees cannot provide legal, accounting, or tax advice or services. You should always consult with legal and tax experts for advice before you decide to make a charitable gift. Lack of proper advice could lead to adverse consequences, and you could lose the beneficial tax advantages as well.
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