Planned Giving

Planned giving is a process of making plans now for a future gift. It is the integration of personal, financial, and estate plans with a person's goals for lifetime or legacy giving.
  • A donor generally contributes from their assets or estate.
  • A donor generally receives current income and tax benefits.
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    Charitable Bequests

    This is the simplest type of planned gift and one of the easiest to implement. This gift is realized at the time of estate distribution.

  • A donor can leave gifts to the Center by including a bequest in their Will or Living Trust and designation the Center as a beneficiary.
  • Bequests are revocable, they can be amended whenever desired and at any point of life.
  • Existing bequests can be easily modified with a codicil that specifies a dollar amount, percentage or remainder of an estate, or specific property to be donated. Click here for Bequest Language
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    Charitable Gift Annuity

    A legal contract for which a donor transfer assets, usually cash or stock, and in return receives annual fixed payments for the rest of their life. At the completion of payments, the remainder goes to the Center.
  • Fixed payments for life - a gift annuity contract provides fixed payments to one or two individuals for life.
  • Rates are determined by age - annual gift annuity payouts are based on donor's age (rates are higher for older donors). The American Council of Gift Annuities set the rates annually.
  • Avoid capital gains when funding with appreciated stock.
  • A portion of each gift annuity payment to the donor is tax-free.
  • Donor receives a current federal income tax deduction and Montanans may utilized the Montana Tax Credit. (Link to MT Tax Credit Page)
  • Example rates:

     Age
    65
    70
    75
    80

    Rate
    5.3%
    5.7%
    6.3%
    7.1% 

    • Deferred Charitable Gift Annuity

    The deferred charitable gift annuity is similar to a charitable gift annuity, but with payments deferred to begin at a future date and at a higher interest rate.

  • Example rate: Annuitant age at time of making gift: 65 
                      Annuitant age at time of first payent:75 
                                              Annuity rate: 9.6%
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    Paid-up Life Insurance Policy

    A life insurance policy for which all premiums have been paid may be a charitable gift. This usually entitles the donor to a current deduction equal to the cost of replacing the policy with a single premium life insurance policy at the donor's current age. Upon distribution, the full face value goes to the Center as beneficiary.

    Charitable Life Estate Agreement

    A donor has a deed executed, which transfers a primary or secondary home, cabin, ranch or farm to the Center. The donor retains a "life estate", which is the right to live in the home and enjoy the full use of the property or income for the rest of their life. At the time of the gift, the donor and the Center enter into a maintenance, insurance and tax agreement specifying the donor's responsibilities with the respect to teh property. Payment of maintenance, insurance and taxes for the years of the life estate is the donor's responsibility.

    Pooled Income Fund

    This is a fund, which pools donor assets of cash or securities for investment with other contributors. The fund provides an annual income to the donor for life. When the donor passes away, the remaining fund shares are distributed to the Center.

    Charitable Remainder Trust

    Trust are established with assets from a donor. The trust provides payments for a life, lifetimes or term of years, and then distributes the remainder to the Center.
    Options:
  • Charitable Remainder Annuity Trust - donor receives an annual fixed payment of the trust's fair market value, determined annually.
  • Charitable Remainder Unitrust - donor receives an annual predetermined fixed percentage of the trust's fair market value. Payments are adjusted with the investment performance of the fund.
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    Charitable Lead Trust

    A trust is established by assets transferred by the donor and are invested by a trustee. Each year the trust pays an amount to the Center for a term of years or lifetime. The remainder interest then transfers to private beneficiaries named by the donor, usually family.
    Options:

  • Charitable Lead Annuity Trust - provides a fixed dollar amount each year to the Center. The amount is determined when the trust is established, and continues to the term of the trust.
  • Charitable Lead Unitrust - provides a fixed percentage of the unitrust's value, and is revalued annuall, to the non-profit.
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    I would be pleased to provide you with more information and answer any questions. You are always welcome to contact me. Simply click here to email or call (406) 449-2006 ext. 104

     

     

    This information is provided as an educational service. Your financial advisors should always be consulted regarding your plans.

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