Gifts of appreciated property, before sale, generally allow the donor an immediate income-tax deduction for the property's current fair market value. Capital gains taxes that would be due, if the assets were sold rather than gifted, are generally not recognized by the donor. The donor may elect to name a charity as a beneficiary for all or part of a policy already owned. The policy proceeds payable to a charity at death will qualify for a charitable deduction in the donor s estate. The donor may obtain an immediate income tax deduction approximately equal to the cash value by naming the charity as both owner and beneficiary of the policy and obtain additional charitable deductions when annually gifting future premium payments to the charity.
Life insurance is often the least costly, most flexible and simplest vehicle for making a gift.
Donors may designate a percentage or specific dollar amount of their estate to be given to charity, or the charity can be named as the final estate's beneficiary, thereby receiving whatever remains after providing for loved ones. A charitable gift in a will or trust will qualify for the charitable deduction at the time the assets are given to charity, and will provide the estate tax savings. Income payments may begin immediately or be deferred to a future date. Charitable gift annuities will provide a donor an immediate income tax deduction for the charitable gift value of the annuity. The donor generally does not recognize capital gain on the value of appreciated property that is considered a gift.