However, real estate is sometimes used. Charitable gift annuities are age sensitive, allowing older donors to receive a higher rate of return. There are a variety of ways in which life insurance can be used to make a charitable gift. An insurance policy can name the charity as the beneficiary, or may actually be owned by the charity named as beneficiary. The policy may be fully or partially paid-up.
Life insurance is one way to make a significant gift for a relatively small cost.
Tax benefits vary depending on the circumstances related to the individual gift. A bequest through a will is the most frequent form of planned giving, largely because it can be a means to make a substantial gift without diminishing the donor s assets during his or her lifetime. Depending on the donor s basis, a tax deduction is available in the year of the gift or spread out over several years. Such charitable remainder gifts can provide several economic advantages, such as retained use of the property for life, tax deductions, and avoidance of capital gains taxes. Most individuals are able to make the largest gift of their life through planned giving.