Charitable Planned Giving Solutions

Planned giving can make a lasting impact while maximizing your gift. You can achieve your philanthropic goals and get big tax benefits by using options like private foundations, supporting organizations, charitable trusts, and donor-advised funds (DAFs).

Private Foundations

Private foundations are independent non-profits that individuals or families establish to support specific causes. They offer a lot of flexibility in giving according to your values or community needs. Foundations are typically endowed with an initial investment, which can be distributed as grants to chosen causes over time. This gives you a lot of control over your giving, so you can set guidelines for funding, focus on a particular sector like education or healthcare, and even establish scholarship programs.

Private foundations have ongoing administrative requirements and compliance obligations but also offer tax benefits. Donors can receive income tax deductions up to 30% of adjusted gross income (AGI) and potential estate tax benefits. The ability to control how grants are distributed makes private foundations a good choice for those who want long-term philanthropic involvement and legacy building.

Supporting Organizations

Supporting organizations are an intermediary between private foundations and public charities. They are public charities but structured to support specific nonprofits so you can have a more direct impact. As an alternative to starting a private foundation, supporting organizations can give you significant involvement without the same administrative burden. You can influence the operations of the affiliated charity and get tax deductions similar to public charities.

Supporting organizations are suitable for those who want to stay connected to a nonprofit and ensure their funds are used for a specific purpose. This structure allows for a more personal approach to giving so the philanthropic mission aligns with your goals.

Charitable Trusts

Charitable trusts like charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) meet philanthropic and financial goals. CRTs allow you to receive a stream of income from the trust for a set period, and then the remaining assets go to a designated charity. This gives you immediate tax deductions and reduces estate taxes while alive.

CLTs are designed to benefit charities immediately. A portion of the trust’s assets is distributed to nonprofits for a set term. The remaining assets go back to the donor’s beneficiaries, often with reduced estate taxes. Both types of charitable trusts offer a lot of flexibility, so they are good for donors who want to support specific causes and manage their estate planning.

Donor-Advised Funds (DAFs)

Donor-advised funds (DAFs) are an easy and streamlined way to manage your giving. These funds are set up at a public charity, allowing you to recommend grants to nonprofits over time. DAFs give you immediate tax deductions even if the funds are distributed later. They are less administratively burdensome than private foundations, so they are good for those who want to give without the hassle of managing a foundation.

DAFs allow you to adjust your giving strategy over time so your donations align with changing priorities. They also offer tax benefits like deductions up to 60% of AGI, so they are popular with donors who want to give efficiently.

Working with Crewe Foundation Services

At Crewe Foundation Services, we work with you to determine the most appropriate strategy for your planned giving needs. Whether you are setting up a charitable giving strategy for the first time or need help managing an existing foundation, we’re ready to be your trusted partner.