Charitable Gifts

When a person donates a gift of money to a charity during their lifetime, there are potentially substantial tax breaks that make giving to a particular cause all the better. Donors can gift their IRA proceeds, real or personal property, investments, or cash money. Charitable giving in the form of annuities allows donors to receive payment during their lifetime from the charity and tax breaks along the way.

In the past decade or so, we've seen more adults that have decided against having natural children and instead opting to be great aunts and uncles or godparents to other's children. When considering passing down wealth accumulated over their lifetime, mid-to-high earners that are childless and perhaps with few options of relatives to pass down their legacy, charitable giving should be a consideration. Some may opt for a particular cause, a neighborhood recreational center, their alma mater, or a scholarship in their name for specified students. Many want to pass down specific items of sentimental value to specific beneficiaries. This could be anything from heirloom china, precious metals, jewels, or a prized vehicle. Increasingly, people are looking for the ability to pass on sports season tickets to their beneficiaries or gift them back to their schools of higher learning. These charitable gifts differ from program to program, team to team.

Investment Example

Real estate investment trusts (REIT) are generally private real estate investments that use the collective buying power of an investor community to acquire high-quality assets. Using Fundrise as an example, one can invest in tangible assets over several years and generate high returns with low management costs. Suppose you “set it and forget it” to build that investment portfolio and later decide to gift it to charity. In that case, Fundrise allows you to add a beneficiary fusing the relationship of a trust, entity, estate, or individual. 

There are several ways to consider charitable gifts as part of estate planning. However, one should consult a trusted estate or tax attorney to ensure their goals are met using the proper vehicle through the proposed plan before making the gift.

*By using the invitation link to Fundrise you will receive $50 bonus shares if you sign up.