Planned giving (less commonly known as gift planning) is an area of

fundraising Fundraising or fund-raising is the process of seeking and gathering voluntary financial contributions by engaging individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gathe ...

that refers to several specific gift types that can be funded with cash, equity, or property. These gift vehicles are commonly based on

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

tax law Tax law or revenue law is an area of legal study in which public or sanctioned authorities, such as federal, state and municipal governments (as in the case of the US) use a body of rules and procedures (laws) to assess and collect taxes in a ...

, but Canada, the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

, and other nations are beginning to establish similar laws. In the United States the specific rules of planned giving are defined by the

United States Congress The United States Congress is the legislature, legislative branch of the federal government of the United States. It is a Bicameralism, bicameral legislature, including a Lower house, lower body, the United States House of Representatives, ...

and the

Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...

Education

The use of planned giving by colleges and universities was pioneered by Allen Hawley at

Pomona College Pomona College ( ) is a private university, private Liberal arts colleges in the United States, liberal arts college in Claremont, California. It was established in 1887 by a group of Congregationalism in the United States, Congregationalists ...

. In 1942, Hawley introduced what became known as the Pomona Plan, where members receive a lifetime annuity in exchange for donating to the college upon their death. The plan's model has since been adopted by many other institutions, although the annuity rates offered by Pomona remain among the highest.

Types of planned gifts

* Charitable bargain sale * Charitable Gift Annuity (CGA) * Charitable Remainder Annuity Trust (CRAT) * Charitable Remainder Unitrust (CRUT) * Charitable remainder trust *

Charitable lead annuity trust Charity is the voluntary provision of assistance to those in need. It serves as a humanitarian act, and is unmotivated by self-interest. Various philosophies about charity exist, with frequent associations with religion. Etymology The word ''ch ...

* Charitable lead trust *

bequest A devise is the act of giving real property by will, traditionally referring to real property. A bequest is the act of giving property by will, usually referring to personal property. Today, the two words are often used interchangeably due to thei ...

* Donor Managed Investment Account *

Pooled income fund The Pooled Income Fund (PIF) is a type of charitable mutual fund or charitable trust that pools the securities or cash separately donated by an individual, a family or a corporation to a charity, which is then invested to provide dividends for bot ...

Retained life estate In the United Kingdom and Ireland, a retained firefighter, also known as an RDS firefighter or on-call firefighter, is a firefighter who does not work on a fire station full-time but is paid to spend long periods of time on call to respond to emer ...

Testamentary life income A testator () is a person who has written and executed a last will and testament that is in effect at the time of their death. It is any "person who makes a will."Gordon Brown, ''Administration of Wills, Trusts, and Estates'', 3d ed. (2003), p. 55 ...

Assets to give

Securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

* Business Interests *

Cash In economics, cash is money in the physical form of currency, such as banknotes and coins. In book-keeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-i ...

Life insurance Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typical ...

Personal property Personal property is property that is movable. In common law systems, personal property may also be called chattels or personalty. In civil law (legal system), civil law systems, personal property is often called movable property or movables—a ...

* Real estate *

Retirement plan A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a "Defined benefit pension pla ...

References

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External links

Philanthropy