The Putnam City Public Schools Foundation and its programs are possible with our alumni and supporters. Donations received from local businesses and individuals are used to support various programs throughout the Putnam City district. Feel free to browse our website to see what the Foundation is doing and how you can participate in our exciting endeavor to enhance and enrich education in Putnam City.
Planned Giving
Becoming Familiar with the Concept of Planned Giving
Planned (or deferred) gifts are usually completed later in life and are often associated with estate planning. There are truly only three ways to dispose of an estate: 1) to family and friends; 2) to charity (voluntary philanthropist); or 3) to estate taxes (involuntary philanthropist). The goal of planned giving is to emphasize the first two methods and to reduce or eliminate the third option. It is a given that family comes first.
Let’s explore three types of gifts and how they can be made and the advantages of each.
A Current Gift—this is a donation you make now which can be used to meet an urgent need. You can see the beneficial results of your immediate gift without delay and you maximize your income tax savings if the gift is for a philanthropic purpose.
How the gift is made
1. Write a check or charge a credit card. Simple—quick and easy
2. Give appreciated assets you have held longer than one year. You receive an income tax deduction and avoid capital gains tax.
3. Donate property you have held longer than one year that is related to the charity’s exempt function. The advantages are the same as for #2 above.
4. Sell to us appreciated securities or real estate, held for more than one year, below market value. This bargain sale is part sale and part gift. You avoid capital gain on the appreciation attributable to the gift portion.
5. Fund a trust that provides payments to us for a term of years, and then pays the remainder to family members or beneficiaries of your choice. This charitable lead trust is a very smart way for anyone in high estate and gift tax brackets to benefit us and pass principal to others with reduced estate or gift taxes. This method works best when interest rates are low.
A Deferred Gift—a deferred gift is a planned contribution that you arrange now but that will not benefit us until later—perhaps after your lifetime. Your unique personal circumstances may dictate this strategy, especially if you contemplate a sizeable contribution.
How the gift is made
1. Through your will you give us money, property, or a share of your estate residue. A “bequest” can either be outright or contingent upon the death of a family member. You may consider a memorial gift.
2. Create a trust that will pay income to you or a relative for live, and then part or all of the remainder to us. This living or testamentary trust provides for heirs first and us thereafter.
3. Name us the primary or contingent beneficiary of a life insurance policy or transfer a policy to us now. You can contribute either a new policy or one no longer needed.
4. Name us as the primary or contingent beneficiary of part or all of your qualified retirement plan or IRA. This gift avoids twofold taxation (income and estate taxes) on distributions after your life time.
5. Deed your personal residence or farm to us but retain life use of the property. This life estate agreement avoids the hassles of selling your property and secures current income tax savings.
A Life Income Gift—this gift plan ensures you (and even a survivor) an income for life, as well as substantial tax savings. You can convert low-yielding assets into a higher income stream. You transfer assets to the plan now, and we receive the remainder after the beneficiary’s lifetime.
How the gift is made
1. Fund with cash, securities or other assets. With a charitable remainder annuity trust, you receive payments of a fixed dollar amount for life or term of years (not to exceed 20).
2. Fund with cash, securities or other assets. With a charitable remainder unitrust, you receive a fixed percentage of the market value of trust assets revalued annually for life or term of years (not to exceed 20).
3. Fund with cash or other assets. With a charitable gift annuity (where available), you receive fixed payments for life without investment worries.