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The right type of charitable gift can maximize philanthropic impact and tax benefits while providing financial benefits during the donor’s life. Here’s a look at three of the major gift types.

Many individuals and families see charitable giving as an important way to express their values and support meaningful causes. Charitable giving can also provide solutions for tax and estate planning strategies, creating opportunities to do well by doing good.

 

Cash given directly to nonprofits is the simplest and one of the most popular means of charitable giving. Charitable bequests and testamentary giving, or giving after death, are also popular, particularly as part of estate planning. However, there are ways to give that can maximize a gift’s charitable impact and tax benefits while providing financial benefits during the donor’s life.

 

Charitable gift annuities and charitable remainder trusts are vehicles that can be established to make lifetime payments to the donor or other chosen beneficiaries, with any remaining value at the end of the period going to charity. Converselycharitable lead trusts make payments to charity for the trust period, with any remaining value at the end of the period going to the donor or other chosen beneficiaries.

 

It is important to fully understand these gifts when considering which one will best meet philanthropic and tax and estate planning needs. Here are guides that provide an overview of each gift type, as well as a summary table that compares all three.

 

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