What is Planned (Legacy) Giving?

Planned giving (also known as legacy giving) is a type of charitable donation made over time or through an estate plan. This can involve gifts of a specific amount or percentage of your assets, including cash, real estate, life insurance, mineral interests or beneficiary designations. Planned gifts enable donors to support non-profits, like Children’s Health℠, with larger charitable gifts than they could make from ordinary income or through a check or cash today. 

Legacy of Giving vs. Planned Giving

Legacy giving and planned giving both refer to donations that are arranged in advance, often as part of a person's estate planning, but the terms are sometimes used interchangeably. Legacy giving typically refers to gifts made through a will or trust, leaving a lasting impact after the donor's death, while planned giving is a broader term that encompasses various types of charitable contributions arranged ahead of time, including bequests, life insurance policies, and charitable trusts. Although there is a subtle difference, many people use the terms to describe any long-term, strategically planned donation.

Legacy Giving

Legacy giving is a particular form of planned giving that aims to leave a lasting legacy through charitable contributions, typically made through a donor's will or estate plan. These gifts are often designed to make a meaningful difference after the donor's death, ensuring that their philanthropic values continue to support causes they care about for years to come.

Planned Giving

Planned giving is a thoughtful method of charitable giving that integrates philanthropy into a donor's financial strategy, typically with the goal of making a significant contribution later in life. It may also involve donating assets such as real estate or stock.

What are the Types of Planned Gifts?

At Children’s Health, our Legacy and Gift Planning team helps facilitate planned gifts for both today and tomorrow. These can be gifts of equity, life insurance, real estate, personal property, mineral interests, other appreciated assets or cash. Start your legacy giving today or contact us at giftplanning@childrens.com. 

Gifts for Today

Immediate impact gifts are planned gifts that provide support to a nonprofit right away. These gifts offer immediate tax benefits and may help donors avoid capital gains taxes. There is no cap on the size of these types of planned gifts.  
 
Examples of gifts for today: 

• Appreciated Securities/Stocks 

  • Publicly traded appreciated securities or stock that you have owned for more than one year can be transferred directly to Children’s Medical Center Foundation. We will sell the securities and keep the proceeds which will be designated to whichever area you choose. You will get an income tax charitable deduction based on the fair market value of the securities while also avoiding capital gains tax. Use our online tool to donate stock today or learn how to donate stocks to charity! 

• Retirement Assets (IRA/401K) 

  • If you are 70 ½ or older, you can donate tax-free distributions directly from your IRA to Children’s Medical Center Foundation as a qualified charitable distribution (QCD) up to $100,000 per year. To ensure your full tax benefit, we recommend making your QCD in advance of taking your required minimum distribution. Learn how to give through your IRA.

• Donor Advised Funds (DAFs) 

  • You may make a grant distribution from your DAF directly to Children’s Medical Center Foundation to support a designation of your choosing. Learn what a DAF is.

• Real Estate 

  • Whether it’s a family home, land, or a rental property held for more than one year, donating real estate to Children’s Medical Center Foundation could allow you to leverage one of your most valuable investments to achieve the greatest impact with your planned gift. You potentially avoid the capital gains tax you would incur if you sold the appreciated real estate yourself and donated the proceeds, and you may claim a fair market value charitable deduction.  

• Life Insurance Policies 

  • Gifting your life insurance policy is an easy and impactful way to support Children’s Medical Center Foundation through planned giving. If you no longer need your life insurance policy or it will no longer benefit your survivors, consider using it to establish or grow a charitable fund at Children’s Medical Center Foundation, which will continue giving back in your name forever.

Gifts for Tomorrow

Future legacy gifts are planned gifts that provide support in the long term, often after the donor’s lifetime. These gifts allow donors to plan for charitable giving while ensuring financial security for their heirs.

To support the future of Children’s Health, there are many easy gifts you can make by planning ahead. Depending on your needs and those of your family, you can leave a specific amount or percentage of your assets to Children’s Medical Center Foundation or create a gift that will provide you and a loved one with income in return for your lifetime(s).

Examples of easy gifts for tomorrow: 

• Bequests 

  • You make an arrangement in your living will or trust to benefit Children’s Medical Center Foundation by adding simple charitable bequest language, and the planned gift will impact the future of an area of your choosing. 

• Beneficiary Designations 

  • You can easily include Children’s Medical Center Foundation as a beneficiary designation for a specific amount or percentage on many accounts, including your checking and savings, IRA, DAF, and others. This can be done at no cost, without a notary, and can be updated at any time. Just log in to your accounts and add our organization as a primary or contingent beneficiary using our Tax ID 75-2062015 to make this update today. 

• Life Insurance Policies 

  • You may contribute an insurance policy now, making Children’s Medical Center Foundation both the owner and the beneficiary of the policy producing tax savings for you today, and Children’s Medical Center Foundation will receive the proceeds of the policy after the policy is realized. 

• Retirement Assets (IRA/401K) 

  • You can name Children’s Medical Center Foundation as the beneficiary of a portion or all of your IRA, 401(k), or other retirement plans. Once your estate is settled, the amount appointed passes to CMCF and your heirs avoid income and estate tax.

Life Income Gifts

Examples of life-income gifts: 

• Charitable Gift Annuity (CGA)  

  • A Charitable Gift Annuity is a type of planned gift enables you to make a donation to Children’s Medical Center Foundation today and receive fixed payments for lifetime in return. Payments may begin immediately (CGA) or can be deferred to a future date of your choice (Deferred CGA).  
  • This planned gift can be in the form of: 
    • Cash 
    • Securities 
    • *New* IRA (one-time gift up to $50,000) 
  • Minimum Gift: $25,000
  • Advantages:  
    • Easy to establish; no set-up costs 
    • Fixed, guaranteed payments for lifetime 
    • Payments can be designated for one or two lives, supporting yourself and a loved one 
    • Tax deduction in the year the gift is made 
    • Reduced, prorated capital gains tax on gifts of appreciated property 
    • Allows a deferred payment schedule, if desired (DCGA) 
    • Income payments can be made monthly, quarterly, or annually 
    • Payment rates are determined based on your age 

• Charitable Remainder Unitrust (CRUT) 

  • This planned gift is a tax-exempt, irrevocable trust designed to reduce your taxable income. The trust disburses income to the beneficiaries for a specified amount of time and then donates the remainder to Children’s Medical Center Foundation.  
  • This planned gift can be funded with: 
    • Cash 
    • Securities 
    • Appreciated real estate 
  • Minimum Gift: $100,000
  • Advantages: 
  • • Can provide income to one or more noncharitable beneficiaries 
    • Can be for life or for a term of years (up to 20) 
    • Receive a tax deduction in the year the gift is made or over a 5-year term 
    • Excellent for planned gifts of real estate 
    • No capital gains on tax gifts of appreciated property 
    • You can make additional contributions to the same trust 

• Charitable Lead Trust 

  • A charitable lead trust an irrevocable trust created to support one or more charities for a specified amount of time. After that period has expired, the remainder of the trust is then paid out to the beneficiary, resulting in a reduction of taxes owed by the beneficiary upon inheritance of the remaining balance. 
  • This planned gift can be in the form of: 
    • Cash 
    • Securities 
    • Real estate 
  • Advantages: 
    • Allows property to be passed to others with little or no shrinkage due to taxes 
    • Supports the charity immediately 
    • Beneficiaries of the trust are non-charitable, supporting your loved ones after the term of the trust 

What Are the Tax Benefits of Planned and Legacy Gifts? 

One of the overall benefits of planned giving is the tax benefit.  

• You can contribute appreciated property, receive a charitable deduction for the full market value of the gift, and pay no capital gains tax on the transfer.  
• Donors who establish a life-income gift, like a Charitable Gift Annuity or a Charitable Remainder Trust, receive a tax deduction for the full, fair market value of the gift contributed, minus the present value of the income interest retained. If you fund your gift with appreciated property, you pay no upfront capital gains tax on the transfer.  
• Deferred gifts, like bequests, beneficiary designation in a life insurance policy or retirement plan, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.  

Frequently Asked Questions About Planned Giving

• When to start planning your legacy giving

  Donors usually start thinking about planned giving as they near retirement age, but you can start the process as early as in your late 30s or early 40s. During this time, think about what causes are most important to you and where you can make your biggest impact while aligning with your core values.

• How to start your legacy giving

  A good first step is consulting with professionals, including an estate planning attorney or financial advisor. They can help you determine the best strategies for your unique situation and ensure that you are complying with all laws and regulations. Through this process, you can identify your priorities and consider which type of gift will be right for you.

• What is planned giving?

  Planned giving is any gift made as part of your estate planning to make a larger impact and leave a legacy through a wide variety of gift options catered to your familial and financial needs. 

• How do I know if I can make a planned gift?

  Contact our Legacy and Gift Planning team to learn about what may be the right option(s) for you. We will help you assess your situation to determine which assets may be more important to leave to family and which would be best left to charity. Most people can leave a significant planned gift to charity, whether it’s through a gift while you’re living or one that benefits the causes you care about as part of your legacy. 

• What is the most common type of planned gift?

  The most common type of a planned gift is a gift in your will. You make an arrangement now or in your will to benefit a charity indicating a specific amount or percentage, but the legacy gift is not received until after your death. View our sample bequest language to help create or update your will. 

• What are some types of planned gifts I can consider?

  Common and easy types of legacy gifts to consider are adding language to your will for a percentage or fixed amount, or beneficiary designations to your checking or savings, retirement, or DAF accounts. For more complex options or circumstances, we recommend reaching out to our Legacy and Gift Planning team for more resources. 

• What other assets can I use to make a charitable contribution? 

  In addition to cash, you can make a planned gift by donating appreciated assets, real estate, mineral interests, life insurance, and more.

• Does Children’s Medical Center Foundation have any planned giving tools?

  Yes, we have many tools that can help you make a gift today or make a plan for tomorrow! You can easily give a gift of stock, a distribution from your DAF, or make a will in 20 minutes or less with the FreeWill tool.