Gift Strategy Chart



  • Support today
  • Receive charitable income-tax deduction
 An outright gift of cash Deduct the full value of the gift for federal income-tax purposes.
  • Support without depleting your cash reserves
  • Avoid capital-gain tax
A gift of appreciated property Decrease the out-of-pocket cost to you by avoiding capital-gain tax.
  • Make use of assets you may no longer need to support
A gift of a paid-up life insurance policy Receive an immediate income-tax deduction for the lesser of net premium paid or the fair-market value of the policy.
  • Leverage the equity in one of your largest assets to support
A gift of real estate Receive an income-tax deduction and avoid capital-gain tax. May retain the right to live in your home, for a residence or farm.
  • Provide support for
  • Minimize taxes on the transfer of a business you own
 A gift of closely held business stock Receive an income-tax deduction and avoid capital-gain tax.
  • Make a significant future gift without affecting your current lifestyle
A charitable bequest Reduce estate and death taxes, and retain control over your assets during your lifetime.
  • Leave assets to and your heirs upon your death but you are not sure what to leave to whom
 Designating as a beneficiary of your retirement-plan benefits Avoid estate and income tax on retirement-plan assets while making other property available to your heirs.
  • Make a significant gift to
  • Retain an income for yourself
 A charitable gift annuity Receive a current income stream and an immediate income-tax deduction.
  • Receive a charitable income-tax deduction now
  • Receive income later
 A deferred-payment gift annuity Receive an immediate income-tax deduction and income to begin at a future date you choose (e.g. at retirement).
  • Make a significant gift to
  • Retain a variable income for yourself
 A charitable remainder unitrust Receive a variable income stream and an immediate income-tax deduction and avoid capitol-gain tax.
  • Make a significant gift to
  • Retain a fixed income for yourself
 A charitable remainder annuity trust Receive a fixed income stream and an immediate income-tax deduction and avoid capital-gain tax.
  • Use your assets to support today
  • Retain control over the distribution of those assets to heirs
 A nongrantor charitable lead trust Freeze value of assets contributed for gift- and estate-tax purposes and avoid estate tax on future appreciation.