What is Gift Planning?
Gift planning is charitable giving that aligns with your charitable, financial, tax, and estate goals. Thoughtful, tax-wise strategies can help you make meaningful gifts during your lifetime and through your estate.
There are many advantages to incorporating gift planning into your estate plan. Gift planning can allow you to make a larger gift than you may have thought possible, creating a greater impact for the mission of Luther College, both now and in the future through your estate. In addition, many gift plans offer valuable benefits, including charitable income tax deductions, estate tax savings, and the ability to avoid capital gains taxes. Some plans also provide a lifetime stream of income for you or your loved ones. Others provide income to the college and principal to the donor's heirs.
Such gifts often require deliberation, planning and counsel. These gifts may be current or deferred through a person's estate. They often involve the gifting of assets (versus outright cash gifts) such as appreciated securities, real estate, business interests, retirement plans, life insurance, collectibles and so forth. The strategies can also involve blended giving, which means outright gifts combined with future gifts to make a person's giving go further.
There are several types of gift plans:
- Outright asset gifts
- Qualified charitable distributions (QCDs)
- Bequests via will or trust
- Beneficiary designations
- Charitable life income plans
- Charitable lead trusts
- Donor advised funds (DAFs)
- Charitable life estates
- Zero-tax gift and sales
These planned gifts can also be combined. For more details, visit our How to Give page.
Which gift plans are appropriate for you greatly depends on your personal situation and planning goals for you and your family.
A wise man once said the "art of gift planning" involves connecting the head, the heart and the wallet of the donor:
- The head - Understanding why Luther College needs and is worthy of my support, and how my support will impact the college
- The heart - My wealth follows my passions
- The wallet - Does this gift make sense for me and my family given my personal situation and goals?
Contact us today to learn more about gift planning. We welcome the opportunity to assist you.
