Planning Today to Give Tomorrow
A planned gift is a charitable donation created in a donor’s lifetime but not available to the Cleveland Foundation until sometime in the future.
Types of planned gifts include:
Bequest by Will
A bequest to the Cleveland Foundation is the simplest means for providing for the future of the community and a donor’s favorite charities. Download the Cleveland Foundation’s bequest language.
Life Insurance
Life insurance policies are a unique planning tool; donors can name the Cleveland Foundation as a beneficiary of an existing policy or even create a new policy as they develop their philanthropic legacy.
IRA or Qualified Plan
Naming the Cleveland Foundation as the beneficiary of retirement assets is one of the most effective ways to include philanthropy in an estate plan.
Charitable Gift Annuity
A charitable gift annuity allows donors to receive income for their lifetimes in exchange for a gift today that will provide future benefits to their charities of choice.
Charitable Remainder Trust
A charitable remainder trust allows donors to provide for multiple beneficiaries and receive an income tax charitable deduction today and benefit their favorite nonprofits in the future.
Charitable Lead Trust
Assets transferred to a lead trust pay income to the Cleveland Foundation annually, for a term of years or life, and the remainder is typically paid for the benefit of donors or their heirs.
Comparisons of Planned Gifts
| Bequest | Charitable Gift Annuity | Charitable Remainder Trust | Charitable Lead Trust | |
|---|---|---|---|---|
| Revocable | Yes | No | No | No |
| Minimum Gift Amounts | None | $100,000 | $100,000 | $1 million |
| Appropriate assets that can be used | Virtually any | Typically cash or marketable assets | Virtually any | Virtually any |
| Tax Benefits Possible | Estate | Income and estate | Income and estate | Possibly income and estate (depending on how the trust is structured) |
| Will This Gift Create a Stream of Payments to One or More Individuals? | No | Yes (at a percentage determined by the age of the recipients) | Yes (at a pre-negotiated percentage) | No (However, this gift does allow for the transfer of property to one or more recipients with possible tax savings.) |
| Can Additional Gifts Be Made? | Yes | No | Yes (only the unitrust type) | Yes (only the unitrust type) |
| Age Limits to Creating | None | Payment beneficiaries must be at least 60. | Payment beneficiaries must be at least 60. Trust may also be based on a term of years. | Calculating ages must be at least 60. Trust may also be based on a fixed term of years. |
| Philanthropic Outcomes | Entire bequest can flow to the nonprofit organization |
The entire amount can become a fund at the foundation to be used for your organization or other organizations or for other selected purposes. |
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Read more about the asset types that can be used to establish a planned gift.