A planned gift is one that is legally provided for during the donor's lifetime but whose principal benefits may not accrue to the organization until a future time, generally at the death of the donor and/or the income beneficiary.
Planned giving connotes thoughtful preparation and planning, usually requires professional advice and can apply to all forms of gifts. The term is used most commonly for gifts of future interest.
Wills and Bequests
A charitable bequest is the most common form of providing an ultimate gift for a charitable cause and to perpetuate your life interest and influence into the future. A bequest is a provision in one's last will and testament where a gift or property is transferred from an estate to a charitable organization. A bequest can also be made by simply adding a codicil to an existing will.
LBF donors are encouraged to make bequests to the LBF under their wills and trusts. Such bequests will not be recorded as gifts to the LBF until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
Life Insurance Gifts
The LBF must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium payments, the LBF will include the entire amount of the additional premium payment as a gift in the year that it is made.
If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, the LBF may:
Life Insurance Beneficiary Designation
- Continue to pay the premiums.
- Convert the policy to a paid-up insurance.
- Surrender the policy for its current cash value.
LBF donors are encouraged to name the Foundation as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the LBF until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
Charitable Gift Annuities
The LBF may accept charitable gift annuities where the gift for funding is at least $25,000. The LBF's Gift Acceptance Committee may make exceptions to this minimum. The minimum age for life-income beneficiaries of a gift annuity shall be 55. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 45. No more than two life income beneficiaries will be permitted for any gift annuity.
Charitable Lead Trusts
The LBF may accept a designation as income beneficiary of a charitable lead trust. The LBF will not accept an appointment as Trustee of a charitable lead trust.
Charitable Remainder Trusts
The LBF may accept designation as remainder beneficiary of a charitable remainder trust with the approval of its Gift Acceptance Committee. The LBF will not accept appointment as Trustee of a charitable remainder trust.
Retirement Plan Beneficiary Designations
LBF' donors are encouraged to name the LBF as beneficiary of their retirement plans. Such designations will not be recorded as gifts to the LBF until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
Other Planned Gift Instruments:
- Deferred Payment Gift Annuities
- Pooled Income Funds
- Retained Life Interest Gifts