Planned Giving differs from other types of fund-raising initiatives in that Planned Giving is a service that is offered to donors to assist in their estate planning needs while other fund-raising is generally focused on asking the donor for a gift. Although investment opportunities exist, donor intent must be the motive, not income or tax benefits. Once charitable intent is established, LSS will promote opportunity to make a gift that is in accordance with the donor's estate planning needs.

The LSS Foundation's Planned Giving Program focuses
on the following 4 types of planned gifts:

• Bequests
• Life Insurance
• Charitable Lead Trusts
• Life Income Plans
  • Charitable Remainder Trusts
  • Charitable Gift Annuities

BEQUESTS
Bequests are the most commonly used means of giving a major planned gift to perpetuate the donor's charitable interests beyond his/her lifetime. A Bequest can be in any form - cash, securities, real estate, etc. The additional benefit to the donor is a sizable estate tax deduction upon the death of the donor.
Characteristics

Revocability - you can change your mind.

No income tax deduction during lifetime.

Estate tax savings through a charitable deduction in taxable estate.

LIFE INSURANCE
Life Insurance is an especially easy way for less affluent donors to give to their favorite charity, often exceeding their means otherwise.
Characteristics

By giving up all incidents of ownership in a life insurance policy to LSS (right to borrow against it, right to change beneficiary, etc.), a donor may claim a deduction on her/his income tax for premiums as they are paid.

Irrevocable - you have given ownership to LSS.

No estate taxes as the estate no longer owns the policy.

In the event the donor becomes unable to pay the premiums, LSS may have the option of paying the premiums.

CHARITABLE LEAD TRUSTS
A Charitable Lead Trust is a separately managed Trust in which the donor places assets for a specific period of years with the income from the Trust initially going to benefit LSS (the charity). At the end of the specified period, the assets are passed on to the beneficiaries (heirs) or revert to the donor (the creator of the Trust).
Characteristics

Donor provides LSS (charity) with an income during which time LSS can be building other forms of future financial stability.

Allows the donor to give his/her heirs all future appreciation of the assets placed in the Trust without having to pay a gift tax on that appreciation.

No income tax savings on the initial gift.

LIFE INCOME PLANS
Charitable Remainder Trust ("CRT")
A Charitable Remainder Trust is a separately managed Trust in which the donor places assets for a specified period of time, usually until the death of the donor. The donor or his/her designee receives the income from the Trust during the period. However, at the end of the period, the assets pass on to the benefit of LSS (the charity). There are 2 types of CRTs: a Charitable Remainder Annuity Trust where the donor receives a fixed lifetime income; and a Charitable Remainder Unitrust where the Donor receives a lifetime income based on a fixed percentage of the fair market value of the Trust's assets.
Characteristics

The donor can leave a substantial legacy to LSS that will extend beyond the donor's lifetime and accomplish philanthropic goals.

Highly appreciated assets may be converted into increased lifetime income without capital gains tax consequence.

The donor can take a charitable income tax deduction based on IRS guidelines.

A portion of the annuity is tax free also based on IRS guidelines.

Charitable Gift Annuities
A Charitable Gift Annuity is a life-income contract between a donor(s) and the LSS Foundation. The donor(s) irrevocably transfers cash or negotiable securities to the LSS Foundation. In return, the LSS Foundation guarantees to pay the donor(s) fixed payments for life based on the age of the donor at the time of the gift. Under the terms of a charitable gift annuity agreement, your gift provides you with regular payments that never decrease in size or frequency, regardless of changes in the economy. Payments are backed by the assets of the LSS Foundation.
Characteristics

The LSS Charitable Gift Annuity can be established with a gift of $2,500, which will go to LSS upon the death of the donor(s) and make a lasting contribution in accordance with the donors' philanthropic goals.

The donor(s) receive an immediate charitable contribution deduction for a portion of the gift principal based on IRS tables.

The donor receives a portion of the annuity payments tax-free based on IRS tables.

The Charitable Gift Annuity may have one beneficiary (single life) for the payments or two beneficiaries for the payments (husband and wife). The payments continue until the death of both beneficiaries.

The annuity payment often exceeds other common forms of investment, e.g. Certificates of Deposit and the payment rate is based upon an industry standard for annuities, which is a factor of the chronological age of the donor at the time of the gift.

If you do not currently need more income but are concerned that you may possibly need additional income in the future, consider a Deferred Charitable Gift Annuity. This plan allows you to receive tax benefits today, but directs that payments not begin until a future time. Your interest rate will lock in at the time you elect to begin receiving payments, resulting in a higher payout rate because rates increase with age.