Planned Giving

Types of Planned Gifts

Bequest by Will or Living Trust

Naming a charity in your will or living trust enables you to support your community and retain complete control over the assets during your lifetime while earning a full charitable deduction on estate taxes.

This type of gift – called a charitable bequest – can be a specific dollar amount, a percentage or all of your estate, or what remains after other bequests are made. Or, you can specify that your heirs will receive lifetime income from your estate, with the remainder going to a nonprofit for charitable purposes.

Donor-Advised Fund

A donor-advised fund (DAF) can be used to give now, give later or both. A DAF succession plan engages family members within the philanthropic goals set by the donor. You can create your DAF during your lifetime or from your estate later on. DAFs are the most popular philanthropic option at the San Diego Foundation.

Charitable Gift Annuity

A charitable gift annuity involves a contract between you and your favorite charity, whereby you transfer cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income. Many of our donors, especially those age 70 and above, are very interested in fixed payments for life from a charitable gift annuity. For a married couple, the payments will last until both have passed away.

Charitable Remainder Trust

A Charitable Remainder Trust is a qualified trust that pays income to beneficiaries. After all income payments have been completed, the remainder is distributed to qualified charities. If you establish the trust, you may select the trust percentage or annuity amount, the person to receive the income from the trust, and the charities that will receive the principal of the trust after all income payments are completed. The major benefits of the trust are bypassing capital gains tax, increasing income, and receiving a charitable income tax deduction.

Charitable Lead Trust

Through a charitable lead trust, make significant charitable gifts now while providing for the eventful transfer of substantial assets to individual beneficiaries. You and your legal or financial advisor select assets to fund a lead trust: the charity receives a fixed annual payout from the trust, and the remainder goes to your beneficiaries at the end of the charity’s payout term. These funds may be distributed to charities you specify or added to a donor-advised fund, designated fund, a field of interest fund or the San Diego Foundation discretionary fund.

Charitable Endowment

Leave property or money in an endowment so that the charity does not spend the principal. Instead, the nonprofit, often a community foundation like the San Diego Foundation, grants the endowment income (as the donors often have done throughout their lives) per your instructions. It is helpful to suggest a general purpose for the endowment fund because it will last perpetually, and the original purpose for the gift may not exist in the future.

Life Insurance Policy

Gifting a life insurance policy allows you to make a significant legacy gift to the nonprofit community with tax benefits that you can enjoy during your lifetime. As is the case with many retirees with grown children, you may not need a life insurance policy as a financial safety net anymore. Through a relatively small annual cost of the premium, you can give a gift to your favorite charity that is larger than otherwise would be possible.

IRA, 401(k) or Other Retirement Assets

A retirement plan can be a tax-efficient and simple way of including your favorite charity in your estate plan. The tax advantage stems from the fact that most retirement plans are subject to income taxes, and possibly estate taxes, if left to an individual beneficiary. However, a charity that is named as the beneficiary does not pay income or estate taxes on the distribution.

Custom Estate Plan for Business, Investments or Child with Special Needs

If you own a family business, substantial real estate holdings or a large estate, then a custom plan that considers your special property goals and requirements can be created. A custom plan option is also useful if you have a child with special needs. A child with special needs may be provided for through a “special needs trust,” which gives you peace of mind and facilitates care of the child by providing resources and directions.