What is Planned Giving?

Planned Giving, often referred to as gift planning, provides a way for donors to make gifts to nonprofit organizations and simultaneously enjoy favorable tax consequences. Some planned gifts are relatively straightforward, such as a bequest in a will. Other gifts of this type may require more planning, providing current tax benefits as well as life income for the donor or the beneficiary or both.

Types of Planned Gifts

The most common form of deferred gift is a bequest from the donor's will. Charitable gifts made through a will are 100 percent tax deductible; no federal tax or state inheritance tax applies to such gifts.

A charitable remainder trust is an irrevocable trust. Under its terms, assets are transferred to a trustee, with income paid to one or more individuals for a predetermined number of years or for the lifetime of one or more individuals. When the designated time has expired, the trust principal becomes the property of the Pacific Research Institute for Public Policy (hereafter PRI) and is used for the purposes agreed to by the donor and the institute.

With a charitable lead trust, you can make a gift to PRI while also passing on assets to your children or grandchildren at a lower transfer tax cost. A lead trust pays either fixed or variable income to PRI, usually for a number of years. When the trust term ends, the principal goes to your family (or other designated beneficiaries).

Many people participate in various kinds of retirement plans: IRAs, Qualified Pension Plans, Keough Plans, etc. In some cases, there may be significant advantages to using retirement plan assets for charitable giving.

Life insurance is another deferred giving arrangement. A fully paid life policy that you have owned for many years or a new policy can be contributed to PRI.

A gift of real estate can often prove to be an effective way of making a gift to PRI. For a person in the right set of circumstances a gift of a remainder interest in a residence or a farm can make someone a philanthropist without a noticeable change in lifestyle.

When you decide to make a gift to PRI, we encourage you to meet with the Vice President for Advancement who will help you plan your gift to accomplish your philanthropic and financial goals.

For more information contact:

John Campbell
Director, Foundations and Major Gifts
415-955-6107
Fax: 415-989-2411
> email

We also recommend that you consult your attorney or accountant for the legal and tax implications of any gift you make to a charitable organization. We would be pleased to work with your financial and legal advisor to help you fulfill your philanthropic and financial goals.

Your gift does make a difference. Every gift, whatever its size, is needed and appreciated by PRI