There are many ways to provide financial support to the charitable causes you care about. Six options, each offering you different potential benefits, are introduced here. The one that is right for you will depend on the secondary objectives – tax reduction, establishing a legacy, retaining an income from the donated assets, anonymity, control, cost, and so on – that you hope to achieve with your charitable gifts.
For example, if tax reduction is a high priority, a direct gift to a qualified charity or a donation to a donor-advised fund may be good options because each allows you to potentially deduct the full value of your gift. If your objective is to establish a family tradition of philanthropy, private foundations and donor-advised funds may be good choices because they generally offer you the option to involve family members in grant-making decisions. Plus, private foundations and some donor-advised funds have the potential to last for generations.
Direct Giving – A straightforward option for individuals who want to donate cash, securities, or other assets that will immediately benefit the charity.
Donor-Advised Funds – An easy-to-manage, cost-effective alternative to a private foundation for individuals who want to recommend grants to charities.
Private Foundations – A grant-making vehicle for individuals who want maximum control over the foundation’s assets and grants.
Charitable Gift Annuity – An option for individuals who want to support only one charity and receive a fixed stream of income in return for their gift.
Pooled Income Fund – An easy-to-manage option for individuals who want to support one or possibly more charities and receive a variable stream of income in return for their gift.
Charitable Remainder Trust – An option for individuals seeking a stream of income in return for their charitable gift, as well as maximum flexibility.
Contact a Samuel Goldstein & Co. Professional today for assistance in determining which option is right for you.