Types of Charitable Giving
Outright Gifts include cash gifts which are the simplest form of charitable giving by a donor and shares of stock, which are typically a long-term appreciated security. Donors will not incur capital gains taxes for the gift of the stock to the charitable organization.
Charitable Lead Trusts are trusts established by a donor who transfers assets into the trust. After a period of time, the charity receives income and the balance of the trust is then paid out to the beneficiary who receives potential tax benefits, such as an income tax deduction for charitable donations.
Charitable Remainder Trusts are also trusts established by a donor who transfers assets into the trust. However, the beneficiaries and donors are paid first, receiving their stream of income before the charitable organization does.
Charitable Gift Annuity program is a contract between a donor and a charity where the donor makes a gift to the charity using cash, securities or other assets. In return, donors are eligible to take a partial tax deduction for the donation and receive a fixed stream of income from the charity for their lifetime.
Private Foundations can provide consistent support to causes you care deeply about. Funding for a private foundation generally comes from a single individual, a family or a corporation. A foundation can afford you both tax benefits and the prestige that comes with running a charitable organization in your name. Control of the private foundation can stay with the donor, depending on how one drafts the charter. Since it can exist in perpetuity, a foundation can become a living family heirloom that is passed down through generations. The IRS considers many private foundations as nonprofits. They consider contributions to them as tax deductible, and thus can reduce the donor’s income tax.
Deferred Gifts Testamentary Transfers
Gift under A Will is when an individual names an organization under his/her Will to receive a specific bequest or as a residuary beneficiary of money or property.
Transfer On death (TOd) Account* is one where a donor designates a charitable organization as the beneficiary of a brokerage or investment account that will be paid over to the organization upon the donor’s passing.
Trust and Asset Management Services
OceanFirst Bank, N.A. works in conjunction with its strategic partner, Addison Capital, to manage custom portfolios for individuals, business owners and non-profit organizations, including charitable gift annuity programs and endowment funds. All accounts and portfolios are tailored to the specific needs of each client based on sound, proven investment principles. In addition, OceanFirst Bank has the ability to serve in the capacity as an Executor in an individual’s Last Will and Testament. The Bank can also serve as a Trustee in testamentary trusts, revocable and irrevocable trusts, charitable trusts and special needs trusts.
Additional Resources about Charitable Giving