Outright Gifts

Cash

  • Benefits
    • Simple to make
    • Donor receives maximum charitable income tax deduction
    • A gift Carleton can use today
  • Planning Tips
    • If your credit card gives you benefits (such as frequent flyer miles or cash back), and you don’t carry a balance on your card, making a gift to Carleton via credit card can earn you extra rewards.

Stock or mutual fund shares

  • Benefits
    • Can be used to remove an appreciated, but underperforming, asset from a portfolio
    • Donor receives maximum charitable income tax deduction
    • Donor avoids paying capital gains tax
    • A gift Carleton can use today
  • Planning Tips
    • Trying to decide between a gift of cash and a gift of stock? Consider this an opportunity to diversify your portfolio: Give stock to Carleton, then use the cash you saved to buy into a different stock.
    • Is your real estate more appreciated than your stock these days? A charitable gift of real estate can offer the same benefits as stock.

Life Income Gifts

Charitable gift annuity

  • Benefits
    • Creates a guaranteed source of fixed income
    • Donor receives a charitable income tax deduction for a portion of the gift value
    • The remainder of the gift can be used by Carleton after the death of the annuitants
  • Planning Tips
    • Can be funded with cash, stock, or mutual fund shares
    • To receive a higher payout rate and charitable deduction, make a gift today, but defer your first payment until later.
    • Suggested gift minimum: $10,000

Charitable remainder unitrust

  • Benefits
    • Donor creates a variable stream of income, with a potential hedge against inflation
    • Donor receives a charitable income tax deduction for a portion of the gift value
    • The remainder of the gift can be used by Carleton after the death of the income beneficiaries
  • Planning Tips
    • Can be funded with cash, stock, mutual fund shares, or real estate
    • Can be used to simplify asset management
    • Can be used to benefit multiple charities
    • Suggested gift minimum: $100,000

Estate Gifts

Will or trust provision

  • Benefits
    • Donor makes a commitment to Carleton today with little or no impact on current cash flow or investments
    • Donor retains maximum flexibility and asset control
  • Planning Tips
    • Gifts expressed as a percentage (e.g. “20% of the residue of my estate”) allow donors to maintain the same relative gifts to heirs and charities, regardless of changes in estate value.

Retirement plan provision

  • Benefits
    • Donor makes a commitment today with little or no impact on current cash flow or investments
    • Donor retains maximum flexibility and asset control
    • Donor maximizes inheritance preserved for heirs
  • Planning Tips
    • Gifts expressed as a percentage (e.g. “20% of my IRA”) allow donors to maintain the same relative gifts to heirs and charities, regardless of changes in account value.

Other Opportunities

Retained life estate

Donor deeds a home or farm to Carleton today, but retains the right to use the property for life.

  • Benefits
    • Donor receives a current charitable income tax deduction
    • Donor continues to use the property during life
    • After the donor’s death, Carleton receives the property
  • Planning Tips
    • Real estate that is unencumbered by a mortgage is the best choice for a charitable gift.

Charitable lead trust

Donor irrevocably transfers assets to a trust, which pays income to Carleton for its term. When the trust term ends, the assets are passed along to heirs.

  • Benefits
    • Donor creates a stream of income for Carleton
    • At the end of the term of the trust, the remaining assets are transferred to heirs
    • Can reduce estate taxes
    • Helps donor time inheritances
  • Planning Tips
    • These types of trusts are complex. For best results, discuss this option with your tax attorney and financial planner.