Charitable Giving

Making the most of giving

We recognize that philanthropy can create a great sense of personal satisfaction by enabling you as a donor to support causes and organizations that are important to you. But charitable giving can also offer significant tax advantages including current income tax deductions, reduction or elimination of capital gains taxes, and reduced estate taxes.

Our advisors can help you design a charitable giving plan that will reflect your values while optimizing the tax benefits of your gifts. We'll also assist you in evaluating the various forms charitable giving can take,* including:

Outright gifts
These benefit charities immediately and exclusively and provide a gift tax deduction for the donor.

Will or trust bequests and beneficiary designations
Through a provision in your will or trust document, or use of a beneficiary designation form, the charity receives the gift upon your death, at which time your estate can take the income and estate tax deductions.

Charitable trusts
You can name a charity as the sole beneficiary or name other, non-charitable beneficiaries as well. (This is referred to as making a partial charitable gift.) The most common types of trusts used to make
partial gifts are:

Charitable lead trust: A charitable lead trust is indicated if the client is willing and able to personally give up income for a given period of time, but would like the capital either to come back to them personally or to pass to a designated family member or others at the end of that time. This trust pays income to a charity for a certain period of years, and then the trust principal passes back to you, your family members or other heirs. A charitable lead trust allows you to keep an asset in the family and still enjoy some tax benefits.

Charitable remainder trust: The mirror image of the charitable lead trust, this type of trust pays income to you, your family members or other heirs for a period of years, then the principal goes to your favorite charity. This arrangement provides you a stream of current income over a specified period – a desirable feature if there won't be enough income from other sources.

Private family foundation
As a separate legal entity, this vehicle can endure for many generations after your death. You create the foundation, and then transfer assets into it. The foundation, in turn, makes grants to public charities. You and your descendants have complete control over which charities receive grants. However, unless you can contribute enough capital to generate funds for grants, the costs and complexities of a private foundation may outweigh its benefits.

Community foundation
Similar to a private foundation, a community foundation accepts donations from many sources. It is overseen by individuals familiar with the community's particular needs and professionals skilled at running a charitable organization.

Donor-advised funds
Similar in some respects to a private foundation, this fund is actually an account that is held within a charitable organization. Once you transfer assets to the account, the organization becomes the legal owner of the assets and has ultimate control over them. You may advise – but not direct – how your contributions will be distributed to other charities.

*Some information on this page has been provided to us by Forefield, Inc., an independent third party. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.

For more information on these topics, contact us or visit Where to Learn More.

10 Tips for Giving Wisely
IRS-Approved Nonprofit Organization Database and Tax Exemption Information
Charitable Giving at Raymond James
Explore Other Charitable Giving Resources and York County Foundations