I often times get asked what is planned giving, and how does it work.  Planned giving, or charitable gift planning refers to the process of making a charitable gift of estate assets to one or more charities.  It is a process that requires consideration and planning in light of the donor’s overall estate plan.

These gifts usually include legal documentation and often require the assistance of a qualified professional advisor or planner to complete.  Because of the size and potential impact of such gifts, a donor should always consult with his/her professional advisor before completing the process.

Planned gifts are usually, but not always, deferred, meaning they are arranged now and fulfilled later.  For example, a person could include a provision in their will to make a bequest or gift to the St. John Lutheran Home Foundation.  This arrangement would be a planned gift.

Planned gifts can provide the donor with many benefits.  The benefits can include an immediate charitable income tax deduction, even though the charity may not receive the gift until a future date; deferral or avoidance of capital gains taxes on gifts of appreciated securities; retained increased income to the donor and/or their family; possible assistance in asset diversification, and most importantly, support for charity.

There are many different planned gift options, each of which must fit your individual circumstances.  The goal is to find the option that is most advantageous and most significantly impacts your planned giving or charitable giving goal, your family, and the causes you want to support. Please consider the St. John Lutheran Home Foundation in your estate planning.

Please contact Mark Machart, St. John Lutheran Home Community Relations Director at 1-507-723-3244 or e-mail mmachart@sjlhome.com for more information and assistance.