Supporting your favorite charitable cause is as simple as writing a check, but other gift options could have a greater impact on the charity, your legacy and your financial situation.
Giving with impact doesn’t need to be complicated. Our team of advisors can introduce you to an array of giving options, and our financial planners can help you maximize your contribution based on the nature and extent of your assets. Your philanthropic team can help you determine which among your assets is the best to donate, as well as alternative ways to structure the gift. It may also be possible to make a gift while also continuing to receive an income stream, long-term, for you and your loved ones.
We can also help you determine how to inform the charity of your choice about your intentions using endowment or gift language that will ensure your legacy will continue many years into the future.
At First Citizens, giving back to the communities we serve and supporting the causes our associates treasure is an integral part of our corporate culture. And we want to be your partner as you begin or continue your charitable giving.
Your advisor can help you choose the giving methods that may be right for you as you build your legacy of support:
Will or Trust
A Will or Trust allows you to make a meaningful gift of cash, property or a percentage of your estate, with or without restrictions.
Cash or Check
A gift by Cash or Check is tax deductible now and can also reduce your potential estate taxes in the future. You also have the joy of seeing the immediate results of your generosity.
Personal Property and Securities
Gifts of Personal Property and Securities can help fulfill an organization's mission and provide a current income tax deduction, as well as relief from capital gains tax with gifts of securities. You can also give tangible personal property (art, collectibles, antiques, etc.) and you may be able to take a deduction for its full fair market value if the gift is used for an organization's exempt function.
Retirement Plan Assets
A significant amount of your Retirement Plan Assets could be consumed by taxes when given to your named beneficiaries. Donating Retirement Plan Assets to charitable organizations can reduce or eliminate this tax burden and allow you to leave less heavily taxed assets to your loved ones.
If you no longer need the coverage a Life Insurance policy offers, you can name a charity as the owner or beneficiary of your policy and your estate will not pay estate taxes on the policy proceeds the charity receives.
Avoid capital gains taxes with a charitable contribution of Real Estate (either your personal residence, a vacation home, a farm, commercial real estate or vacant land) and receive an income tax charitable deduction for the full fair market value.
Retained Life Estate
A Retained Life Estate allows you to give your home to a charitable organization, and still live there. This gift reduces your estate taxes and provides an income tax savings through a charitable deduction for a portion of your home's value. You continue to pay property taxes, maintenance costs and insurance.
Charitable Remainder Annuity Trust
If the yield on current investments in the stock and bond markets is not meeting your expectations, consider a Charitable Remainder Annuity Trust. You will receive a fixed dollar amount each year for life, or for up to 20 years from assets you place in the trust. This type of gift eliminates upfront capital gains taxes on long-term appreciated assets and can give you a partial charitable income tax deduction.
Charitable Remainder Unitrust
You can fund a Charitable Remainder Unitrust with cash or assets (appreciated property or stocks give you the greatest savings). This gift allows you to enjoy supplemental income each year, provides an income tax charitable deduction and eliminates upfront capital gains taxes (if you donate long-term appreciated securities). Then, after your lifetime, or a period of up to 20 years, the balance of the trust will support the charity(ies) of your choice.
Charitable Lead Trust
With a nongrantor Charitable Lead Trust, you can pass assets to your family, and save on gift or estate taxes, while supporting your favorite charity(ies). The trust is funded during your lifetime or through your will and provides income to your selected charity for a period of years. At the end of the term, the trust remainder may be paid to your loved ones at a reduced tax cost.
Charitable Gift Annuity
A Charitable Gift Annuity allows you to make an enduring gift by donating assets that a charitable organization can invest. You, and possibly an heir, receive lifetime payments, as well as a charitable deduction for a portion of the gift's value, and save on capital gains taxes when you contribute appreciated securities.
To design a gift-giving plan that benefits the people and organizations you care about most, we recommend that you consult with an estate planning attorney.
This material has been provided for informational purposes only and is not intended to provide tax, legal or accounting advice. You should consult your tax, legal and accounting advisors before engaging in any financial transactions.
First Citizens Wealth Management is a joint marketing mark of First Citizens Bank & Trust Company; First Citizens Investor Services, Inc., FINRA, Opens in a new tab/SIPC, Opens in a new tab, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. FINRA, Opens in a new tab/SIPC, Opens in a new tab. First Citizens Asset Management, Inc. provides investment advisory services.