Being a nonprofit organization (click here to read our Mission Statement), we rely on donations from our members and the public to continue our work. One of those ways is ‘planned giving.’ Outlined here are different ways that planned giving can work for you. *A Note About Legal Counsel: We encourage every donor to consult legal counsel when making a gift.
What Gifts are Acceptable
Planned giving can be beneficial for people that want to give later or in increments over time. Giving in this way also allows for different tax benefits. There are five types of planned giving that meet various types of needs for our donors.
- Beneficiary Designations
- Life Estate
- Charitable Remainder Trust (CTR)
- Charitable Lead Trust (CLT)
A bequest is simply a gift of cash, asset, property or portion of an estate. This gift is written into the donor’s will and left upon their passing.
A beneficiary designation is when a donor leaves a percentage of particular types of assets, for example, an IRA or life insurance policy. These also offer significant tax deductions. These are set up not through a will but through the policy itself.
This is when the donor transfers a home or other property type to Ngakpa International but is allowed to live in the property for the remainder of their life. The benefit is that the donor can live in the property while receiving a large income tax deduction.
Charitable Remainder Trust (CTR)
This type of gift is where the donor transfers cash or property into a specific type of trust called a CTR. A CTR is exempt from income taxes and has the ability to sell property tax-free.
This is useful for people wanting to sell a piece of appreciated property without paying the capital gains tax. After the sale, the donor will get a fixed or variable life-income along with a significant tax deduction. This can be useful for people looking to retire or retirees. After the trust terminates the remainder will be passed on to Ngakpa International.
Charitable Lead Trust (CLT)
This type of trust can be beneficial for people with large estates looking to transfer property or cash while paying little-to-no estate or gift tax. After the trust is set up, a portion designated by the donor goes to Ngakpa International and the remainder goes back to the donor with any growth that occurred. Generally, a CLT lasts for between 5-25 years. The longer it remains in trust the more one saves in estate taxes.