The Tax Law of Charitable Giving, 6th Edition

CHAPTER NINEPlanned Giving and Valuation

• § 9.1 Planned Giving Fundamentals
  • (a) Introduction to Planned Giving
  • (b) Core Concepts
• § 9.2 Partial Interests Law
• § 9.3 Overview of Valuation Law
• § 9.4 Standard Actuarial Factors
• § 9.5 General Actuarial Valuations
• § 9.6 Nonstandard Actuarial Factors
• § 9.7 Securities Laws

§ 9.1 PLANNED GIVING FUNDAMENTALS

Planned giving appears to some as a deeply mysterious and complicated subject. The larger charitable institutions and organizations commonly have a planned giving program of one type or another. Other charitable entities may think about a planned giving program from time to time; many of them postpone implementation of a planned giving program to another day—a tomorrow that may never come.

(a) Introduction to Planned Giving

Donors and the charitable organizations they support commonly expect gifts to be in the form of outright transfers of money and/or the entirety of interests in property. For both parties, this type of gift is, from a financial standpoint, quite basic: the donor parts with the item contributed and the donee acquires it. The advantages to the donor in these instances may be confined to the resulting charitable contribution tax deduction (assuming, in the case of individuals, itemization of deductions) and the satisfaction the donor may experience as a consequence of making the gift. If the gift is of property that has appreciated in value, the donor may have another financial advantage in the form of sidestepping ...