Major and Planned Giving
A major gift represents a significant investment on the part of the donor, and it is intended to benefit the institution to a greater degree than a typical gift does. A major gift is often a combination of an outright cash gift and a planned gift.
A planned gift is a provision made through some appropriate legal contract or through a deed or will that does not become effective and complete until certain conditions described in the contract have been fulfilled. The contract may be in the form of a last will and testament, an insurance policy, a trust, or some other legal agreement.
Advantages of Planned Giving
- In most cases, a planned gift is arranged as a part of a total estate plan, thereby giving the donor, and his/her family, financial planning counsel and protection
- It provides money management for individuals or family for lifetime
- Arrangements may be made to provide income for the lifetime of the donor or other named beneficiary
- It increases annual income for some persons with low-yield assets
- The personal satisfaction of making a major gift to a charitable interest like Illinois Wesleyan University
- A donor may say what he/she wants to do with a certain gift in the future, and at the same time be recognized for it in his/her lifetime by the charitable interest
- It enables some donors to receive tax benefits for the particular situations they find helpful at that time
Federal income tax - annually
Capital gains tax – at sale of appreciated real property
Federal estate and state estate taxes – at death
Learn more about types of planned gifts.