Planned Giving encompasses a variety of charitable giving methods that allow you to express your personal values by integrating your charitable, family and financial goals.

Learn how Annie's careful planning allowed her to:

• Make a larger charitable gift than she thought possible


• Increase her current income


• Plan for the financial needs of her loved ones while reducing estate taxes and probate costs


• Reduce her income tax and/or avoid capital gains tax


• Leave a charitable legacy for future generations

Annie Arnold is a 65-year old retired day school administrator with a modest estate. In this example, Annie shows that with a little planning, a little can go a long way for both her family and charity.

The Facts:
When Annie Arnold told her closest friend she was planning to make a twice-blessed gift, her friend asked, "A what?" "I'm planning on using the same asset to make a gift to my favorite charity and then to my family," she told her friend. "I'm going to give the gift twice!"
Annie worked all her life, from her teen years until retirement at age 65. She had a married son and three grandchildren she loved dearly. She had been the administrator of the Community Day School for the last 30 years and had seen her students grow and blossom. Now, her former students were sending their own children to the day school. That is where the "twice-blessed gift" idea was born.

The Challenge:
Annie Arnold's estate was modest, about $250,000 which included the value of her modest home. With her retirement income, Social Security, Medicare, and careful planning, she managed just fine; however, there wasn't enough to make a major gift now. Annie owned a $100,000 asset that she planned to pass to her family. But how could she balance her love of family with her passion for young children who needed a quality day school experience? She wanted to give the asset to both her family and the day school, but giving half to each just didn't feel right. How could Annie benefit her family and her day school?

The Solution:
Annie Arnold posed that question to her financial advisor, Karen, a former student and close friend. Karen said: "Why don't you give the gift twice?" Give the $100,000 first to your Community Day School and then to your family. Karen went on to explain that Annie could create a Charitable Gift Annuity (CGA) by donating the $100,000 asset to the Community Day School. Annie would then receive a $40,000 charitable deduction and $6,000 or a 6% annuity payout rate annually for the rest of her life. Annie then could use a portion of her pay out to purchase a $100,000 life insurance policy and name her family as the beneficiaries.

Charitable Gift Annuity Example

The Result:
Annie talked to her family and told them about her plan. They were delighted. She then talked to the Community Day School administrator, and they were delighted too. In fact, the Community Day School initiated the Annie Arnold Scholarship. Now Annie tells all her friends, "I have made a twice-blessed gift." Indeed it will be!

UD Planned Giving