Comparing the Benefits

	Donor Receives	Tax Savings	Other Advantages to Donor	Junior Achievement Receives


Bequest by Will More Information	The satisfaction of knowing that a meaningful gift to Junior Achievement has been arranged.	Federal estate tax deduction for amount bequeathed to charity.	Opportunity to make a substantial gift to Junior Achievement without depleting funds needed during life. May be revised at any time.	A substantial gift to further its mission.


Charitable Remainder Annuity Trust More Information	Fixed annual income to donor and/or other beneficiary(ies). Income amount defined in trust agreement (at least 5% of initial trust assets).	Income tax charitable deduction for the part of the assets placed in trust that is expected to go to charity. Value of trust assets at death generally deductible from estate for tax purposes.	Asset preservation. Supplement income for the donor or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds.	A substantial gift when the trust terminates. Knowledge of the gift helps charitable entities in planning to meet future needs.


Charitable Remainder Unitrust More Information	Variable annual income to donor and/or other beneficiary(ies). Rate of income defined in trust agreement (at least 5% of trust assets).	Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes.	Asset preservation. Supplement to income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds.	A substantial gift when the trust terminates. Knowledge of the gift helps Junior Achievement in planning to meet future needs.


Charitable Lead Trust More Information	Donor receives no income from the trust. Check with advisors on specific tax treatment of different types of charitable lead trusts.	In most cases either a current income tax charitable deduction or gift and estate tax deductions.	May provide a means to make a significant gift and have assets returned to donor, or transferred to loved ones at reduced cost.	Either fixed or variable payments for the term of the trust.


Revocable Living Trust More Information	Income earned by trust may be paid to donor, charity, or other(s).	No income tax benefits (unless income goes to charity). When property passes to the charitable beneficiaries at death of donor, estate tax deduction applies against any applicable federal estate tax.	Opportunity to change the trust (and gift), if desired. Avoidance of probate. Opportunity for professional management of assets in trust.	A substantial gift, in many cases larger than the donor could comfortably give otherwise.


Gift Annuity Agreement More Information	Fixed annual payments to donor and/or other beneficiary. Rate of payment based on age(s) of annuitant(s).	Income tax charitable deduction for part of funds transferred. Payments partially tax-free for a time.	Donor or other annuitant receives supplement to income.	A portion of the amount used to fund a gift annuity will be used to further the work of Junior Achievement.


Pooled Income Fund More Information	Variable annual income based upon a pro rata share of the pooled investments of the trust.	Income tax charitable deduction for calculated value of gift to the charitable organization. Value of fund units generally deductible from estate for tax purposes.	Possibility that income payments may increase over time.	Distributions from the pooled fund at the death of income recipient.


Cash	Convenient and accessible.	Income tax deductible for itemizers up to 50% of adjusted gross income (AGI). Any excess is deductible over the next five years.

Appreciated Property	Conserves cash for other uses.	Income tax deductible as above, but up to 30% of AGI. Capital gains tax not incurred; full value of asset is deductible.

To discuss other types of assets including cash, properties, and investment securities, simply dial
JA President Larry Timm at (309) 258-0828. All calls are kept in strict confidence.

Neither the author, the publisher, nor JA.biz is engaged in legal or tax advisory service. For advice or assistance in specific cases, the services of an attorney or other professional advisor should be obtained. The purpose of this web site is to provide general gift, estate, and financial planning information. Watch for tax revisions. State laws govern wills, trusts, and charitable gifts made in a contractual agreement. Advice from legal counsel should be sought when considering these types of gifts. Calculations of tax deductions will vary based on applicable federal discount rates, which change on a monthly basis. Check for current deductions before completing your gift.