People are often unsure of the definition of "planned giving". A gift is “planned” to the extent that the donor purposefully integrates a charitable gift into the donor’s overall financial, tax, and estate planning. A "planned" gift enables a donor to make a positive financial difference for the donor and for his family, while also making an important gift to Penn State. Planned gifts are often thought of as "leaving a legacy" that benefits not only the donor and the donor’s family, but also future generations.
Under the right circumstances, a planned gift can provide a donor and his family with a variety of benefits including:
- Increasing current income for the donor or others;
- Reducing income and/or estate taxes;
- Reducing or avoiding capital gains taxes;
- Passing assets on to family members at reduced tax costs;
- Making an important gift to Penn State.
Planned gifts can be made using many different kinds of assets. Most planned gifts are made with cash or appreciated marketable securities. However, depending on the donor’s particular circumstances, gifts can be made using qualified retirement account assets, real estate, insurance policies, and even artwork or business interests.