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Cash
An outright gift of cash is the most common and easiest way to make a gift to any charity. It may be an important piece of your overall structured gifting, but an outright gift is often not the best choice to make. A gift of cash is usable immediately by the charitable recipient for the purpose(s) you specify, and the impact of cash always has a direct correlation to the size of the gift. This makes it simple to immediately determine what your tax deductions should be. You may also use cash in just about any of the other estate planning tools. However, you should consult with a competent advisor before doing so. If you are using charitable or estate planning tools, it is sometimes wise to use assets other than cash.
Is this right for me?
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Do I want to benefit a Charity? - yes
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Do I have enough cash to make a gift of cash? - yes
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Do I want to benefit the charity in my life time? - yes
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Is keeping things simple important enough to me that I am willing to give up some possible benefits of giving other assets? - yes
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Do I have highly appreciated property I would be willing to gift and avoid capital gains taxes on? - no
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If your answers match the answers above then an outright gift of cash may be appropriate. If your answers vary, cash may still be an important part of your gifting strategy.
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How Do I Make a Gift of Cash Using Gift Planning Tools?
Cash can be given to your charity or charities in any form in which the charity can receive donations. This may include cash, credit, checks, wire transfer etc.... Do not forget, however, that cash can also be used gifts that can provide an income for you or your loved ones. This type of gift is made through a planning tool such as a charitable remainder unitrust, charitable remainder annuity trust, or a charitable gift annuity. In larger estates it may be appropriate to give an immediate income stream to a charity and have the remainder go to your loved ones after a number of years through a charitable lead trust. Charitable Remainder Trusts (CRTs) offer some income tax deductions based on the Net Present Value of the amount the charity is expected to receive. Depending on how it is drafted, a Charitable Lead Trust may offer income tax deductions as well.
If you want to gift to a charity but do not feel comfortable giving very much now, you may also plan now for a gift made at your death through a revocable trust or a will. Virtually all gift tools can be used in conjunction with cash.
Tools Used With This Asset (Cash)
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