Planned Giving

Planned Giving is an essential way to ensure that your family and your land are protected while taking full advantage of favorable federal and state tax laws. A gift to CTNC can be both meaningful and financially wise. Depending on the method and timing of your gift, you may:

	Reduce your income, capital gains, and/or estate taxes
	Receive income
	Retain control of your assets now and reduce future estate taxes
	Have the peace of mind that you are protecting your family’s financial security while conserving North Carolina’s natural heritage for generations to come.

The most common elements of Planned Giving are:
Outright gifts – These can take many forms including cash, stocks and bonds, real estate, insurance, and personal property. For the donor, such gifts are deductible for income tax purposes.

Bequests – There are three types of bequest gifts: specific, residuary, and contingent. Deferred gifts to CTNC through a will are fully deductible for estate tax purposes.

Life Income Gifts – An asset is given irrevocably. CTNC invests the asset and some or all of the income generated by the investment is paid to the designated beneficiary, typically the donor or donor’s family. The asset is used by the recipient upon the donor’s death.

Land Donation – There are several options for donating land.  The value of land donated can be claimed as an income tax deduction equal to the land’s current fair market value. Land donation will also remove its value from an estate, reducing future estate taxes. A qualified conservation property can be eligible for an estate tax exclusion of 40% up to $500,000 under section 2031(c) of the IRS tax code.

The legal counsel for CTNC will be happy to discuss any of these planned giving options with you and your legal and financial advisers to determine which options best meet your objectives.

Contact us for more information on estate planning and gifts of stocks and mutual funds. Our Wachovia Marketlink account is 3005469212 and DTC number for electronic transfers is 0346. Your broker can arrange the transaction for you or you can call CTNC (919-828-4199) for assistance. CTNC’s Wachovia Securities Account Number is 54677697, DTC 0141.

Community Foundations
Community foundations pool designated and/or endowment funds that provide income to charitable organizations in perpetuity. They provide donors who may have diverse financial capabilities and interests with a cost-effective and permanent method for carrying out their charitable objectives.

CTNC has accounts at the North Carolina Community Foundation and the Community Foundation of Western North Carolina. Donations to CTNC can be made to the "North Carolina Land Trust" at the North Carolina Community Foundation or to "The North Carolina Land Trust Endowment Fund" or "Blue Ridge Parkway Fund" at The Community Foundation of Western North Carolina.

Overview of Some Planned Giving instruments

Type of Gift	Form of Gift	Benefit to Donor	Benefit to Nonprofit
Outright Gift	cash securities real estate insurance personal property	deductible for income tax purposes	funds availabe for immediate use by organization
Bequests: Anything one owns at the time of death may be passed on to an individual or an organization through a last will and testament. All types of life income gifts can be made in testamentary form to benefit family and friends before becoming available for use by the named organization.
Life Income Gifts
1. Pooled income funds	cash appreciated securities	variable income that may provide hedge against inflation tax deduction when gift is made no capital gains tax on appreciated gift	ensures future funding
2. Charitable remainder unitrust	cash securities real estate	same as pooled income funds plus can be tailored to donor's situation permits deferred income includes real estate	ensures substantial future funding
3. Charitable remainder annuity trusts	cash securities	fixed income tax deduction in year gift is made no capital gains tax on appreciated gift alternative minimum tax may apply	ensures substantial future funding
4. Charitable gift annuity	cash securities	fixed income for lifetime tax deduction in early years of gift	portion of funds can be available to organization ensures future funding upon death of insured, remaining principal paid to organization
Charitable Lead Trust	cash securities real estate	property can be passed to others with little shrinkage due to taxes	provides organization with present income for the length of the trust for ten years
Revocable Charitable Trust	cash	all or part of amount placed in trust is available to the donor if necessary removes burden of managing assests	provides future funding