Planned Giving

Planned giving may be simply defined as any gift of size that involves financial planning or estate planning.  These major gifts range from outright gifts, planned over a period of years, which provide momentum for the Garden's current projects, to life income gifts that involve planning to maximize a donor's ability to benefit the Garden in the future, while gaining benefits for the donor in the present.

To explore how you might benefit from the latter, the life income type of planned gift, click here to try our NEW online gift calculator.  You will generate sample calculations for life income gifts that are tailored to your parameters.  Please know that the information you enter is completely secure and without obligation.

Ways to Give through Planned Giving:

• Outright Gift
  Gifts of size are generally planned over three to five years.  Annual payments on the pledged gift are frequently made using appreciated securities rather than cash to gain twofold benefits:  the avoidance of capital gains tax as well as the generation of a charitable income tax deduction. You might designate your gift to support a program, achieve a capital project, or create an endowment to support a program or project in perpetuity.
  
• Bequest
  The most common and simplest form of planned gift is the bequest, a gift made through one's Will or Trust.
  Bequest Language [with optional provisions]:
  "I give [the sum of $_______] [a ____ percent of the residuary of my estate] [(an asset, describe)] to Cleveland Botanical Garden, Cleveland, Ohio, its successor or successors, for [its general use and purposes] [the following purpose ________ (state purpose)]."
  
• Life Income Gift
  The two most common types of life income plans are the Charitable Gift Annuity (CGA) and the Charitable Remainder Trust (CRT).  While each provides comparable benefits -- a regular, guaranteed income for life, a charitable income tax deduction, reduced capital gains tax on appreciated securities if such assets are used to fund the gift, and a lasting legacy at the Garden -- the Charitable Gift Annuity is easier to create and may not require an attorney.  The Charitable Gift Annuity is a simple contract between you and Cleveland Botanical Garden whereby in exchange for an irrevocable gift of assets, the Garden provides you with regular fixed income for life.  The income rate is determined actuarially based on the age of the annuitant(s) and is usually more beneficial for people age 65 and over.
  
• Bequests from Retirement Plans
  When contemplating a charitable bequest of size, there are serious and sensible reasons to consider using the assets in your tax-deferred IRA (individual retirement account).  The Internal Revenue Service imposes significant income taxes on an IRA left to a non-spouse beneficiary.  That income tax, combined with the estate tax, will in many cases consume as much as 70% of the value of the retirement plan before it passes to the heirs.  An alternative is to make bequests to your heirs using assets not subject to income tax, such as appreciated securities, and name Cleveland Botanical Garden, a nonprofit institution, as the beneficiary of your retirement plan, as it will not incur such taxes.
  
• New Window of Opportunity for IRA Gifts
  A new Federal provision in the pension laws, as of August 2006, allows donors over 70.5 years of age to transfer $100,000 or less as a gift from their individual retirement account (IRA) directly to a tax-exempt charity without having to report the distribution as federally taxable income. It must be noted, however, that a corresponding charitable income tax deduction may not be made for the gift and, depending on state and local laws, the donor may incur taxes at those levels.  It is important to take advantage of this new provision, as it will expire at the end of 2007.

All planned gifts have one benefit in common.  They encourage thoughtful financial planning and help people make lasting philanthropic investments in the Garden, investments that make a difference.

If you have designated Cleveland Botanical Garden as a beneficiary in your will or trust, please let us know.  We would like to thank you and discuss how you wish your gift to be used.  To learn more about planning a gift to the Garden, please contact Lynne Feighan at (216) 707-2807.

The Perennial Society was established by the Garden's Board of Directors to recognize the generous individuals and families who have included Cleveland Botanical Garden in their estate plans.