Blended Gifts:
A Flexible

and Impactful
Charitable Gift

If you’re looking for a charitable giving option that offers flexibility, tax benefits, and a lasting impact, consider a blended gift, which combines two or more types of charitable bequests into a single, integrated gift.

Leave Blended Gifts to Charity

Blended gifts are an excellent option for donors who value flexibility in their charitable giving. By combining multiple forms of gifting into one package, donors can tailor their donations to align with their philanthropic goals and maximize the impact of their gifts. This flexibility extends to the types of assets that can be included in a blended gift, which can include cash, mutual funds, real estate investments, and other assets. 

Blended gifts offer donors the opportunity to support multiple charities with multiple types of gifts while still taking advantage of beneficial tax deductions. This allows donors to create a comprehensive and impactful philanthropic strategy that reflects their values and priorities. 

Moreover, with blended gifts, donors have the flexibility to specify how their gifts will be used by the charitable organizations they support. This may include directing funds to specific programs or initiatives, or restricting the use of the gift to a particular purpose or timeframe. 

Overall, blended gifts offer a high degree of flexibility and control to donors who want to make a lasting impact on the causes they care about. By combining different types of bequests into a single, integrated gift, donors can maximize the effectiveness of their charitable giving and leave a lasting legacy.

Understanding Blended Gifts

Blended gifts are a combination of two or more charitable giving options, such as a charitable gift annuity and a charitable remainder trust, that are integrated into a single gift. The goal of blended gifts is to create a more flexible and personalized charitable bequest that can maximize tax benefits and achieve specific philanthropic goals based on the donor’s unique financial situation, philanthropic interests, and estate planning goals.

Blended Gifts As a Popular Charitable Bequest Option Blended gifts offer several advantages over traditional charitable giving options. By combining multiple types of charitable bequests, donors can customize their gift to achieve their specific philanthropic goals, while also maximizing tax benefits and minimizing estate taxes. Blended gifts also offer flexibility in terms of how and when the gift is made, allowing donors to donate over time or in a lump sum, depending on their financial situation and preferences.

For charitable organizations, blended gifts offer a stable source of long-term funding, which can help them achieve their mission and sustain their programs over time.

Leave a Lasting Imprint on Hearts & Souls

With a charitable bequest to Rabbi Meir Baal Haness tzedakah in your will, you set us up as your messengers to replace difficulty and sadness with joy for many years to come.

Let’s Discuss Your Options

Leave a Lasting Imprint on Hearts & Souls

With a charitable bequest to Rabbi Meir Baal Haness tzedakah in your will, you set us up as your
messengers to replace difficulty
and sadness with joy for many
years to come.

Let’s Discuss Your Options

Maximizing the Benefits of Your Blended Giving

Blended giving is a great way to support your favorite charities and causes while maximizing the benefits of your donations, and with careful consideration and planning, you can maximize the impact of your donation and ensure it is used effectively by your chosen charities.

When considering blended gifts, potential donors should do thorough research and planning. They should research the charities they are considering donating to, using websites such as Charity Navigator or GuideStar to ensure the organizations have a good track record of using donations effectively.

They should also consult with a financial advisor or tax professional to determine the best types of gifts for their situation and to maximize their tax benefits.

In addition to the considerations listed above, it’s important to think about the long-term implications of your gift. For example, if you donate stocks or real estate, you can create a named fund that will exist for years to come, providing long-lasting support to your chosen cause. You can also set up a donor-advised fund or establish a charitable trust to ensure your gifts have a lasting impact. Planning ahead and researching potential options can help donors make an informed decision and ensure their gift will have maximum impact.

Here are some factors a donor should take into consideration when deciding which assets to include in their blended gift:

Tax Benefits: Consider the tax benefits of different types of assets and their associated tax deductions when making a decision.
Liquidity: Consider the liquidity of the asset and its ability to be converted into cash quickly and easily.
Return on Investment: Consider the potential return on investment for the chosen asset and how it will help the charity reach its goals.
Risk: Consider the amount of risk associated with the chosen asset, and how it may affect the charity’s ability to accomplish its mission.
Control: Consider whether the donor will have any control over the asset once it’s been donated and what that may mean for the charity’s operations.
Timing: Consider the timing of the donation and when the asset is likely to be converted into cash.
Matching: Consider whether the asset is eligible for matching funds and how that could benefit the charity.
Location: Consider the location of the asset and whether it will have any impact on the charity’s operations.

For example: A donor is considering donating their stock portfolio to a charity. They are taking into consideration the tax benefits associated with a donation of appreciated securities, the liquidity of the assets, the potential return on investment, the risk associated with the investments, the control they will have over the assets once they’ve been donated, the timing of the donation, the possibility of matching funds, and the location of the assets. The donor decides to donate their stock portfolio to the charity. They take the tax deduction associated with the donation of the appreciated securities, and the charity is able to convert the assets into cash quickly and easily. The donor has chosen an asset with a potential for a high return on investment, and with minimal risk. They will have no control over the asset once it’s been donated, and the timing of the donation allows for the charity to use the funds when they’re needed most. The donation is also eligible for matching funds, and the location of the assets will not affect the charity’s operations.

To create a blended gift, speak with your financial and legal advisors to determine the best strategy for your unique situation.

The Gifting Process for Blended Gifts: A Step-by-Step Guide

The gifting process for blended gifts involves several steps, including identifying the types of charitable bequests that will be included in the gift, selecting a charitable organization to receive the gift, and creating a customized gift agreement that outlines the terms of the gift.

Working with an experienced financial and legal advisor can help donors navigate these factors and create a blended gift that achieves their philanthropic goals while also maximizing tax benefits and minimizing estate taxes.

By following this step-by-step guide, donors can ensure that their blended gifts have the greatest possible impact and provide the most benefit to their chosen charitable organizations:

Identify the types of charitable bequests that will be included in the gift: The first step is to determine the types of assets that will be included in the gift. This may include cash, stocks, bonds, real estate, or other assets.
Select a charitable organization to receive the gift: Once the donor has identified the types of assets that will be included in the gift, they need to select a charitable organization to receive the gift. The donor should consider the organization’s mission, impact, and financial stability when making this decision.
Create a customized gift agreement: Once the donor has selected a charitable organization, they need to create a customized gift agreement that outlines the terms of the gift. This agreement should include details such as the amount and types of assets being donated, any restrictions on the use of the gift, and any recognition the donor wishes to receive.
Work with financial and legal advisors: To ensure that the gift is structured in a way that maximizes tax benefits and achieves the donor’s philanthropic goals, it’s important to work with financial and legal advisors. These professionals can help the donor navigate complex tax laws and ensure that the gift is structured in the most beneficial way possible.
Review and finalize the gift: Once the customized gift agreement has been drafted and reviewed by all parties involved, it’s time to finalize the gift. This may involve transferring assets to the charitable organization, updating estate planning documents, and ensuring that all legal requirements have been met.

FAQ Related to Blended Giving

What is a blended gift for a bequest?

A blended gift for a bequest is a combination of different types of gifts made to a charitable organization through a donor’s estate plan. It typically involves a mix of cash, stocks, bonds, real estate, and other assets.

What are some common types of assets that can be included in a blended gift for a bequest?

Common types of assets that can be included in a blended gift for a bequest include cash, stocks, bonds, real estate, and other assets. Donors may also consider leaving a percentage of their estate to a charitable organization.

How can I ensure that my blended gift for a bequest is structured in a way that maximizes tax benefits?

Working with a financial advisor or tax professional can help ensure that your blended gift for a bequest is structured in a way that maximizes tax benefits. They can provide guidance on the most tax-efficient ways to donate different types of assets and help you navigate complex tax laws.

What is a customized gift agreement, and why is it important?

A customized gift agreement is a legal document that outlines the terms of your blended gift for a bequest. It’s important to create a customized gift agreement to ensure that your wishes are carried out and that the charitable organizations you support understand your intentions. The agreement should include details such as the amount and types of assets being donated, any restrictions on the use of the gift, and any recognition you wish to receive.

Explore Other Types of Charitable Bequests:

At RMBH, we are here to offer steadfast support and precise guidance tailored to your unique philanthropic needs. We understand that your legacy gift is more than just a donation; it’s a reflection of your personal values and vision for the future. Our seasoned team provides comprehensive assistance, ensuring your gift optimizes its potential for lasting impact. By partnering with RMBH, you are entrusting your legacy to a team dedicated to preserving your intentions and transforming them into meaningful action for the betterment of our shared community.