Prancing Horse

Many people use this simple method to donate to their favorite charities.

Benefits:

• The gift is deductible on your personal itemized income tax return.
• Simplicity and immediacy.

You can make a donation in person or through our online form.

An easy way to enhance your gift to Prancing Horse is through a matching gift. Many employers will match your charitable gift, up to a designated amount, and may extend this benefit to their retirees. Contact your Human Resources group for details.

Planned Giving, also known as Legacy Giving or Gift Planning, is a gift which enables philanthropically minded donors to make larger gifts to the charities they support than they would ordinarily make from their discretionary annual cash flow. Unlike a donation to an annual fund, where the donations are typically smaller in size and used for the immediate needs of the charitable organization, a planned gift is a major gift made during the donor’s lifetime, or after their death, and is a part of their overall estate plan. 

Common types of planned gifts include:

• Lifetime gifts from your retirement plan.
• Outright gifts of cash or securities.
• Gifts that pay income to the donor for their lifetime or a stated term of years in return for a contribution to a charitable trust.
• Gifts payable at the donor’s death such as a bequest under their will or living trust or naming the charity as a beneficiary of a portion of a life insurance policy or retirement plan.

You can make a major gift during your lifetime using appreciated securities or cash. You receive a tax deduction for your donation, and the charity is able to sell the appreciated assets without incurring any capital gains tax on the sale.

Benefits:

• You don’t have to use discretionary cash to make annual gifts.
• You receive a charitable deduction.
• You avoid capital gains by making a direct gift of the securities rather than selling them and using cash for the gift.

Charitable Remainder Unitrusts (CRUTs) and Charitable Remainder Annuity Trusts (CRATs) are irrevocable trusts that pay an income stream to the beneficiary (usually the donor) for life and, at the death of the donor, terminate and pay the balance remaining in the trust to the designated charitable beneficiary. These trusts are generally funded with appreciated securities, which the charity liquidates without having to pay capital gains tax. The funds are reinvested, and the donor receives payments based on the market value of the portfolio. The payments can be fixed or fluctuate, based on the value of the portfolio, depending on which type of charitable trust you elect to create. The donor can reserve the right to change the charitable beneficiary should they choose to do so.

Benefits:

• For a Charitable Remainder Unitrust, you, or a trust beneficiary you select, will receive income for life based on a life(s) or a term of up to 20 years. Payments are based on the fair market value of the assets, valued on an annual basis, so the payment will fluctuate. Should the market value rise, you will benefit from the increase in value at the time of valuation. Should the market value decline your payment will decrease based on the value at the time of valuation.
• For a Charitable Remainder Annuity Trust, you, or a trust beneficiary you select, will receive a fixed income for life based on a life(s) or a term of up to 20 years. The annuity payment is based on the initial fair market value of the assets contributed.
• You avoid capital gains tax of the sale of appreciated assets you contribute to the trust.
• You receive a charitable deduction for the charitable remainder portion of the gift.
• At the end of the term the charitable beneficiary receives what remains in the trust.

These types of gifts involve naming Prancing Horse as a beneficiary of a portion of the assets in your will or living trust in the form of a stated amount or a percentage. Your gift can be unrestricted, meaning that Prancing Horse can use the funds for any purpose, or it can restrict the use of the funds for a specific purpose such as growing our endowment, children’s or veteran’s programs, capital projects or the support of our facility or equines.

Benefits:

• You reduce the burden of taxes on your heirs.
• You retain control and use of the assets during your lifetime.
• You have the ability to change or remove the beneficiary of your gift to reflect changes to your personal or family circumstances.
• You have the potential for an estate tax deduction for your gift.

You can name Prancing Horse as a beneficiary of all, or a portion, of your IRA, 401(k) or other qualified retirement plan after your lifetime. This gift may not be subject to income or estate tax because Prancing Horse is a 501(c)(3) tax-exempt organization.

Benefits:

• During your lifetime you continue to take regular withdrawals from the funds.
• You could avoid the double taxation that could occur if you designate your heirs as beneficiaries.
• You may remove, or change, the charitable beneficiary at any time should your personal or family circumstances change.

In lieu of a cash gift to Prancing Horse, you can donate appreciated securities such as stocks and mutual funds.

Benefits:

• You don’t have to use annual discretionary cash to make gifts.
• You receive a charitable deduction on your itemized individual income tax return.
• You avoid capital gains by making a direct gift of the securities rather than selling them and using cash for the gift.

You can make an outright gift of a Qualified Charitable Deduction (QCD) from your qualified IRA by re-directing all or a portion of your annual Required Minimum Distribution (RMD) to a charity such as Prancing Horse, with a maximum of $100,000.00 per tax year.

Benefits:

• You can gift above the charitable limits.
• The QCD counts toward your annual RMD.
• You pay no tax on the amount withdrawn to make the gift.
• Making a gift of your RMD through a QCD may reduce your taxable income.

Many brokerages offer Donor Advised Funds, either directly through the brokerage or via a community foundation. The donor makes an irrevocable contribution to their donor advised fund, receives a charitable deduction in exchange, and makes charitable gifts to qualified charities from the funds on their timetable.

Benefits:

• Using a Donor Advised Fund affords the donor an opportunity to engage younger generations in philanthropic giving.
• You and/or your family member(s) can recommend distributions to charities you support.
• The funds can endow and continue to support your charities after your death.