BTHE BARATELLI INSTITUTE · Mentoring at Scale
FOR PLANNED-GIVING OFFICERS · FOUNDATION DIRECTORS · DONOR ADVISORS · ESTATE COUNSEL

Planned gifts buy two outcomes. Show the math, not the mystery.

Lifetime income for the donor and a future gift for the charity — that's the whole transaction. Bequest, charitable gift annuity (CGA), charitable remainder unitrust (CRUT), charitable remainder annuity trust (CRAT), or charitable lead trust (CLT). Each one prices income, deduction, capital-gain bypass, and residuum differently. This is the side-by-side a planned-giving conversation actually needs.

Income
Donor lifetime $
Deduction
Year 1 charitable
Bypass
Capital-gain $
Residuum
Charity future $
YOUR PLANNED GIFT
1
Donor profile
2
Vehicle
3
Income terms
4
Tax profile
5
Results
STAGE 1 OF 5

Donor profile

Defaults are typical for a planned-giving conversation: 72-year-old donor, $500K gift, appreciated long-term stock with $150K basis.

Age at gift date. For two lives, use the younger spouse — life-expectancy tables run on younger life.
Spouse age at gift date. Ignored if single life.
FMV at funding. For appreciated property, FMV not basis.
$
Original cost + adjustments. Capital-gain bypass = (FMV − basis) × LT cap-gain rate. Ignored for cash gifts.
$
Asset being used
Cash
Appreciated long-term stock
IRA (QCD-eligible at 70½+)
Real estate (debt-free)
Closely-held business
Why asset choice matters more than vehicle choice. Cash gifts are simplest but tax-inefficient. Appreciated long-term stock is the workhorse — donor avoids the capital gain, deducts FMV. IRA gifts at 70½+ via Qualified Charitable Distribution (QCD) are uniquely powerful for donors who don't itemize. Real estate and closely-held business interests require gift-acceptance review (debt? carrying costs? marketability?) but can unlock the largest single gifts.
STAGE 2 OF 5

Choose the vehicle

Each vehicle prices income, deduction, and residuum differently. The right choice depends on age, asset, and what the donor needs the gift to do during life.

Outright bequest
Will / trust gift at death. No lifetime income, no current deduction.
CGA
Charitable gift annuity. Fixed lifetime payments. ACGA rates.
CRUT
Charitable remainder unitrust. Variable payments (% of FMV).
CRAT
Charitable remainder annuity trust. Fixed payments (% of initial FMV).
CLT
Charitable lead trust. Charity gets income, family gets residuum.
Quick triage rule. Donor age 65+ wanting fixed income → CGA. Donor age 55+ wanting income plus growth potential or larger gift → CRUT. Donor wanting current high deduction and big future estate-tax move → CLT. Donor not wanting income (just legacy) → bequest. CRAT is rarely the right answer in low-rate environments (the trust must satisfy IRS 5% probability-of-exhaustion test).
STAGE 3 OF 5

Income terms & 7520 rate

CGA payout rates auto-fill from the ACGA suggested rate table by age. CRUT/CRAT payout rates are donor-chosen within IRS guardrails (5–50%, with deduction ≥ 10% of FMV).

IRS Section 7520 rate published monthly. Used to value income vs. residuum in CRTs/CGAs/CLTs. Default 5.4% — verify current at irs.gov.
%
5% minimum, 50% maximum. Most CRTs run 5–7%. Higher rates reduce charitable deduction and may fail the 10% remainder test.
%
ACGA single-life suggested rate based on age. Override only if your charity has board-approved deviation from ACGA.
%
Maximum 20 years for CRT term-of-years. Ignored if lifetime.
Long-term blended return inside the trust. Default 6.5% for a balanced portfolio.
%
Why the 7520 rate matters. The IRS uses the 7520 rate to compute the present value of the income stream (which becomes the donor's deduction) and the present value of the remainder (which becomes the charity's expected gift). Higher 7520 → lower income PV → higher deduction for charitable remainder trusts (good for donor). Lower 7520 → higher income PV → higher deduction for charitable lead trusts (good for donor). Same gift, different month's rate, different math — every planned-giving illustration must be dated.
STAGE 4 OF 5

Donor tax profile

After-tax cost of the gift depends on the donor's marginal rates and the asset chosen. Cash gifts deductible up to 60% of AGI; long-term appreciated property up to 30% of AGI; 5-year carryforward applies.

Top bracket for the donor's taxable income at gift year. 2026 top: 37%. Most major-gift donors fall in 32–37%.
%
State income tax rate at gift year. 0% for FL/TX/NV/WA/TN; 13.3% top in CA. Default 5%.
%
Federal LTCG: 15% (most donors) or 20% (top bracket) + 3.8% NIIT for high earners. Default 23.8% for top-bracket donors.
%
Indicates whether estate-tax savings should factor into proposal. Federal estate-tax threshold > $13M individual (2026); CLT analysis becomes especially powerful above that.
STAGE 5 OF 5

Results — donor income, deduction & residuum

HERE, TRY THESE. THEY MAY HELP.

The math here is one input to a much bigger donor conversation.

Planned gifts only land when the donor's broader estate plan is coherent — beneficiary designations updated, residuary language in the will, generational transfer strategy in place. The guides below cover the surrounding architecture: how a planned gift fits into a real family's plan, when CGA beats CRT, and how to coordinate with the donor's attorney and CPA without losing the gift to over-engineering.

Read the Family Office Guide Read Estate Planning Decoded All free tools
This is not tax, legal, financial, or fundraising advice. Consult counsel and your CPA. Industry benchmarks shown are illustrative — verify against your peer institutions and current IRS/state rules before relying on any number. Charitable-remainder and charitable-lead trust calculations are simplified estimates using IRS Section 7520 mortality-table methodology; the donor's qualified counsel must produce the binding illustration for the donor's tax return. ACGA suggested rates change periodically — verify current rates at acga-web.org. Estimates only.
WANT THE METHODOLOGY BEHIND THIS TOOL?
This calculator pairs with Estate Planning Decoded and Family Office Guide.
The tool gives you the donor math on one vehicle. The guides give you the surrounding architecture — how CGA/CRT/CLT fit into a complete estate plan, how DAFs interact with planned gifts, beneficiary-designation discipline on retirement accounts, and the family-office workflow that turns intent into a signed gift agreement.
Methodology references: EPD Ch 6 (Charitable vehicles & planned giving) and FO Guide Ch 9 (Philanthropy operating model).
Read Estate Planning Decoded → Browse all guides
PROFESSIONAL DISCLAIMER · PLEASE READ

Educational and informational purposes only. This calculator and any output it produces are intended solely for general educational and decision-support purposes. They do not constitute investment, tax, legal, accounting, actuarial, or any other professional advice, and they do not create a fiduciary, attorney-client, accountant-client, or advisor-client relationship of any kind.

Estimates based on simplified IRS-style methodology. Charitable-remainder, charitable-lead, and charitable-gift-annuity calculations require IRS Section 7520 mortality-table inputs, current-month 7520 rate, and donor-specific facts. The math here uses practitioner-approximation methods sufficient for donor conversation, not for tax return preparation. The binding charitable deduction for any donor's tax return must be calculated by qualified counsel using current IRS tables and software (PG Calc, Crescendo, NumberCruncher, or equivalent). ACGA suggested CGA rates change periodically — verify current rates at acga-web.org. Tax law, the 7520 rate, and ACGA rates can all change between the date of this illustration and the date of the gift.

Consult your own qualified professionals. Before acting on anything calculated here, the donor must consult their own attorney, CPA, and financial advisor. The receiving charity must run a final binding illustration through its planned-giving software and obtain board-level gift-acceptance approval per its written gift-acceptance policy. The Baratelli Institute is a publisher of practitioner reference material. It is not a registered investment adviser, law firm, accounting firm, actuarial firm, or planned-giving consultancy.

Co-branded versions: If a professional advisor's name and contact information appear on this tool, that advisor has elected to make the tool available to clients as a courtesy. Inclusion of an advisor's name does not constitute the advisor's endorsement of any specific result, nor does it transfer professional responsibility for the underlying methodology to that advisor. The disclaimer above applies regardless of co-branding.

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