How You Can Help The Society
OUTRIGHT
GIFT OF ASSETS
CASH. An outright gift of cash is the simplest way to make a donation to the Society’s Legacy Fund. Cash gifts are important and enormously useful because they provide immediate income for the Society’s current needs and priorities.
REAL ESTATE. Real estate can be a significant contribution to the Society, and the donor can receive a substantial tax deduction, avoid capital gains taxes and cease paying real estate taxes on the property donated to the Society. In the case of a personal residence, you can structure a gift to allow you to remain in your home for the remainder of your life. This retained interest as a part of your gift is called a “retained life estate.” A real estate gift need not be of environmentally or ecologically beneficial land, and may be sold by the Society after it is donated with the proceeds to be applied as directed by the donor.
SECURITIES. The gift of appreciated securities offers two donor tax benefits: a charitable deduction for the full fair market value of the securities at the time the gift is made, and the avoidance of capital gains taxes on the increase in value since their original purchase by the donor.
LIFE INSURANCE. By making an irrevocable assignment of an insurance policy to the Society, you can receive an immediate income tax deduction equal to the cash surrender value of the policy, or the total premiums paid, whichever is less. If the policy is not fully paid, you may continue to pay the premiums and receive tax deductions in the amount of the premiums. A sophisticated use of a life insurance policy in planned giving is to replace the value of a donated asset. The donor may be able to use the tax savings produced by the charitable deduction to pay the premiums of a life insurance policy whose proceeds would be the equivalent in value to the donated asset, ensuring that the donor’s estate is not adversely affected by the gift.
LENDING ASSETS TO THE SOCIETY
CHARITABLE LEAD TRUST. This is a gift vehicle that lets you give an important donation to the Society while reserving the principal for your heirs. Under this plan, income-producing assets are placed into a trust, the income from which passes to the Society for a fixed number of years. At the end of that period (10 years or more), the assets are distributed to the designated heirs. They will have no tax liability for any appreciated value that may have occurred over the life of the trust.
GIFTS THAT RETURN INCOME
CHARITABLE REMAINDER TRUST. With a charitable remainder trust, you can make a substantial gift to the Society while achieving the following benefits for yourself:
• Providing a lifetime of income for yourself and/or designated beneficiaries.
• Receiving an immediate income tax deduction.
• Eliminating capital gains tax if appreciated assets are used to fund the trust.
To accomplish this gift and tax benefit, the donor must transfer the asset to the trust irrevocably and specify how trust income and principal are to be distributed. Upon the death of the last surviving income beneficiary, or at the end of a fixed term, the Society will then receive the principal.
Charitable remainder trusts can provide you a fixed income or a variable income. You can choose to receive a fixed dollar amount each year through an arrangement known as a “charitable remainder annuity trust.” If the trust earns more than is distributed, the excess is accumulated for the eventual benefit of the Society. Or you can elect to receive your income as a fixed percentage of the assets held in trust and valued annually. This is called a “charitable remainder unitrust.”
CHARITABLE GIFT ANNUITY. This is a simple contractual arrangement offering the donor a fixed income and a significant tax deduction. It obliges the Society to pay you a fixed lifetime income in return for your gift. Specific income payments vary with age. In general, the federal income tax deduction is higher with a charitable gift annuity than with a gift through a charitable remainder trust. And, depending on the amount of capital gain you may have experienced, you will receive a portion of your annual income tax-free.
GIFTS THROUGH BEQUESTS.
Just as charitable deductions during your lifetime can produce sizable savings in income taxes, donations made at the time of your death can materially reduce estate taxes. Charitable bequests are deducted in full from the value of your estate in the calculation of estate taxes. In addition to an outright bequest, you may wish to consider a qualified terminable interest trust. This is used when you wish to make a gift and at the same time provide for your spouse. The trust is set up in your will. Upon your death, the income goes to your spouse for life; after your spouse’s death, the remainder belongs to the Society. The arrangement allows the property to be completely free of estate taxes.
NAMING OPPORTUNITIES
The Society is pleased to acknowledge our donors or their departed loved
ones by offering naming opportunities for gifts we receive. We look forward
to sharing different donor recognition possibilities reflective of your
interests and generosity.
FINANCIAL RESPONSIBILITY
The Society’s Board of Directors is assisted by, and relies upon,
a team of independent financial advisors and auditors. Acting on their
advice, the Board directs endowment funds and gifts to be invested in
a prudent manner in accordance with the Society’s investment policy.
CONSULTATION WITH LEGAL AND ACCOUNTING PROFESSIONALS
The Society recommends that you consult with estate planning, legal and
accounting professionals to determine the proper gift vehicle that fits
your tax and financial interests.
Your gift will support the Society’s purposes for future generations.
