PLANNED GIVING OPTIONS

Finding a Giving Vehicle that Works Best

“Giving back to help others has always been a priority for my wife Anne and me,” says Tate Greenwald, a former member of the ERS Board of Directors. We have both been active volunteers with ERS for years and believe strongly in supporting the organization financially as well.”

The couple now has taken the opportunity to give even more, with a tax-free gift from their IRA.

“We were able to give more than we might otherwise and feel great knowing our gift is making an impact on the older adults served by ERS,” says Tate.

Read below to learn more about making a gift through your IRA or other giving vehicles.


Charitable Bequests

A popular and enduring planned gift is a simple charitable bequest, which is a gift made through your will. Bequests are popular because they give you the opportunity to leave a lasting legacy. When you make a charitable bequest, you retain full use of your property during life, so there is no disruption of your lifestyle and no immediate out-of-pocket cost.

To make a bequest, simply direct that part of your estate passes directly to us. Since a charitable bequest can take many forms, you have remarkable flexibility in how you make this designation. For example, you can leave…

  • A specific asset
  • A specific sum of money
  • A percentage of your estate
  • What remains of your estate after you have provided for all of your other beneficiaries

You can also designate exactly how you want your bequest to be put to use. Or, you can provide an unrestricted bequest that can be used whenever and wherever it's needed most. Most importantly, you can change your bequest whenever you choose — you remain in complete control of the planning process.


Gifts of Stock

Gifts of long-term, highly appreciated securities are the most common type of outright property gift. Typically, individual stocks are given; however, bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly and these gifts let you do more with your gift because of the very attractive tax benefits.

For appreciated property held long-term, the full fair market value of securities given to charity is generally deductible for itemizers. For example, if you give shares of stock that are now worth $10,000, you can deduct the full amount of the gift on your income tax return (subject to certain income limitations), even though you may have bought the stock for $1,000.

A charitable gift of securities held long-term is not considered a sale of the securities and does not generate any capital gains tax, no matter the amount of the gain. This is a valuable tax incentive provided by Congress to encourage gifts of appreciated property. The result: a charitable deduction is allowed for capital gains that would have been taxed. And, if we sell the securities, we keep every penny of the proceeds since we are tax exempt.

Contact us for more information about gifts of securities.


IRA Gifts

Make a Qualified Charitable Distribution from Your IRA

A qualified charitable distribution from an IRA is a good way for IRA owners age 70½ and over to support our work. It’s easy to do.

  • Instruct your IRA custodian to make a distribution directly to our organization.
  • Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes—no tax is due!
  • Up to $100,000 of your gift (annual aggregate limit) qualifies for this favorable tax treatment.
  • Your gift makes an immediate impact.
  • A qualified charitable distribution from an IRA counts toward a donor's RMD if one is due. Federal legislation passed in 2019 and 2020 had an impact on required minimum distribution (RMD) rules for IRAs, and RMDs are waived for most donors in 2020. Nonetheless, the option to make a tax-free distribution from your IRA to us remains available if you are 70½ or over. Contributions to your IRA can impact the amount eligible for a tax-free transfer.

Please contact us to learn more about planning and completing an IRA Rollover gift, or click here to calculate your required minimum distribution.


Life Insurance

Life insurance is also an excellent tool for accomplishing philanthropic goals while realizing other important financial objectives. Indeed, life insurance can empower individuals to make charitable gifts they never would have dreamed possible.

Making a gift of life insurance is quite simple. If you are the insured policy owner, you simply transfer physical possession of your policy to us and file an absolute assignment or transfer of ownership form with your insurance company. Your company then will send a letter to us showing that we are the sole owner of the policy.

Hypothetical Example

Emmett owns a $100,000 life insurance policy with a cash value of $40,000. No further premiums are due and he no longer needs the coverage. He can assure that we will receive $100,000 at his death by making us the beneficiary. Or he can transfer ownership of the policy to us now. When he transfers ownership, Emmett receives an itemized charitable deduction equal to the lesser of his cost basis or the policy's replacement value.

 

Contact us for more information about gifts of life insurance.


Retirement Assets

More and more donors use qualified retirement account assets in their charitable gift planning. The reason: Retirement account assets left to loved ones may be subject to higher taxation than other types of assets.

By using retirement account assets to make a gift (and selecting alternative assets to leave to family members) you may be able to reduce taxes that otherwise would be imposed on those assets and leave more to your intended beneficiaries.

Contact us for more information about gifts of retirement account assets.


Other Gifts

Donor Advised Fund

Make an irrevocable gift to a fund maintained by a charitable organization and enjoy an income tax charitable deduction for the full amount of the gift. As the name implies, the donor can advise the fund regarding distribution; however, donors may not place material restrictions on the fund.

Charitable Remainder Trust

Make a gift with a retained right to income. A charitable remainder trust can provide an income for you and/or your beneficiaries for life or a period of up to 20 years with an immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers. You may potentially avoid current capital gains taxes when the trust is funded with long-term appreciated property. A charitable remainder trust can help reduce your estate to avoid or reduce death taxes, while also lowering probate costs, taxes, and other estate transfer expenses.

Revocable Living Trust

Create a trust that can be revoked or changed during your lifetime which directs the disposition of your assets including charitable gifts. A Revocable Living Trust can minimize the cost and delays associated with probate; facilitate asset transfer; provide privacy and, unlike a will, assure asset management continuity in the event of disability.

Charitable Lead Trust

Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.

Retained Life Estate

Donate a home and retain the right to live in the property for the rest of your life. Qualify for a current income tax charitable deduction on the value of our remainder interest in the home.

Gifts of Real Estate

When appreciated real estate is given to us, capital gains taxes can be completely avoided and the full fair market value of the property is generally deductible for itemizers as a charitable contribution.

Securities

Transfer appreciated assets (stocks, bonds) held for more than one year directly to us and enjoy an income tax charitable deduction for the full market value if you itemize. No capital gains tax is due on the appreciated value.

Closely Held Stock

Donate closely held stock. Restricted stock can be repurchased by the corporation later. You enjoy a charitable deduction equal to the appraised value of the stock with no capital gains tax due.

Tangible Personal Property

Donate gift property that can be used for our exempt purposes, and qualify for an income tax deduction for the full fair market value.

 

Contact us for more information about additional methods of giving.

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