Options for Planned Giving
There are many options for planned giving, and we can’t summarize them all here. Nor should this information be considered legal or financial advice. Contact your attorney or financial planner to learn more about the wide variety of ways you can support It Takes A Village through planned giving. Benefits of Planned Giving include:
** Your assets remain in your control during your lifetime.
** You can modify your bequest if your circumstances change.
** There is no upper limit on the estate tax deductions that can be taken for charitable bequests (consult with a financial advisor, tax professional or attorney).
** You know your gift will benefit It Takes A Village tomorrow just as you intended it today.
1. Bequests
Bequests, or gifts in your will, are what most people think of when they hear about estate planning. A bequest is one of the simplest ways to make a gift from your estate. You can make a bequest in a variety of ways, including a gift of a specific amount, a percentage of your estate, an item or piece of property, or the amount that remains after you have provided for your loved ones. Bequests are deductible for federal estate tax purposes, and are usually not subject to state inheritance or estate taxes. Contact your attorney to learn more about including It Takes A Village in your will, and which options will work best for you and your family.
Sample Bequest Language (for information purposes only, seek professional advice);
** Unrestricted gift: A gift that can be used where need is the greatest. – “I give It Takes A Village, a 501(c)(3) non-profit, 1417 N. Stockwell Road, Evansville, IN 47715, the sum of $____________ for its general purposes.”
** Gift for Specific Purpose: A gift that is to be used for a specific purpose. – “I give It Takes A Village, a 501(c)(3) non-profit, 1417 N. Stockwell Road, Evansville, IN 47715, the sum of $____________ to be used for [state purpose].” (Please consult with It Takes A Village in advance to ensure that the stated purpose can be fulfilled according to your wishes.)
** Residuary Bequest: Leaves any remainder after all other bequests have been paid. – “All the rest, residue and remainder of my estate, both real and personal, I give to Takes A Village, a 501(c)(3) non-profit, 1417 N. Stockwell Road, Evansville, IN 47715, for its general purposes.”
2. Gifts Through Life Insurance
A gift through your life insurance policy is another simple way to make a charitable gift. You may have a life insurance policy that is no longer needed to provide for your family or for other expenses. You can name It Takes A Village as a beneficiary of your policy, or you can make a gift of the entire policy. Tax advantages vary. Your attorney or insurance agent can help you get started with a gift through your life insurance policy.
3. Retirement Accounts
Like a life insurance policy, It Takes A Village can be named as the first or second beneficiary on your retirement account. Heirs other than your spouse pay significant income taxes on inherited retirement funds. Making a contribution from these funds can help limit the amount of tax owed by your heirs, and can also maximize your charitable gift. Since taxes have not yet been paid on your retirement account, and you can make a tax-free donation of these funds, you may be able to give a larger gift from your retirement account than you would otherwise. Consult with a financial advisor, tax professional or attorney.
4. Charitable Remainder Trusts
A charitable remainder trust, or CRT, is an arrangement in which a donor’s assets provide a regular income stream to the donor, until that income is no longer needed. The assets of the trust are then passed on to a charity like It Takes A Village. Tax advantages for CRTs include a current charitable deduction for the donation and no upfront capital gains tax is payable at the time of contribution of appreciated property. Consult with a financial advisor, tax professional or attorney.