Investing in the Future of the Clark Center
Planned giving involves providing for a future gift to charities through your financial and estate plans. It enables donors to make larger gifts than they could make from their income. While some planned gifts provide a life-long income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate.
Planned gifts can help you create a gift plan that will best express your desire to benefit the Clark Center Foundation and at the same time, help you fulfill your personal goals. Gifts of $100,000 or more are recognized by placing the donor’s name on the granite wall in the Center’s main lobby. There are a number of different ways to structure charitable gifts so that they can work in harmony with your individual situation. Prospective donors should consult with their own trusted legal and financial advisors to discuss how this type of gift will impact your individual estate.
A properly designed gift can complement your own goals by:
- Provide lifetime income
- Convert low-yielding assets into a higher Stream
- Reduce or eliminate taxes on capital Gains
- Generate a substantial federal income tax Deduction
- Eliminate or reduce federal estate taxes
You can help us continue our commitment by contributing in any of the following ways:
Planned Estate Giving
A donor can name the charity as the beneficiary of all or part of their estate upon their passing, under the donor’s will or trust by use of cash or securities accounts designating the charity as beneficiary. The donor retains complete control over the asset (including the right to change or revoke the bequest), as long as they are living. Upon the donor’s passing, the gift to the charitable organization is deductible from the donor’s estate for federal estate tax purposes.
A Gift that pays you lifetime income
Charitable Gift Annuities
For the donor who needs income from assets being donated, the gift can be structured so that once the asset has been donated and sold, the donor will receive a lifetime monthly annuity payment. This way, the donor will get the tax benefits of the gift, but also gets income required to meet the needs of the donor and the donor’s family.
Charitable Remainder Trust
For the donor who wishes to retain some control and use of a donated asset, they can place that asset in a charitable remainder trust under which the donor retains the use and income of that asset for life and then it passes to the charitable organization. The donor gets the use of the asset and also a substantial charitable tax donation.
Revocable Inter Vivos Trust (Living Trust)
Your will or living trust can offer a way to make charitable gifts a part of your long-range estate and financial plans. Gifts included in wills and living trusts are popular because they are flexible, easy to arrange, and may be changed with your life circumstances.
A Gift that Pays the Clark Center Foundation Income for a Specified Number of Years (Lead Trust)
If you own a life insurance policy which you feel is no longer needed, you can name the charitable organization as beneficiary of all or part of the insurance benefit. If the policy has a paid-up value, you will receive a tax deduction for a portion of that value. And if you continue paying the premiums to keep the policy in effect, that portion of the premiums attributable to the charitable benefits are tax deductible.
Retirement Plan Benefits
Amounts held in tax-favored retirement plans such as an IRA, 401(k), SEP, etc. are typically not subject to income tax until they are actually withdrawn from by the plan owner or surviving heirs. Because they are also included as part of one’s estate at death, the assets in tax-favored retirement plans can also be subject to federal and/or state estate taxes. The combination of income and estate taxes that could eventually be levied on retirement accounts may even amount to the bulk of an account’s value. Rather than allowing for this possibility, you can direct that such assets be used to fund charitable gifts from your estate. This can actually result in more assets being received by loved ones than if retirement assets were left to family and charitable gifts were made from other funds.
A gift of real estate such as a primary residence, vacation home or certain farm property can be used to make a future gift to a charitable organization while giving you a number of current and future financial benefits.
With the gift of a remainder in real estate, you can make a gift of your home or other appropriate property now, while retaining the security of knowing you may live there for the remainder of your lifetime or other period of time you determine. You continue to enjoy the full rights and responsibilities of ownership but are entitled to an immediate charitable income tax deduction for the value of your gift. You continue to maintain the property, pay the taxes, and even receive any income it generates. Because you have provided for the future ownership of the property, however, it will not be subject to the possible expense and delay of probate and will not be part of your taxable estate, resulting in what may possibly be significant estate tax savings for your heirs.
Other Ways of Giving
The simplest method of charitable gifting is making one or more outright gifts of money or property during your lifetime. These gifts are fully deductible for state and federal income tax purposes, subject to certain annual limitations. Many people use lifetime gifts as a chance to dispose of highly appreciated stock, real property, and other assets that are not providing a good return but which the donor is reluctant to sell because of capital gain tax consequences. If you make a gift of appreciated assets, you get the tax benefits of the donation, and the charitable organization (being tax exempt) can then sell those assets and convert them to cash without paying taxes.
Corporate Matching Funds
Many companies have a corporate matching fund which contributes a percentage – sometimes up to 100% – of monies donated to charities by their employees. Check with your company’s Human Resources Director to find out if your donation can be increased via corporate matching funds.
For more information on any of these opportunities, contact the Clark Center at 805-489-4196 or email@example.com.