|
What is Planned Giving? Planned giving is a unique philanthropic tool that allows you to ensure that Hardin Metro SPCA’s (HM-SPCA) work will continue into the future and fulfill your charitable objectives, while also fulfilling your own financial objectives. Planned gifts include bequests through your will, gifts that provide income to you and others for life, gifts of life insurance, charitable lead trusts, and gifts of retirement plans. These gifts can be made in cash, stocks, bonds, personal property, life insurance and real estate. Planned Giving Opportunities:
A bequest in your will or living trust
Gifts that provide income to you and others Charitable Gift Annuity Deferred Payment Gift Annuity Charitable Remainder Trust Gifts of Retirement Assets Life Insurance Gifts Will or Living Trust Including the HM-SPCA in your will or trust is a meaningful way to help save lives and stop animal cruelty. Many of our planned programs and services will be made possible by people like you who had the foresight to include the HM-SPCA in their estate plans. Ways to give through wills and trusts: Leave a specific dollar amount Designate that a percentage of your estate be given through your will or living trust. Give only the remainder, or residue, of your estate——that which remains after bequests to loved ones have been made. Provide for a gift of specific property-real estate, stocks or other items. An individual may designate that a bequest be used for the general purposes of the HM-SPCA, or go to support a specific program, i.e. spay/neuter, education, cruelty investigations, etc. The following is a suggested form for such a bequest: "I give and bequeath to Hardin Metro SPCA, Inc. , a not-for-profit corporation, with principal offices presently located in Hardin County, Tennessee, 38372, Federal Tax ID # 77-0682309, the sum of $_________, to be used for the accomplishment of its general purposes (or for a specific purpose, as indicated)." Gifts That Provide Income Life income gifts allow you to leave a legacy to HM-SPCA while still receiving an income for your life and that of a spouse or other loved one. Some of the benefits of a life income gift are: an immediate federal income tax deduction for a portion of the value of your gift; increased retirement income; the ability to designate payments and provide life income for others, for example, your parents or children; increased income from low-yielding stocks or bonds that may have appreciated, while reducing tax on the appreciation; and the satisfaction of helping animals in need. What are your options? Charitable Gift Annuity An HM-SPCA Charitable Gift Annuity is a contract between you and the HM-SPCA that enables you to make a gift of at least $10,000 to the HM-SPCA that guarantees payments to you and/or a loved one for life. The gift can be in cash or marketable securities. The amount of the annuity income depends on your age and the size of the gift. The minimum age for an annuitant is 50 years. Payments can be deposited directly to your bank account on a monthly, quarterly, semi-annual or annual basis. In compliance with state laws, the HM-SPCA will maintain a fund to guarantee all future annuity payments.
Deferred Payment Charitable Gift Annuity
An HM-SPCA Deferred Payment Charitable Gift Annuity is a contract between you and the HM-SPCA through which you make a gift of at least $10,000 to the HM-SPCA that guarantees payments to you and/or a loved one for life, beginning at some specified future date. The gift can be in cash or marketable securities. The minimum age for those entering into a Deferred Payment Charitable Gift Annuity contract is 40 years, and the minimum age for payments to begin is 50 years. Annuitants age 50 or older can defer payments to at least one year after the annuity is established. The longer annuity payments are deferred, the higher the rate of return. Ten and fifteen year- deferred annuities are popular options for people planning for retirement; it gives one a guaranteed future income with an immediate charitable deduction at a time when one’s income is traditionally higher. Charitable Remainder Trusts A Charitable Remainder Trust (CRT) is a life-income arrangement that provides you and/or other beneficiaries a stream of income for life or a period of years. After the trust terminates, the principal, or "remainder interest," goes to the HM-SPCA. Unlike the other life-income arrangements, CRTs are separately invested and managed trusts. This life-income plan is the most flexible, and a powerful way to benefit yourself, your heirs, and the HM-SPCA. Some versions of CRTs can be funded with closely held stock, partnership interests, real estate and, in some instances, tangible personal property such as works of art. You can choose to receive variable or fixed income, beginning immediately, for life or a term of years. There is also no limitation on the number of beneficiaries of a CRT. When appreciated assets are donated to the trust, they can be sold without incurring capital gains tax, allowing the full sale proceeds to be reinvested. You receive a charitable income tax deduction in the year you make your gift, with an additional five years to carry over any unused deduction. You can add to some types of CRTs at any time. Through reinvestment within the trust, you can achieve diversification of a previously concentrated asset. Any assets you contribute to a CRT are removed from your estate, reducing your estate tax exposure. You will have the satisfaction of knowing that you are helping animals in need. What are the Basic Types of CRTs? Unitrust (CRUT): This type of trust pays a variable income based on a fixed percentage (usually between 5 percent to 6 percent) of the trust assets, revalued once each year. One advantage of a unitrust is that your income can increase as the trust principal grows over time. This type of CRT allows you to make additional contributions at any time. Annuity Trust (CRAT): This type of trust pays a fixed annual income, determined when the trust is established. The annuity trust is often preferred by those who are interested in the security of a constant return. Gifts of Retirement Assets Retirement assets are one of the most beneficial gifts you can give to the HM-SPCA. Contributions that have been made over the years to an IRA or other qualified plan have been growing tax-free within the plan. If left to an individual, these funds may be subject to both estate tax and income tax, which greatly reduces the value of the asset. If left to a charity, such taxes are usually avoided. Your retirement plan’s administrator can provide a beneficiary form for you to name the HM-SPCA as your sole or partial beneficiary. The information you’ll need to include about the HM-SPCA is as follows: Hardin Metro SPCA, Inc., P. O. Box 625, Savannah, TN 38372 - Federal Tax ID # 77-0682309 Life Insurance Gifts Life insurance policies are an easy and often overlooked way to make a meaningful charitable gift. There are a number of ways to support the HM-SPCA’s many programs with an insurance-related gift: Beneficiary designation: It is relatively simple to make a change to the beneficiary/beneficiaries of your insurance policy without changing your will or other aspects of your estate plan. Just ask your insurance company for a form that will allow you to make the HM-SPCA a beneficiary of your insurance policy. Gift of a paid-up policy: Do you have a policy that has outlived its intended purpose? The ownership of such policies can be transferred to the HM-SPCA; the organization would then surrender the policy for its cash value. You receive an immediate income tax deduction for the gift of the policy up to the cash basis, or what you paid for it. Making the HM-SPCA the owner and beneficiary: You can take out a policy and make the HM-SPCA the owner and beneficiary of the policy. Premium payments can be made by you directly to the insurance company or by the HM-SPCA, by way of your annual gift to the organization. Whichever way the premiums are paid, you can take an income tax deduction. Trust for the Care of an Animal Tennessee - Tenn. Code Ann. §§35-15-408
Summary of law: The trust may not be enforced for more than 21 years. The trust terminates upon the death of the animal or upon the death of the last surviving animal. We encourage you to consult with your legal and financial advisors when considering a planned gift.
|