There are many ways to give – it is your legacy to create!
We at the GetAbout welcome the opportunity to work with you, and your advisors, to help create a charitable giving strategy to meet your wishes today in providing a legacy for tomorrow! There are many ways to give, and we have highlighted some here. Each option comes with its own tax benefits and income potential.
Your legacy support will help ensure the transportation needs for seniors, and other members of our community who cannot drive, going forward. You are the vehicle of transformation in the lives of others – we are grateful for your consideration.
After your review, please let us know how we can help you realize your objectives and put this your legacy plan in place. If you decide to include GetAbout in your planned giving please let us know so that we can thank you. You may contact our president, Jonathan Bitting at 203-667-1776 or [email protected]
Charitable Bequests – A Gift in Your will
A popular and enduring planned gift is a simple charitable bequest made through your will. 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 to pass directly to GetAbout. Since a charitable bequest can take many forms, you have 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 make an unrestricted bequest to GetAbout for use whenever and wherever it’s needed most. We would be happy to share more with you about our programs and services provided.
Charitable Gift Annuity – Make a Gift, Receive Payments for Life
A gift annuity is an agreement between you and GetAbout. When a charitable gift annuity is in place, GetAbout agrees to pay you fixed payments for your life (and/or the life of your chosen beneficiary). The amount of the annuity is based on the gift amount and age of the annuitant(s) at the time of the gift. A gift annuity can be established with a modest contribution and provides a number of very attractive benefits; you can
- fund it with cash or marketable securities
- receive an immediate income tax charitable deduction for the gift (subject to certain income limitations), and
- potentially spread out any capital gains tax liability.
Part of your annuity payment may be federal income tax-free for a certain number of years. As a donor, you can select the payment intervals (usually quarterly) and name the annuitant(s) – one or two persons as decided by you, and your financial advisor.
Individuals who max-out their annual retirement plan contributions because of restrictive rules and regulations may want to consider a deferred gift annuity strategy. Deferred gift annuities offer three important benefits:
- They can be used to supplement qualified retirement plan savings.
- You receive a current income tax deduction now during your high income years.
- You can postpone the start of annuity payments until later – usually after retirement begins.
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 easily and let you do more with your gift because of the very attractive tax benefits.
Appreciated property, held long-term, the full fair-market value of securities given to charity is generally deductible.
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. In doing this, a charitable deduction is allowed for capital gains that would have been taxed. And, if GetAbout sell the securities, we keep every penny of the proceeds since we are a tax exempt organization.
IRA Charitable Rollover
Make a Qualified Charitable Distribution from Your IRA
Legislation signed in 2015 permanently extended the popular gift option known as the IRA Charitable Rollover—a qualified charitable distribution from an IRA. This is good news for IRA owners age 70½ because you can use your IRA required minimum distribution (RMD) to make a meaningful gift.
- 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 qualifies for this favorable tax treatment.
- Your gift makes an immediate impact.
Gifts of Retirement Account Assets
More and more donors use qualified retirement account assets in their charitable gift planning. This has become a desired vehicle of giving because retirement account assets left to loved ones may be subject to higher taxation than other types of assets.
If you choose to use 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.
Charitable Remainder Trust
One method of making a gift with a retained right to income is a charitable remainder trust. Let’s look at some of the benefits a charitable remainder trust can provide:
- An income for you and/or your beneficiaries for life or a period of up to 20 years
- An immediate and substantial income tax charitable deduction (subject to certain income limitations)
- Potential avoidance of current capital gains taxes when the trust is funded with long-term appreciated property
- Reduction of your estate to avoid or reduce death taxes
- Substantial reduction of probate costs, taxes, and other estate transfer expenses.
An Immediate Charitable Deduction
A gift to a charitable remainder trust generates an immediate income tax deduction, even though income is to be paid to the donor (and/or other beneficiaries) for life. The exact amount of the charitable deduction depends on the:
- Value of the property transferred to the trust
- Amount of income benefits that are payable each year to individual beneficiaries
- Approximate length of time the income benefits will be paid
- Interest rates prevailing at the time the gift is made.
Despite the tax and financial benefits of a charitable remainder trust, you should consider this kind of arrangement only if you and your advisors determine it is compatible with your overall estate, tax and financial plan.
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 as a charitable contribution.
Gift of a Remainder Interest in a Personal Residence
A special provision of the tax law allows an immediate income tax charitable deduction for a gift of a remainder interest in your home. With a remainder interest gift, you retain an absolute right to occupy the home for your life (or the life of a family member). The property passes to us only after termination of the life estate(s).
The charitable deduction allowable for this future gift is the present value of our right to receive the property at some later date. The age of the life tenant is the primary factor in determining the present value of our deferred interest and the charitable deduction. The gift is deductible in the year of the transfer (subject to certain income limitations).
Gift of a Fractional Interest in Real Estate
Federal tax laws let donors take a charitable deduction for gifts of fractional interests in real estate. This type of gift can be especially rewarding when you own a vacation home that you use only part of the year.
Gifts of Life Insurance
Life insurance is also an excellent tool for legacy giving. 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 GetAbout and file an absolute assignment or transfer of ownership form with your insurance company. Your insurance company then will send a letter to us showing that we are the sole owner of the policy.
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.
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 or death.
Retained Life Estate
Donate a home and retain the right to live in the property for the rest of your life. Enjoy a current income tax charitable deduction on the value of our remainder interest in the home.
Charitable Lead Trust
Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.
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.