The term “planned giving” refers to charitable gifts that require some planning before they are made. Planned gifts are popular because they can provide valuable tax benefits and/or income for life. Whether a donor uses cash or other assets, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and charity. Some of the potential benefits of planned gifts include:
- Increase current income for the donor or others
- Reduce the donor’s income tax
- Avoid capital gains tax
- Pass assets to family at a reduced tax cost
- Make significant donations to charity
With the assistance of a well-informed development officer and/or financial advisor, anyone can craft a planned gift to meet his or her charitable and financial goals. Planned gifts include bequests, trusts, and contracts between a donor and a charity.
HERITAGE CLUB
Join the Club
Everyone who includes One More Child in their estate plans automatically becomes part of our Heritage Club, which is our way of honoring those who have remembered One More Child with a future gift. Please contact Averitt Ennis at averitt.ennis@onemorechild.org or 863.687.8811 if you have included One More Child in your estate plans so we can formally recognize you.
Following is the official information you will want to include on documents prepared by your attorney or financial advisor to designate bequests to the One More Child.
Name: One More Child
Address: 1015 Sikes Blvd., Lakeland, FL 33815
Federal Employer ID number: 59-0657326
Contact Name: Chief Financial Officer
Types of Planned Gifts
Charitable Gift Annuity
A Charitable Gift Annuity is an agreement between an individual/couple and a qualified charitable organization. The individual or couple transfers assets to the charity and, in turn, receives fixed payments for the remainder of their lives, guaranteed by the full worth of the charity, usually at a greater return than current investments. For example, let’s say an individual age 70 buys a gift annuity from One More Child for $10,000. If the Gift Annuity Rate for a person of that age is 6.7% annually (for current rates used by One More Child, contact Averitt Ennis), he or she would get $670 per year for their lifetime. The rate is determined by the person’s age when the contract is made. Payments may be made monthly, quarterly, or annually. Income from a gift annuity can be deferred for a period of years. Deferred gift annuities are often set up by younger donors to supplement retirement income.
Charitable Remainder Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, the charity receives whatever amount is left in the trust. Charitable remainder unitrusts provide some flexibility in the distribution of income, and thus can be helpful in retirement planning.
Retained Life Estate
A donor may make a gift of his or her personal residence or farm to charity and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor’s death, the charity can use or sell the property.
All gifts to One More Child are tax-deductible as allowed by law, and all are deeply appreciated!
- Cash
- Stocks
- Bonds
- Certificates of Deposit (CDs)
- Real Estate
- Personal Property
- In-Kind Goods or Services
Bequest
When a donor decides to leave assets to charity in his or her will, he or she is making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to charity. Everyone should have a will.
