Everyone benefits when you choose to make a philanthropic gift to a cause you believe in. The immediate benefits to the cause are obvious. But you, your family and your community also have much to gain from your generosity.
Different types of planned giving can provide for the current and future financial needs of you, your spouse and your family. For example, a charitable remainder trust (also called a lifetime income gift) allows you and your heirs an annual income that is either a fixed dollar amount or a fixed percentage for life. All options allow for a variety of tax advantages.
Along with the financial benefits of planned giving, there are the heartfelt benefits. Through philanthropy, you can help instill a tradition and a sense of value for caring in your children, friends and colleagues.
Plus, you are providing for the long-term needs of the organization and the people you want to help. An investment in people continues forever. The income generated by the principal of your gift continues to make an impact for generations to come.
There are three important decisions to make when considering a charitable gift to St. Joseph's Villa.
- 1. When will you make the gift?
- At the time you write your will
- During your lifetime, with a gift the Villa receives now, or sometime in the future
- As part of your estate, available to the Villa in the future
- 2. What asset will you use to make your gift?
- Cash is the most straightforward and you will enjoy a charitable tax deduction in the year you make the gift or through your estate
- Securities and real estate, if they have increased in value and been held for more than one year, will allow you to avoid the tax on their appreciation (capital gains) as well as receiving the normal charitable deduction
- Individual Retirement Accounts such as IRAs, Keough and other plans, with the Villa as beneficiary, can allow you to reduce the size of tour estate and provide a gift to St. Joseph's Villa
- Life insurance, with an unneeded or a newly purchased policy, naming St. Joseph's Villa as the owner and beneficiary, can provide useful tax benefits and a substantial gift to the agency
- 3. How will you structure the gift?
- With an outright gift, you transfer all interest in the property to the Villa and receive a current charitable deduction
- Several types of lifetime income gifts allow you and/or someone you designate to receive income during your lifetimes from a charitable remainder trust, while preserving the principal for the ultimate future use of the Villa
- An initial gift of $5,000 or more can be made to a Pooled Income Fund through the Rochester Area Community Foundation, providing income and tax savings for the donor and future income for the agency
- A charitable remainder Unitrust or Annuity Trust is managed and invested as a discreet fund by a trustee, providing income to the donor and future income to the Villa
- Charitable lead trusts work in reverse, giving income up front to the Villa, and, after a designated period of time, paying out the principal or income to designated individuals
- A specific named memorial gift in honor or memory of a loved one and dedicated to a particular purpose, can provide a meaningful way to assure that his or her values and support for the Villa live on for future generations.
More...
