Planned Giving Ensures a Solid Future
“A planned gift is any gift of any kind for any amount given for any purpose—operations, capital expansion, or endowment—whether given currently or deferred if the assistance of a professional staff person, qualified volunteer, or the donor’s advisors is necessary to complete the gift. In addition, it includes any gift which is carefully considered by a donor in light of estate and financial plans.” (Planned gift as defined by The Sharpe Group.)
Planned gifts allow you to support the programs and services of Louisiana United Methodist Children and Family Services now or in the future while accomplishing important personal financial objectives such as increasing income, guaranteeing lifetime income, transferring assets in a tax-friendly manner, and removing assets from your taxable estate. In a Christian context, the planned giving process may also help you determine how to accomplish your financial goals in light of how you think God wants you to handle your assets.
Common types of planned gifts include bequests, charitable gift annuities, trusts, retirement assets, life insurance, and real estate. More information about these types of gifts is provided to assist you in the planning process. The information provided is for informational and educational purposes; you should consult with your legal and/or tax advisor before executing any of these gifts.
For more information about how a planned gift can mutually benefit you and the Children’s Home, please contact Ms. Sarah Head, Director of Public Relations and Development. Phone: 1 (318) 242-4622 and Fax: 1 (318) 255-6623
A bequest, leaving property through your will, is the most common type of planned gift and is a good way to leave a gift to the Home without diminishing assets available to you during your lifetime. Charitable bequests can also result in important tax savings as they are deducted completely from your estate in determining federal estate taxes.
The Children’s Home has been blessed with many bequest gifts over the years that have helped shape our programs and services and made an impact on the lives of our youth. One great example is our OWL campus (Outdoor Wilderness Learning Center). This property was given to the Home through a bequest in the 1970s.
A bequest can be made in several ways:
- A specific dollar amount
- Specific assets
- A percentage of your estate
- Residuary – all or a percentage of the remainder
Please contact our Development Staff at (318) 242-4716 if you are interested in making a bequest for a specific purpose or if you wish to create an endowed fund. We want to help you discover the best way to accomplish your objectives.
Bequests should be directed to:
Louisiana United Methodist Children and Family Services, Inc.
P.O. Box 929
Ruston, LA 71273
Tax ID Number (EIN): 72-0435081
Please consult with a qualified attorney before drafting your will to ensure that your wishes are effectively documented.
Charitable Gift Annuities
A charitable gift annuity is a contract between you and a charitable organization in which you transfer cash or other assets in exchange for fixed payments for life. Gift annuities offer a way to increase and guarantee income in retirement, especially when the yield of current assets is low. You receive an immediate charitable tax deduction, possibly avoid capital gains tax, and a portion of the annual income you receive may be tax-free. The income rate is based on your age. Eventually, any remainder will benefit the mission of the Children’s Home.
Charitable Remainder Trusts
A charitable remainder trust offers the opportunity to transfer cash or various types of property into a trust and receive payments for life or a term of years. Remainder trusts can be especially effective at converting low-yielding assets into a greater income stream. The benefits of a trust include the potential for increasing income, avoiding capital gains on the sale of appreciated assets, and a charitable tax deduction for a portion of your gift. Your payments can be a fixed amount based on the original value of the property put into the trust (annuity trust) or a percentage of the trust as it is valued each year, which offers the potential for an increase in the amount of income if the trust value grows over time. At the end of the trust term, the remaining assets benefit the mission of the Children’s Home.
Charitable Lead Trusts
With a charitable lead trust, assets are transferred to a trust and payments are made to the Children’s Home for a term of years, usually between ten and twenty. You may receive a gift or estate tax deduction at the time the gift is made and at the conclusion of the term, the assets pass to family members, usually children or grandchildren. Tax deductions may allow you to transfer more to your heirs than you would otherwise be able to and any growth in the value of the trust is not subject to tax at the termination of the trust.
IRA and Retirement Assets
You can designate the Children’s Home as a beneficiary to receive all or part of the remainder of your IRA or retirement plan. If left to heirs, retirement assets are subject to income and estate taxes whereas the Children’s Home would not be taxed for receiving a distribution of retirement assets. For those who want to leave their assets to family and charitable organizations, it may make sense to leave retirement assets to charity and leave other assets that would trigger a step up in basis (appreciated stock) to heirs. Contact your plan administrator for information about how to add or change a beneficiary.
Life insurance can be an excellent way to benefit the Children’s Home if you have a policy that you no longer need. Life insurance can be given in two ways. You can designate the Children’s Home as the beneficiary of the policy in which case you still own the policy and your estate will receive a charitable gift credit upon your death. Or you can name the Children’s Home as the owner of the policy which may entitle you to a charitable deduction.
A gift of real estate may allow you to convey a significant asset to benefit the Children’s Home. Real estate can be given directly or used to fund the creation of other types of planned gifts, e.g., gift annuities or trusts. An outright donation of property can be either a percentage interest or the entire property. Either may result in a charitable tax deduction.
You might also be interested in donating a house but reserving the right to live in it for life. With a life estate reserve gift, you convey the ownership of your home or farm but continue to live there for your lifetime. Your gift entitles you to an immediate tax deduction and the value of your home will be removed from your estate.