There are many ways to leave a legacy and ensure that your support for the animals will continue well into the future. By making a gift of appreciated stocks, establishing a charitable gift annuity, leaving a bequest to the animals in your will, or naming CVHS as a beneficiary of your life insurance, trust, or estate – you can truly make a difference in the lives of animals and be certain that CVHS will be here for future generations.
To learn more about planned giving and the potential tax advantages, please contact Deborah Shelton, Development Director, at (603) 749-5322 ext.106 or firstname.lastname@example.org. Or write to us at CVHS, 262 County Farm Road, Dover, NH 03820.
Use Your Traditional IRA to Make your Charitable Gifts
The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.
- you must be 70.5 years or older at the time of the gift;
- transfers must be made directly from a traditional IRA account by your IRA administrator to CVHS. Funds that are withdrawn by you and then contributed do NOT qualify.
- Gifts from 401k, 403b, SEP and other plans do not qualify.
- Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.
Benefits-qualified charitable distributions
- Can total up to $100,000
- Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however.)
- Count towards your required minimum distribution for the year from your IRA
- Suppose John wants to make a contribution to CVHS; he has $500,000 in his IRA and he wants the contribution to be $20,000. He can authorize the administrator of his IRA to transfer $20,000 to CVHS and $5,000 to himself. The $20,000 distributed to CVHS will not be subject to federal tax and will be counted towards his annual minimum required distribution.
- As you plan your required distributions for this year, if you do not need the money the government is requiring you take, consider using it for a charitable gift using the IRA Charitable Rollover.
For more information, please contact Deborah Shelton at email@example.com.
Important: Be sure to check with your financial adviser to determine whether this provision is right for you. This information is not meant as tax or legal advice.
Deferred Gifts & Planned Gifts
Deferred Gifts – Planned Gifts
Download a Planned Gift Intention Form.
Planned Gifts are specially designed to help you meet your own financial and family obligations while supporting the mission of Cocheco Valley Humane Society. These gifts have the potential to give you special income and/or tax advantages. The appropriate form of a planned gift can play a valuable role in strengthening your own long-term financial plans. At the same time, it can enable you to leave a lasting legacy that would perhaps not otherwise be affordable.
By making a bequest to CVHS, you will join a circle of devoted friends whose deferred gifts will build a foundation of hope for animals in need. Bequests can help CVHS in a number of ways – from providing medical care and nourishment to the animals, to funding community outreach and humane education initiatives. Whether you wish to memorialize a loved one, provide financial support for our upcoming capital campaign or underwrite professional development, a bequest can help you achieve your goals and associate you with CVHS forever.
Beneficiary on Account
Beneficiary on Account is another way you can support the CVHS. An easy way to make a gift is to designate Cocheco Valley Humane Society as a beneficiary on a bank account or IRA. These are called Transfer on Death or Payable on Death forms for bank accounts. By establishing a beneficiary, the accounts are also removed from probate.
Life Insurance Policies
If you have life insurance policies that you bought years ago for reasons that no longer apply, consider donating their value to CVHS.
- Cost of a gift of life insurance is small compared to the leveraged benefit of the face amount of the policy.
- The cash value of your policy may qualify for an immediate income tax charitable deduction.
- You will have the potential to make a significant and lasting impact to a program of your choosing.
Charitable Bequests allow you to make a gift to the shelter in one of three different ways: specific bequest, percentage bequest, and residuary bequest. You can choose to make the gift unrestricted, restricted, in honor or memory of, or as an endowed gift.
How To Include Cocheco Valley Humane Society In Your Will
You do a wonderful service when you include CVHS in your will. Your gift will assure that outstanding care will continue to be provided for the homeless animals of Strafford County into the future.
Your bequest to CVHS may be expressed in these words in your will:
“I bequeath the sum of $(insert amount) to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
“I bequeath the (insert percentage)% of my estate to Cocheco Valley Humane Society a not-for-profit organization with tax identification number 22-2561784 located at 262 County Farm Road, Dover, NH 03820 to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
“I bequeath the residue of my estate to Cocheco Valley Humane Society a not-for-profit organization with tax identification number 22-2561784 located at 262 County Farm Road, Dover, NH 03820 to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
The following language restricts the funds:
“This fund is to establish an endowment fund to be known as (name the fund) the income from which shall be used for (state specific purpose of the fund). If Cocheco Valley Humane Society (“CVHS”), in its sole judgment, determines that the original intent is no longer feasible, or if the amount of my bequest is insufficient to establish a separate restricted fund, CVHS may use my gift and the income therefrom for such related purposes as, in its sole judgment, will most nearly fulfill the original intent.”
Endowments are established in perpetuity for a specific purpose, stated by the donor. Endowments blend donors’ visions with the needs and objectives of the shelter. By working together, the Development Manager and the benefactor create a distinctive endowment that reflects their common goals. Endowed funds provide support that is reliable, because it is perpetual; earnings from an endowed fund are used to carry out the donor’s purpose while the principal is safeguarded.
A named endowment is a gift to the shelter which is permanently invested. The investment return is used each year to support projects or priorities specified by the donor. The principal remains intact and professionally managed for growth and income. The endowment can be named to honor the donor, relatives, or other special friends.
Charitable Remainder Trusts – enables you to place cash, securities, or real estate into a trust that pays lifetime income to you and/or to other beneficiaries, with the trust principal eventually passing to Cocheco Valley Humane Society.
Charitable Lead Trusts – enables you to place cash, securities, or real estate into a trust that pays Cocheco Valley Humane Society a percentage for a term of years with the principal passing to grandchildren with reduced gift or estate taxes.
A Charitable Lead Trust pays the charity an income and either the heirs may receive the trust assets later, with considerable gift/estate tax advantages (family lead trust) or the donor may take the asset back and earn income tax deductions during the life of the trust (donor lead trust). The typical lead trust is used to transfer assets to heirs.
Retained Life Estate-allows you to make a current gift of a personal residence or vacation home to Cocheco Valley Humane Society while retaining the right to live in your personal residence or use your vacation home for your lifetime.
For a retained life estate, you give Cocheco Valley Humane Society your personal residence or vacation home and then continue to live there for the rest of your life. We will own the house, but you will continue to be responsible for its ongoing taxes, structural maintenance, and upkeep. And we mutually agree upfront about what we will do if you no longer wish to live in the house or become physically unable to continue living there.
You will receive a charitable deduction based on the fair market value of your home minus the present value of the life tenancy you have retained.
With a retained life estate you make a significant gift to Cocheco Valley Humane Society with the most valuable asset you hold, without disturbing your cash flow or your living arrangements.
Donating retirement assets is one of the most cost-effective gifts that you can make. If you leave your assets in retirement accounts to children or other heirs, these funds will be included in your taxable estate for federal estate tax purposes. Additionally, beneficiaries must also include any withdrawals they receive from retirement accounts in their taxable income. So both estate taxes and income taxes are charged on the same asset.
If you can make other provisions for your family, leaving retirement assets to CVHS is a great way to make the most of these funds that you have accumulated.
- Donor does not give up the use and control of these assets throughout their life.
- Allows you to optimize how you distribute assets in your estate.
- Retirement assets are typically one of the largest sources of wealth in a person’s portfolio, though often overlooked as a source for charitable giving.
The best way to leave retirement assets to Cocheco Valley Humane Society is to advise your retirement plan administrator of your desire to change your beneficiaries. Cocheco Valley Humane Society can be the primary beneficiary after your death, a secondary beneficiary after your spouse, or even a contingent beneficiary. This bequest can be structured as a percentage of the assets or a specific dollar amount.
Your gift can be designated as unrestricted – for use wherever our needs are greatest – or you may restrict the funds for a specific purpose. You can even create an endowed fund which can exist in perpetuity with annual income earned each year being used in support of an area of choice.
Note: Please notify the Development Director if restricting your gift for a specific purpose or creating an endowed fund to ensure that your request can be fulfilled by Cocheco Valley Humane Society and that the language used is appropriate to accomplish your wishes.
In addition, as with any complex estate planning changes, please consult your attorney or tax advisor as how these gifts may impact your individual situation.
Questions & Answers
- H.R. 2009, the Protecting Americans from the Tax Hikes Act of 2015 permanently extended the IRA Charitable Rollover. Originally passed in 2006 as part of the Pension Protection Act, the IRA Charitable Rollover allows individuals age 70.5 and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes.
- Who Qualifies?
- Individuals who are age 70.5 or older a the time of the contribution (you have to wait until 6 months after your 70th birthday to make the transfer).
- How much can I transfer?
- $100,000 per year. The provision NO LONGER HAS AN EXPIRATION DATE
- From what accounts can I make transfers?
- Transfers must come from your IRAs directly to CVHS. If you have retirement assets in a 401k, 403b, etc., you must first roll those funds into an IRA, and then you can direct the IRA administrator to transfer the funds from the IRA directly to CVHS.
- To what charities can I make gifts?
- Tax exempt organizations that are classified as 501(c)(3) charities, including CVHS, to which deductible contributions can be made.
- Can I use the IRA Charitable Rollover to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations?
- No, these are not eligible.
- How will CVHS count the gift?
- We will give you full credit for the entire gift amount.
- What are the tax implications to me?
- Federal- you do not recognize the transfer to CVHS as income, provided it goes directly from the IRA administrator to us; therefore, you are not entitled to an income tax charitable deduction for your gift.
- State- each state has different laws, so you will need to consult your own advisers. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income tax paid. Still other states have no income tax at all.
- Does this transfer qualify as my required minimum distribution?
- Yes, once you reach age 70.5, you are required to take required minimum distributions from your retirement plan each year, according to a federal formula. IRA Charitable Rollovers count towards your minimum required distribution from the IRA for the year.
- Can my spouse also make an IRA Charitable Rollover, even if we are married and file jointly?
- Yes, every individual can use the IRA Charitable Rollover for up to $100,000 each year.
- How do I know if an IRA Charitable Rollover is right for me?
- You are at least 70.5 years and
- you do not need the additional income necessitated by your minimum required distribution, OR Your charitable gifts already equal 50% of your adjusted gross income, so you do not benefit from an income tax charitable deduction for additional gifts OR you not itemize deductions OR you are subject to income phase-outs on your income tax deductions.
- You are at least 70.5 years and
- What is the procedure to execute an IRA Charitable Rollover?
- We offer a sample letter you can send to your plan provider to initiate a rollover. Make sure that you contact Deb Shelton at firstname.lastname@example.org when you direct the rollover so we can look for the check from your IRA administrator.