Planned gifts may include a gift made through a will, a trust, life insurance, retirement assets and many other methods. Donors can find the right type of gift that meets his or her needs and life situation, while helping to ensure the future of The Arc of Bismarck and the work that it does on behalf of people with disabilities. Through gift planning, donors can find a way to protect their financial future, while making a gift that goes far beyond what may have been possible with current income. For more information on planned giving, contact your attorney, accountant or professional tax advisor.
Below are a few planned giving options:
Bequests – A will is a document that allows you to determine the distribution of your assets. It also offers many creative ways for you to multiply your gifts and benefit local charities. In preparing your will, after you provide for your family’s needs, you may choose to bequeath to The Arc of Bismarck a certain dollar amount, specific property, a percentage of your estate, or whatever is left after you have taken care of your family.
Endowment – The Arc of Bismarck currently does not have an endowment, but is interested in starting one should that be the preference of a giver offering a substantial gift. Perhaps you would like The Arc’s endowment to be your legacy. Endowed gifts would provide The Arc of Bismarck with a permanent and growing source of support for our services and programs. Endowment funds are carefully invested with the primary goal of generating annual income from interest earned. The ND Charitable Income Tax Credit, passed by the legislature in 2011, allows individuals that donate $5,000 or more and businesses that donate any amount to qualified endowment funds to receive up to a 40% state tax credit. In essence, your $5,000 gift, for example, after state and federal savings would cost you $1,600.
Charitable Gift Annuity – Charitable gift annuities offer you a way to make a gift now and receive fixed payments for yourself, a spouse, or anyone else you designate. They combine a gift with payments to you, an excellent rate of return, professional investment management, and tax benefits. When you establish an annuity for The Arc of Bismarck, it will invest the gift and pay you, or you and your spouse, fixed payments for life.
Deferred Gift Annuities – Deferred Gift Annuities allow you to defer income from the annuity until retirement. They’re an excellent way for younger people to support an endowment and prepare for their retirement years. they make their gift now and begin to receive regular payments in a set number of years (usually beginning at age 65).
Charitable Remainder Trusts – They allow you to make a gift while providing you and your spouse with payments for life (or any other period you specify, up to 20 years). Your funds are professionally invested, and when the trust ends, the full amount is distributed to The Arc of Bismarck. When the trust is created, you receive an immediate income tax deduction. Trusts offer an excellent way to supplement your retirement income or increase the income from low-yielding assets, as well as make a gift to The Arc. There are two types of Charitable Trusts: Charitable Remainder Annuity Trust and Charitable Remainder Unitrust.
Charitable Lead Trusts – If you’re looking to make a meaningful gift to The Arc of Bismarck, but want to eventually leave your estate to your family, consider a charitable lead trust. It is a special kind of planned gift that allows you to “lend” your assets to The Arc for a specified period of time, after which they pass on to you or you beneficiaries. It is one of the few ways you can eliminate the gift and estate taxes that might typically be due on assets you leave to children and grandchildren. And, in certain cases, you may be entitled to an income tax dedication for the portions of your trust.
Life Estate Gifts – If you would like to leave your home or other property to The Arc of Bismarck, but want to continue to use that property for as long as you live, a life estate gift may be a good option. With this gift option, you can deed your home, farm, or other real estate to The Arc. Because you’ve deeded the property to The Arc, it will not pass through your probate estate, saving your survivors unnecessary expenses and delays.
Life Insurance – Donating part or all of the benefits of a life insurance policy is one of the easiest ways to make a significant gift to The Arc of Bismarck. Doing so entitles you to a charitable deduction from your estate taxes at your death. Or, if you transfer ownership of an existing policy to The Arc, your annual premium payments should be tax-deductible, and if the transaction is properly completed, the insurance proceeds will not be included in your estate.
For more information on planned giving, contact your attorney, accountant or professional tax advisor.