Charitable Gifts and Financial Planning
With careful financial planning, you and your family can actually enhance your after-tax income by making selected charitable gifts to The Willows. This not only applies to annual income, but also to estate planning as well. There are few charitable gifts you can give which will have such an immediate impact on the lives of young people while benefiting your pocketbook at the same time.
Please contact your tax professional to determine the best methods of Planned Giving for your circumstances, and then contact The Willows Development Office at the number to your right.
Ways to Receive Income from a Charitable Gift to The Willows
Did you know that you can make a charitable gift to The Willows while still retaining income for yourself or a family member, and that you can do this while receiving significant tax savings as well? Here's how:
- Charitable Gift Annuity Hide
You can make a charitable contribution to The Willows, receive an immediate tax deduction, and receive annual income for the rest of your life. The rate you receive is based on your age and increases as you get older. Upon your death or that of your designee, the remaining principal goes to The Willows.
- Charitable Remainder Trusts Hide
A charitable remainder trust is another way to provide income for you or a beneficiary. You may set up the trust so that you receive an income stream either until your death, or for a specified period of years. Unlike a gift annuity, donors have two options when deciding the payout rate of the trust: either a fixed dollar amount, which does not change from year to year, or a fixed percentage of the value of the trust, to be reevaluated yearly. When the trust expires, the remaining principal goes to The Willows.
- Charitable Lead Trusts Hide
Reduce Taxes for Heirs: A charitable lead trust allows you to place significant assets in a trust, with a fixed percentage of the trust's assets going to The Willows for an amount of time to be specified by you, the donor. After the specified period of time, the assets in the trust revert back to you, and any appreciation of assets in the trust remains free from further gift or estate taxes.
- Bequests Hide
Providing for The Willows: in Your WillProviding for The Willows in your will or trust is the very best way to ensure that generations of children to come will continue to receive the benefits of a Willows education. Because your bequest to The Willows is a charitable contribution, the entire value of your bequest is deductible for federal estate tax purposes.
- Gifts of Life Insurance Hide
You can name The Willows as a beneficiary on a new or existing life insurance policy. There are a number of different ways this can positively impact your tax situation. Please talk to your tax professional for particulars.
- Gifts of Real Estate Hide
Do you have a home, commercial property or an undeveloped lot that you own outright and no longer have use for? Consider gifting the property to The Willows and receive a charitable deduction for you or your heirs, while avoiding capital gains taxes.
- Gifts of Art, Antiques or Other Personal Property Hide
Donating art, antiques or jewelry can often be a terrific way to make a gift to The Willows. If you have valuables in your estate, chances are your heirs will have to pay substantial taxes on these items. If you have owned an item for more than 12 months, and then gift it to The Willows, you can claim an income tax deduction for its fair market value - a value that is often far above what you originally paid for the item - while avoiding capital gains taxes.
- Independent Retirement Accounts (IRAs) Hide
Many people choose to will a percentage of the assets they have in retirement accounts, such as IRAs or 401(k)s, to a charitable institution. Why? Since such a designation constitutes a charitable contribution, it often lessens the amount of estate taxes due upon death, which can result in more of your assets being received by your heirs.
