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"I wish I could do more"
That's the comment we often hear from supporters when they make gifts to the Partnership.
What if it were possible to make a gift of "startling significance," the kind of contribution many donors would like to make, if there were just some way to do it? We are talking about gifts that truly make a difference, that ensure a level of support that magnifies our ability to fulfill our mission and multiplies your personal satisfaction and recognition.
Strange as it may sound, a gift of "startling significance" often can be made at very low cost. It's just a matter of planning what to give, how to give and when to give. The information on these pages illustrates many ways of making a "planned gift," and our staff can be of even more help.
With a planned gift, you can:
- Craft your own charitable legacy
- Increase your retirement income
- Unlock value in your existing assets
- Balance your giving while providing for your family
- Use your real estate creatively
- Provide income to your parents
- Create a family vision and multi-generational plan
Download a chart that compares the benefits of these and other types of gifts.
These are just a few of the most common planned giving opportunities, but others are available. Please contact David LeDuc, 608.828.8848, or your estate-planning professional for further information. Or request an appointment to discuss how gift planning might be an appropriate way to demonstrate your concern for future generations.
Craft your own charitable legacy
Many people are unable to make a substantial gift to charity during their lifetime as current assets are needed for day-to-day necessities. However, there are ways you can support the Partnership with gifts that don't impact the way you live. You can designate the Partnership to receive estate assets in the future, or you can make immediate gifts to us of assets that are "out of sight and out of mind." We call these "Gifts Anyone Can Afford" because anyone can make them now without impacting their cash flow, lifestyle or family security.
- You can give cash, appreciated stocks, or other assets.
- You may arrange for your heirs to receive lifetime income from a charitable trust, with the remainder going to the Partnership for charitable purposes.
- Giving through your will via retirement plans or a life insurance policy may help reduce your estate tax burden.
Bequests to the Partnership earn a full charitable deduction on estate taxes.
Increase your retirement income
Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to the Partnership and in return, we agree to make fixed payments to you for life. The gift agreement is a simple contract between you and the Partnership. Your payments become one of our general obligations, fully backed by all our assets, and will not fluctuate. When the contract ends, we apply the balance of the gift annuity to the program you designated when you made your gift.
A charitable gift annuity:
- Offers you an immediate charitable income tax deduction.
- Is an irrevocable gift using cash, stock or other assets.
- May be created for one or two people, and annuity payments may begin immediately or can be deferred to a later time.
- Results in a partial tax-free return of principal on each payment received.
Ensures that the Partnership has a steady and permanent stream of income.
Unlock value in your existing assets
Our supporters often overlook the benefits of giving a life insurance policy to the Partnership. If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a paid-up policy. Alternatively, you could create a significant gift by taking out a new policy on your life and naming the Partnership as the owner and beneficiary, thus creating a future gift at a lower cost. If the Partnership is both the owner and beneficiary, the premium payments are tax deductible.
You must name us as the irrevocable [you can't change the terms in the future] owner and beneficiary of the insurance policy to secure income tax benefits from your gift.
- When you make an immediate gift of an insurance policy, you may claim an income tax deduction based on the policy's current value. The Partnership can cash in the policy and have proceeds go directly into the endowment. Or, you can convert the assets of the policy into a charitable remainder trust.
- You reduce estate taxes, since the value of the policy is removed from your estate.
Naming the Partnership as the beneficiary or contingent beneficiary of your life insurance enables you to protect your loved ones while providing for the cause you care about if the policy's beneficiaries predecease you.
Balance your giving while providing for your family
If the largest asset in your estate is your retirement plan, such as a 401(k), IRA, or Keogh, you may be surprised to learn that the IRS will impose income tax on the remaining balance in the account if you designate it to a beneficiary other than your spouse. This tax is in addition to the estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that up to 60 percent of the value of your retirement plan will be consumed in taxes before your child, relative or friend receives it.
There is a sensible charitable alternative: name the Partnership as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The Partnership, as a qualified 501 (c)(3), won't pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.
- No estate tax is due on the retirement plan assets that pass to the Partnership.
- The gift will qualify your estate for a charitable deduction.
- The funds may be used to establish a life income trust for a person of your choice.
- You retain access to all your retirement plan assets during your lifetime.
Your donation to the Partnership will reflect your charitable interests.
Use you real estate creatively
An attractive option for donating real estate is theretained life estate. This arrangement allows you to give your home to the Partnership while retaining the right to live there for the rest of your life. Ownership of your real estate will be transferred to the Partnership at a future date, yet you are entitled to an immediate tax deduction and retain the rights and obligations of ownership for life. You will continue to be responsible for its taxes, structural maintenance, insurance, and upkeep.
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. Additionally, any capital improvements, such as a new roof, may give rise to additional deductions. With a retained life estate, you are able to make a significant gift to the Partnership without disturbing your income or your living arrangements.
- You can give us a significant asset but retain the security of using it for the rest of your life.
- You receive an immediate income tax deduction for a portion of the appraised value of your property.
You can terminate your life estate at any time.
Provide income for your parents
A charitable remainder unitrust is a separately invested and managed charitable trust that pays a percentage of its principal, re-valued annually, to you and/or other income beneficiaries, you name for life or a term of years (up to a maximum of 20). You receive a charitable income tax deduction for a portion of the value of the assets you place in the trust. After the unitrust terminates, the balance or "remainder interest" goes to the Partnership to be used as you designate.
You can use almost any asset to fund a unitrust, including cash, publicly traded stocks and bonds, closely held stock, partnership interests and real estate. You can tailor your unitrust to meet many financial or estate planning goals. You can choose to receive income beginning immediately or you can structure the trust and its investments to defer most of your income to a future time. If you are insurable, you can even use some of the income or tax savings produced by your plan to purchase a life insurance policy that replaces your gift and flows to your heirs outside of your estate ("wealth replacement"). We can assist you and your advisors as you design the right unitrust to achieve your goals.
- You may choose to receive a fixed income or receive distributions that vary with the value of the trust.
- The income beneficiary can be you or someone else, including a spouse, sibling, elderly parents, etc.
A charitable remainder trust is particularly useful for people who own securities or real estate that have increased in value but earn little income, since the assets, once placed in the trusts, can be sold and reinvested free of capital gains tax.
Create a family vision and multi-generational plan
There are several types of charitable gifts that reduce your tax costs for transferring assets to your heirs. A charitable lead trust is one of the best tools for tax savings when passing intergenerational wealth to your heirs. In a nutshell, a lead trust holds appreciating assets for a term of years (or for your lifetime), and makes quarterly or annual payments to the Partnership. The Partnership benefits from the stream of reliable, steady gifts from the lead trust, and you’re able to witness the good work your contribution makes possible during your lifetime. At the end of the trust’s term, all remaining trust assets are distributed to your designated beneficiaries with greatly reduced gift and estate tax, regardless of how much the trust has grown. A lead trust can be structured to totally eliminate estate and gift taxes on trust assets.
- You may choose to have the Partnership receive a fixed income or receive distributions that vary with the value of the trust.
- The final beneficiary can be you or someone else, including a spouse, sibling, elderly parent, friend, or former employee.
- A charitable lead trust is particularly useful for people who own securities or real estate that have increased in value but earn little income, since the assets, once placed in the trusts, can be sold and reinvested free of capital gains tax.
*Disclaimer - The information herein does not constitute legal advice from the National Lung Cancer Partnership. Each recipient is advised to seek advice from a qualified and licensed attorney within the state where they reside. Caution should be taken before proceeding with an estate plan or charitable gift without advice from your own tax accounting and legal advisors.