Will to make a difference.
How can you help us place over 1,200 animals annually? Planned Giving provides you with several options that can make a difference in our community while providing you with tax advantages.
The following are several options for you to explore, but none of the following is intended as legal advice. Please consult with a competent tax and legal professional to determine the best giving strategies for your situation.
One of the simplest ways to leave a charitable legacy to CCHS is through a provision in your will that states your intentions. You can bequest any of the following:
- A gift in a specific dollar amount
- A percentage of your estate
- What remains after you provide for others
- A specific item or property
A bequest of property to CCHS is deductible for estate tax purposes at its full market rate and can result in substantial tax savings.
A simple and inexpensive way to leave an animal-supporting legacy is by changing the beneficiary on a life insurance policy to CCHS, particularly a policy that is no longer needed for its original purpose. This provides a tax-free gift that supports the humane treatment of animals.
Charitable Remainder Trust
Charitable Remainder Trusts (CRTs) provide both immediate tax benefits and income to the donor. Here is an example of how it works:
Sally had stock valued at $50,000 and wished to make a gift to CCHS in support of animal health. After speaking with her attorney and investment advisor, she transferred this stock to a CRT, establishing an annuity that will provide her with $4,000 per year for the rest of her life. This annuity is a welcome supplement to her retirement income.
In addition, she receives a significant charitable income tax deduction in the year she creates the trust. Sally also avoided paying an immediate capital gains tax of almost $8,000 which would have been due if she had sold the stocks.
At Sally’s death, the remaining CRT funds would be given to CCHS as her personal legacy gift.
Charitable Lead Trust
Like a Charitable Remainder Trust, a Charitable Lead Trust (CLT) can also provide support for CCHS and significant tax benefits for the donor. However, it differs in an important way. A CLT can make financial gifts to CCHS for either a specific number of years or for the donor’s lifetime. At the end of this period, however, the assets in the trust typically pass to the donor’s children or their trusts.
Here is an example of how it works:
Melissa established a CLT that makes a contribution to CCHS each year for the rest of her life. These contributions are funded by stocks that Melissa no longer needs for her own support. Upon Melissa’s death, the assets in the trust would be left to her son Kerry.
The contributions made to CCHS result in a sizable charitable deduction for gift and estate tax purposes. This deduction will also result in a higher proportion of the trust assets being passed onto Kerry with a smaller portion going toward taxes.
You may also want to consider making a donation in other ways.
- A memorial gift
- An honorarium gift
- Sponsorship of programs