Planned Giving Program: Sustaining our Treatment Programs
Project Turnabout has initiated a Planned Giving Program to strengthen our viability and sustainability of serving those in need of alcohol, drug, and/or gambling addictions. Our Planned Giving Program is a way for donors to ensure that they are there for those needing the hope of recovery today and into the future.
A Planned Gift to Project Turnabout may be attractive to a donor for a number of reasons:
• It is a further demonstration of the generosity of the donor
• The donor will be entitled to a charitable income tax deduction
• It can provide for favorable capital gain tax results
• It can assist in minimizing estate taxes
• It can generate an income stream for the donor
• It can provide the donor with the satisfaction of knowing that his or her gift will have a major impact on the benefiting charity
Understanding Planned Gift Giving
Planned Gift Giving is finding ways to make charitable gifts now or after your lifetime, while you can still enjoy the financial benefits for yourself. Planned giving generally involves one of three gifting methods- current outright gifts, expectancies, and deferred gifts. A common misconception is that planned giving is “deferred gifts.” Some planned gifts are structured to provide immediate benefits to the organization, others provide deferred benefits to the charity. Another misconception is that “planned giving” is only for the wealthy. The truth is, even people of modest means can make a difference through gift planning.
Planned gift giving requires some consideration and careful planning and, often, help from your financial and legal professional advisors. Unlike cash donations, planned gifts are typically made from assets in your estate rather than disposable income and come to fruition upon your death.
The most common planned gift is a bequest in your will or living trust. Other planned gifts include:
• Life Insurance Policies
• Retirement Plan Assets
• A Gift of Real Estate Property
• A Gift of Securities
• A Charitable Gift Annuity
• A Charitable Remainder Trust
• A Charitable Lead Trust
Bequests: A Gift in your Will (Expectancy Gift)
Our hope is that you will consider including a gift to Project Turnabout in your will or living trust. Bequests can provide a sizable gift without decreasing your assets during your lifetime. A charitable bequest gift offers these main benefits.
Simplicity: You can simply add a few sentences in your will or trust. The official legal bequest language for Reverence for Life and Concern for People, Inc. (Project Turnabout) is; I, (name), of (city, state, zip), give, devise and be Reverence for Life and Concern for People, Inc. (DBA) Project Turnabout (written amount or percentage of the estate or description of property) for its unrestricted use and purpose.
Flexibility: Because you are not actually making a gift until after your lifetime, you can change your mind or gift at any time. A Bequest also does not require current disposable income.
Versatility: You can structure the bequest to leave a specific item or amount of gift contingent on certain events or leave a percentage of your estate.
Gifts of Life Insurance (Expectancy Gift)
Life insurance is often overlooked as an asset you may consider donating to Project Turnabout. This type of donation may be attractive to donors because it affords donors the opportunity to make a gift at a sizeable face value for a minimal outlay. When the original intent of the protection no longer applies, your life insurance can be redirected to help support a worthy cause. One option is to simply name Project Turnabout as the primary beneficiary or to receive a portion of the proceeds.. (Naming us as a beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Another option would be to name us as beneficiary and also change ownership of the policy as a current charitable gift. This option provides you with possible tax benefits as mentioned below:
• Assign Project Turnabout ownership and primary beneficiary of your life insurance policy
• You receive an income tax charitable deduction under most cases
• Your realize tax savings from use of the deduction and these savings can be invested as future income
• You reduce your future estate tax liability
• You can also purchase a new life insurance policy, assign Project Turnabout as the beneficiary and owner of the policy and make cash donations to cover the annual premiums, which are tax deductible
Retirement Plan Assets (Expectancy Gift)
Many donors have found this as an attractive gift vehicle, by naming a charitable organization as the beneficiary of a retirement plan or IRA. For many individuals, retirement plan assets represent the single largest asset in their portfolios. Like a bequest, it’s easy to understand and implement. This gifting opportunity merely involves obtaining a beneficiary designation form from the retirement plan administrator and naming the charity as beneficiary of the retirement plan assets upon the owner’s death. When you pass your retirement assets in your estate, those assets become subject to income taxes. This type of donation can reduce the amount that normally would be passed to heirs by up to 35%. In contrast, as a nonprofit organization, we are tax-exempt and receive the full amount and bypass federal taxes. Consider the following options with your planned charitable gift:
• Designate Project Turnabout as the primary beneficiary of your retirement plan for the entire or percentage of your retirement plan assets
• Designate a specific amount to be paid to Project Turnabout before the remainder is divided amongst the remaining beneficiaries
• Leaving retirement plan assets to Project Turnabout reduces your heirs tax liability on the retirement assets, thus allowing other assets to be distributed that may not be as heavily taxed
Gift of Real Estate Property (Outright Gift)
Real Estate is the second most common type of noncash gift. Consider a gift of real estate to Project Turnabout. A residence, a vacation home, or other land may be given as a gift to Project Turnabout. You should be able to deduct the “fair market value” of your gift, avoid all capital gains taxes and remove the asset from your taxable estate, thus reducing the tax burden on your heirs.
Gifts of Securities (Outright Gift)
Appreciated stock, publicly traded or closely held, represents the most common type of noncash gift. When you donate a long-term appreciated security, you should be able to take an income tax deduction for the market value of the securities. You may also be able to avoid capital gains taxes on the transfer. Please contact the Development Department at 1-800-862-1453 to discuss possible securities transfers as a donation. We will also suggest you discuss this type of transfer or sale with your broker.
Charitable Gift Annuity (Deferred Gift)
A charitable gift annuity is a simple contract between the donor and Project Turnabout, whereby the donor makes an irrevocable transfer of cash or property to Project Turnabout. In return, for the contributed property, Project Turnabout agrees to pay a fixed amount of money each year for the lifetime of one or two individuals. Considering a charitable gift annuity to Project Turnabout can support our mission, and you can receive steady payments during your retirement years.
By making a charitable gift annuity donation to Project Turnabout and receiving a fixed income for life, you may also receive these additional benefits:
• Your initial donation is partially income tax-deductible
• The charitable gift annuity payments are partially income tax-free for the remainder of your estimated life expectancy
• The payments you receive are not affected by ups and downs in the economy
• The charitable gift annuity can be for more than one person (2) so another loved one can also receive payments for life
Charitable Remainder Trusts (Deferred Gift)
A charitable remainder trust is an irrevocable trust in which the donor transfers cash or property to a trustee and in return the donor or other individuals named by the donor as income beneficiaries receive income from the trust for life or a specified term of years not to exceed twenty years. With a charitable remainder trust, assets can be transferred to Project Turnabout in an irrevocable trust that will provide you or a loved one with a fixed or variable annual income for life. After your lifetime, the balance in the trust goes to the charities of your choice. Here are some possible benefits:
• A partial charitable income tax deduction can be made
• Potential for increased income
• Capital gains tax avoidance up front
• Professional trust management
• The trust pays you each year the same amount you choose at the start, thus eliminating the potential fluctuation in the trust investments
Charitable Lead Trusts (Outright)
A charitable lead trust is a trust arrangement that pays current annual income to Project Turnabout for a specified number of years, with the trust principal reverting to the donor or the donor’s family when the trust ends. The annual income payment by the trust is similar to an outright gift of cash for the nonprofit and can be used as received, subject of course, to any restrictions placed on the gift by the donor. Project Turnabout suggests donor’s seek assistance of an experienced charitable estate planner before entering into this type of arrangement.
For more information on making a planned gift to Project Turnabout, please call Mark Sannerud at 320-564-4911, toll free 1-800-862-1453, or via email at email@example.com. Planned Gifts are a great way to support our mission while ensuring your family’s financial security.