Planned giving provides options by which individuals can make a donation to The Wildlands Conservancy through an estate or through gifts that generate income during the donor's lifetime.
While the benefits of an outright gift can be derived immediately, a planned gift is a charitable contribution that is realized by TWC in the future, usually upon the death of the donor.
During the donor's lifetime this alternative enables the donor to provide for - and sometimes enhance - their own financial security and that of loved ones while still making a generous contribution to TWC. In addition, planned giving offers substantial benefits to the donor in the form of tax deductions, professional management of assets and possible increased income.
Donors who select planned giving make an impact on TWC for years to come. Outright gifts are essential to TWC since they help pay for the current costs of acquiring and stewarding land, providing outdoor education programs to children, and managing the organization. However, planned gifts are vital to TWC's long-term success because they usually are larger gifts that TWC can count on in the future.
Planned giving options available to TWC donors may include:
A bequest is a charitable gift left to TWC through an individual's will. This is a common method of leaving assets to a charitable organization. A donor can leave a specific amount of money, a specific piece of property, a percentage of the donor's assets, or the "residue" of the estate, i.e., what is left after providing for loved ones. Giving a percentage of one's assets is popular because it allows for fluctuations in the value of the estate.
When designating a charitable bequest, it is important to use TWC's full proper name: The Wildlands Conservancy, a California nonprofit public benefit corporation (and not merely "TWC").
Revocable Living Trust Agreement
A revocable living trust provides for a future gift that can be revoked at the request of the donor during his or her lifetime. This planned gift offers a risk-free way to arrange for a charitable gift while still retaining the right to use the assets should the need arise.
The donor receives no income tax deduction for the gift. Savings, however, are ultimately realized in the form of an estate tax deduction for the amount passing to TWC at the time of the donor's death.
Charitable Gift Annuity Agreement
A charitable gift annuity is a contract between the donor and TWC. It allows the donor to make a gift and to receive fixed income payments for life. The payments are based partially upon the donor's life expectancy. Such payments may exceed nine percent (9%), depending upon the age of the donor. Because a portion of the annual payment is a return of principal, it is generally nontaxable.
Charitable Remainder Annuity Trust
A charitable remainder annuity trust allows a person to make gifts while still providing economic security for the donor and loved ones.
The donor may transfer assets to a trust from which payments are made to the donor and/or the donor's designees. Upon conclusion of the trust period, all assets remaining in the trust become the property of The Wildlands Conservancy.
Potential benefits to the donor can include increased income from low-yielding assets; the reduction or elimination of estate, capital gains and gift taxes; and diversification of investment assets. The charitable remainder annuity trust provides a fixed income based on the value of assets when the trust is created.
Charitable Remainder Unitrust
A charitable remainder unitrust offers the same benefits as the charitable remainder annuity trust; however, it pays a fluctuating income based on a fixed percentage of the trust's annual fair market value.
Charitable Lead Trust
A charitable lead trust provides immediate income for charitable purposes. It allows the donor to pass assets to heirs at a reduced cost to the donor upon termination of the trust. Charitable lead trusts are often used to pass substantial wealth from one generation to the next.
Life Estate Agreement
A life estate agreement is a gift of real property such as a house, farm or acreage, whereby the donor(s) may continue to live in the house and use the premises for their lifetimes. The owner(s) will continue to be responsible for maintenance, insurance and taxes, and are entitled to receive any income the property generates. The owner may(s) take a tax deduction in the year of the gift equal to the value of the "remainder" interest. At the time of death, the real property transfers immediately to TWC.
If you have questions about planned giving, contact Sara Seburn at The Wildlands Conservancy: 909.797.8507.