Planned Giving

Introduction

Over the past couple of decades the concept of planned giving has become popular for estate planning with charitable organizations and their donors.

Planning giving enables a donor to realize significant financial gains while providing support to a favorite charity. When used creatively, planned giving can be adopted to fit both your needs and the charity’s goals. In reviewing these strategies, you may find that your generosity will not only insure the future work of the Forsyth Humane Society, but will also help you in your desire to be more philanthropic and financially secure. We ask that you think about these concepts and consider entering into a partnership with us to save the lives of many animals every year.

Remember that when you make a planned gift, immediate and long-term benefits accrue to you, the donor, and your generosity will be realized by the Forsyth Humane Society in the future. Be sure to consult your financial advisor or retain tax and legal counsel when making a decision on which avenue of giving will be best for your financial situation.

Bequests

The Forsyth Humane Society can be named as a beneficiary under your Will as the recipient of an outright gift of cash or property.

Appreciated Property

Gifts of significantly appreciated real estate, business interests, or capital assets allow you to avoid long-term capital gain taxes and generate an income tax charitable deduction for either the fair market value (subject to a cap of 30% of your AGI) or cost basis (subject to a cap of 50% of your AGI) of the asset with no recognition of loss or gain on the transfer.

Life Insurance

There are many ways a life insurance policy taken on the donor’s life can provide a significant charitable deduction. To receive a deduction, the Forsyth Humane Society should be named as the beneficiary of the policy and can also be named the owner which allows the policy to be excluded from the donor’s taxable estate. Insurance policies can also be held in an Irrevocable Life Insurance Trust (ILIT). Consult your financial advisor for additional information on the various options and how to put this plan into place.

Charitable Remainder Trusts

Irrevocable trusts under which annual payments are made to an individual or individuals at a fixed rate, as set out initially in the trust (a Unitrust) or a fixed amount (an Annuity) for life or for a term of years. Whatever remains in the trust at the end of its term (lives of years) will go to the Forsyth Humane Society in honor of the donor(s).

In the case of either type of Charitable Remainder Trust, a contribution by you of appreciated property (e.g. securities, real estate, or personal property) will enable you to avoid tax on any long-term capital gain. Therefore, you might contribute highly-appreciated property that is providing you with a low return of income in exchange for a higher fixed rate in the trust without having to recognize the capital gain for individual income tax purposes.

Charitable Lead Trust

As opposed to a Charitable Remainder Trust, this trust pays an annuity or unitrust amount to the Forsyth Humane Society during the trust term and returns the property to the donor or pays it over to other named individuals at the end of the term of the trust. With appropriate use of a Charitable Lead Trust, a donor may be able to shift ownership of valuable property to the next family generation at very low estate or gift tax cost.

For more information…

For additional information on how to implement any of these giving strategies into your financial and estate plan you can search for a Certified Financial Planning professional.

The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Forsyth Humane Society, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.