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Planned and Life Income
Gifts
"Planned giving"
is a term that sometimes frightens people, but the concept
is really quite simple. A planned gift is a charitable gift
that requires some planning before it is made, and which
Ogazi Peace Foundation receives at a future date. Planned
gifts are popular because they can provide valuable tax
benefits and some provide income for life.
Some Benefits of Planned Giving:
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Allow you to make a significant
contribution to the Ogazi Peace Foundation
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Provide you with income tax benefits
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Enable you to avoid capital gains tax
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Empower you to pass assets to family at a
reduced tax cost
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Increase your current income, or someone
else's that you choose
The most common type of planned gift is a
bequest, or a gift made through a will. Usually, a donor
will set aside a certain dollar amount or percentage of
their estate, or certain asset for the benefit of Ogazi
Peace Foundation. The donor's estate will receive a
charitable estate tax deduction upon his or her death when
the gift is made to charity.
There are many types of planned gifts, and the best one for
you depends on your personal, charitable and financial
goals.
Common Types of Planned Gifts:
Bequests
Bequests (or gifts through a donor’s will)
are the most common type of planned charitable gift received
by Ogazi Peace Foundation. Typically, a donor will set aside
a certain dollar amount or percentage of the estate, or a
specific asset to benefit Ogazi Peace Foundation. The
donor's estate will receive a charitable tax deduction upon
his or her death when the gift is made to charity. Bequests
help Ogazi Peace Foundation repair and maintain its
building, launch and support important community programs,
and prepare the organization for future growth.
Donors may specify that bequests be used for
general purposes or designated for a specific use. An
attorney can help you word your bequest so its intended
purpose is clear. We have included here (below) some sample
language that may be used by your attorney when preparing a
bequest to Ogazi Peace Foundation Pierce County.
Unrestricted Bequests:
An
unrestricted bequest may be used by Ogazi Peace Foundation
to provide support for our greatest area of need, or may be
held for future use as deemed by the Board of Directors.
I leave ($______ or
_____% of my estate, or a complete description of specific
property or asset ) to Ogazi Peace Foundation Pierce County,
a not-for-profit organization in Tacoma, Washington or its
successor organization.
Restricted Bequests:
This
type of bequest provides Ogazi Peace Foundation with funds
to be used for a specific purpose, as described by the donor
in his or her will.
I
leave ($______ or _____% of my estate) to Ogazi Peace
Foundation Pierce County, a not-for-profit organization in
Tacoma, Washington, or its successor organization, to be
used for (specify use). If these funds cannot be used as
specified, I grant authority to the Board of Directors to
use them for a purpose that most closely represents my
wishes as stated herein.
Residual Bequests:
You
may name Ogazi Peace Foundation as the beneficiary of all or
part of the residue of your estate.
I leave (the balance
and remainder of my estate, both real and personal property,
(or) _____% of the balance and remainder of my estate) to
Ogazi Peace Foundation Pierce County, a not-for-profit
organization in Tacoma, Washington or its successor
organization, to be (used for _____ or used as determined by
the Board of Directors. If these funds cannot be used as
specified, I grant authority to the Board of Directors to
use them for a purpose that most closely represents my
wishes as stated herein.)
Contingent Bequests:
You
may name Ogazi Peace Foundation as the contingent
beneficiary of your bequest in the event that the primary
beneficiary(ies) should predecease you.
If any
or all of the above-named beneficiaries should predecease
me, then I give to Ogazi Peace Foundation Pierce County, a
not-for-profit organization in Tacoma, Washington, or its
successor organization all the property, real or personal,
which said beneficiary or beneficiaries would have received
if they had survived me.
Charitable Lead Trust
This type of trust makes payments, either a
fixed amount (annuity trust) or a percentage of trust
principal (unitrust), to Ogazi Peace Foundation during its
term. At the end of the trust term, the principal can either
go back to the donor (a grantor lead trust) or to heirs
named by the donor (a non-grantor lead trust). The donor may
claim a charitable income tax deduction for funding a
grantor lead trust or a charitable gift tax deduction for
funding a non-grantor lead trust. Since lead trusts are
typically used to pass assets to heirs, non-grantor lead
trusts are much more common than grantor lead trusts.
Charitable Remainder Trust
This type of trust makes payments, either a
fixed amount (annuity trust) or a percentage of trust
principal (unitrust), to the donor or someone else they
choose to receive the income. The donor may claim a
charitable income tax deduction and may not have to pay any
capital gains tax if the gift is an appreciated property. At
the end of the trust term, Ogazi Peace Foundation will
receive whatever amount is left in the trust. Charitable
Remainder Unitrusts provide some flexibility in the
distribution of income, and may be helpful in retirement
planning.
Gift Annuities
Many donors wish to make generous donations
to the Ogazi Peace Foundation but do not have the income or
assets to do so. You make a significant contribution by
naming Ogazi Peace Foundation as the owner or beneficiary of
an existing life insurance policy, or create a new one and
receive a tax deduction for the premiums.
Life Insurance
Many donors wish to make generous donations
to Ogazi Peace Foundation but do not have the income or
assets to do so. You make a significant contribution by
naming Ogazi Peace Foundation as the owner or beneficiary of
an existing life insurance policy, or create a new one and
receive a tax deduction for the premiums.
Real Estate
A donor may give real estate in several
different ways. Following are several common ways to make a
gift of real estate to Ogazi Peace Foundation:
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Bargain Sale: A bargain sale allows a
donor to sell a piece of property to Ogazi Peace
Foundation Pierce County for an amount less than the
property is worth. The donor may take a charitable tax
deduction for the gift part of the bargain sale.
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Charitable Remainder Trust: A donor can
give real estate through a Charitable Remainder Trust,
receive a stream of income, and once the property is
sold, obtain a charitable income tax deduction. A donor
can avoid paying capital gains taxes on a gift of
appreciated property made to a charitable remainder
trust.
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Outright Gift: Donors who own a second
home or other property may make an outright gift of real
estate and immediately receive a charitable income tax
deduction.
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Personal Residence or Farm (Retained Life
Estate): A donor may give his or her personal residence
or farm to Ogazi Peace Foundation and retain the right
to live there for the remainder of his or her life. The
donor receives an income tax deduction for the gift.
Upon the donor's passing, Ogazi Peace Foundation can use
or sell the property.
Retirement Funds
The best gift at your death may be from your
retirement plan.
Many individuals today have qualified
retirement plans such as an IRA, 401(k), 403 (b), Keogh or
Profit Sharing plan. These assets have been growing tax-free
for years. Once you begin to receive payments from these
qualified plans, the distributions are taxed. The plans are
also included in your taxable estate. A retirement plan may
be an excellent source of funds for making a gift to Ogazi
Peace Foundation Pierce County.
One way to make a gift of your retirement
plan is to name Ogazi Peace Foundation as the beneficiary
(or contingent beneficiary after the death of a spouse) of
the asset through a bequest. When a charity such as Ogazi
Peace Foundation is designated as the beneficiary (or
contingent beneficiary after the death of a spouse), the
assets given to charity are exempt from taxes. Ogazi Peace
Foundation may be named as the beneficiary for the entire
amount or for a percentage of the asset. Ogazi Peace
Foundation must be stated as a beneficiary on the retirement
plan, as well as in your will.
Another way to make a gift of your retirement
plan is to create a Charitable Remainder Trust through your
will. Your IRA assets will be transferred to a Charitable
Remainder Trust. There is no tax due because the Charitable
Remainder Trust is a tax-exempt entity. The trust will
provide life income to the beneficiary (your spouse or
child, for example) and then Ogazi Peace Foundation will
receive the asset after the death of the last beneficiary.
The beneficiary will pay income tax on the distributions
from the trust. However, there are tax benefits to paying
distributions over time rather than in a lump sum where
there can be substantial tax consequences.
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