A Planned Gift
A Planned Gift can help your money serve several purposes at once:
- Create a larger impact in your community
- Potentially increase your income tax deductions
Or it can simply ensure that you leave a legacy with organizations and causes you care deeply about, like the League of Women Voters of Colorado.
We also recommend that you consult an attorney, financial advisor, or estate planning expert when considering your planned gift to LWVCO, and in preparing your will or trust. LWVCO does not provide legal or tax advice.
Bequests
A bequest to the League of Women Voters of Colorado will qualify your estate for a charitable deduction equal to the entire amount you bequeath.
You can make a gift to LWVCO through your will, or have your attorney add a codicil to your existing will. Gifts included in wills and living trusts are popular because they are flexible, easy to arrange, and may be changed with your life circumstances.
You can bequeath a specific sum or a percentage of your estate or specific property.
Giving by bequest costs nothing now, yet it may give you satisfaction to know that your future gift will live on.
SAMPLE BEQUEST LANGUAGE AND TAX ID INFO
Qualified Charitable Distribution from you IRA in Place of the Required Minimum Distribution
A donation option to consider, if you’re over 70.5 years old, is a qualified charitable distribution (QCD) from your tax-deferred retirement account, such as a traditional IRA.
A QCD is a tax-free distribution from a retirement account that can be donated directly to a qualified charity and be used to meet up to $100,000 of the required minimum distribution on your retirement account. There is no tax deduction for a QCD; however, you also don’t have to include that distribution into your taxable income.
“A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 70½ when the distribution was made. Your total QCDs for the year can't be more than $100,000. If all the requirements are met, a QCD is nontaxable, but you can't claim a charitable contribution deduction for a QCD." - IRS
Gifts of Appreciated Stock
A gift of stock can provide attractive tax savings – the first being that you can claim an immediate tax deduction.
If the stock is worth more now than the amount you paid for it more than a year ago, you will be able to claim the full benefit of the stock’s current fair market value. You can also avoid capital gains tax.
Such gifts can result in maximum tax savings with little or no effect on your spendable income and be part of a strategy to periodically re-balance an investment portfolio in a tax-efficient way.
INFORMATION TO GIVE YOUR BROKER
Retirement Plan Gifts
If you are like most people, you probably will not use all of your retirement assets during your lifetime.
When left to friends or family members other than a spouse, assets held in retirement plans and IRA accounts can be subject to as much as 70% in taxes.
If a nonprofit such as LWVCO is named as the beneficiary of all or a percentage of your plan, you avoid substantial estate and income taxes that would come due on the unused portion. Your other, less heavily taxed assets are then available to pass on to loved ones.
RETIREMENT PLAN GIFTS
Retained Life Estate Gifts
A retained life estate allows you to donate your personal residence (such as a home, cabin, or farm) while retaining the right to live on and use the property.
When you make the gift, you retain the right to use the property for the rest of your life, a term of years, or a combination of the two. In exchange for your remainder interest gift, you receive an immediate income tax deduction.
This creative gift plan transfers your house to The League of Women Voters of Colorado but reserves a free lifetime tenancy to you. You can make a significant gift to LWVCO with the most valuable asset you hold, yet not disturb your living arrangements or your cash flow.
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Gifts of Life Insurance
A gift of your life insurance policy is an excellent way to make a gift to charity.
If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.
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A Gift in Memory or in Tribute
Any of the planned giving ideas discussed here can become an enduring tribute to a family member or other loved one.
A member of our staff would be glad to assist you in choosing an appropriate commemoration for your gift in memory or honor of someone special. Please call 303-863-0437.
Alternately, you can simply mail a check to LWVCO (110 16th Street Mall, Suite 1326, Denver, CO 80202) or make your gift online and indicate in the comments section that this gift is In Honor of/In Memory of (person’s name). Please also indicate whom LWVCO should notify of your gift (e.g., a family member of the deceased or the honored person’s mailing address).