Giving Generously Tomorrow Takes Nothing Away From Living Well Today!
What Is Planned Giving?
Planned giving allows donors to maintain access to income during their lifetimes, provides estate and tax planning tools, and builds permanent wealth for PLWA .
Each individual, family, or organization we has unique charitable interests… and unique financial circumstances. With help you can make the most of both, to receive the greatest return on your community investment.
Planned gifts may produce significant tax savings. They often help a donor avoid or stretch out payment of capital gains taxes, earn federal and state income tax deductions, reduce the size of the donor’s estate, and, if given to a Montana endowment, may be eligible for the Montana Endowment Tax Credit.
The Montana Endowment Tax Credit allows donors to pay less in Montana state income taxes when they give a qualifying planned gift to a qualified Montana charitable endowment. The incentive is 40% of the gift’s federal charitable deduction, up to a maximum $10,000 tax credit, per year, per individual, and a credit of 20% of a direct gift by a qualified business, up to a maximum of $10,000 per year.
This following are some of the different kinds of available planned gifts
Charitable Gift Annuity. Your client can make a gift of cash or property to PLWA and get immediate tax benefits, and ensure that you and a loved one receive fixed quarterly or annual income payments for life.
Deferred Gift Annuity. This is the same as a Charitable Gift Annuity, except that the annuity payments are deferred to the maximum age allowed by the IRS, which creates greater tax savings.
You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After death, the remainder of the trust transfers to PLWA and is placed into a charitable fund. Donors receive income tax benefits the year they establish the trust. When designated to benefit a permanent endowment , this gift allows donors to take advantage of the Montana Endowment Tax Credit. There are a variety of trusts, and your attorney or financial planner can help you determine the right one for your situation.
Estate Gifts – Bequests in your will or trust.
Will or Trust – You can designate a gift or portion of your estate to establish or give to a fund at the Montana Community Foundation and, in some cases, receive a substantial reduction in federal gift and estate taxes. The language in your will or trust can be as simple as the following : I give, devise, and bequeath ___________dollars ( $xx,xxx.xx ) to the Public Land/Water Access Association¸ Inc. of Billings, Montana.
Retained Life Estate. Donors can deed their home or farm to charity, but retain the right to live in it for the rest of their lives, a term of years, or a combination of the two.
If you have questions, contact your tax adviser, attorney, or let us know . We can refer you to the help you need. Thank You.
PLWA Member Russ Vance Talks About Planned Giving
One of the strongest reasons for supporting the mission of PLWA is to insure that future generations can enjoy the Montana outdoor lifestyle tradition. One way to do that is to include PLWA in your will or trust as others have. However, there are ways to do it while you are alive and kicking in this great state. These are often called “Planned Giving”. One of our loyal members, Russ Vance from Bozeman is using a planned giving vehicle called “gift annuities’. Here is what Russ has to say about it:
“I have been involved with PLWA since near the beginning. This included meetings with founders Gene Hawkes and Ron Stephens many years ago. Since then, I always wanted to give more time to the organization, but other activities stood in the way. But there are ways members without time to volunteer can make a big difference. I found that a gift annuity fit me to a tee.
I am a stock trader, and was lucky enough to have a sizeable taxable gain. I was looking for a way to 1/ reduce my taxes, 2/ help my favorite charitable organization, and, 3/ MOST IMPORTANT gain a guaranteed lifetime income at a high interest rate. A gift annuity does all 3.
1. Taxes. Depending on how you set it up, you get an immediate write off of some percentage of the gift. My CPA made the calculations and I was able to completely wipe out my tax liability for 2011. (The amount of benefit depends on whether you have short term gains, long term gains, the ages of you and/or your spouse, and other factors. But as long as you have taxable income it will help you. )
2. for my favorite charitable organization, I chose PLWA. When I pass, an ENDOWMENT in perpetuity to PLWA is set up by the charitable trust, and they can draw the income from it forever.
3. A guaranteed lifetime income for myself and my wife. In my case we will get 7.5% interest as long as we are alive. It will never change. (Pretty good considering all you can get on a CD these days is about 1% if you are lucky.) The interest rate is set nationally and depends on your age and/or the age of your spouse. (You can set it up with one person, or two, but the interest rate is less for two.) Only part of this income is taxable. IRS charts show what is taxable, what is considered a return of your own money, and how much is a charitable deduction. (The interest rate for the annuity has dropped a half percent for 2013, but still beats the heck out of money markets or CD’s)
I have just learned there are other methods that do the same. They are “charitable remainder trusts” and there are several different types of them – some with fixed annuity income and some with a variable rate. You need to check with a tax or planned giving professional as to what would be best for you. (A good contact for all types of planned giving is Nicole Rush at the Montana Community Foundation, 406-443-8313 . )
But the bottom line is by examining the numbers before 31 Dec. you can make a gift to PLWA, guarantee a lifetime income, AND PAY MUCH LESS – MAYBE ZERO – FEDERAL INCOME TAX.
I plan on doing the same thing this year. Call me at 406-587-4987 if you want to talk about it. My email is email@example.com . Thanks for the opportunity to reach you.