Planned giving provides donors with a practical, financially attractive way to insure Project Hope’s ongoing work while offering several added benefits beyond the standard income-tax deduction for a charitable gift. You can make a significant gift to Project Hope by naming the agency as a beneficiary of a will, retirement account, or life insurance policy. By including these types of gifts in your estate planning, you may secure an estate-tax charitable deduction for the value of the gift and significantly reduce the tax burden of your estate.
As is the case with any charitable planned gift you should consult your financial planner, tax advisor, or estate planner before considering the following. Also, please let us know of your intentions to remember Project Hope in your will, trust, life insurance policy, and/or other planned gift so that we may thank you for your kindness and generosity.
A. Bequests
Including Project Hope in your bequest or other estate plans ensures that your commitment to the mission of Project Hope today will continue to receive your financial support in the future.
Sample bequest language:
Outright Bequest for General Needs
An outright bequest is the simplest way to make a gift through your will. If you intend to make an outright bequest of cash, securities, or other property by designating a specific dollar amount, a particular asset, or a fixed percentage of your estate to Project Hope to be used for general purposes the following language is suggested:
"I give, devise, and bequeath to Little Sisters of the Assumption Family Health Services of Massachusetts dba Project Hope located in Roxbury, Massachusetts, the sum of $________ (or a description of the specific asset)."
Outright Bequest for a Specific Purpose.
If you intend to make an outright bequest for a specific purpose, such as to support Project Hope’s Family Shelter, the following is suggested:
"I give, devise, and bequeath to Little Sisters of the Assumption Family Health Services of Massachusetts dba Project Hope located in Roxbury, Massachusetts, the sum of $_______ (or a description of the specific asset), for the benefit of Project Hope to be used for the following purpose: (state the purpose, e.g., the Family Shelter)”
Residuary Bequest
After your loved ones and beneficiaries receive a designated portion of your estate, some or all of the remainder of the estate would be left to Project Hope: "All the rest, residue, and remainder of my estate, both real and personal, I give to Little Sisters of the Assumption Family Health Services of Massachusetts dba Project Hope located in Roxbury, Massachusetts.”
B. Retirement Accounts
You may name Project Hope as a beneficiary of your IRA or other qualified retirement benefits. Donors should consult with their tax advisor regarding the tax benefits of such gifts.
Naming Project Hope as the beneficiary of a qualified retirement plan asset such as a 401(k), 403(b), IRA, Keogh or profit sharing pension plan will accomplish a charitable goal while realizing significant tax savings. It can be costly to pass such assets on to heirs because of heavy tax consequences. By naming Project Hope as a beneficiary of a retirement plan, the donor maintains complete control over the asset while living, but at the donor's death the plan passes to support Project Hope free of both estate and income taxes.
Making a charitable gift from your retirement plan is easy and should not cost you any attorney fees. Simply request a change of beneficiary form from your plan administrator. When you are done, please return the form to your plan administrator and notify Project Hope
C. Current Tax-Free Gift From A Traditional Or Roth IRA
(Note: Option if 70 1/2 or Older)
On October 3, 2008, Congress extended the Pension Protection Act of 2006 through December 31, 2009. This legislation provides tax incentives for charitable gifts from donors who are 70½ or older and encourages financial support of charitable organizations across the United States.
Under the law, you can make a lifetime gift using funds from your individual retirement account (IRA), Roth IRA, or rollover IRA without undesirable tax effects. Previously you would have had to report any amount taken from your IRA as taxable income, and then take a charitable deduction for the gift, but only up to 50 percent of your adjusted gross income. In effect, this caused some donors to pay more in income taxes than if they didn't make a gift at all.
Now these IRA gifts can be accomplished simply and without tax complications. You can take advantage of this option through calendar year 2009. You may contribute funds this way if:
- You are age 70½ or older
- The gift is $100,000 or less
- You make the gift(s) on or before December 31, 2009
- You transfer funds directly from an IRA or Rollover IRA
- You transfer the gift outright to one or more public charities, but not supporting organizations or donor advised funds
Contact your IRA custodian to transfer your desired gift amount to Project Hope.