At any stage of life, it is important to plan for how your affairs will be handled. A few simple steps today can give you peace of mind tomorrow by ensuring that you and your loved ones are well protected and that your legacy lives on in a way that you choose.
“Planned Giving” has a few names, including legacy giving, gift planning, and estate giving. It is a means of making charitable gifts part of a financial, estate, tax and philanthropic plan, maximizing the benefits to both the donor and the charity, and often achieving significant tax savings.
Increasing the impact of your giving can often be achieved at a very low cost. It’s simply a matter of planning WHAT to give, HOW to give and WHEN to give, based on your personal needs.
But planned giving can also be misunderstood. Here are a few misconceptions about planned giving that St. Baldrick’s Foundation supporters should consider.
1. Planned Giving is Not All About Death.
On the contrary, it’s about your legacy and how your values, vision, and love of the St. Baldrick’s mission can prevail while you are still living and after you pass on. There are many options for planned giving while you are alive as well as after death. But more so, planning for these now allow you to decide how your estate is handled now and later.
2. You Don’t Have to be “Rich” to Plan a Gift.
Investment to participate in a planned giving strategy can be low. While the average planned gift received by a charity is in the $25,000-$50,000 range (in the form of bequests), stock transfers have no minimum. In fact, many options – like making St. Baldrick’s Foundation the beneficiary of insurance or retirement accounts – cost you nothing at all.
3. Estate Gifts of Even 1% Help Greatly.
A gift in your estate plan, even as low is 1% of your residual estate, can make a huge difference to the St. Baldrick’s Foundation and, in turn, the kids with cancer who benefit from the research happening now and research that will come in the future.
Here are a few ways that you can consider supporting St. Baldrick’s with a legacy gift:
Bequests
Everyone needs a will, even if you plan on living for another 150 years. And this year, St. Baldrick’s has partnered with FreeWill to give all of our supporters the opportunity to write a legally valid will in less than 25 minutes. And, as an option, FreeWill makes it easy to create your legacy at St. Baldrick’s Foundation with a bequest that leaves a planned dollar amount or percentage of your net estate to charity. Start writing your free will today!
Qualified Charitable Distributions
If you are 70 ½ or older, and have a traditional IRA, you are eligible to make a tax-free donation, regardless of whether or not you itemize deductions on their tax return. These gifts, called Qualified Charitable Distributions, can be a smart way you can give back this year. And don’t wait another moment to make this donation in order for your gift to be applied to your 2019 tax return! Use our new tool to calculate how much you need to take out of your IRA, and how much you want to give back to St. Baldrick’s tax- free.
Stock Transfers
If you hold appreciated stock, transferring shares directly to St. Baldrick’s is one of the most powerful ways to give now. When you cash out your stocks before donating, you have to pay the capital gains tax. However, transferring directly to St. Baldrick’s Foundation allows you to give the full amount of that stock, maximizing the impact of your donation. The full amount of the stock is also eligible to be a deduction on your tax return and there is no limit to how much stock can be transferred each year! Transfer your stocks today!
Beneficiary Accounts
Make St. Baldrick’s the primary, secondary or contingent beneficiary of your trust, life insurance policies, retirement accounts, or appreciated real estate. Year-end is always a good time to review all beneficiaries on your accounts, so it might be a good time to add St. Baldrick’s to one of your financial or insurance products you already have.
Charitable Annuities
St. Baldrick’s Foundation has joined forces with a partner who can create a Charitable Annuity that pays the donor the interest earned with a minimum of a $25,000 investment. The annuities simultaneously provide a charitable donation, a partial income tax deduction for the donation, and a guaranteed income stream of the interest to the donor of the annuity, based on the terms – sometimes for the remainder of your life.
The Emerald Circle
Have you already taken the important step of including St. Baldrick’s as part of your estate plan? Let us know so we can honor you as part of the Founding Members of The Emerald Circle.
We’re here to listen! Questions about legacy giving or want more info? Please contact Kym Hoffman, Strategic Director of External Relations, at 626.792.8247, ext. 242 or email distinguishedgiving@stbaldricks.org.
Note that this is not meant to serve as investment, financial, or tax advice. See your accountant, attorney, financial planner, or advisor for advice.
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