Will to make a difference.
How can you help us mentor over 350 children annually? Planned giving provides you with several options that can make a difference in our community while providing you with tax advantages.
The following are several options for you to explore, but none of the following is intended as legal advice. Please consult with a competent tax and legal professional to determine the best giving strategies for your situation.
One of the simplest ways to leave a charitable legacy to the Big Brothers Big Sisters of Northcentral Wisconsin (BBBSNCW) is through a provision in your will, stating your intentions. You can bequest any of the following:
- A gift in a specific dollar amount
- A percentage of your estate
- What remains after you provide for others
- A specific item or property
A bequest of property to Big Brothers Big Sisters of Northcentral Wisconsin is deductible for estate tax purposes at its full market rate and can result in substantial tax savings.
A simple and inexpensive way to leave an mentoring-supporting legacy is by changing the beneficiary on a life insurance policy to Big Brothers Big Sisters of Northcentral Wisconsin – particularly a policy that is no longer needed for its original purpose. This provides a tax-free gift that supports mentoring in your community.
Charitable Remainder Trust
Charitable Remainder Trusts provide both immediate tax benefits and income to the donor. Here is an example of how it works:
Jerry had stock valued at $50,000 and wished to make a gift to BBBSNCW in support of youth mentoriong. After speaking with his attorney and investment advisor, he transferred this stock to a charitable remainder trust (CRT) – establishing an annuity that will provide him with $4,000 per year for the rest of his life. This annuity is a welcome supplement to his retirement income.
In addition, he receives a significant charitable income tax deduction in the year he creates the trust. Jerry also avoided paying an immediate capital gains tax of almost $8,000, which would have been due if he had sold the stocks.
At Jerry’s death, the remaining CRT funds will be given to BBBSNCW as his personal legacy gift.
Charitable Lead Trust
Like a Charitable Remainder Trust, a Charitable Lead Trust can also provide support for BBBSNCW and significant tax benefits for the donor. However, it differs in an important way. A Charitable Lead Trust can make financial gifts to the BBBSNCW for either a specific number of years or for the donor’s lifetime. At the end of this period, however, the assets in the trust typically pass to the donor’s children or their trusts.
Here is an example of how it works:
Beth established a Charitable Lead Trust that makes a contribution to BBBSNCW each year for the rest of her life. These contributions are funded by stocks that Beth no longer needs for her own support. Upon Beth’s death, the assets in the trust will be left to her son William.
The contributions made to BBBSNCW result in a sizable charitable deduction for Gift and Estate Tax purposes. This deduction will also result in a higher proportion of the trust assets being passed onto William with a smaller portion going to taxes.
You may also want to consider making a donation in other ways.
- A memorial gift
- An honorarium gift
- Sponsorship of programs