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Minnewaska Home Development Foundation
The Art of Gift Planning
Increase the Impact of Your Philanthropy by Knowing What, How, and When to Give
"I wish I could do more"
We hear these words frequently. There are so many ways for friends to "do more" for our future
– all that is required is careful planning. Gift planning is an art combining financial
planning, estate planning, and tax planning techniques which enables people to make significant
gifts while receiving dramatic tax and financial rewards.
People should consider fundamental questions before making an important gift:
What do I give?
How do I give?
When do I give?
What special purpose my gift should accomplish?
Planning What to Give
Not surprisingly, different types of property produce different tax results. Consider
highly appreciated securities. With stocks owned more than one year, donors
can deduct not just their original cost, but also any "paper profit" present in the gift.
Best of all, no capital gains taxes result from gifts of securities. Real estate, mutual funds,
and other types of property offer similar advantages. Your heirs avoid income and death taxes
if you leave "tax-burdened" assets, such as U.S. savings bonds and death benefits from
retirement accounts to charities.
Planning How to Give
Some individuals support Minnewaska Home Development Foundation through bequests – gifts through
wills or living trusts. You can could make a gift that reserves lifetime income to
you or a family member. We receive the same benefit as if you had made a bequest, but
you are entitled to charitable deductions and other tax benefits today. Many people prefer
the simplicity of an immediate gift of cash or property. Simply by tailoring the form of your gift to
fit your personal situation, you can maximize tax benefits, maintain your financial security, and
make a truly meaningful contribution.
Planning When to Give
Many people make their gifts at year-end to receive important tax deductions. Others find
charitable contributions most helpful in years when they have a large influx of taxable income
from a bonus, sale of a business or successful investment, or inheritance of taxable assets such
as savings bonds or IRAs. You can receive large deductions even if you retain
lifetime income from your gift. In general, the most practical time to make significant gifts
is through your estate plan by means of a will, living trust, or beneficiary designation on a life
insurance policy or retirement account. Such gifts remain wholly revocable while you are alive and
may save significantly on estate taxes.
Planning the Purpose of Your Gift
Carefully plan your support to assure your personal satisfaction. You can establish your gift
as a memorial to a loved one or special friend. You may earmark your gift for a particular
program or purpose, or simply direct that your gift be applied wherever the
need is greatest.
Minnewaska Home Develoment Foundation sincerely invites you to explore the many sides of your
own planned giving and discover the meaning your personal philanthropy can have for both you
and our future!
Make a Gift Through Your Estate
Most people want to make their mark on the world – to leave the earth a better place. Your
contributions to our future make a statement about your thoughtfulness. Why not continue that
support through your estate plan?
Consider a bequest. Your will can direct gifts to us of a particular
item, dollar amount, or percentage of your estate. Gifts can be made contingently (passing to us
only if another beneficiary dies before you) or placed in trust, providing income to your spouse
or children before passing to us.
Giving life insurance. You can name Minnewaska Home Development Foundation
as the beneficiary of a policy on your life or contribute an old policy you no longer need,
resulting in excellent tax savings.
Leave bank accounts. Ask your account manager how savings or checking accounts, C.D.s or
other financial accounts can be made payable to us upon your death.
Include us as a beneficiary of your revocable living trust.
Leave tax-burdened property. Your estate can save both income and estate
taxes if you Minnewaska Home Development Foundation the beneficiary of part or all of your IRA or other
retirement account. Family members may keep as few as 30 cents on the dollar, after taxes, from these assets. U.S. savings bonds
also make tax-wise bequests.
Timing Can Be Everything
The art of gift can often be a matter of seizing opportunities and acting at just the right time.
Please call our office before you:
- Sell investments at a profit
- Make or amend your will or establish a living trust
- Sell your business
- Roll over low-interest C.D.s or bonds at maturity
- Name beneficiaries for pension plans or life insurance
For more information, please contact us.
Minnewaska Lutheran Home
(320) 239-2217
e-mail: info@mlh-healthcare.org
The information provides is not intended as legal, tax, or investment advice. Please consult
an attorney, tax or financial planning professional for questions specific to your financial
situation.
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