Gift Planning Guide
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Gift Planning Guide for Orange Grove (designed by Leslie Smith)

Gift Planning Guide for Orange Grove (designed by Leslie Smith)

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Gift Planning Guide Document Transcript

  • 1.   
  • 2. All photography by Dennis Wilkes Double G Camp is an annual experience for many served by Orange Grove. Your support can help continue the program each year. As one, we are strong. Together we are stronger! Partner with us in our mission to provide for the underserved in our community! Columnist Ann Landers once said, Gift Planning, or Planned Giving as it is also known, is a tool that “Do your givin’ while you’re livin’... helps you achieve your goals for the center while enhancing your then you’ll be knowin’ where it’s financial plans and security. With careful planning, it is possible to goin’.” Her words may best explain reduce or eliminate income and estate taxes while turning appreci- the concern many may have when it ated assets into an income for yourself or others. comes to what they will leave future generations. Through a gift plan, you may: Bequeathing gifts and leaving a legacy Increase current income for yourself or your designated beneficiary; may be important to you, and it is es- Reduce income tax liability; pecially significant to Orange Grove Avoid capital gains tax; Center. The future of the center is de- Pass assets on to your family and pay less tax; and/or pendent on long-term financial strength Make a significant gift to Orange Grove Center. that is, in part, built upon charitable bequests and planned gifts from sup- Gift Planning options that are outlined in this guide include: porters like you. Appreciated Securities At Orange Grove, we will ensure that Bequests / Wills every individual served is an overall Charitable Gift Annuities beneficiary of your gift. For our do- Charitable Remainder Trusts nors, inclusion in their estate plans is Charitable Lead Trusts an ideal way to contribute to the wel- Life Insurance Policies fare of our community, and is a con- Pooled Income Funds tinuation of their charitable efforts be- Retirement Plan Assets yond their lifetime! Revocable Living Trusts Savings Accounts and Certificates of Deposit Tribute Gifts© 2010
  • 3. Making a bequest through your Will Bequests / WillsYou make the ultimate gift to Orange GroveCenter when you include it in your estate plan- Ways to remember the center through your will:ning. A residual bequest grants the residue, or portion of the residue,It just takes a simple designation in your will of your estate to the center after explicit bequests have been made;and will not affect your cash flow during yourlifetime. “I give to Orange Grove Center, Inc., a non-profit organiza- tion located at, 615 Derby Street, Chattanooga, TN 37404,Charitable bequests specify how an individ- all (or ____ %) of the rest, residue and remainder of my es-ual’s property is to be distributed after their tate, both real and personal property of whatever kind andpassing. Some donors use a revocable (or “liv- wheresoever situated.”ing”) trust as their estate document instead ofa will. A specific bequest of a stated dollar amount or specific se- curities;Donors have the comfort of knowing that theycan amend or revoke a charitable bequest if “I give to Orange Grove Center, Inc., a non-profit organiza-tax laws, their circumstances, or family needs tion located at 615 Derby Street, Chattanooga, TN 37404,change. A Will may be used with many of the the sum of ____ dollars (or describe the specific property orgiving plans outlined in this booklet. security you intend to give).” A contingent bequest in case one or more of your bequests cannot be fulfilled; “If any of the above-named beneficiaries should predecease me, I hereby give his/her share of my estate to Orange Grove Center, Inc., a non-profit organization located at, 615 Derby Street, Chattanooga, TN 37404.” A percentage bequest allocating a fixed percentage of your estate; “I give, devise, and bequeath to Orange Grove Center, Inc., a non-profit organization located at, 615 Derby Street, Chat- tanooga, TN 37404, ___ % percent of my estate, both real and personal property of whatever kind and wheresoever situated.”Virginia Farmer is given job opportunities as part “What a man does for himself dies with him,of the Orange Grove experience through a program what he does for others lives on forever.”funded by the center. Theodore Roosevelt
  • 4. Trust and Life Income PlansCharitable Gift Annuities are a simple way to make a significant gift while cotinuing to provide for yourfuture. You, the donor, donate cash or securities and receive fixed annual payments for life. You will also be eligiblefor a federal income tax deduction in the year you make your gift.The amount of your annual payments is based on your date of birth and the amount you give to create the gift annu-ity. The minimum gift to the center must be $5,000, and you must be 60 years of age or older.In addition, your gift qualifies for a charitable tax deduction.Pooled Income Funds offer life income, and provide a meaningful giftto the center. Your irrevocable gift of cash or securities is “pooled” and col-lectively invested to produce income that is shared by all fund participants.Payments will vary year-to-year, and your income has the potential to growsince the fund’s earning will naturally fluctuate. Gifts to the Orange GroveCenter Pooled Income Fund can be made at 50 years of age, with a minimumof $10,000.Revocable Living Trusts are popular estate planning documents thatresemble Wills. With a Revocable Living Trust, you grant yourself broadpowers to manage your assets during your lifetime, as well as distribute themafter your death.A Living Trust allows you to designate a trustee to manage your assets in theevent you become disabled or incapacitated. You determine what’s in the At age 62, Ed Winton is learning how to plant and grow vegetables in a garden.trust, and you can easily amend it.You can include a current or deferred charitable gift to Orange Grove Center in your Living Trust – a gift that re-duces estate taxes. In the event of your death, all proceeds of the trust will be distributed outside of your estate,usually avoiding lengthy and often expensive probate procedures.Charitable Remainder Trusts are irrevocable cash donations or property to fund the trust. A trustee man-ages the assets and earnings, and money from the investments is used to provide regular annual income to you or todesignated beneficiaries.Payments from the trust are either made for the life of the beneficiary, or for a specific period of time not exceed-ing 20 years. At the end of the term, or upon the beneficiary’s death, trust assets pass to the center or other charitiesdesignated in the trust.Payments are either fixed or variable income, and are usually not economical unless the principal initially equals orexceeds $100,000.
  • 5. Additional Tax-Wise Gift PlansCharitable Lead TrustsThrough Charitable Lead Trusts, you donate cash or property to fund a trust from which annual payments aremade to the center for a set number of years. When the trust terminates, the assets revert back to you or aregiven to your heirs.If the assets of the trust appreciate in value over the years, this increase is passed on to your heirs free from giftor estate tax. Administrative costs generally require gifts of at least $100,000 to establish a Charitable LeadTrust.Retirement Plan AssetsRetirement Plan Assets may be set aside to estab-lish special philanthropic legacies. Assets such as403 (b), 401 (k), Individual Retirement Arrange-ments (IRAs), Keogh, or tax-sheltered annuities Orange Grove is anmay be designated to Orange Grove Center as thebeneficiary.Under this plan, 100% of the value of the account is “ important part of the fabric of our Chattanooga community. Itapplied, with you avoiding income and estate taxes deserves support, and I hope allthat would be due if they were left to your heirs. organizations and people thatCompletion of a beneficiary form, or a designationmade through your Will is necessary to finalize the can will generously do so.plan.This plan is also ideal for anyone over age 59, asan annual charitable gift from your retirement plan. Mervin Pregulman ”You may qualify for a charitable income tax-deduc-tion while saving estate taxes.Life Insurance PoliciesUsing a paid-up life insurance policy you no longer need, or purchasing a new policy are other charitable gift-giving opportunities.By naming the center as the owner and beneficiary, you qualify for a charitable deduction for the cash value ofthe policy. You may also receive a charitable deduction on any remaining premiums you pay. I shall pass through this world but once. Any good therefore that I can do or any kindness that I can show to any human being, let me do it now. Let me not defer or neglect it, for I shall not pass this way again. Mohandas Gandhi
  • 6. Other Special Gifts Securities Choosing to give by means of appreciated secu- rities (stocks, bonds, mutual funds, shares, and other plans) is a great way to give to the center. The benefit of donating securities or mutual funds is that there is an income tax deduction for the full fair market value at the time the gift is completed, if you have owned the shares for more than one year. You may avoid capital gains taxes that would be due if you sold the securities. Contact us if you are interested in transferring securities or mutual fund shares to the center. Savings Accounts and Certificates of Deposit Savings plans, such as savings accounts, cer- tificates of deposits (CDs), and other savings ar- Water Ballet is a new addition to rangements are also convenient ways of giving. the growing list of programs avail- able to participants through Orange You may make the center a joint owner of the Grove’s Recreation Department. account with rights of survivorship only. Mean- while, you remain in complete control of your Contributions give individuals like account, enabling you to maintain the ability to Diana Linder (left) and Deta Ashley withdraw money, or change the survivor desig- opportunities to develop healthier life- nation. You also have the right to close the ac- styles through physical activity. count at anytime, thereby revoking the arrange- ment. No claims are made to your account until after your passing. Tribute Gifts Orange Grove Center accepts gifts in memory of those who have passed, or in honor of some- one special as a way of saying, “thank you.” The greatest gift is a portion of thyself. If you would like to make your gift in honor of Ralph Waldo Emerson or to memorialize someone, please contact us for more details.
  • 7. Linda Romans is a jewel to the Orange Grove fam- ily. Nearly 40 years ago, Linda was an original student of Orange Grove’s School for the Blind. Today, she is a member and soloist in the Orange Grove Chorus. Through the Discovery Program at Orange Grove, she is able to share her love of music and interest in singing and reading to young children as a volunteer instructor at Little Miss Mag Day Care in Chattanooga. If you would like to participate in a gift planning program with Orange Grove Center through one ofour giving options, please contact us to make arrangements, or for more information.Our gift planning program will allow you to:  Give a gift and receive life income to supplement your retirement income;  Save income, capital gains and estate taxes;  Give more than you ever thought possible;  Enjoy the satisfaction of knowing that you’re making a difference in the lives of the individuals we serve for years to come.If you have already included Orange Grove in your Will, trust, or other estate plan, please help the centerupdate its records by letting us know. All information to Orange Grove Center is held in the strictest confidence.
  • 8. “ My sister has been affiliated with Orange Grove for 35 years. We feel Orange Grove has done well by her. She has a niche for her life, and for this reason, we have chosen to give to Orange Grove. ” Don and Hanna WitherspoonGift planning has enabled OrangeGrove’s Children’s Services to remaina focal point in the early educationalopportunities of children served by the “ Mr. Reece made physical and mental disabilities his career. He was very committed to helping others that were in his son Bill’scenter. situation. He had a passion to making a contribution to others inChildren ages five to 22 years receive need. He had a huge commitmentpre-vocational/vocational and edu-cational training to prepare them for to Orange Grove.independent living and future employ-ment.Classrooms are staffed by qualified Barbara Jones, Executrix to the Estate of Oscar Edwin “Ed” Reece ”instructors who support, encourage andmotivate their students to learn moreand overcome their developmental andintellectual differences, thanks to The raising of extraordinarily large sums ofgenerous contributions from money, given voluntarily and freely bysupporters. millions of our fellow Americans, is a unique American tradition... Philanthropy, charity, giving voluntarily and freely... call it what you like, but it is truly a jewel of an American tradition. John F. Kennedy
  • 9. L e a r n m or e a b o u t G if t P l a nnin g ! Please send me more information about (Check all that apply!): Wills Charitable Lead Trusts Revocable Living Trusts Gifts of Securities Chartiable Gift Annuities Gifts of Retirement Plans Charitable Remainder Trusts Gifts of Life Insurance Policies I would like someone to contact me at (phone) ( ) - For life income gift calculation purposes only, my birthdate is: M Y D I have included the Orange Grove Center in my Will or estate plans. Name (print) Address City State ZipIRS FORMS Always consult with your attorney when drawingDonee Information Return - IRS Form 8282 up or revising your Will to ensure your intentionshttp://www.irs.ustreas.gov/pub/irs-pdf/f8282.pdf are carried out properly.Noncash Charitable Contributions - IRS Form 8283 Our tax identification number is 62-0549365.(Instructions for Form 8283)http://www.irs.gov/pub/irs-pdf/i8283.pdf The name and address to include in your Will is: O r a n g e G ro v e C e n t e r 6 1 5 D e r b y S t re e t Chattanooga, TN 37404Orange Grove Center, Inc. is a non-profit, 501 (c) (3), tax-exempt organization. No goods or services are ever exchangedin return for gifts to the center. Contributions are tax-deductible to the full extent of the law. Additional benefits, such as lifeincome and the avoidance of capital gains taxes, may be offered in some cases.We recommend that you consult with your attorney or tax advisor for the various tax benefits and restrictions that may applyto your specific situation. We are available to you and your advisors to answer questions or help arrange a planned gift to thecenter.
  • 10. nothingTo address your questions or concerns, or for additional information about Gift Planning, please contact:Orange Grove Center, Inc.615 Derby StreetChattanooga, TN 37404(423) 308-1160(423) 624-1294 (fax)www.orangegrovecenter.org