Planned giving enables you to give gifts of assets during your lifetime,
and offers important tax savings in doing so. It allows you to make a
meaningful contribution by creating a legacy that will shape the future,
without impairing your available resources today. It is a way to preserve
your values for the healthy future of your family and your community.
The Price Center will work closely with you to design a plan that is best for you. By affording The Price Center the flexibility and capacity to respond to future needs, your planned gift will represent a sound investment for individuals to come.
There are many types of plans. You and your financial advisors can select a form of gift that carries out your desire to benefit individuals at The Price Center, while at the same time realizing important tax savings and fully providing for the needs of you and your family. Here are the many ways to participate:
Charitable bequests are one of the most common forms of planned gifts. You may name The Price Center as a beneficiary in your will as a bequest. The Price Center receives the gift outlined in your will. The gift may be a percentage of a donor’s estate, a specific dollar amount or the residual of the estate. Bequests vary in size and scope, from $ 100 to $ 100,000,000. The Price Center values each and every bequest no matter the amount. Below is an example of a bequest language, depending on the donor’s wishes:
1. “ I bequeath to The Price Center, now of 38 Border Street, in Newton, MA 02465 (insert number) dollars.”Or;
2. “ I bequeath to The Price Center, now of 38 Border Street in Newton, MA 02465 (insert number) percent of my total or residual estate.”
A bequest to The Price Center reduces your overall estate obligations. Bequests are not subject to estate taxes, which means The Price Center receives the entire value of a bequest tax-free. This is particularly valuable with respect to assets that have appreciated greatly in value since the time you purchased them.
The Price Center Endowment Fund
You could make one gift that lasts forever…
You can make a great contribution to The Price Center through an Endowment Fund either during your lifetime or after your death. Your contribution could be a gift of cash, stock, retirement plan assets, or life insurance. You could also arrange for your forever gift to give back income to you.
Your endowed gift is managed by The Price Center to produce a steady and secure source of funds that programs relies on. By not dipping into the principle of your gift each year, The price Center ensures a continuous funding source, which counterbalances the negative effects of economic downturns of the economy.
Benefits to you
- Provide meaningful support for The Price Center
- Avoidance of capital gains taxed on appreciated assts transferred
- Removal of assets used for the gift from your taxable estate
- Receive a charitable income tax deduction
You can receive a dividend income of 5 to 11 percent when you establish a charitable gift annuity with the Price Center. You will receive fixed income on a quarter annual basis, guaranteed for the rest of your life while also ensuring the programs and services of The Price Center receive support.
How does a Charitable Gift Annuity Work?
When you contribute cash and/or appreciated marketable securities to the Price Center, we guarantee that you and/or a beneficiary of your choice will receive a fixed income for life. The amount of the fixed income you receive is determined by your age when you make the gift, the older you are at the time of the gift, the greater the fixed payments the Price Center can pay you.Example: John whose 65 years old makes a gift of $ 50,000 to The Price Center to establish a Charitable Gift Annuity. In turn, The Price Center pays John 6% or $3,000 a year for life.
Example: John and his partner Susan, both age 65, make the same gift of $ 50,000. In return, the Price Center pays 5.6% or a total of $ 2,800 a year to them jointly, and will continue to for the rest of their lives.
In the majority of cases, a portion of your annuity payments are considered tax free income and if you transfer appreciated securities, you may also reduce and defer the payment and capital gains taxes.
Benefits to you:
- Achieve personal financial and philanthropic goals
- Guaranteed fixed payments for life for you and/or another beneficiary
- A portion of annuity payment is considered tax-free income
- Deferred and reduced capital gain tax
- Recognized in the community for your generosity
To establish a Charitable Gift Annuity, individuals need to be at least 60 years of age when payments begin. If you are between 45 and 60 years old, you may be interested in a Deferred Gift Annuity. Please see below.
The deferred charitable gift annuity involves the current transfer of cash and/or marketable securities with a minimum of $ 10,000 to the Price Center in return for which the Price Center agrees to you income at a predetermined future date. The amount of fixed income you receive is determined by your age and the length of the deferral period. By delaying the start of income payments, you will receive a more favorable rate of income that if you opted for immediate annuity payments. The vehicle is an option for the younger donor who is desirable of a reliable future income stream and could benefit from a current tax deduction. Advantages of a deferred charitable gift annuity over an immediate charitable gift annuity include a larger charitable income tax deduction in the year the gift is made and a higher rate of income.
Benefits to you:
- Provide meaningful support for The Price Center
- Receive guaranteed fixed payments for life
- Receive a portion of annuity payment as tax-free income
- Ability to defer and reduce capital gains tax
- Receive a charitable income tax deduction in the year the gift is made
A charitable gift of appreciated stock or securities is a smart way to make a donation. In addition to helpings others, you may realize personal tax benefits. This is a way your charitable dollars go further. How this works, is that our nation’s tax laws offer special incentives for gifts of stock or securities, especially when they have increased in value.
How much can you deduct?
A gift of appreciated securities will allow you a tax deduction for the fair market value of the securities and preclude you from paying on the appreciation of the stock.When to donate Securities:
- When you prefer not to incur capital gains taxes
- When you wish to readjust your cost basis on a stock you wish to hold.
- When you would like to upgrade your portfolio
- When you consult with a tax or financial advisor to determine the best time or market conditions indicate a time to donate securities
You can make a donation to The Price Center at no cost to yourself, with a life insurance policy.
Paid in full life insurance policies
Just donate a paid-up life insurance policy by assigning the policy to The Price Center and designating the Price Center as beneficiary. It will cost you nothing and you will receive an income tax deduction for the gift.Workplace life insurance policies
Another cost-free method of using life insurance is to designate the Price Center as a beneficiary of all or a portion of your workplace life insurance policy.Board/Trustee Policies
If you are a director or trustee of an organization that has purchased a life insurance policy with you as the insured, you may designate the Price Center as a beneficiary.
Did you know that you and your children would receive only 30 cents on the dollar?
Pension plans; profit sharing, 401(k) plans, 403 (b) plans and IRAs are not exempt from income tax. If you didn’t pay incomes taxes on these monies before they went into the retirement plan, income taxes will have to be paid when they come out. When you name your children as the ultimate beneficiary to your retirement plan, it is your children who will have to pay the income tax because the inheritance is income to them. These retirement plans can also be subject to estate taxes. Therefore, the total tax bite from this asset could be as much as 70% of your child’s inheritance.You can avoid this significant tax bite:
It is best to notify your plan’s administrator of your request to change the beneficiary. A “change of beneficiary” form will be needed. Simply designate the Price Center as the beneficiary of a specific amount or the remainder of this asset after the death of you or your spouse. If you designate that you’re qualified retirement plan come directly to The Price Center at your death and reside in a community property state, your spouse will need to sign the designation.Benefits to you:
- Provide meaningful support to The Price Center
- Avoid income and estate taxes
You irrevocably transfer cash and/or appreciated marketable securities to a trust during your lifetime or via your will. If you fund with appreciated securities, you avoid the payment of capital gains taxes on the appreciation. The trust is tax-exempt so it also will not have capital gains taxes on the appreciation when it sells.
You may designate yourself and/or another individual to receive income for your life or a specific period of time (but not more than 20 years). At the conclusion of the income payments, the remainder of the trust principal will be paid to The Price Center.
One attractive feature of the Charitable Remainder Trust is the ability to tailor the annual income to meet your needs. If you like the security of receiving a fixed dollar amount of income, the Charitable Remainder Annuity Trust is a good option. You may not make subsequent additions to this type of trust however; you may create additional Charitable Remainder Annuity Trusts. The Charitable Remainder Unitrust may be more appealing if you prefer to receive a percentage of the annual value of the principal. The trustee revalues the principle each year to determine the current year’s income. Subsequent additions may be made to your Charitable Remainder Unitrust and the investment strategy may be modified to meet your changing financial needs.
Charitable Remainder Trusts can be established with gifts of $ 100,000 or greater.
Benefits to you:
- Provide meaningful support to the Price Center
- Receive income that is double or triple the size of dividends paid by stock used to make the gift
- Avoidance of capital gains taxes on appreciated assets transferred into the trust
- Removal of assets used for the gift from your taxable estate
- Receive a charitable income tax deduction in the year that the trust is funded
Providing for your heirs and making a gift to The Price center
When you transfer assets to a trustee at the Price Center, the trustee pays an annual sum to The Price Center for a specific term of years, usually 10-20. When the trustee terminates, the principal plus any appreciation is transferred to your heirs, usually your children or grandchildren.
When you make the gift, you receive a federal estate tax deduction for the estimate value of the annual payments to the Price center. Any appreciation in the assets during the term of the trust is not subject to additional estate tax. As a results, you are often able to pass on to your heirs a larger estate after tax than otherwise would be possible.
A gift of $ 250,000 is needed to establish a Charitable Lead Trust.
Benefits to you:
- Provide meaningful support to the Price center in the form of an annual stream of income
- Preserve assets for your heirs. You heirs will receive the assets plus any growth in the principal free of gift or estate tax
- Reduce your taxable income
- Reduce federal, gift and estate taxes
For more information about these plans and how they can benefit you, please contact Lorraine Kohr, Development Director, at giving@barrypricecenter.org or 617-244-0065 ext. 302.
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Date Created:
3/1/2006
Last Modified:
1/30/08 9:16
Expires: 7/1/2008