HomeFront’s Planned and Legacy Giving Program
Supported by your loyal and generous contributions, HomeFront has established a solid foundation of support services that enable homeless and at-risk families not only to survive, but to thrive. Over the past 25 years, we have built a social contract with the Central New Jersey community—both to be a safe haven for families in crisis, providing them with the resources and tools to empower them to break the cycle of poverty—and to the larger community for whom HomeFront has become an important vehicle to turn their caring into action and results.
Their future—and ours—depends on you.
Because we can no longer rely on government funding sources, it is critical that we take action to preserve this social contract. We must plan more diligently than ever for the long-term survival and growth of the integrated network of services that HomeFront has come to be nationally renowned for and depended upon to deliver. We hope that we can continue to count on you to help in securing our future.
What are Planned and Legacy Giving?
Planned giving is a type of charitable giving that enables you to express your personal values by integrating your family, financial, and charitable goals. Planned gifts can be made with cash, but many planned gifts are made by donating assets such as stocks, real estate, IRA contributions, retirement plan benefits, or life insurance, among other options.
Legacy giving involves your estate planning. After you have provided for your loved ones in your estate planning, we would be honored if you were to designate a contribution to HomeFront. Your legacy donation can be tailored to your unique circumstances, while helping to ensure HomeFront’s future for many years to come.
Please consider making a lasting difference for homeless and at-risk families in our community with a planned or legacy contribution to HomeFront.
We’re here to start a conversation with you. If you think you may be interested in becoming a planned giving or legacy donor, please contact Connie Mercer at 609-989-9417 ext. 103, or reach us at HomeFrontPlannedGivingOptions@homefrontnj.org
There are a number of financial vehicles available for planned and legacy giving, described briefly here.
Please consult your financial adviser and a qualified estate planning attorney to determine the best way for you to make a planned gift or legacy donation to HomeFront. These options can offer significant estate, gift, and income tax savings for you and your family.
Stocks or Other Marketable Securities
If you own shares in a publicly traded company that have appreciated in value and that you are considering donating to HomeFront, this approach can be more advantageous to you than selling the shares and donating cash proceeds. By donating stock directly to HomeFront, you would be entitled to a charitable income tax deduction equal to the market value of the shares, and you would not incur capital gains tax on the appreciated value
Similar to a donation of publicly traded shares in a company, a donation of real estate that has appreciated in value can be a more attractive option for you than selling the property and becoming liable for capital gains taxes on it. You can also be entitled to a charitable income tax deduction equal to the fair market value of the property. Depending on the nature of the real estate, this may be a workable option for both you and HomeFront.
Charitable Planning With Your IRA
If you are 70½ or older, and therefore required to withdraw monies from your IRA every year, a provision allows you to redirect your IRA contributions to a charitable organization. You may roll over up to $100,000 per year from a traditional or Roth IRA. The donation must be made directly from the plan to HomeFront, which can be accomplished by instructing your plan administrator to make a direct transfer to HomeFront. The amount you choose to donate with this approach will be excluded from your gross income, and will count toward your minimum distribution requirement. There is no Federal income tax deduction allowed for an IRA rollover gift.
You can name HomeFront as the designated beneficiary, or partial beneficiary, of a qualified retirement plan. This gifting opportunity involves obtaining a beneficiary designation form from the retirement plan administrator and naming HomeFront as the entire, or partial, beneficiary of the retirement plan assets. This approach does not involve legal fees.
Similar to a retirement plan designation, the proposed gift to HomeFront is accomplished by naming HomeFront as a beneficiary, or partial beneficiary, of the policy on the beneficiary designation form. You will be entitled to a charitable income tax deduction equal to the cash surrender value of the property and any future premiums paid only if HomeFront is named as the owner and beneficiary of the policy.
Simply put, a bequest is a gift you leave through a will or trust, with a written statement directing that specific assets, or a percentage of the estate, will be transferred to HomeFront. With a bequest, you are able to maintain control of your assets during your lifetime and flexibility as to their use. You can designate a gift or portion of your estate to HomeFront
Payable on Death Bank Accounts
This approach can apply to savings, checking, and/or investment accounts by you asking your banker or broker to convert any of them into a Payable on Death account, designating HomeFront to receive the funds later on.
Charitable Gift Annuity
This is a contract between you and HomeFront. It involves the donor irrevocably transferring a specific set of assets — cash or securities — to HomeFront, and subsequent payment by HomeFront of a fixed dollar amount yearly to one or two individuals for life. The rate paid is based on the number of individuals receiving the annuity and their ages. This generally has a minimum donation size ($10,000 to $20,000) and age of the recipient (65-70 years). This can provide the donor with a fixed income at an attractive rate, avoidance or deferral of capital gains, an income tax charitable deduction, and a portion of the annuity payments may be tax-free.
Charitable Remainder Trust
This is an irrevocable trust in which you would transfer cash or property to a trustee, and in return you or other individuals named by you as income beneficiaries would receive income from the trust for life or a specified period not to exceed twenty years. When the trust terminates, its residual value is distributed to the charity(ies) named as the charitable remainder beneficiaries. There are two varieties of charitable remainder trusts which you may choose to explore in further detail.
Charitable Lead Trust
You can place assets in a trust that pays a fixed amount to HomeFront for the number of years you select. Once this period ends, the trust principal reverts to you or the beneficiaries you name.