HomeFront’s Planned Giving, Legacy Giving, and Estate Planning Program

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.

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 rollover 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.

A bequest is a gift you leave through a will or trust, with a written statement directing that a specific dollar amount, or a percentage of the estate, or a specific item such as real estate, be transferred to HomeFront.  Because a bequest is revocable, you are able to keep your financial options open in your lifetime and maintain flexibility as to the use of your assets.  Sample language for a charitable bequest can be found here.

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.

This is a life income gift plan that is a contract between you and HomeFront.  It offers many benefits that can help you meet your current and long-term financial goals while enabling you to achieve your philanthropic goals by donating to HomeFront after your lifetime.

When you give to a charitable gift annuity plan, you can:

• Secure a guaranteed fixed income at an attractive rate
• Increase your income
• Provide for your loved ones
• Enjoy a charitable income tax deduction
• Enjoy some tax-free income
• Save capital gains taxes on gifts of highly appreciated stock

A charitable gift annuity involves the donor irrevocably transferring a specific set of assets — cash or stocks — to HomeFront, and subsequent payment by HomeFront of an annuity (a fixed dollar amount yearly) to one or two individuals for life or for a set number of years.  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 annuity recipient (65-70 years).  For more information, contact us at LastingImpact@HomeFrontNJ.org, or call 609-989-9417 ext. 107 or 103.

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.

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.