Planned giving is a means of “leaving a legacy.” The donor commits to a direct gift to Special Olympics New Jersey, Inc., in a process that maximizes tax and other financial benefits. Planned giving is often done in conjunction with estate planning and is a viable option for donors of all income levels. A gift can take the form of cash, stocks and other investment instruments, life insurance, works of art, land or other assets, and can be made during the donor’s lifetime or upon death. Examples of popular planned giving tools include bequests by wills or revocable trusts, charitable gift annuities, charitable remainder trusts, charitable lead trusts, and beneficiary designations of a life insurance policy, retirement plan or financial account.
The following are brief descriptions of a few of the options for charitable planned giving. These are intended only as broad guidelines and do not constitute legal advice.
- Bequest in Will or Living Trust: A gift made by naming SONJ in a will or living trust. This gives the donor flexibility in providing for their family’s needs first and allows for an estate tax deduction for the value of the contribution to Special Olympics New Jersey.
- Life Insurance Gift: A gift of an old or new policy or part of a group term policy at work naming SONJ as beneficiary and owner. This provides a way to make a significant gift with minimal expenditure, and may possibly lower taxable wages on W-2 forms or allow for an income tax deduction on the gift value of the policy premiums.
- Retirement Plan Gifts: A gift made by naming SONJ as beneficiary of your “Qualified Charitable Distribution” (QCD) in satisfaction of your required minimum distribution in the years after you turn 70½ or as remainder beneficiary after your death. This avoids current income tax on the QCD or income tax when the plan is inherited by your beneficiaries and allows giving of more tax-friendly assets to heirs.
Planned gifts can be revocable—a bequest in your will or beneficiary designation on your insurance policy or IRA—which allows you to change your mind at any time. Or they can be irrevocable, just as outright gifts are, so that you can benefit from an immediate tax deduction.
This information is not intended as specific legal advice. Consult your attorney when considering any legal matter. State and Federal laws which govern wills, contracts and taxation vary and are subject to change.