Planned Giving

There are several ways to leave a legacy gifts that will strengthen families in our community for years to come.

Bequest

Remember IOCP in your will or living trust by establishing a specific amount, a percentage of your estate, or giving the remainder of your estate to IOCP after you have taken care of your heirs and loved ones.

Charitable Remainder Trust

Make a gift to IOCP while providing income for you and your beneficiaries for life. The assets remaining in the trust would pass to IOCP. This option is most attractive to individuals in their 60’s with highly appreciated assets.

Charitable Lead Trust

A Charitable Lead Trust is the reverse of the Charitable Remainder Trust. A CLT allows you to make a gift of income to IOCP for a specified period of time (which could be your lifetime). At the end of that time, the assets remaining in the trust would pass to your designated beneficiaries. This option is most attractive to individuals who do not need the income currently but who do want the assets to eventually pass to their heirs and loved ones. Example

Charitable Gift Annuity

Persons 65 or older can take advantage of a charitable gift annuity, which provides you with a guaranteed income for the rest of your life upon making the gift. Income from the annuity can be immediate or deferred, and can be given to you, your spouse, or other designated beneficiaries.

Retirement Plan

Gifts of retirement assets, such as a 401(k) plan or individual retirement account (IRA), may permit you to give more than you thought possible, while eliminating both income and estate taxes that may otherwise consume those assets. Leaving all or part of your retirement assets to IOCP removes it from your taxable estate at your death or the death of your spouse and avoids income taxes on the gift amount.

Life Insurance

Gifts of life insurance policies offer excellent tax benefits. Giving a life insurance policy allows you to donate an asset you may no longer need, for example, a policy that at one time assured the economic security of your spouse or children. Another option is to establish a new life insurance policy naming IOCP as the beneficiary. There are significant tax benefits when you allow a charity to own your policy, or by making IOCP the irrevocable beneficiary.

Stock

A gift of stock that would result in long-term capital gain if sold can also be beneficial. If you sold the stock and donated the proceeds, you would pay income tax on the capital gain. If you donated the stock itself, however, you do not recognize the capital gain income. How to Make a Stock Donation

Real Estate

Gifts of personal residences, vacation homes, rental properties, and other real estate can also have income and estate tax advantages. If preferred, the donor can retain the right to use the property for the donor’s lifetime and the lifetime of the donor’s spouse. The income tax deduction for the charitable gift, however, can be used immediately.

Personal Property

Gifts of appreciated personal property that can be used by IOCP are deductible at their fair market value. Other gifts of personal property can be deducted up to the donor’s basis in the property.

Contact Jill Kohler or (952) 404-9388 for more information.

The references to estate tax savings may not apply in 2010 because the federal estate tax haas been repealed for that year. Congressional action may change this. For this and other reasons, you should always consult with your personal tax and financial advisors before finalizing charitable gifts.

Charitable gifts to IOCP should be made to “Interfaith Outreach and Community Partners, Wayzata, Minnesota.” If you want to restrict the gift for a specific purpose, such as the Endowment Fund, please call IOCP (952-404-9388) for the appropriate language.