Charitable Planned Giving:
How to Make the Most of Your Dollars…
Legacy Society members are planning for their own futures, and for the future of HCFVC.
Leave a legacy for future generations by including the Health Care Foundation for Ventura County (“HCFVC”) in your will or estate plan. HCFVC’s Legacy Society is a group of devoted donors who have included our organization in their estate planning.
Making a major gift to a non-profit provides a wonderful level of satisfaction, resulting in a positive impact in one’s home community. Such gifts allow the donor to ensure they are used for the intended purposes, not those determined by the government or a future generation. These gifts can also provide significant tax advantages and should be a component of well-conceived tax and estate plans. Advantages can be realized today and in the future, and can be constructed in multiple ways. Leave a legacy for future generations by including HCFVC in your will or estate plan.
First Steps: Your Legacy
Your first steps when considering a major gift should be how you wish to be remembered. How you are viewed by the community and how you are remembered can be greatly influenced by the gifts you make and how they are memorialized. Working with HCFVC, you can architect your vision for a personalized legacy that creates measurable good within the County.
- A gift to a non-profit is tax deductible, offsetting the donor’s taxable income.
- Gifting highly appreciated assets provides a tax deduction and allows the donor to avoid capital gains tax. A non-profit can then sell the stock without paying taxes on capital gains.
I bought 100 shares XYZ stock at $10 per share and it is now worth $100 per share. If I donate these shares to a recognized charity I receive a tax deduction for today’s full market value ($100/share x 100 shares = $10,000). If I sold the share myself, I would pay capital gains taxes on $9,000, the appreciation of the stock since I bought it. The charity pays no capital gains taxes as it is tax exempt.
- Bequests: Naming a non-profit in a will or trust ensures those assets benefit the charity you choose.
- Charitable Remainder Trusts and Charitable Remainder Annuity Trusts (CRTs and CRATs): These strategies allow you to donate assets to a charity while maintaining an income stream for a specified time or your lifetime.
- You receive a current tax deduction for the gift to the CRT, but note that they gift must be “irrevocable” for the IRS to recognize it.
- You can still receive income from the assets (within certain constraints) so you can make a larger gift without impacting your lifestyle.
- The assets are out of your estate, so your exposure to estate taxes is lowered.
- Charitable Lead Trusts (CLTs): A CLT is essentially a reverse CRT. The trust pays income to the named charity while the grantor specifies a non-charitable beneficiary or beneficiaries. A CLT has more complex tax implications than a CRT, and is also irrevocable.
- Other Approaches: There are multiple variations to these strategies that a tax professional can explain.
Choosing the Best Strategy for You:
- Any major charitable gift should be a part of an individual’s overall tax and estate planning. HCFVC can facilitate connecting individuals or corporations with tax and estate planning professionals to create a strategy most beneficial to your specific needs.
- Be certain to understand all the implications of any recommendations and “stress test” your plan before you implement it. Determine if today’s plan will adequately survive inflation and market volatility.
- To learn more about the Legacy Society and planned giving with Health Care Foundation for Ventura County, please contact Amy Towner, CEO, at email@example.com or 805-652-3361.