Planned Giving

We can help with precise language for your will or living trust so that you can be assured your gift will go to the efforts you intend. If you wish, we will also create an agreement for you to keep in our files so we can follow your exact wishes at the time of your gift. Here is example language that you can pass on to your lawyer or financial planner to begin the process:

To Create a Gift of a Specific Amount or Asset
“I give, devise and bequeath to Born Free USA Tax ID 94-6187633
1) The sum of $_____________.” Or
2) __________% of my estate.” Or
3) __________shares of stock in
_______________Company.” Or
4) My real property, parcel number
#____________, located at____________________________.”

To Create a Residual Gift after Other Obligations are Fulfilled:

“I give, devise and bequeath to Born Free USA Tax ID 94-6187633 [all or a percentage] of the residue of my estate.”

(*Residue is defined as that which remains after debts and expenses of administration, legacies and all other devises have been satisfied.)

To Create a Contingent Gift to Born Free:

“In the event that [name of beneficiary] does not survive me, I give devise and bequeath the decreased beneficiary’s gift to Born Free USA Tax ID 94-6187633.”

We can help you with the logistics of making a future gift with (2) cash, IRAs, (3) stocks, life insurance or real estate and can help make a gift that will provide you with a lifetime stream of income while reducing your income taxes and /or capital gains. Best of all, you will be able to leave a significant gift at the end of your life to continue Born Free’s work. We offer gift annuities, charitable remainder unitrusts, and other planned giving options. Although we cannot serve as your attorney or tax consultant, we do provide helpful information to you and your advisors that ensure the gift will be used in the manner you intend.

After decades of deliberate saving, some of today’s retirees have more money in their IRAs than they need for daily living expenses and long-term care. For larger estates, a good portion of IRA wealth goes to estate taxes and income taxes of non-spousal beneficiaries; heirs may receive less than 50 percent of IRA assets passed on to them through estates. Seniors 70 ½ years of age and over can transfer their mandatory IRA distribution directly to charity. By going directly to charity, the money is not included in the IRA owner’s income and is not taxed. This preserves the full amount for charitable purposes. Ask your IRA administrator to make a qualified distribution to Born Free USA. The below is intended for guidance only – please consult your tax advisor for the tax implications of utilizing an IRA.

Who stands to benefit most from giving their IRAs to Born Free?

Because charitable IRA transfers are not included in taxable income and not available for itemized charitable deductions, these special IRA rules may benefit many different types of individuals:

Generous donors – When making a major gift, some taxpayers may give more to charity than they can deduct that year. Donors cannot deduct more than 50 percent of their income for gifts of cash to public charities (30 percent, if giving to private foundations). Although amounts over 50 percent can be carried forward and deducted in future years, taxpayers will face an immediate tax bill and may lose some of the benefit of the deduction if they die before the gift has been fully deducted. Donors who consistently give above the limit will not be able to take advantage of the carry forward provisions.

Non-itemizers – Donors who regularly give a portion of their income to charity are not able to enjoy a tax break from the contribution because the standard deduction is still greater than the total of all itemized deductions. This may be especially true if state and local income taxes are low.

Financially comfortable – Individuals or couples who distribute the minimum from their IRA—and have other forms of income to pay living expenses—may find that transferring their minimum distributions to a community foundation helps fulfill personal charitable goals, tax-free.

In the past, how did the tax law treat charitable gifts made from IRAs?

Prior to 2006, IRA holders faced a disincentive for giving retirement assets to charity during their lifetimes because all withdrawals from traditional IRAs were subject to income tax. Thanks to the renewed tax provision, retirees will be able to give far more support without being penalized, doing so during their lifetimes and seeing their gifts benefit their communities.

In the past, when a donor of any age withdrew IRA funds to make a charitable gift, he or she was liable to pay income tax on the withdrawal, offset to varying degrees by a charitable deduction for the gift.

As a consequence of this unfavorable tax treatment, very few individuals donated IRA funds to charity during their lifetimes.

What are the advantages of this renewed law?

The tax benefits now available to American seniors will encourage new contributions from individuals who will no longer have to pay tax on a charitable gift of IRA funds. When given through a community foundation, these contributions can support all aspects of community well-being: arts and culture, economic development, education, environment, health and human services, neighborhood revitalization and more.

Now it is easier than ever for more people to enjoy the experience of making the tax-free gift of a lifetime using their excess retirement assets.

How can an IRA gift be made?

IRAs are typically held by a financial service or trust company. These custodians will likely provide a form that could be used to transfer the IRA directly to charity, with no tax incurred.

You avoid paying any capital gains tax on the increase in value of your stock. You also receive full fair market value of the stock on the date of the gift. For income purposes, the value of such gifts, up to 30% of adjusted gross income, may be deducted and the remainder carried forward and deducted for an additional five years. If you prefer to use depreciated stock as a gift, sell it first and donate the proceeds to maximize your tax benefits.

To receive a charitable deduction, name a charity as both the owner and the beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. Please check with your life insurance agent for details.

Born Free USA may accept gifts of real estate as vetted by the Born Free USA Board of Directors gift acceptance committee. Please email or call 301-448-1407 for details.