The Herkimer ARC can be a partner in estate planning. A Planned Gift will help the Herkimer ARC, now and in the future, fulfill the mission to enable people with disabilities and others in the community to achieve their full potential and to live enriched lives. By making a carefully Planned Gift, donors may receive a tax savings and even income for life. Best of all, they will feel good about their gifts and be enrolled in the Heritage Society of the Herkimer ARC.
Planned Giving is simply a Planned Gift from the donor to Herkimer ARC, which is a charitable organization. A Planned Gift is when donors make gifts in full consideration of all of their financial planning objectives to maximize the benefits of the gift to both the donors and to the charity. Also, a gift is made to minimize the net cost of the gift. Considerations of the donors include the nature of the gift, the economic impact of the gift, and the tax implications. Donors make Planned Gifts to match their needs of making a long term impact to the financial stability of the Herkimer ARC.
The Herkimer ARC advises all donors contemplating making a Planned Gift to the Herkimer ARC to first consult their financial and legal advisors.
Planned Gifts are gifts of assets and may be made as an outright gift or as a deferred gift. Typical deferred gifts are made through wills, estates, and life insurance. A typical outright gift includes gifts of cash, property, or stocks. Note that all may be deferred visa vie wills and other deferred mechanisms. Another outright gift mechanism is the development of trusts.
Types of Planned Gifts:
Two types of the Planned Gifts are gifts made through wills and bequests. A will is a legal document whereby donors exercise their right to determine the ultimate disposition of their property. A bequest is a specific provision whereby donors designate an individual or an organization to receive their property through a transfer at the time of their passing.
Other types of Planned Gifts include naming HARC as a beneficiary in a life insurance policy and/or designating HARC to receive the remainder of a donor’s retirement fund.
All of the above types of Planned Gifts have one important thing in common. They can be cancelled or revoked prior to completion. For example, donors can always write a new will or change the beneficiary designation on a policy or brokerage account. Because these deferred gifts can be reversed, they are called “Revocable” Gifts. These gifts provide donors with the satisfaction that a gift is in place, while adding the assurance that the asset can be retrieved should an emergency occur. The downside is that Revocable Gifts do not qualify for a charitable income tax deduction.
Such is not the case with “Irrevocable” Deferred Gifts. Once initiated, these gifts cannot be undone. As a result the IRS allows an income tax deduction in the year the gift is made.
An example of an Irrevocable Deferred Gift is the charitable gift annuity. There are other Irrevocable Deferred Gifts as well, such as Charitable Remainder Trusts and contributions to a pooled income fund. Though these gift arrangements differ in various respects, they all provide tax, as well as other benefits to donors.
For more information concerning planned giving and the Heritage Society, contact the VP - Fund Development at (315) 574-7000 or email.