Including The Animal Foundation in your estate planning is a way to leave a legacy that will help expand our mission to save the lives of all healthy and treatable animals who enter our care. Properly planned, your charitable giving can also provide substantial tax benefits to you and your family, both now and in the future.
There are a number of ways to invest in and help shape the future of The Animal Foundation that allow you to contribute and potentially receive income tax deductions, supplement your retirement income, and plan for the smooth transfer of your estate to your heirs.
The information below is not exhaustive, but is meant to stimulate further inquiry. We would be pleased to work with you to determine the best way for you to make your investment. We also advise you to consult your financial planner before finalizing any gift.
Make a gift to The Animal Foundation’s future that doesn’t affect your cash flow or portfolio now. Put a bequest in your will (cash, property, or a share of the estate residue). Today, you can give a gift that costs you and your family nothing. Tomorrow, you receive an estate tax deduction.
There are several ways that you can make a gift through your will or trust:
Specific gift: You describe exactly what kind of gift you want to leave to a specific individual or organization and the designated source. If you want to leave a specific dollar amount from a specific source or a particular item (such as a piece of property or a collector’s item), this is the type of bequest you would use.
Residuary gift: This type of bequest is honored after all other bequests have been made, and all debts, expenses and taxes have been paid.
Contingent gift: This type of bequest is fulfilled if certain conditions are met. For instance, if your primary beneficiary does not survive you, you can indicate your next choice through a contingent bequest.
Making a gift to The Animal Foundation through your will or revocable living trust is a simple and flexible way to save the lives of pets for years to come. Information you’ll need for your bequest:
Tax ID# 88-0144253
Bequest Language: “I give to The Animal Foundation, a Nevada corporation with its principal offices at 655 N. Mojave Rd., Las Vegas, NV 89101, (the sum of $ ___ ) (all or ___ percent of my residual estate) to be used for its general purposes.”
If you’re 70 and a half or older, you can transfer up to $100,000 out of your Individual Retirement Account to charity. For some taxpayers, this is more tax-efficient than taking the required IRA distributions, paying income tax on those distributions and then giving to charity and getting an income tax deduction for the charitable gift.
Typically, retirement plan balances are subject to both income and estate taxes. Because The Animal Foundation is a nonprofit organization, you won’t pay income tax on the distribution nor will the gift be subject to estate tax. Your retirement assets may be transferred to The Animal Foundation by completing a beneficiary designation form provided by your plan custodian. If you designate The Animal Foundation as a beneficiary, the animals will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate can also benefit from an estate tax charitable deduction for the gift.
Revocable living trusts are one of the most popular trusts set up for charitable purposes. A revocable living trust is a trust where you may take back or change the conditions of the trust. You retain control of the assets in the trust. During the life of the trust, income is earned and you may designate the earnings be paid to The Animal Foundation, individuals such as your spouse or children, or use the earnings as income for yourself. Only after death does property transfer to the beneficiaries.
A charitable remainder trust is an irrevocable, tax-exempt trust in which you place assets to provide income for The Animal Foundation for a specific period of time during your life (not to exceed 20 years). Upon the end of the fixed term or death, the named amount is distributed to The Animal Foundation. There are no capital gains taxes on assets transferred to and sold through a charitable remainder trust.
With a charitable lead trust you place assets in the trust and specify a set number of years during which a guaranteed amount or a fixed percentage of the value of the assets will be paid to The Animal Foundation. The remainder is left to your heirs. You receive a discounted gift tax when transferring assets to the trust, and the trust beneficiaries receive the remaining assets free of estate taxes.
Assets qualified as long-term capital (assets held for at least a year and a day), should be transferred directly to The Animal Foundation through a broker. The capital gains tax on appreciation is eliminated, and the current market value of the gift may be deducted as a charitable contribution, up to 30 percent of adjusted gross income. Excess beyond 30 percent can be carried forward for five years. For the capital gains tax exclusion to apply, a donation must be made before the securities are sold.
Life estates allow you to make a substantial gift by donating your home, vacation home or farm without having to vacate the property or give up any benefits you currently enjoy from the property. You’ll receive a charitable tax deduction up front for the donation, but the gift’s benefits and responsibilities remain yours until the time of your choosing, which is usually upon death.
Endowments are funds made up of gifts and bequests that require the principal amount be preserved and only the income is used for the organization. Because use of the fund is restricted to a small portion each year, the fund can last forever.
You can create an endowment or put a bequest in your will or living trust to specify that funds be added to The Animal Foundation’s general endowment. When your gift is invested as part of our endowment, it generates a total return (income plus growth) along with the rest of the endowment. As a portion of that return is paid out each year in your name, your gift will be providing income to support our mission.
Note: This information is not intended as legal advice. Donors should consult with their attorneys, accountants or tax advisors with respect to questions related to planned giving and the deductibility of various types of contributions to The Animal Foundation.