Planned Giving is making a commitment to a charitable organization of a major gift, over time or at death, as part of the donor’s overall financial and estate planning. Planned gifts can range from a simple bequest made in a will, to gifts like charitable gift annuities and charitable remainder trusts that provide major gifts to a non-profit while at the same time returning income to the donor.
With changing patterns of wealth and tax laws, philanthropic interests and tax savings are often linked. Planned giving is the process by which philanthropic desire is guided and shaped by financial and estate planning considerations.
Types of Gifts
Bequests/Wills - The act of giving personal property or money such as stocks, bonds, jewelry and cash left to SLI through the provisions of a will or estate plan. Your intention needs to be stated in your will or trust. Without a will, control is lost over belongings after death and property and finances are settled according to state laws, regardless of family wishes. A valid will is generally type written, dated, and signed by you as well as two legally competent witnesses. The probate court oversees administration of a valid will at death to carry out instructions. The court charges probate fees to administer an estate and the documents and proceedings are public record.
Life Insurance - More information coming soon!
Personal Property - The act of giving personal property to SLI. Your property will be put to a use related to our mission, or we sell your property and use the proceeds for our programs/services. A gift of artwork, coins, antiques, or other personal property can be an excellent way to support SLI.
Retirement Plans - A gift of retirement plan assets is an easy way to reduce potentially very high taxes and provide support to SLI.
- Option 1: Make a tax-free gift with an IRA charitable rollover:
You can designate on your IRA or qualified plan beneficiary designation form that the assets remaining when your plan ends would be used to fund a gift arrangement that will make payments to family members or other loved ones for the rest of their lives. When the gift arrangement ends, the remaining amount would go to SLI.
- Option 2: Designate remaining retirement plan assets for SLI
You designate on your IRA or qualified plan beneficiary designation form the beneficiary of all or a portion of what remains in your retirement plan when the plan ends.
- Option 3: Designate remaining retirement plan assets for a life income plan
Alternatively, you can designate that some or all of the assets remaining when your IRA, 401(k), 403(b), or other qualified plan ends be used to fund a gift arrangement that will make payments to family members or other loved ones for the rest of their lives. When the gift arrangement ends, the remainder would go to SLI.
Real Estate including a vacation home can be deeded to SLI subject to a retained life estate, enabling you (or you and your spouse) to continue living there as long as you wish. The older you are, the larger the tax deduction you receive.
Stock, Bonds or Mutual Funds - Securities that are actively traded on recognized stock exchanges and other readily marketable securities, including bonds and mutual funds, may be accepted as gifts by SLI. Securities given to SLI are managed in accordance with our investment policies and may be sold upon receipt.
Gifts that Pay Income
Charitable Gift Annuity makes favorably-taxed payments to you (or to you and your spouse) for life, plus you receive an immediate income tax charitable deduction, providing tax savings if you itemize. If you’re still working, you can defer the start of the payments, whereas if you are retired, you’ll likely want the payments to begin immediately.
Charitable Remainder Trusts is similar to a gift annuity in some respects, since both can provide income for life, but offers greater flexibility. This can be very appealing if you don’t need additional income now but would like to secure a source of payments in retirement, and also provides an immediate income tax charitable deduction.
What is planned giving?
Planned giving is a way to make a gift to SLI through thoughtful estate planning. A planned gift as part of an overall estate plan takes your needs as well as the needs of your loved ones into consideration, while helping support SLI that is personally meaningful to you.
How can I make a planned gift to SLI, or one of program or services?
The most common way of making a planned gift is by designating SLI or the program/service as a beneficiary in your will. Other options are designating the organization as a beneficiary of your retirement plan or life insurance policy. There are also other, more complex ways of setting up a planned gift. Your attorney or financial planner may have suggestions that are best suited to your unique needs.
How do I benefit from a planned gift?
A planned gift may enable you to make a much more significant gift than you may have thought possible. It can create opportunities to support SLI or a program in a very impactful way.
How do my family and other loved ones benefit?
A planned gift can create potential savings on capital gains taxes or estate taxes, lessening the financial burden on your family and loved ones. For instance, a planned gift can reduce your estate tax liability. The assets that you transfer to SLI remain outside of your taxable estate.
How does SLI benefit from a planned gift?
Your gift can make a significant impact on SLI now and/or in the future. You also have the option to direct your gift to support a specific program of SLI. The SLI Vice President of Development can assist you with the designation, and provide suggested language for your will or codicil to identify for the area(s) you would like to support.
Why do I need a will?
Creating a detailed will is critical to ensuring that your estate will continue to yield benefits to your family and to SLI that are important to you in line with your wishes.
How do I name SLI in my will?
To name SLI in your will, you can include the following language:
I give (___ dollars/ __ percentage or all of the residue of my estate) to SLI, a Kansas charitable corporation, for the benefit of __________ (name of designation if desired).
How do I name SLI as a beneficiary in my retirement plan or life insurance policy?
Leaving your retirement plan or IRA (or a portion of it) to SLI is a tax-wise gift. Naming SLI as the recipient of your retirement plan after your lifetime (or at the death of the survivor of you and your spouse) avoids all estate and income taxes on the plan assets. Similar benefits can apply when designating SLI as the beneficiary of your life insurance policy.
To make this gift, you simply notify your plan or policy administrator of your wish to change the beneficiary. A "change of beneficiary" form may be required, and your spouse may need to sign consent to the change of designation. The tax ID to identify SLI as a designated beneficiary is: 48-0779679.
If your spouse and children are currently the beneficiaries of your retirement plan or life insurance policy, you can continue to keep them as beneficiaries, and also include SLI as the beneficiary of a portion of your plan or policy. Upon your death, the plan administrator can "cash out" SLI's share without affecting your family's portion, so that SLI, and your heirs, benefit from your financial planning and your generosity.