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Leaving a Legacy: It’s Easier than You Think!
What is planned giving?
Planned giving is a way you can make gifts of accumulated personal resources to churches, not-for-profit charities and other philanthropic organizations. Many, not just the wealthy, use financial or estate planning to direct the use and distribution these resources. Planning the ultimate disposition of these resources is a wise choice in life, thus allowing you to provide for heirs and/or make gifts to organizations. Done correctly, planned giving also helps minimize taxes.
A Bequest in a Will
The easiest and most common way of making a planned gift is through a bequest in a will. If you die without a will, the state administers distribution of your personal resources according to state law, appoint guardians for dependents, and charges your estate administration fees for the privilege. They give no money to charity and ensure you pay as much estate tax as possible. A will offers you maximum control by allowing you to appoint an administrator, provide for family members according to your wishes, and share your remaining resources with organizations you choose. It even allows you to control applicable taxes.
Free the Kids is setup to receive bequests. A bequest can take the form of a specific amount of money, a percentage of the estate, a specific asset, a trust, or the naming of our organization as a contingent beneficiary.
Your planned gift to Free The Kids may be designated as “Unrestricted” or for a specific purpose. Unrestricted bequests allow Free the Kids the most flexibility because the gift may be used for any purpose that supports the mission. A gift designated for a specific purpose, for example, Education, Pastoral, Family Services or Residential Care, allows less flexibility, but ensures it is used in areas that interest you most.
Sample language for including Free the Kids in your will might be: “I bequeath (state amount, asset, or percentage of the estate) to (Free the Kids, Inc. 5704 West Market Street #8947 Greensboro, North Carolina 27419) to be used (describe use: Unrestricted or specific purpose) or as the Free the Kids, Inc. governing board deems appropriate.” You should consult your attorney or financial advisor for the most appropriate bequest language for your situation.
Gifts of Life Insurance and Retirement Accounts
Life insurance is another way to make a sizeable gift to a not-for-profit organization. For instance, you could make, Free the Kids, a contingency beneficiary of an existing policy or name us as the beneficiary if the designated beneficiaries predecease the insured.
Additionally, a remainder value of retirement accounts (such as an IRA) can be heavily taxed when left to family, but would pass-tax free to a charitable organization upon death. Charitable gifts from an IRA can also satisfy the requirement to take minimum distributions from one’s IRA while reducing income tax liability. We recommend you review these options with your attorney or financial advisor to learn the most appropriate way to manage these gifts.
For further information please contact the Free the Kids Executive Director, Frank Irr or Controller, Lisa Hyatt at 1(844)222-6300, or by emailing inquiries@freethekids.org. Thank you!
