| Your support of Animal Friends Rescue Project (AFRP) with a "planned
gift" can help you now, while providing AFRP with income in the
future to carry on its mission of saving animals' lives.
A "planned gift", one which you arrange during your lifetime
but which is not received by the AFRP until some future date, offers
certain specific financial benefits to you, the giver.
Take a few moments to read the information below. Please contact us
if you want more information or if you are interested in helping us
with one of the planned gift options that will also help you.
PLANNED GIVING - An Introduction
Over the past couple of decades the concept of planned giving has become
popular with charitable organizations and their donors.
Planned giving enables a donor to realize significant financial gains
while providing support to a favorite charity. When used creatively,
planned giving can be adopted to fit both your needs and the charity's
goals. In reviewing these strategies, you may find that your generosity
will not only insure the future work of AFRP but will also help you
in your desire to be philanthropic and financially secure. We ask that
you think about these concepts and consider entering into a partnership
with us to save the lives of thousands of animals in the years to come.
Remember that when you make a planned gift immediate and long term
benefits accrue to you, the donor, and your generosity will be realized
by AFRP in the future.
Bequests:
A gift to AFRP in your will provides your estate with an unlimited tax
deduction. AFRP can be named as a beneficiary under your will in several
ways -as the recipient of an outright gift, either in a designated amount
or as a percentage of your estate; or as a residuary beneficiary to
receive the balance of your estate after specific amounts have been
paid to other beneficiaries. You can also add AFRP to your will through
a codicil without re-writing your entire will.
Real Estate:
A residence, a vacation home, acreage (even a farm) or an unimproved
parcel of land may have appreciated so significantly in value that its
sale by you would generate a substantial income tax. By making a gift
of a full or partial interest in real estate to AFRP, you will avoid
tax on the long-term capital gain and generate an income tax charitable
deduction for the full fair market value of the property. It is also
possible to make a gift of your primary residence or second home while
retaining an exclusive life estate so that you (and your spouse) can
continue to use it for the rest of your lives while obtaining significant
tax and estate planning benefits.
Life Insurance:
A gift of life insurance can provide a significant charitable deduction.
To receive a deduction, the policy should be transferred to AFRP as
owner and beneficiary. You will remain the insured. You may make annual
gifts to us which we will use to pay policy premiums, and you can deduct
these gifts for income tax purposes.
Save Our Pets Charitable Gift Annuity:
A Save Our Pets Charitable Gift Annuity is a contract between you and
AFRP to pay you (and/or any other designated individual) fixed periodic
payments in exchange for your contribution. It is not a trust. The annuity
payments are in a fixed dollar amount. The rate of the payments depends
upon the age(s) of the annuitant(s) at the time the annuity is purchased.
(The annuitant is the person(s) receiving payments.) There is an income
tax charitable deduction available for a portion of the purchase price
in addition to savings on capital gains taxes if appreciated securities
are used. A portion of each annuity payment is made to you tax-free.
Charitable Remainder Trust:
Unitrust
A Unitrust is an irrevocable trust under which payments at a fixed rate,
as set out initially in the trust, are paid to an individual or individuals
for life or for a term of years, not to exceed twenty. The annual payment
is calculated by multiplying the annual revaluation of the trust's investments
by the fixed rate. This type of charitable remainder trust is used as
an anticipated hedge against inflation. Whatever remains in the trust
at the end of its term (lives or years) will go to AFRP in honor of
the donor(s).
Annuity Trust
Similar to a Unitrust, an Annuity Trust has a fixed rate as well. However,
in an Annuity Trust the rate is multiplied against the initial contribution
to the trust, and that annuity amount is fixed permanently. Thus, an
Annuity Trust is used to assure fixed annuity payments for the full
term of the trust without risk, even though the trust may lose value
in its investments due to market conditions. Again, AFRP will receive
whatever remains in the trust at the end of its term in honor of the
donor(s).
In the case of either type of Charitable Remainder Trust,
a contribution by you of appreciated property (e.g., securities, real
estate or personal property) will enable you to avoid tax on any long-term
capital gain. Therefore, you might contribute highly-appreciated property
that is providing you with a low return of income in exchange for a
higher fixed rate in the trust without having to recognize the capital
gain for individual income tax purposes.
Charitable Lead Trust:
As opposed to a Charitable Remainder Trust, this trust
pays an annuity or unitrust amount to AFRP for a term of years and returns
the property to the donor or pays it over to other named individuals
at the end of the term of the trust. With appropriate use of a Charitable
Lead Trust, a donor may be able to shift ownership of valuable
property to the next family generation at very low estate or gift tax
cost.
For more information about these or any other tax-advantaged
Charitable Planned Giving vehicles, please contact AFRP at
(831) 333-0722 or email us at info@animalfriendsrescue.org.
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