There are many ways a planned gift can help you accomplish your financial goals while providing important support for our efforts to protect stray and feral cats.
Planned gifts allow you to leave a powerful legacy of cat protection. These types of gifts can also help you to reduce capital gain tax, provide income tax deductions, and even generate a stream of income for life.
A planned gift allows you to make a donation that may initially seem beyond your means. And, depending on your individual circumstances, a planned gift may provide state and federal tax advantages. In addition to tax benefits, life income gifts offer you a fixed or variable income (such as the charitable gift annuity, charitable remainder annuity trust, or charitable remainder unitrust) for life.
A charitable lead trust can be an excellent way to pass assets to your heirs, while providing gifts to Alley Cat Allies for a term of many years.
View an easy to read chart of options and benefits here.
Bequests— When a donor decides to leave assets to charity in a will, this is called making a bequest. The donor's estate will receive a charitable estate tax deduction, when the gift is made to charity.
Gift Annuities — A gift annuity is a contract between a charity and a donor. In return for a donation of cash or other assets, Alley Cat Allies agrees to pay a fixed payment for life to the donor or to a friend or family member of the donor's choosing. The donor also can claim a charitable tax deduction. If a donor funds a gift annuity with long-term capital gain property, the donor will have to report only some of the gain, and may be able to report it in installments over many years. Income from a gift annuity can be deferred for a period of years. Deferred gift annuities are often set up by younger donors to supplement retirement income.
Pooled Income Funds — With a pooled income fund, Alley Cat Allies accepts gifts from many donors into a fund and distributes the income of the fund to each donor or recipient of the donor's choosing. Each income recipient receives income in proportion to his or her share of the fund. For making a gift to a pooled fund, a donor receives a charitable income tax deduction and will not have to pay capital gains tax if the gift is of appreciated property. When an income beneficiary dies, Alley Cat Allies receives the donor's portion of the fund.
Charitable Remainder Trusts— This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, Alley Cat Allies receives whatever amount is left in the trust. Charitable remainder unitrusts provide some flexibility in the distribution of income, and thus can be helpful in retirement planning.
Charitable Lead Trusts — This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to Alley Cat Allies during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts.
Life Insurance Policies—You can name Alley Cat Allies as the sole or partial beneficiary of a life insurance policy. Or, you can purchase a small life insurance policy that can produce a large death benefit for your charity. If Alley Cat Allies or another charity is the sole beneficiary, then the premiums are tax deductible. To learn more about using your life insurance policy as a gift opportunity, please contact the Development team at 1-866-309-6207, or email Principal Gifts Officer Tamara Berry.
Retained Life Estates — A donor may make a gift of his personal residence or farm to Alley Cat Allies and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor's death, the charity can use or sell the property.
IRA or Qualified Retirement Plans— Retirement plans are exceptionally attractive gift planning vehicles because they are subject to both estate tax and income tax if they are left to an individual, thus greatly reducing the value of the asset. If they are left to Alley Cat Allies, such taxes are usually avoided. To learn more about using your IRA or retirement plan as a gift opportunity, please contact the Development team at 1-866-309-6207, or email Principal Gifts Officer Tamara Berry.
We strongly urge you to consult your own estate-planning advisor to ensure that your personal objectives are met.
To learn more about your giving options, please contact the Development team at 1-866-309-6207, or email Principal Gifts Officer Tamara Berry.