Ways to Give > Planned Giving
Planned Giving: Leaving a gift to future generations...
Life Insurance Benefits
Some of our supporters find that they no longer need their life insurance that was purchased years ago to provide for children or other family members. A life insurance policy is an excellent way to make a substantial gift to The Children's Home of Wheeling at a relatively low cost, where you can:
- Name The Children's Home of Wheeling as the full or partial beneficiary of an existing life insurance policy that results in an estate tax charitable deduction. You can name a recipient as a primary beneficiary (to receive part or all of the policy proceeds), a secondary beneficiary (to receive part or all of the policy proceeds in a case where the primary beneficiary has predeceased you or a final beneficiary to receive part or all of the policy proceeds if all other beneficiaries have predeceased you.
- Transfer all or part of an existing life insurance policy to The Children's Home of Wheeling, resulting in an income tax deduction based on the cash surrender value of the insurance policy.
- Establish a new life insurance policy, naming The Children's Home of Wheeling as the owner and beneficiary to make a substantial, tax-efficient gift. You can then make future premium payments in the form of tax deductible gifts to The Children's Home of Wheeling.
- Assign dividends from a policy to The Children's Home of Wheeling.
- A whole life insurance policy provides for the payment of a death benefit and also contains an investment provision for creating cash value. This type of insurance policy can be given to The Children's Home of Wheeling.
Upon the death of the insured individual, The Children's Home of Wheeling will receive the death benefit amount and will apply it to the program/purpose that you designate.
Charitable Bequest/Your Will
One of the simplest and often most overlooked ways to make sure your charitable legacy lives on after you are gone is a "bequest" in your will. It is a gift of a certain cash amount or a percentage of your estate to a charity at your death.
Making a gift of appreciated securities (stocks, bonds or mutual funds) to The Children's Home of Wheeling is easy and has special tax benefits. When contributing securities that you have held for more than one year:
- The Children's Home of Wheeling receives a gift equal to the market value of the securities
- You can take a charitable tax deduction equal to the market value (up to 30% of your adjusted gross income) of the securities if you itemize your tax return
- You avoid paying any capital gains tax
- You remove the value of the securities from your taxable estate
You donate stock that you purchased five years ago for $2,500 that is now worth $10,000. You can take a federal charitable tax deduction of $10,000, and avoid paying any capital gains tax, which saves you a total of $4,600 in federal income tax. (See example below: amount may vary based on individual tax rate.)
Making a gift of stock to The Children's Home of Wheeling is very simple, involving an electronic or paper transfer from your stockbroker or mutual fund company to our account.
Dorothy Williams was considering a gift of $20,000 to The Children's Home of Wheeling, in honor of her grandmother. She inherited stock in 1990 at a cost basis of $5,000. Today the value is $20,000. The gift of stock provides a double benefit (a charitable tax deduction of $20,000 and the capital gains saved on the $15,000 appreciation).
Real Estate/Investment Properties
You have the option of giving real estate today through a transfer of deed, or you can elect to continue living in the property, with an agreement to pass ownership to The Children's Home of Wheeling at your death. There are several ways to make a real estate gift to The Children's Home of Wheeling, each with its own benefits:
- You can choose to give the property outright and receive a federal income tax deduction equal to the current fair market value of the property (up to 30% of your adjusted gross income). This gift also permits you to avoid any potential capital gains tax on the built-in appreciation.
- You can choose to use a gift of real estate to fund an annuity life income arrangement, where you contribute the real estate in exchange for a lifetime income from the property. Under this option, the property is used to fund a type of charitable remainder unitrust. It will provide you and/or another beneficiary with a lifetime income from the trust. Further, you would be entitled to a current federal income tax charitable contribution deduction equal to the value of The Children's Home of Wheeling's remainder interest in the property. Plus, it avoids tax on the property's gain.
Tangible Gifts of Personal Property
In-kind gifts are a wonderful way to make a non-monetary gift to The Children's Home of Wheeling. Gifts of goods and services that help to support the quality of life of the children in our care are always welcome.
In-kind gifts give you the satisfaction of sharing property you no longer need, while you enjoy valuable tax benefits.
For example, a gift of personal property made during your lifetime entitles you to an income tax deduction and reduces taxes on your estate. If the gift is made through your will, your estate will benefit from estate tax savings.
Charitable Gift Annuity
A charitable gift annuity is an excellent way for you to support The Children's Home of Wheeling, while ensuring your financial future. A charitable gift annuity is a simple contract between a donor and The Children's Home of Wheeling, by which The Children's Home of Wheeling agrees to make fixed payments in the form of an annuity for life to you or someone else you designate, in return for a gift of cash or marketable securities.
- Annuity Payments: Payments are made to you (or whomever you designate as the beneficiary) at an agreed upon amount/on an agreed upon schedule for the remainder of your life. Payout rates are determined based on the age of the income beneficiary and the amount of the gift. At the time of your death, any remaining balance is disbursed to The Children's Home of Wheeling.
- Tax Implications: As the donor, you may take a federal income tax deduction during the year the gift is given, as a contribution to charity, minus the total amount of any annuity payments made to you or your designated beneficiary during that tax year.
- Tax Free Income: A fixed portion of each annuity payment made to you will be tax free, based on your present age/projected life expectancy. (Note: Gift annuity rates are based on the American Committee on Gift Annuity recommended rates.) If you outlive your life expectancy, the entire annuity payment subsequently becomes taxable.