Leave Your Legacy Through Planned Giving
Like most people, you want to give to causes you care about and want to balance between giving today and planning for the future. Whatever you can give today helps. Fortunately, many options allow you to support our work, both today and tomorrow.
Your donation to the HSVC is an investment in our community to help animals in need and support our various animal benefit programs. By structuring future gifts with tax benefits and income opportunities in mind, you may be able to achieve additional personal financial goals. See the options for giving listed below to help you plan for your personal needs. When you are ready to give, please fill out this form and a staff member will contact you within 1 - 3 business days with the next steps in the planned giving process.
Tax-Wise Planned Giving Options: Bequest
This is the most popular form of planned giving because it is easy and quick. To make a bequest, simply make a designation of any given amount or percentage of your estate that you would like donated in your will or trust. It costs nothing during your lifetime and is easily revocable if your situation changes. Because there are many "Humane Societies", be sure that your designation clearly states the "Humane Society of Ventura County" if you would like your gift to help your LOCAL Humane Society.
This method of giving allows donors to see their gifts at work in their lifetime. All outright gifts can result in income tax savings, but donors can also receive other benefits depending on the structure of their gifts. Donors may give unrestricted funds or choose to target a gift to a particular program at the shelter. See below for the various programs our shelter offers as structured gifts.
A cash donation is always greatly appreciated. If you wish to make a direct gift of cash, your contribution is tax-deductible in the year in which it is made. You can deduct up to 50% of your adjusted gross income. Amounts over 50% can be carried over for use during the next five years.
Many types of assets are accepted by the HSVC as charitable contributions including art, jewelry, and antiques. However, donors can deduct the fair market value of the gift only if it is related to the HSVC's function as an animal care institution. For gifts that the HSVC must sell to support its animal care mission, donors can deduct only the cost basis. Your estate can deduct the fair market value of any bequest of personal property. The restriction regarding direct relationship to HSVC's animal mission does not apply to bequests, only to lifetime gifts. Please call the shelter at 805-646-6505 to discuss the appraisal and classification of a donation of personal property.
Gifts of appreciated securities can provide substantial income tax savings. If you have held securities for more than a year, you are allowed to deduct the market value of the securities without paying tax on the appreciation for an amount up to 30% of your adjusted gross income in the year you donate. Amounts over 30% can be used over the next five years. Transfer the stock to the HSVC to make full use of potential tax savings.
If you wish to donate stock that has fallen in value, we recommend selling the stock at a loss and donating the proceeds. The loss can be used to offset gains, and you can receive the normal charitable deduction for donating the proceeds.
A contribution of real estate is an excellent way to support HSVC. During the year that your transfer title to the HSVC, you can take a charitable income tax deduction for up to 30% of your adjusted gross income. Amounts over 30% can be carried over for use during the next five years. To take advantage of potential tax deductions, it is important that you transfer title to appreciated real estate that you have held for more than a year to the HSVC rather than selling and donating the proceeds. You can then use the fair market value to establish your charitable deduction without being subject to capital gains tax on a sale.
Real estate gifts can offer many benefits to donors, but they are often complicated. We ask that you discuss your situation with us in advance of making your contribution. HSVC's financial advisors or your own financial advisor can evaluate your potential give and decide if the gift can be accepted, with marketability as an important factor, and can ensure that you structure the gift to your advantage.
A gift of life insurance that you no longer need is another way to fulfill your charitable goals. You can receive a current income tax charitable deduction when you assign ownership of a policy to HSVC and name our shelter as the beneficiary of a life insurance policy. If the policy is not fully paid, you can take a deduction for the annual premiums. Even if you wish to continue to hold your life insurance policy, you can still name the HSVC as a beneficiary or contingent beneficiary of the policy.
Closely held stock is typically held by the owner of a corporation who has not received dividends on the stock. The owner can sometimes release retained earnings from the business through a charitable gift, without being taxed at both the corporate and personal level. This somewhat complicated transaction requires careful planning and attention to IRS statutes. Call us at 805-646-6505 or contact your financial advisor to discuss your individual situation.
A company donating founder stock can claim a tax deduction at the beginning of its business venture when such deductions can be especially helpful. If the business is successful, non-profits can often sell founder stock to realize substantial gains. The donating company receives the tax deduction regardless of whether the business goes forward.
Charitable bequests allow you to contribute to the HSVC without giving away assets you may need during your lifetime. We can provide you and your legal advisor with language to include in your will that ensures that your wishes will be carried out. As with any gift, you can designate a program to support or make an unrestricted bequest and let the HSVC determine the best use for the donation. One popular option is to make a bequest in memory or honor of a loved one. Another is to establish an endowment that will provide income in perpetuity. It is helpful if you inform the HSVC of your bequest so the shelter can assure that your gift is properly structured and can be used as you wish. We honor those who remember the HSVC in their wills with a plaque in our visitor’s center.
Your will can designate the HSVC as the beneficiary of either a specific amount or a bequest that is a fixed percentage of your estate. You can bequeath securities, real estate, or other property. If your first priority is your family’s well-being, you can make your gift contingent that other conditions of the will be fulfilled before the HSVC receives a gift. You can also bequeath the assets that remain after other bequests are met. Your estate receives the benefit of freedom from federal estates taxes for the full value of the gift. This option allows flexibility in planning. If your needs change, you can alter a bequest at any time by signing a new will or amending your will or trust.
Assets you hold in individual retirement accounts, such as IRA’s or Keoghs, can be bequeathed to the HSVC. This can be done by individual account or in total. The advantage of bequeathing such retirement assets to a charitable institution is that the bequest escapes both deferred income tax and estate tax that comes due if the assets are transferred to individuals.
Income Producing Gift Plans
The HSVC can help donors to support programs they value highly while contributing to their own financial security and peace of mind. These investments allow you to take advantage of government tax laws that are designated to encourage philanthropy. Income-producing gift plans allow a great deal of flexibility and can allow you to make a gift to the HSVC and provide income for yourself or your beneficiaries at the same time. They offer current income tax deductions and may provide an opportunity to avoid or reduce capital gains tax on assets that have substantially appreciated. Plans can also be used to minimize estate taxes. HSVC's planned giving professionals will work with you to carefully and confidentially shape a gift that meets your needs.
A charitable gift annuity is an extraordinary way to make a gift, increase your income, and slice your tax bill; all in one transaction! Our charitable gift annuity program is offered as a service to the many friends of the HSVC who have expressed a desire to make a gift of significance, while still retaining income from the gift property during their lives.
A charitable gift annuity is a contract in which you exchange a gift of cash or securities for a guaranteed, fixed income each year for the rest of your life. Your gift annuity offers several distinct advantages:
- Income for Life – attractive payout rate for one or two lives; often some of the highest payouts available; the older you are, the higher the rate of interest payout
- Tax-Free Income – a large part of your annual payment is a tax-free return of principal
- Capital Gains Tax Saving – when you contribute securities for a gift annuity, you minimize any taxes on your “paper profit”
- A Tax Deduction Savings – a large part of what you transfer is a deductible charitable gift
- Personal Satisfaction – from seeing that your donation helps animals in need by making a gift of lasting significance
You can choose how frequently payments will be made – quarterly, semi-annually, annually, one-life or two-life annuities, cash, or securities to fund your gift. Cash gifts allow maximum tax-free income; gifts of securities allow you to minimize capital gains taxes.
Annuity trusts provide an annual income that is a fixed dollar amount based on the value of your assets when you place them in the trust. You minimize market risk with an annuity trust, though your earnings may be affected by inflation. You receive the annuity during your lifetime, and the lifetime of a beneficiary, or a specified time up to twenty years. The amount your receive is based on forecasts of future market conditions. If you place appreciated assets in an annuity trust, you avoid capital gains taxes on the assets. You can also take a charitable income tax deduction during the year you make the gift. You have no further responsibility for managing the assets placed in the trust. Older donors who don’t anticipate significant losses from inflation during their lifetimes, and want an income that can depend on, often choose annuity trust as a planned gift option.
If your main financial objective is safeguarding your estate from federal estate taxes, a charitable lead trust may be the ideal gift strategy. The trust pays out income to the HSVC for a term you specify. When the term of the trust expires, the principal returns to you or goes to your heirs, but estate and gift taxes have been reduced or eliminated. The advantage of a lifetime lead trust is that you can see the difference your gift makes during your lifetime.
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