Many Options for Making a Charitable Gift to Wanderers’ Rest Humane Association
If you are considering making a gift to WRHA, you may wish to consider a variety of assets, including cash, securities (stocks, bonds, etc.), real estate or tangible property of value (such as artwork, literature, equipment, or special collections), life insurance policies, retirement plan benefits, individual retirement accounts, or successor interests to contracts (such as rights to receive future royalties).
You also have a number of alternative vehicles for making gifts to WRHA. Because we are a nonprofit organization, gifts you make to us generally qualify for an income tax deduction and/or gift or estate tax deduction, depending on how and when you make the gift. The options summarized below offer different tax benefits, as well as various other factors that may appeal to your unique circumstances and objectives.
Make a gift to Wanderers’ Rest Humane Association in your will or trust following your death
Choose a specific amount or asset, a percentage of your estate or trust, or leave WRHA funds that would otherwise be subject to estate tax. You can also designate WRHA as a “successor beneficiary” to receive assets in case one or more of your intended (“primary”) beneficiaries does not outlive you. Any assets that go to WRHA will be free of estate tax.
Retirement plan or individual retirement account (IRA)
Designating WRHA as a beneficiary of your retirement plan or IRA — like a 401(k), 403(b), Koegh, or other qualified pension plan — is especially good for saving on taxes because you avoid estate tax plus any income tax you or other individuals would have had to pay on these assets. You can make WRHA a full or partial beneficiary, or a contingent beneficiary.
Designate WRHA as the beneficiary (or successor beneficiary) of any POD (pay-on-death) account, such as a bank or credit union account. Your estate pays no estate taxes on the account assets if they go to WRHA.
Life Insurance Policies
Designate WRHA as a beneficiary (or successor beneficiary) of a new or existing policy and take current and future income tax deductions for all or part of the premiums you pay on the policy. Or transfer ownership of an existing policy with a cash value to WRHA and take a current income tax deduction for this value.
Retained Life Estate Trust
You retain the right to use your residence during your lifetime (or your lifetime and your spouse/partner’s lifetime) and give WRHA the right to receive it after your death (or after the deaths of both you and your spouse/partner). You take a current income tax deduction for the present value of this future gift, and at the time of your death your estate pays no estate tax on your residence.
Charitable Remainder Trust (CRT)
Create a trust that pays income to you (or your heirs) during its term and then pays the remainder to WRHA. You can fund the trust now or at the time of your death. If funded now, you get a current income tax deduction; if at your death, your estate gets an estate tax deduction. The regular income payment you (or your heirs) receive from the trust can be a fixed dollar amount or a fixed percentage of the current value of the trust’s assets; the amount you choose determines the extent of your deduction. This tool is especially useful for converting highly appreciated assets into money (such as for a lifetime gift) without paying tax on the capital gains, while making a valuable gift to WRHA.
Irrevocable Life Insurance Trust (Wealth Replacement Trust)
Create a CRT (as described above) and use some of its current tax savings and income to buy life insurance that benefits your heirs. As a result, you replace the value of the assets you put in the CRT.
Charitable Lead Trust
The opposite of a CRT: Create a trust that pays an annual amount or percentage to WRHA and then pays the remainder to you or your heirs. You get an income and gift tax deduction (or your estate gets an estate tax deduction) for the estimated value of the income to be paid to WRHA.
Under the umbrella of a community foundation, set up a fund that restricts its distributions to WRHA, thereby making a gift that provides funding for us over time.
Private Foundations and Donor Advised Funds
If you have already established, or plan to create, a more complex vehicle for charitable giving, such as a donor advised fund or private foundation, please consider selecting us as a recipient of distributions from your organization.
For more detailed information about the above options, please contact our Board President, Lewis Carinci, at 315-264-1039. Thank you very much for considering a donation to WRHA. We deeply appreciate your support.
Wanderers’ Rest Humane Association is a private, non-profit animal welfare organization that receives no government funds, tax dollars, or money from national humane organizations. Donations are tax-deductible to the extent provided by law; please check with your accountant or tax advisor for more information. Wanderers’ Rest Humane Association’s federal tax identification number is #16-1191312