Donating to GLAD - Planned Giving

Leaving a Lasting Legacy

Philanthropy is an important American tradition that is especially significant for the gay, lesbian, bisexual, transgender and HIV+ communities. Every year millions of Americans help strengthen non-profit organizations through their gifts while at the same time meeting their own estate planning objectives.

As you review your estate planning needs, we hope you will consider making a bequest to GLAD through your will, through a charitable gift annuity, by establishing a charitable remainder trust, or simply designating GLAD as the beneficiary of your IRA or life insurance policy.  In doing so, you will leave a lasting legacy – Equal Justice Under Law.

GLAD has prepared information on the following topics for your consideration:

• Tax Savings
• Annuities & Trusts
• Testamentary Gifts
• Suggested Bequest Language

This document is intended for informational purposes and should not be considered legal or financial advice.  An attorney or other professional advisor should be consulted before a gift is made.

Tax Savings via Charitable Contributions

Gifts of Cash

Outright gifts of cash are the simplest forms of support you can give.  When you make a gift of cash to GLAD, you are entitled to an income tax deduction of that amount, up to 50%of your adjusted gross income, with a five year carry-over period for the excess.

A gift of appreciated stock saves money in two ways: your income taxes are reduced because of the charitable deduction, and you avoid the capital gains tax that would have applied had you sold the securities.  For gifts of appreciated securities owned over one year, you can claim as an income tax deduction up to 30% of your adjusted gross income in the year of the gift, with a five-year carry-over period.

Most real estate has appreciated at a rate higher than the rate of inflation and serves charitable giving planning well.  A home, vacation property, undeveloped land, or other real estate can contributed outright, converted to a new income source through a charitable trust, or transferred to GLAD with life tenancy protection for you.  Depending on your transfer method, you can benefit from savings or income tax, capital gains tax, or estate and gift tax, while increasing your annual income.

You can name GLAD as the beneficiary of your Individual Retirement Account (IRA), or other retirement funds.  Since these funds may be diminished by both income and estate taxes when payable to individual beneficiaries, it may be particularly desirable to use assets of this type to fund a gift to GLAD, avoiding such taxes.

You can name GLAD the beneficiary of an existing life insurance policy.  If you also make GLAD owner and relinquish all incidents of ownership, you can claim an income tax deduction for the cash surrender value.  You can also purchase a new policy naming GLAD beneficiary and owner.  Not only will you be able to transform a small annual gift into a large one, your annual premium is counted as a charitable deduction.

Using Annuities & Trusts to Benefit GLAD

Charitable Remainder Trust

A charitable remainder trust allows you to transfer assets, which will be managed by a trustee, and from those assets to provide periodic payments of income to you or some other beneficiary of your choice.  You can establish a charitable remainder trust with gifts of cash, certificates of deposit, marketable securities, closely held stock, or real estate.

You can choose the annual payout rate, frequency of payment, and form of payment.  You incur no capital gains tax on the transfer of appreciated long-term securities or real estate to the trust.

When the trust is irrevocable, you avoid capital gains taxes and receive estate and gift tax charitable deductions.  Assets are invested in order to provide income to you for the designated term.  Whatever remains in the trust after payout period is distributed to GLAD.

Minimum gift: $50,000

Charitable Lead Trust

Charitable lead trusts are the “reverse” of the charitable remainder trusts and may be particularly desirable in large estates to provide estate tax savings and benefit your heirs after providing payments to GLAD for a specified term of years.

Minimum gift: $10,000

Charitable Gift Annuity

You can make a contribution to GLAD and provide a fixed annual income for life for yourself or someone else whom you designate.  The rate you receive is based on your age, currently ranging from 5.9% for age 55 to 11% for age 90 and older.

If you give appreciated securities to an annuity, the capital gain is deferred over your life expectancy; part of the annuity payment is tax free for the duration of your life expectancy; and you receive an income deduction for between 27% and 57% of the gift, depending on the age of the annuitant.  Upon the death of the annuitant (you or your remaining designee), the remaining principal is available for GLAD.

Minimum gift: $10,000

Testamentary Gifts

You can provide for GLAD in your will or in a trust which you fund at death.  The full value of a bequest is deductible for federal estate tax purposes, and there is no limit to the size of a bequest.  You may:

• Designate a specific dollar amount
• Designate a percentage of your estate
• Designate you residuary estate remaining after all specific bequests
• Bequeath through a charitable remainder trust
• Bequeath through a charitable lead trust

Suggested Bequest Language

For sample purposes only.  This does not contain complete wording necessary under the law.

Bequest of a specific dollar amount:

I leave $___, without reduction for any tax occasioned by my death, to Park Square Advocates, Inc., d/b/a GLAD, a nonprofit corporation having a principal place of business in Boston, MA, to be used for general purposes.

Bequest of a percentage of estate:

I leave an amount equal to ___% of the value of my estate to Park Square Advocates, Inc., d/b/a GLAD, a nonprofit corporation having a principal place of business in Boston, MA, to be used for its general purposes.

Bequest of a residuary estate:

I leave whatever remains of my estate (or___% of whatever remains of my estate), after all specific bequests have been made and after all taxes, fees and other costs of administering my estate have been paid to Park Square Advocates, Inc., d/b/a GLAD, a nonprofit corporation having a principal place of business in Boston, MA, to be used for its general purposes.

Bequest via a charitable remainder trust:

I leave the sum of $___ to a charitable remainder trust that is to make certain payments to (name) for his/her lifetime.  According to the trust document, whatever remains in this trust at her/his death is to pass to Park Square Advocates, Inc., d/b/a GLAD, a nonprofit corporation having a principal place of business in Boston, MA, to be used for its general purposes.

Bequest to a charitable lead trust:

I leave the sum of $___to a charitable lead trust that is to pay ___% of its fair market value annually for ___years to Park Square Advocates, Inc., d/b/a GLAD, a nonprofit corporation having a principal place of business in Boston, MA, to be used for its general purposes.  As per the conditions contained in the trust document, whatever remains in the trust at the end fo that term of years is to pass to my heirs.

GLAD is a 501(c)(3) nonprofit organization and gifts are fully tax-deductible. GLAD is incorporated as Park Square Advocates, doing business as (dba) GLAD. Please call or email us for a copy of our tax determination.