Become a Member of the Paws Place Dog Rescue Legacy Society
Everyone has their own motives for making charitable gifts. Regardless of the cause, the true meaning of your gift is to make the lives of others better. Benefiting your favorite cause, like Paws Place Dog Rescue, can offer more than just self-fulfillment and aid to others; by carefully crafting your charitable giving plan to include life insurance, you can protect those who depend on you and achieve your philanthropic goal.
The Paws Place Dog Rescue Society recognizes those who are thinking about their long-term impact on Paws Place by making a planned gift. There are many different ways to make a legacy gift benefiting the Paws Place Dog Rescue. Below are several types of legacy gifts we are able to receive. For more information on becoming a member of the Paws Place Dog Rescue Legacy Society, please contact us at office-admin@pawsplace.org.
Every family’s financial situation is unique, and it is important that you check with your personal attorney or financial advisor to find the most suitable gift arrangement. Paws Place Dog Rescue does not give tax or legal advice.
| Plan | Tax Benefits | Procedure |
|---|---|---|
Cash gifts — donate cash to charity. |
Amount donated qualifies for income tax deduction. Subject to 60% of Adjusted Gross Income (AGI) limit for gift to public charity. |
Pay charity directly. |
Ordinary income property — donate inventory, copyrights, depreciated or amortized property, partnership interests, or short- term capital gains property. |
Income tax deduction of cost basis; no recognition of loss or gain on the transfer. |
Transfer by title or deed. |
Long-term capital gains property — donate real estate, securities, business interests or capital assets held longer than one year. |
In most cases, donor may elect immediate income tax deduction for either fair market value (30% AGI cap) or cost basis (50% AGI cap) for gift to public charity; no recognition of loss or gain to donor on transfer. |
Transfer by title or deed. |
Bequest gift — cash or property at donor’s death. |
Estate tax charitable deduction; no income tax deduction. |
Donor must specify the charitable bequest in will or trust. |
Wealth replacement trust (WRT) — use life insurance to replace value of property gifted to charity. |
Life insurance death benefits received free of estate and income taxes. |
Retain tax and legal counsel to set up trust within relevant local laws. |
Charity as beneficiary — named in donor’s life insurance policy. |
Estate tax charitable deduction; no income tax deduction. |
Execute a change of beneficiary form. |
New policy — issued to charity as owner. |
Income tax deduction for cash donated to charities for premiums paid; no estate or gift taxes; policy excluded from donor’s taxable estate. |
Charity is owner and beneficiary. Donor pays premiums to charity. |
Existing policy gift — transfer policy to charity. |
Income tax deduction for the lower of policy’s value or cost basis; income tax deduction for additional cash gifts for premiums; exclusion from estate taxation; charitable deduction offsets any inclusion of death benefit policy in estate under the 3-year rule. |
Change ownership to charity; donor gifts the amount of the premium to the charity; charity makes premium payments. |
IRA charitable rollover |
Distribution not included in income. Counts toward current year RMD. |
If donor meets requirements; IRA custodian directly transfers amount to public charity. |
Bargain sales — sell property to charity at less than fair market value (FMV); excess of FMV over sale amount is gift. |
Gift portion is income tax deductible; sale portion is taxable gain. |
Transfer by title or deed upon payment to donor. |
Contribute property subject to debt — donate mortgaged property. |
Gift portion is income tax deductible; sale portion is reported as a taxable gain. |
Formal transfer by title or deed. |
Charitable remainder trust (CRT) — an irrevocable trust providing current income payments to a non-charitable beneficiary followed by payment of the remainder interest to a charity |
Any capital gains tax is deferred if trust sells assets; income tax deduction for present value of remainder interest. |
Consult tax and legal counsel to draft trust documents. |
Charitable lead trust (CLT) — an irrevocable trust providing current income payments to a charity followed by payment of the remainder interest to a non-charitable beneficiary (e.g., family members). |
Income tax deduction is excess of cash/property fair market value over present value of the annuity. |
Donor gives the property or cash and receives the annuity from the charity. |
Remainder interest in personal residences and farms — donor gifts remainder interest to charity but retains lifetime use. |
Income tax deduction for present value of remainder interest. |
Consult tax and legal counsel to draft documents. |
Qualified conservation contribution — donor gives qualified real property interest solely for conservation use. |
Immediate income tax deduction of value of the qualified contribution. |
Consult tax and legal counsel. |