Planned Giving

Building a Future for Haven Hills: Planning Your Estate

Whether to religious, educational, or community service organizations, people are frequently encouraged to give in proportion to their income. Donors give annually to sustain the causes that are important to them and to promote the well-being of others less fortunate than they. Generous donors give regularly to Haven Hills programs and, in so doing, are ennobled in the act of supporting battered women on their path to self-sufficiency and a life free of violence.

A planned gift differs from such annual contributions because it creates an opportunity for donors to achieve a greater impact with their giving, to make a greater difference. Frequently a pending financial or personal decision is the context for such a gift: the preparation of a will, the sale of a business or real property, even a financial windfall. The measure of a planned gift is more often assets rather than income.

Planned gifts are either current or deferred and provide enhanced tax benefits to the donor, including the avoidance of capital gains tax when appreciated assets are donated. Charitable annuities and remainder trusts generate current tax deductions and return income to donors, or their beneficiary, for their lifetime. Often such a gift will create an endowment to continue, in the donor’s name, the work of Haven Hills far into the future. The giver of a planned gift will ensure that Haven Hills continues to serve battered women and their children for years to come.

What will a planned gift mean to Haven Hills?

• It will provide battered women and their children immediate access to stable, effective support services to improve the quality of their lives.
• It will ensure the future stability of innovative and progressive programs for women and children victimized by domestic violence.
• It will promote and support the reduction and elimination of violence against women.
• It will contribute to social change and justice for future generations.

A Gift Now

Donors who wish to make a contribution to Haven Hills can transfer appreciated assets, in lieu of cash, to Haven Hills, realize a tax deduction in the year of their gift and avoid capital gains tax at the same time.

Wills

A will is a legal document, which contains specific instructions to the Probate Court as to how property is to be administered and distributed after death. Bequests to charities are not subject to estate or inheritance taxes. Bequests take a variety of forms—a specific sum of money, a percentage of an estate, or a certain piece of property. By naming the Haven Hills as a beneficiary, the donor continues to fund critical services for battered women and their children.

Living Trusts

A living trust is similar to a will except that assets are transferred into the trust with instruction for the management and distribution of the assets upon incapacity or death.

Gifts that Return Income to the Donor

Charitable Gift Annuity

A gift annuity is a contract between the donor and a tax-exempt charitable organization in which assets are transferred to the organization and the donor receives, in return, a percentage of the value each year. Because the agreement is between the donor and Haven Hills, the charitable organization is responsible for maintaining the annuity payments. Payments are backed by the full faith of Haven Hills.

With an initial gift of as little as $5,000, the donor may start drawing down income immediately. The annuity rate is based on his/her age. S(he) receives significant tax advantages, including an immediate charitable tax deduction; a portion of the income payment may be considered a tax-free return of principal. This gift permits a significant contribution while, at the same time, providing for the donor’s current income needs.

Charitable Remainder Trusts

With a charitable remainder trust the donor transfers assets in return for income for a lifetime. S(he) gains an immediate income tax deduction, reduces estate taxes, increases income from assets, provides for a spouse and heirs, and possibly eliminates capital gains taxes. There are two principal kinds of charitable remainder trusts:

• Annuity Trust
  This trust will pay the donor, year after year, the same dollar amount established at the onset of the trust. The income payments are fixed, based on starting valuation. If necessary, some of the distribution can be paid from principal, though this would reduce your ultimate gift to the charitable organization. However, any yield in excess of the required payout is retained by the trust, increasing your contribution.
• Unitrust
  This trust is appropriate for donors who like the idea of an annuity during retirement but are concerned that inflation will diminish the value of a fixed income. The Unitrust allows them to specify a percentage—the minimum is 5%—of the trust assets to be paid out each year for a lifetime, rather than a fixed dollar amount. Should assets grow, the income will grow as well.

This information is not intended as legal advice. Haven Hills will be glad to work with your financial and/or legal advisor. Please contact us if you want more information about making a deferred gift to Haven Hills.