Gifts that make an impact after your lifetime
A simple and very popular way to make a significant future gift to Grace Place is to include it in your Will. You may state that Grace Place will receive a percentage of your estate, a fixed dollar amount, or the residue of your estate. Please call us and we can assist you with the proper wording for this type of gift.
Life insurance is a popular method of providing much needed funds to a beneficiary at your death. It is also a low-cost way to provide a large benefit for someone in need. Life insurance proceeds are almost always income tax–free to the beneficiary. The beneficiary designation in your life insurance policy determines where the proceeds will be distributed. The death proceeds, therefore, are not typically transferred through your will. Life insurance can be distributed to a charitable organization such as the Grace Place, if we are named as a beneficiary of the policy at the time of your death.
IRA and Retirement Plan Beneficiaries
Most retirement plans, including 401(k)s and IRAs, are income tax–deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones.
Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt charitable organizations such as Grace Place. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 39.6 percent. This means that an IRA worth $100,000 will be worth only $60,400 by the time it reaches them.
On the other hand, the naming of a charity as the beneficiary of retirement assets upon death generates no income taxes. The charity is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that in the above example, Grace Place would receive the full $100,000 benefit.
Gifts that pay you income
Charitable Gift Annuity
Charitable Gift Annuities are simple contracts that pay the donor a fixed percentage based on their age at the time of the gift. Custom illustrations can be made for you at no charge by calling or emailing Grace Place’s Director of Development. Lifetime income and tax benefits are valued by donors of charitable gift annuities. We're happy to assist you.
Charitable Remainder Trust
Similar to charitable gift annuities, charitable remainder trusts also pay lifetime income to the donor and provide tax savings. The advantages of charitable remainder trusts are the options not afforded charitable gift annuities, such as setting a fixed percentage, setting a fixed annual payout amount, and opting for "make up" provisions. Call us today to get started.
Charitable Annuity Trust
Similar to charitable remainder trust, these gift plans provide lifetime income, tax savings, and pay to the donor a fixed percentage of the trust's value. Additional options are available. Please call us today to learn all of your options when establishing a planned gift.