What Is Planned Giving?
When you think about having a meaningful impact at Save Our Youth, what does that look like to you?
Most people think of giving to or supporting a nonprofit they are passionate about as only ‘writing a check.’ While this might be the most common way of support, there are so many other creative ways to give that actually can be far more tax and savings advantageous to you and your family! This can be through your estate/will, or giving through your retirement, such as an IRA or 401k. Its easy and you can control and adjust this as you see fit over time.
If we could show you a way to support Save Our Youth that would provide you with a tax deduction and help avoid capital gains tax, would you be interested?
How You Can contribute
When it comes to planned giving, there are a few different ways you can easily make your impact for future generations:
What You Need to Know About Gifts of Appreciated Securities
Donating appreciated stocks, bonds, or mutual funds to Save Our Youth is a simple, tax-wise way to have maximum impact on the life of a promising, at-risk youth.
When you transfer appreciated securities that you’ve held for at least one year, there are immediate financial benefits to both you and Save Our Youth. Your gift is greater than if you sold the stock yourself and donated what remained after paying capital gains tax, and you qualify for greater tax savings.
The Basics
- You direct your financial or investment advisor to transfer appreciated securities directly from your investment account to Save Our Youth’s investment account (contact us for transfer instructions).
- You can claim an immediate charitable tax deduction for the full fair market value of the securities that you donate.
- You avoid capital gains tax on the appreciation.
- Save Our Youth sells the securities and uses the net proceeds to support long-term mentoring relationships for deserving, at-risk students.
Stock Gift Examples
- The following example compares a $10,000 cash gift with a $10,000 gift of appreciated securities that were originally purchased for $2,000 (unrealized gain = $8,000).
Assumptions: Donor is in 37% income tax bracket and 20% capital gains tax bracket, not including any state tax.
| Gift to Save Our Youth
| $10,000 CASH
| $10,000 STOCK Basis $2,000 Gain $8,000 |
| Charitable Deduction | $10,000 | $10,000 |
| Tax Savings @ 37% | $3,700 | $3,700 |
| Capital Gains Tax Savings @ 20% | $0 | $1,600 |
| Net Cost of Gift | $6,300 | $4,700 |
Please note that Save Our Youth cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
What You Need to Know About IRA Gifts
If you are 70½ years old or older, you can make a tax-free distribution directly from your traditional IRA to Save Our Youth. It’s a tax-efficient way to support a cause that matters to you and change the life of a promising, under-resourced youth.
The Basics
You can donate up to $100,000 each year from a traditional IRA (Individual Retirement Account) without incurring income tax on your withdrawal.
Here’s the process:
- You instruct your IRA administrator to make a qualified charitable distribution (QCD) in the amount of your choosing, directly from your traditional IRA to Save Our Youth.
- The distribution goes directly to Save Our Youth and is not subject to federal income tax.
- The distribution counts toward your annual IRA Required Minimum Distribution (RMD).
Why Consider a Gift From Your IRA?
A gift through your IRA may be for you if:
- You are over the age of 70½ years old.
- You do not need the income from your IRA Required Minimum Distributions (RMDs).
- You don’t itemize deductions when you file your income tax returns.
- You want to avoid being taxed on your IRA distribution.
Under 70.5 years old?
If you’re under the age of 70½, you can still use your IRA to support the work of Save Our Youth by making a withdrawal and donating the proceeds after taxes OR by designating Save Our Youth as a beneficiary of your retirement plan.
Please note that Save Our Youth cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
A Donor Advised Fund (DAF)
Is a giving account established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. Donors can contribute to the fund as frequently as they like, and then recommend grants to their favorite charitable organizations whenever it makes sense for them. Please contact your Donor Advised Fund to donate to Save Our Youth.
Please note that Save Our Youth cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
What You Need to Know About Retirement Plan Gifts
Naming Save Our Youth as a beneficiary of your IRA or retirement plan is a simple way of providing a future gift that will impact deserving youth. Leave a personal legacy that will change lives even after your lifetime.
The Basics
- Distributions to you or loved ones from a qualified, tax-deferred retirement plan are treated as 100% taxable income, regardless of the size of your estate.
- But there’s no tax if you leave retirement plan assets to Save Our Youth or other charitable organizations.
Here’s The Process:
- You name Save Our Youth as the beneficiary of a qualified, tax-deferred retirement plan such as an IRA, 401(k), or 403(b) account by submitting a new beneficiary designation form to the administrator of your retirement plan.
- After your lifetime, the portion of your retirement plan that you specified is transferred directly to Save Our Youth tax-free and without the delays of probate.
Special Note: Please let us know if you name Save Our Youth as beneficiary of a retirement plan. That will help expedite the delivery of your gift to Save Our Youth when the time comes.
Why Name Save Our Youth as Beneficiary of Your Retirement Plan?
- Leave a personal legacy that supports the work of Save Our Youth.
- Avoid income AND estate tax on retirement account assets that you leave to Save Our Youth.
- Retain control over your retirement assets during your lifetime, taking withdrawals as needed.
- You can change the beneficiary if your circumstances change.
- Your gift of retirement plan assets will avoid probate.
Legal Designation Language
If you want to name Save Our Youth in your will or estate plan, or as beneficiary of a retirement plan or life insurance policy, please use the following name and address:
Save Our Youth, a Colorado nonprofit corporation, with business address of:
3443 West 23rd Avenue, Denver, Colorado 80211
Tax identification number: 84-1295393
Year of Incorporation: 1995
Please note that Save Our Youth cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
What You Need to Know About Will and Estate Gifts
Naming Save Our Youth in your will or estate plan is a wonderful way to leave a personal legacy that will change the lives of bright, young, under resourced youth.
A bequest to Save Our Youth can change the lives of young people in the future through long-term mentoring relationships. With a bequest to the Save Our Youth, you’ll create a future source of support for life changing relationships with mentors who invest in under resourced youth and change the course of their lives.
The Basics
- Work with your legal advisor to designate a particular asset, dollar amount or portion of your estate for Save Our Youth. Save Our Youth can be named as either a primary or contingent beneficiary in your will or trust.
- If you want to restrict the use of your bequest, please contact us so we can provide appropriate language and ensure that your wishes can be met.
- Your gift costs nothing now. You retain full control of your assets during your lifetime and can change your mind or modify your gift if circumstances change.
- Please let us know if you have included Save Our Youth in your will or estate plans. We’d love to thank you for your investment in our future and welcome you to the growing list of members in the Save Our Youth Legacy Society.
Legal Designation Language
If you want to name Save Our Youth in your will or estate plan, or as beneficiary of a retirement plan or life insurance policy, please use the following name and address:
Save Our Youth, a Colorado nonprofit corporation, with business address of:
3443 West 23rd Avenue, Denver, Colorado 80111.
Tax identification number: 84-1295393
Year of Incorporation: 2014
Please note that Save Our Youth cannot render tax or legal advice and we urge you to consult with your professional advisor about your situation before making a charitable gift.
More Information
For more information about making a Qualified Charitable Distribution to Save Our Youth, please contact our fundraising development team.
Keith McVaney
Donor Relations