It is our mission to serve members of our community as far as our arms can reach. Thank you for taking the time to explore the benefits of gift planning. For more information, please contact The Rape Crisis Center at 702-385-2153.
Are you 70 1/2 or older? Now you can make tax-free contributions from your IRA!
Congress passed legislation that allows you to make tax-free contributions to The Rape Crisis Center from your IRA. To benefit you must be at least 70 ½ and the legislation applies only to IRA's. The law is limited to $100,000 in 2009.
Two types of life insurance are typically used for donations to charitable organizations: paid-up whole and universal life insurance policies, and newly issued whole and universal life insurance policies.
You have several options to choose from:
- Make The Rape Crisis Center the beneficiary of an existing policy and earn an estate tax charitable deduction at your death.
- Make The Rape Crisis Center the owner and beneficiary of an existing policy, thus removing it from your taxable estate and earning an immediate income tax deduction approximately equal to the cash value of the policy.
- Take out a new policy with The Rape Crisis Center as the owner and beneficiary (future premium payments may be tax deductible).
- Use an insurance policy in conjunction with a life-income gift to “replace” an asset for your heirs that you have given to The Rape Crisis Center.
A number of years ago Susan purchased a $50,000 whole-life policy to ensure funds for her children’s education. The annual premium for the policy is $1,000. Her children have since graduated and are now financially independent. The policy, which she still owns, has a fair-market value (usually very close to the policy’s cash value) of $22,000, and the net premiums paid equal $23,000.
Susan assigns the policy to The Rape Crisis Center. In her 30% tax bracket she realizes an immediate tax savings of $6,600. In future years, Susan increases her annual gift by $1,000 a year to The Rape Crisis Center, which in turn pays the insurance premium. Susan realizes an annual tax deduction of $1,000 based on her annual gifts for that purpose.
Many donors feel they need all their assets during their lifetime. However, they find it possible through their wills to make a lasting commitment to strengthening their community by helping The Rape Crisis Center by the means of a bequest.
A will is essential if you wish to retain control over how your assets will be allocated after your lifetime. You should consult your lawyer to draw or devise one. If you wish to include a bequest to The Rape Crisis Center in your estate plan, The Rape Crisis Center’s Executive Director is able to assist both you and your lawyer in planning to meet your charitable objectives to ensure that your bequest is utilized by The Rape Crisis Center as you wish.
Bequests to The Rape Crisis Center are not subject to estate taxes. The correct name in making a bequest is:
Community Action Against Rape DBA The Rape Crisis Center
There are three basic types of bequests: specific bequests, residuary bequests, and contingent requests.
The Rape Crisis Center receives a specific dollar amount or a stated percentage of the assets (for example, cash, securities, real estate or tangible personal property).
I devise and bequeath to Community Action Against Rape DBA The Rape Crisis Center
(insert sum, percentage, or description of property), which shall be used for such
Community Action Against Rape DBA The Rape Crisis Center purposes as the Board of
Directors may determine.
The Rape Crisis Center receives a share or the entire remainder of the donor’s estate after providing for specific legacies, debts, taxes and estate expenses (usually after providing for family).
I devise and bequeath to Community Action Against Rape DBA The Rape Crisis Center the rest and residue of my estate to be used at the discretion of the trustees for the general purposes of Community Action Against Rape DBA The Rape Crisis Center.
The Rape Crisis Center receives a share of the estate only in the event that the other named beneficiaries do not survive the donor.
Since wording differs in each individual case, you should consult your lawyer regarding your particular situation.
Advantages of Appreciated Stock:
- Avoid capital gains tax. Any gain in the stock is taxable if you sell it yourself, but not if you donate it to The Rape Crisis Center.
- Your charitable deduction for federal income tax purposes is based on the fair market value of the stock on the date the gift is made.
- Receive gift credit from The Rape Crisis Center for the full fair market value of the stock.
How to Give a Gift of Stock:
If your stock is held in a brokerage account, ask your broker to contact us about transferring the stock to an account in The Rape Crisis Center’s name at LLB. The procedure for donating stock through your broker is as follows:
- The broker will contact Steve Budin, JD, CFP President LLB (702) 990-4334 to arrange for transfer into an account of The Rape Crisis Center.
- Your broker will call The Rape Crisis Center to notify of transaction. (NOTE: you as the donor must not direct the broker to sell or hold the stock after the transfer has occurred. Stock sold by a donor for The Rape Crisis Center is treated as a cash gift and the donor is liable for any capital gains tax incurred.)
If you hold the stock certificate, mail it to The Rape Crisis Center using the following procedure:
- Mail the unendorsed certificate to The Rape Crisis Center, Attention: Lu Torres, 6375 W. Charleston Blvd W1B, Las Vegas, Nevada. Please send by CERTIFIED MAIL.
- In a separate envelope, mail a signed stock power form, with your signature guaranteed by a commercial bank or brokerage firm, by ordinary first-class mail, to the same address as the certificate. Stock power forms can be obtained from your bank or brokerage firm.
Valuation of the Gift:
The value of a gift of publicly traded stock is determined by you and your broker and is based on the average of the high and low share prices on the date of the gift. The valuation date depends on the method of transfer.
If you mail the stock certificate and stock power form in separate envelopes, the later of the two postmarks on the envelopes determines the date of the gift. If your broker transfers the stock to The Rape Crisis Center’s account, the date of the gift is defined as the date on which the stock entered The Rape Crisis Center account.