For many of our donors, a long-term commitment is the perfect way to express support for our hunger-relief efforts. All planned gifts received by the Vermont Foodbank support the Spendowment, our “working endowment,” from which funds are drawn monthly. Planned gifts often provide financial benefits to the donor, too. Tax savings, current cash payments, supplemental support for family and friends — these and other benefits are available depending on a donor’s circumstances and objectives.
What is a Planned Giving?
A planned gift results from the donor’s careful consideration of a number of important factors, including the purpose of the gift, the assets to be used to fund the gift, the gift’s timing, its effect on income-tax and estate-tax planning and its impact on the donor’s family members and friends. A planned gift is best made with the counsel of one’s financial advisor, such as an attorney, accountant, banker, financial planner or insurance professional. The information provided here is for illustrative purposes only and should not be considered investment, legal, accounting, tax or other professional advice.
Bequests — Wills or Revocable Living Trusts
Remembering the Vermont Foodbank in your will or revocable trust is often the most meaningful way to leave a legacy. These gifts make it possible for the Foodbank to plan ahead in the fight against hunger. Following is suggested language for a bequest: “I hereby give to the Vermont Foodbank located at 33 Parker Road, VT 05641, [cash amount, percentage of net estate or description of property] to be used for its general purposes.” If you are considering other contributions, such as retirement assets, charitable remainder trusts, charitable lead trusts or other types of property (jewelry, art or real estate), please consult your financial advisor.
Securities, Life Insurance & Retirement Plans
If you own appreciated securities (stocks, bonds or mutual funds held by you for more than one year), donating them to the Foodbank will allow you to reduce or avoid more capital gains taxes and receive a federal income tax charitable deduction. You can also designate the Foodbank as the beneficiary of your securities by consulting your broker. This type of gift can be especially appealing if you are holding shares that have appreciated significantly in value but yield a low dividend.
Similarly, if you have excess life insurance, you may enjoy tax benefits by designating the Vermont Foodbank as the beneficiary of an existing life insurance policy. In order to deduct premium payments as charitable deductions, the donor must name the Foodbank as both owner and beneficiary of the policy.
At a person’s death, qualified retirement plan assets may be subject to both estate tax and deferred income tax, which combined can exceed 80 percent. You can designate the Foodbank as a tax-free beneficiary of the remainder of your IRA, Keogh, tax-sheltered annuity, qualified pension or profit-sharing plan. A charitable gift of insurance proceeds or the remainder of retirement plan assets is normally deductible from a donor’s estate.
For more information about making a planned gift contact:
Chief Development Officer