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PLANNED GIVING
Whether supported through an outright gift or planned gift,
all Red Cross programs are made possible through the generosity
and commitment of people like you. A planned gift to the Red
Cross helps to ensure the future of the services and programs
we provide in your community and worldwide and may further your
financial goals.
What are planned gifts? Planned gifts include gifts through your
will, charitable gift annuities, gifts of life insurance, pooled
income funds, and charitable trusts.
Bequest
Many of our supporters make charitable gifts by naming the Red
Cross as a beneficiary in their wills. The federal government
encourages these gifts or bequests, by allowing an unlimited
estate tax charitable deduction. Click here for more information
(links to the following information)
How to include the American Red Cross in my will...
Many of our supporters make charitable gifts by naming the Red
Cross as a beneficiary in their wills. The federal government
encourages these gifts or bequests, by allowing an unlimited
estate tax charitable deduction.
How to contact the American Red Cross regarding estate information...
If you are administering an estate or trust and need more information,
please contact:
American Red Cross Office of General Counsel
2025 E Street NW, 9th Floor
Washington, DC 20006
800.797.8022 ext 5.
To make a bequest to the Red Cross, the following language will be
helpful to your lawyer:
I give, devise, and bequeath to the American Red Cross for the
benefit of the Black Hills Area Chapter the sum of XXXXX (or
otherwise describe the gift or specify a percentage of the estate).
There are three ways you can make a bequest:
Specific Bequest
You designate a specific dollar amount, specific percentage,
or specific property to the Black Hills Area Chapter of the American
Red Cross.
Residual Bequest
Your estate will pay all debts, taxes, expenses, and specific
bequests. The remaining amount--the residue--will be transferred
to the Black Hills Area Chapter of the American Red Cross.
Contingent Bequest
You can ask that the Black Hills Area Chapter of the American
Red Cross receive all or a portion of your estate only under
certain circumstances. For example, you can name the Red Cross
as a beneficiary of your estate only if there are no surviving
close family members. Childless couples sometimes provide for
the entire estate to go to the surviving spouse, or if the spouse
does not survive, to the Red Cross.
When you are a planned gift donor, the Red Cross will honor you
with membership in the Legacy Society. If you have already made
a plan to give to the Red Cross in your will or estate plan,
please contact your Black Hills Area Chapter or one of the Planned
Giving Officers at National Headquarters. We realize that with
your special gift, you consider us to be part of your family,
and we want to do our best to keep you informed as to how your
gift will be used and to give you the opportunity to tell us
of your wishes.
Life Income Gift
Family obligations and the need to provide for retirement, coupled
with the high cost of living, make it difficult for many people
to consider substantial charitable gifts now. But there is a
way to have the satisfaction of making a meaningful lifetime
gift without sacrifice. In fact, you can get current income tax
and financial benefits. It is called a life income gift. You
irrevocably transfer some assets to the Red Cross now, and in
return, you (and a survivor, if you wish) receive income for
life. As a result, the assets are used to carry out our mission.
How do I establish a life income gift?
Family obligations and the need to provide for retirement, coupled
with the high cost of living, make it difficult for many people
to consider substantial charitable gifts now. But there is a
way to have the satisfaction of making a meaningful lifetime
gift without sacrifice. In fact, you can get current income tax
and financial benefits. It is called a life income gift.
You irrevocably transfer some assets to the Red Cross now, and
in return, you (and a survivor, if you wish) receive income for
life. As a result, the assets are used to carry out our mission.
By making a life income gift to the Red Cross, you will receive
the following benefits, in addition to the pleasure of knowing
the good work your gift will do. The benefits include:
• A charitable deduction in the year you make the gift for the present
value of our right to eventually receive the assets.
• Substantial income tax savings increases your effective yield.
• Income can be taxed more favorably in some plans.
• Your probate and estate administration costs may be reduced.
What are examples of life income plans?
Charitable Gift Annuity
In exchange for your gift of cash or marketable securities to
the American Red Cross, we agree to pay you (and a survivor or
other beneficiary) a fixed amount annually for your lifetime.
The transfer is part gift and part purchase of an annuity. The
rate of return is attractive and the payments are guaranteed
for life.
The Red Cross uses the charitable gift annuity rates recommended
by the American Council on Gift Annuities.
The following are rates for a single-life charitable gift annuity:
Charitable Remainder Trust
This life income plan is created by transferring assets to a
trust that pays you (and another beneficiary, if you wish) income
for life. At the end of the trust, the remaining trust assets
are transferred to the Red Cross. A bank or trusted advisor can
serve as trustee.
The type of charitable remainder trust you choose determines
your annual payments:
Charitable Remainder Annuity Trust
The charitable remainder annuity trust pays you a fixed dollar
amount annually for life. The fixed payments are determined by
the payout percentage selected at the beginning of the trust.
You can claim a charitable deduction on your income tax form
the year that you create the trust. The payments you receive
are taxed as ordinary income, and in some cases as capital gain
or tax-free return of principal.
Charitable Remainder Unitrust
The charitable remainder unitrust pays you a fixed percentage
of the fair market value of the trust assets, as revalued each
year. Like the annuity trust, you can claim a charitable deduction
on your income tax form the year that you create the trust. The
payments you receive are taxed as ordinary income, and in some
cases as capital gain or tax-free return of principal.
Gift of Life Insurance
Some of our supporters no longer need their life insurance that
was purchased years ago to provide for children or other family
members. If that is your situation, please consider donating
the policy to the American Red Cross. You may claim a charitable
deduction for approximately the policy's cash surrender value,
and the proceeds are completely removed from your estate.
Pooled Income Fund
Your gift of money, marketable securities, or both to the American
Red Cross's pooled income fund is invested together with similar
gifts from other supporters. Each year, you receive your share,
which is taxable as ordinary income, of the fund's earning.
For example, Mr. Simon's $10,000 life income gift is invested
in our pooled income fund. The fund's net income is 6 percent
this year, so he receives $600--his share of the annual earnings.
Each year, Mr. Simon's payment will reflect any increase or decrease
in the fund's net income.
Gift of Retirement Plans
Many individuals today have large qualified retirement plans
such as an IRA, 401(k), or Keogh plan. These assets have been
growing tax-free for years. Once the owner begins to receive
payments from the qualified plans, the distributions are taxed.
The plans are also included in the owner's taxable estate. A
retirement plan may be an excellent source of funds for making
a gift to the American Red Cross.
One way to make a gift of your retirement plan is to create a
charitable remainder trust through your will. It works like this:
Your IRA assets will be transferred to a charitable remainder
trust. There is no tax due because the charitable remainder trust
is a tax-exempt entity. The trust will provide life income to
the beneficiary (for example, your child) with an eventual gift
to the Red Cross. The beneficiary will pay income tax on the
distributions from the trust. Your estate will receive an estate
tax charitable deduction for the value of the Red Cross's right
to eventually receive the trust assets.
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