Planned Giving

A guide to give your own way.

Make an investment in your community AND in your financial goals through non-cash fits to Passages, Inc.

Money that may otherwise go to taxes can have a long lasting impact on Passages, this community, and the causes you believe in.

Charitable giving is deeply personal, and we are thankful you are considering a contribution to Passages. While we are certainly not accountants or financial advisors, we hope to help you give in your best way.

Gifts of Stock

Your stock portfolio may likely be one of the most valuable assets you own – and one that can carry substantial capital gain or appreciation in value. With careful planning, you may reduce or even eliminate federal capital gains tax while supporting Passages. Here’s how it works:

• As stock prices increase, so do the taxes you owe on the long-term capital gain, typically charged at a 15% rate (zero if you’re in the 10 and 12 percent tax brackets).
• When you give publicly traded stock you’ve owned for more than one year, you receive two major tax benefits:
  • You are exempt from paying capital gains taxes on any increase in value (taxes you would pay if you had otherwise sold the securities).
  • You may receive a federal income tax deduction based on the current fair market value of the securities, regardless of original cost.
• Button or Call to Action of some sort needs to say: Click here to give a gift of stock. That will need to go to a very simple consumption page that will have stock transfer instructions.

Wills

Testamentary gifts are a thoughtful way to support causes in which you believe during your lifetime. By remembering Passages in your will, you can direct your gift to Passages by bequest. Here are some of the benefits of a charitable bequest for Passages.

1. They are flexible and easy to update. If circumstances change, these bequests are revocable.
2. They are efficient. Bequests provide clear instructions to your will’s executor according to your wishes. You might even consider leaving charitable bequests to a donor advised fund.
3. Recognition for yourself or your loved one – a bequest gift is a way to create a legacy at Passages.

Click here for bequest verbiage to include in your will.

IRA Rollovers

If you have money in an employee retirement plan, IRA or tax-sheltered annuity, they may contain income that is yet to be taxed. Your beneficiaries will owe the income tax at your death, which may be reason enough to consider giving your loved ones less tax burden, leaving your retirement plan assets to Passages instead.

Here’s how it works:

• Normally, taking money out of your IRA is a taxable event.
• The withdrawal adds to your taxable income and inflates your adjusted gross income.
• Anyone can do an IRA rollover once per year.
• If you are 72-years-old or over, you’ll have Required Minimum Distributions (RMD). You can give up to $100,000 per IRA account without counting the distribution as taxable income. It’s called a Qualified Charitable Distribution (QCD).
• QCD’s count as IRA distributions and may be used to satisfy all or part of your RMD. This makes them very attractive to senior citizens who are still working, have a large pension, or find themselves in a higher tax bracket.

Life Insurance Beneficiary

When you own a life insurance policy with accumulated cash value, you are essentially sitting on a pile of money. When the original purpose for the protection no longer applies (such as educating children now grown or providing financial security for a spouse now deceased), your life insurance can be redirected to Passages. You have a couple of options:

• Name Passages as the primary beneficiary (will not qualify you for an income tax deduction).
• Name Passages as a beneficiary and also assign ownership of the policy to Passages as a current charitable gift. Doing so provides you tax benefits.
  • Receive an income tax charitable deduction, available under most circumstances.
  • Realize tax savings from use of the deduction, and you reduce your future estate tax liability.

To view our beneficiary verbiage, click here

Annuities

Annuities are gifts that provide a tax deduction and pay you back for life. You might choose to set up a Charitable Gift Annuity (CGA), a Charitable Remainder Annuity Trust, or a Charitable Remainder Unitrust. Annuities do the following:

• Provide income for the donor and/or others for life. CGAs are a great way to support Passages while also securing a stream of income for one or two beneficiaries for life.
• Allow the following important tax benefits:
  • A generous income tax charitable deduction is available based on the present value of interest.
  • A portion of each payment is tax free until you reach life expectancy – at that time, payments are taxed as ordinary income.
  • If you use an appreciated asset to fund the charitable gift annuity, no capital gains tax is due on the gift portion, while any capital gains tax attributed to the annuity portion is spread over your life expectancy.

Please work with your attorney or financial advisor to learn more about annuities.

Donor Advised Funds

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