“Planned Giving” to Vital Voices Global Partnership
There are many ways to include Vital Voices Global Partnership in your charitable planning. You may make a simple contribution of cash or publicly traded securities directly to Vital Voices Global Partnership. Certain gifts of other, more complex assets may also be possible. You may also make a charitable donation in a manner that delays delivery of part or all of the charitable benefit of the gift until a later time, typically a donor’s death or the expiration of a term of years, and allows you, the donor, to benefit from the income produced by the gifted property your lifetime. This type of gift is often referred to as a “planned gift” or “deferred gift”. The following briefly summarizes a few ways to structure your gifts to Vital Voices Global Partnership.
Ways to Give:
Outright lifetime gifts to Vital Voices Global Partnership
Outright lifetime gifts to Vital Voices Global Partnership may be in the form of a one-time payment of cash or publicly traded securities, made during your lifetime. Low basis, highly appreciated publicly-traded stock is an excellent candidate for a charitable gift, as you will be eligible for a full fair market value charitable deduction, but Vital Voices Global Partnership, being a tax-exempt entity, will not be subject to capital gains taxes on its disposition of the stock. You may also make a “pledge” gift by entering into a legally binding agreement with Vital Voices Global Partnership that you will pay a certain amount in annual installments over a period of years, with any unpaid amounts due at your death to be paid from your estate. An outright lifetime gift of property other than cash or publicly traded securities is more complicated, as there will likely be valuation and charitable income tax deduction issues involved that you must consider.
If you are interested in making a gift of more complex assets, please consult with legacy@vitalvoices.org at Vital Voices Global Partnership as to whether and in what manner it will accept such a gift, and, of course, consult with you own attorney as to whether such a gift will accomplish your goals.
Bequests
You may make a bequest to Vital Voices Global Partnership by directing in your Will or your revocable living trust that a specified amount or portion of your estate is to be given to Vital Voices Global Partnership after your death. The bequest may be of a sum of money, specific named securities, a portion of your estate, or a contingent bequest, and, of course, you may always amend the provisions of your Will or revocable living trust if you change your mind at any time prior to your death. Your estate will receive both an estate tax deduction and income tax charitable deduction.
You should consult with your attorney regarding the inclusion of Vital Voices Global Partnership in your estate plan and how you may best structure a bequest to Vital Voices Global Partnership.
The easiest way to make a bequest to Vital Voices Global Partnership is through your will or living trust. You can name a specific dollar amount, a particular asset, such as securities or real estate, or you could leave a percentage of your estate or of the residual estate after providing for family members or friends.
Sample Bequest of Remainder of Estate: “I give, devise, and bequeath to Vital Voices Global Partnership, 1509 16th Street NW, Washington D.C. 20036, all [or state the fraction or percentage] of the rest, residue, and remainder of my estate, both real and personal, for its general purposes.”
Sample Bequest of Specific Amount or Asset: “I give, devise, and bequeath to Vital Voices Global Partnership, 1509 16th Street NW, Washington D.C. 20036, the sum of $_____ (or a description of the specific asset) for it general purposes.”
Charitable Remainder Trusts
A charitable remainder trust (“CRT”) is a trust generally providing annual fixed payments to the donor and/or the donor’s spouse for the relevant life or lives or a term of not more than 20 years, as specified in the CRT’s governing instrument. At the death of the “non-charitable” beneficiaries or the expiration of the term, the trust agreement would direct that the property remaining in the CRT is to be distributed to Vital Voices Global Partnership.
A CRT may be established under an irrevocable lifetime trust agreement, to take effect immediately upon the funding of the CRT. A “testamentary” CRT may also be created under your Will or revocable living trust, e.g., for the lifetime benefit of the donor’s surviving spouse, after whose death the remaining CRT property will be transferred to Vital Voices Global Partnership.
If a lifetime CRT and the gift to it are properly structured and administered, you should be eligible to take an income tax charitable deduction for the year of the gift in an amount equal to the value of the contributed property less the present, actuarial value of the non-charitable interests held by you and/or your spouse. If the CRT terminates at your death, your estate will be eligible for an estate tax deduction for the full amount then passing to Vital Voices Global Partnership. And if the only non-charitable beneficiaries are you and/or your spouse, no taxable gift will occur when the CRT is created. In the case of a testamentary CRT established for the benefit of your spouse and Vital Voices Global Partnership at your death, a marital deduction for estate tax purposes should be available in your estate for the present value of your spouse’s interest and a charitable deduction should be available for the present value of the interest expected to pass to Vital Voices Global Partnership at your spouse’s death
Using a lifetime CRT for your charitable giving may provide you with additional tax-related benefits. Because a CRT is a charitable entity for income tax purposes, the trust itself is not subject to income taxes. Instead, the taxes on income and certain gains related to the contributed assets are generally deferred and reportable by you only as you receive the required annual payments over the term of the CRT. Accordingly, establishing a CRT can be an attractive way for you to diversify a large portfolio of appreciated public stock.
Charitable remainder trusts are complex arrangements that must be carefully structured by an experienced attorney in order to achieve the potential desired tax benefits. Please consult with your attorney and with legacy@vitalvoices.org if you are interested in making a gift to a CRT that will pass to Vital Voices Global Partnership in the future.
Charitable Lead Trust
A Charitable Lead Trust (“CLT”) is a trust that would make annual fixed payments to Vital Voices Global Partnership for a term specified in the CLT’s governing instrument. At the expiration of the term, any property remaining in the CLT would typically pass to the donor’s descendants.
A CLT may be created under an irrevocable lifetime trust agreement under which the annual required payments to Vital Voices Global Partnership will begin immediately on funding. With a lifetime CLT, the actuarial present value of the amount expected to pass to your descendants at the end of the term will be a taxable gift. A testamentary CLT may also be created under your Will or revocable living trust, in which case payments to Vital Voices Global Partnership will begin at your death. The present value of the “lead” interest passing to Vital Voices Global Partnership over the course of the term will be eligible for an estate tax charitable deduction in your estate, while the actuarial present value of your descendants’ interest at the end of the term will be a taxable bequest in your estate.
The transfer of property to a lifetime CLT may be structured in a manner that (i) will allow you to claim a current income tax charitable deduction in an amount equal to the present value of Vital Voice’s interest over the CLT’s term or (ii) will not give rise to a current income tax charitable deduction. The two types of lifetime CLT will have different income tax consequences.
Charitable lead trusts are complex documents that must be carefully structured by an experienced attorney in order to achieve any of the potential desired tax benefits. Please consult with your attorney and with legacy@vitalvoices.org if you are interested in making a gift to a CLT benefiting Vital Voices Global Partnership.
Life Insurance Policies
You can name Vital Voices Global Partnership as the beneficiary of an insurance policy on your life, with your estate benefitting from a charitable deduction for estate and income tax purposes equal to the amount of the death benefit. You may also make a present gift of an existing or new policy itself. Gifts of policies present multiple practical issues that must be addressed, such as determining how the policy will be maintained.
If you are interested in making a gift of an insurance policy, please consult with legacy@vitalvoices.org as to whether and in what manner Vital Voices Global Partnership will accept it, and also with your own attorney regarding the optimum way of structuring such a gift.
Retirement Plans
You may give up to $100,000 per year to Vital Voices Global Partnership directly from your retirement plan during your lifetime. Distributions from your qualified retirement plans (including 401(k)s and IRAs) at death are generally subject to both income and estate taxes, with limited effective relief from double taxation available. The donor may eliminate this double taxation entirely by naming Vital Voices Global Partnership as the beneficiary of a portion or all of the plan assets at your death: your estate will receive an estate tax charitable deduction, and Vital Voices Global Partnership, as a tax exempt entity, will not be subject to income tax when it receives the plan distribution and sells the distributed assets. Retirement accounts are ideal candidates for testamentary charitable giving, as leaving them to Vital Voices Global Partnership means that more non-income-taxable assets will be preserved for your individual beneficiaries at your death.
During your lifetime, you may also make direct “rollover” contributions to Vital Voices Global Partnership from your IRA (but not a 401(k)) of up to $100,000 per year. If properly executed such a contribution will not be reported as income on your return for the year of the gift and, accordingly, a charitable deduction for the contributed amount is not available on your return for that year.
Please consult with your attorney if you are interested in naming Vital Voices Global Partnership as the beneficiary of your retirement plan
Additional Information
Address:
Vital Voices Global Partnership
Attention: Development Department
1509 16th Street NW
Washington, DC 20036
Wire Transfer / ACH Credit Information:
Account Name: Vital Voices Global Partnership Inc.
Bank: Bank of America, NA
Account No.: 226005683824
For ACH Credits:
ABA Routing No.: 054001204
For wire transfers:
Routing No.: 026009593
International Wire Swift Code: BOFAUS3N
Tax ID #: 52-2151557