A multitude of ways to make a gift to RGS
Use of Gifts
Unrestricted gifts to the RGS are the most desirable since they can be used wherever the need is greatest at the time of receipt. You can, however, specify the ultimate use of the gift and be assured that your instructions will be faithfully followed. Via the Donation “product” you may make contributions, directly from the website using your credit card, to several RGS project funds. If these choices do not match your wishes, contact us for your preferred gift designation.
Types of Gift Assets
Deciding which of your assets to give RGS has important implications as to the tax benefits you will receive, and, therefore, affects the cost of your gift. All of the assets outlined below are appropriate for gifts to RGS. We will work with you and your other advisors to determine the most advantageous assets to give RGS in your particular situation.
Gifts of Cash
Gifts of cash are the simplest, most direct means of support for RGS. Cash gifts are not subject to market fluctuations, require no appraisal, and can be accomplished easily and quickly. You generally receive an income tax deduction for the entire amount of your cash gift if you itemize deductions. Gifts may be either unrestricted or restricted. At Donate Now you may make contributions, directly from the website using your credit card, to several RGS project funds.
Gifts of Securities
Gifts of appreciated marketable stock are an excellent method of making gifts to RGS. Depending on your situation, gifts of marketable securities that qualify for long-term capital gains treatment are deductible at the full fair market value on the date of the gift, and there is no capital gains tax on the appreciation.
If you would like to give RGS securities in which you have a loss, it is better to sell these securities and to donate the proceeds. By doing this, you receive two tax benefits-a charitable deduction for the gift and a deduction for the loss on the sale of securities.
RGS has a brokerage account to receive donated securities. Contact us for stock transfer instructions.
Gifts of Objects
RGS accepts some gifts of antiques, works of art, books and manuscripts, and other kinds of personal property. Depending on your situation, gifts of objects deemed related to the tax-exempt purpose of RGS are deductible at the full fair market value on the date of the gift, and there is no capital gains tax on the appreciation. Please contact us for assistance.
Gifts of Real Estate
Depending on your situation, gifts of debt-free real estate are deductible at the full fair-market value on the date of the gift, and there is no capital-gains tax on the appreciation. Although an appraisal is needed to support your income tax deduction, you avoid the typical costs and delays associated with selling real estate.
Gifts of Life Insurance
With the passage of time, your insurance needs change-your assets may increase, and the needs of your dependents may become less pressing. A review of your situation may, therefore, reveal that you no longer need the protection of some of your old life insurance policies that have a cash value. By giving these policies to RGS, you receive an income tax deduction for the value of the policy on the date of the gift, and you additionally remove the life insurance from your taxable estate. Your gift thus converts an asset that you no longer need into valuable tax benefits.
Methods of Making Planned Gifts
1.) An IRA or qualified retirement plan is an excellent choice as a means to give to RGS effective at your death. Any amounts payable to RGS as a beneficiary escape both income tax and estate tax. You can name RGS as beneficiary of all or any specified percent or dollar amount of an IRA or qualified plan death benefit.
3.) The following selected text is from the IRS website: http://www.irs.gov/newsroom/article/0,,id=164997,00.html The whole page is titled: Recent Tax Law Changes May Affect People Giving to Charity: IRS Offers Tips for Year-End Donations. IR-2006-192, Dec. 14, 2006
New Tax Break for IRA Owners
An IRA owner, age 70 ½ or over, can directly transfer tax-free, up to $100,000 per year to an eligible charitable organization. This option is available in tax years 2006 and 2007. Eligible IRA owners can take advantage of this provision, regardless of whether they itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans are not eligible.
To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Amounts so transferred are not taxable and no deduction is available for the amount given to the charity.
Not all charities are eligible under this provision. For example, donor-advised funds and supporting organizations are not eligible recipients.
Transferred amounts are counted in determining whether the owner has met the IRA’s required minimum distribution rules. Where individuals have made nondeductible contributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions.
A will is the basic instrument of any estate plan establishing how many of your assets are to be distributed. Changes continue to be made in the estate tax laws, and thus your will and entire estate plan should be reviewed periodically. If you do not have a will, you should know that the state in which you reside has provided for the distribution of your property following a set of laws that do not generally make allowance for personal preferences in individual situations. Often the beneficiaries are not the same as those you would have chosen.
Your attorney can help you design an estate plan that protects your family, preserves your property, and benefits RGS. You may decide to bequeath a percentage of your estate to RGS, a dollar amount, specific property, or the remainder of your estate after bequests to other named beneficiaries. For the future of RGS, please include a bequest to RGS in your will. If your will has already been signed, a simple codicil can be added making a bequest to RGS. Many estate plans use a revocable trust as a will substitute and a simple amendment to the revocable trust functions as a codicil.
Suggested Language for Your Attorney
SIMPLE BEQUEST IN WILL
I hereby give, devise, and bequeath to the Ruffed Grouse Society, 451 McCormick Road, Coraopolis, PA, 15108 (EIN: 54-0846925), ________ percent of my net residuary estate (or the sum of $_____________, or the following described property, or the rest and residue of my estate after payment of the foregoing bequests). This is an unrestricted gift and may be used to further the objects and purposes of the Ruffed Grouse Society.
SUGGESTED FORM OF CODICIL TO A WILL
I, ___________________________________, a resident of __________________________________________, declare this to be a codicil to the Last Will executed by me on ______________________, ______: I hereby give, devise, and bequeath to the Ruffed Grouse Society, 451 McCormick Road, Coraopolis, PA, 15108 (EIN: 54-0846925), ____________ percent of my net residuary estate (or the sum of $________________, or the following described property, or the rest and residue of my estate after payment of the foregoing bequests). This is an unrestricted gift and may be used to further the objects and purposes of the Ruffed Grouse Society.
Except as changed by this codicil, I hereby ratify, republish, and reaffirm my Will and any prior codicils.
Life Income Gifts to the Ruffed Grouse Society
You, like many friends of RGS may want to make an especially meaningful gift during your lifetime. You can accomplish this and still keep the income generated by the assets you give. Methods exist for making a current gift to RGS while reserving an income for the rest of your life. Lifetime income can also be provided for another beneficiary, such as your spouse. Your contribution, depending on the life income gift you choose, can provide the following benefits:
- Retained income for your life, and, if desired, for the life of your spouse or other beneficiary.
- A charitable income tax deduction.
- Freedom from investment responsibilities.
- Avoidance of capital gains tax on the gift assets.
- An increased rate of return on the gift assets.
- Removal of the gift property from your taxable estate and reduced estate tax and settlement costs.
In addition to these benefits, you will have the satisfaction of knowing that your gift is helping RGS continue to be an outstanding forest wildlife conservation organization.
Individual Charitable Trusts
If you would like to make a large gift to RGS, you should consider establishing your own charitable trust. Charitable remainder trusts are separately managed and invested by a trustee of your choice, sometimes a bank’s trust department, and can be funded with cash, securities, or real estate. You may choose to receive a fixed-dollar amount from the trust each year or, to protect against inflation, you can choose to receive a stated percentage of the fair-market value of the trust assets as revalued each year. This latter option gives your income the potential to grow along with the value of the trust investments, although, of course, this cannot be guaranteed. From an investment standpoint, charitable trusts are by far the most flexible life income gift. As you can see, there are many options when you establish your own charitable trust.How It Works
Mr. and Mrs. Smith, both age 68, have a special interest in RGS’s mission. In addition to their annual gifts to RGS, they would like to create a named endowment fund during their lifetime to pay for RGS biologists’ work. The Smiths have decided to create a charitable remainder trust with a gift of $100,000 of appreciated securities. The trust will pay them an income of $6,000 each year, and they will avoid any capital gains tax on the securities used to fund the trust. Additionally, they will be entitled to a charitable income tax deduction of almost $50,000 in the year of the gift. Mr. and Mrs. Smith are happy that they have been able to make a significant gift during their lifetime and are pleased to help a charity they believe in. They also like the tax benefits of the trust. They both are delighted to be free of the investment responsibilities associated with the assets used to fund the trust.
Your Residence and Life Income Gifts
For most individuals, the equity in their personal residence represents one of their most substantial assets. It is often an asset that is not considered when planning a gift to RGS. This is unfortunate because a gift of the remainder interest in your personal residence is an excellent method of making a gift benefiting both you and RGS without affecting your current lifestyle. This gift involves conveying the remainder interest in your personal residence to RGS, retaining the right to use the property during your lifetime, and, if desired, the lifetime of your spouse. The residence need not be your primary residence, but may be a second home, vacation home, or farm.How It Works
Mr. and Mrs. Smith, both age 70, would like to make a significant life income gift to RGS. They were, therefore, excited to learn that they could donate the remainder interest in their personal residence to RGS and receive the same benefits as the trust arrangement without altering their current lifestyle. The Smiths’ house has a current fair market value of $175,000. The Smiths are pleased with the charitable income tax deduction of nearly $100,000 that they will receive, and to be providing for the future of RGS.
Gifts of Income
The Charitable Lead Trust
The charitable lead trust is a specialized estate planning technique, which can be very attractive to certain individuals who wish to benefit RGS. Lead trusts are the exact opposite of gifts with a retained income. They are designed to provide an income to RGS for a period of years and then to distribute the remaining trust assets to heirs, typically children or grandchildren. Lead trusts can be appealing if you desire to transfer significant assets to your heirs at a reduced cost in terms of estate and gift taxes and you also want to benefit RGS.
RGS welcomes memorial gifts to honor family members or fellow sportsmen. RGS will send an acknowledgement of a memorial gift to a designated family member (without mention of the amount of the gift unless otherwise requested by the donor). Memorial gifts may be particularly appropriate to honor a dedicated grouse lover by his or her hunting buddies.
You may be able to increase your gift to RGS at no additional cost to you. Many employers offer a matching-gift program. Ask your employer. If it does, ask for its forms and procedures. Send your gift to RGS, along with your employer’s form. RGS will process the gift and the required documentation for matching by your employer.
Combined Federal Campaign
If you are a Federal Government or Military employee, you can participate in the Combined Federal Campaign, the largest employer-giving campaign in the U.S. Simply enter RGS’ unique and permanent CFC code 12058* on your pledge card during your employer’s next fund drive.
*Effective with the Fall 2007 CFC and thereafter CFC donors will use this number to identify RGS as a recipient of their gifts. This code number is only valid for the CFC, which is for Federal employees.
Starting with the fall 2005 Combined Federal Campaign, RGS participates in the Combined Federal Campaign under the “Conservation & Preservation Charities of America” federation. RGS participated as a National Unaffiliated organization in prior years.
Due to participating in the federation, our group number changed to 2355 and now to the permanent 12058. The write-up on RGS can be found within the “Conservation & Preservation Charities of America” federation section of the local CFC catalogs, provided to Federal employees participating in the CFC.
RGS welcomes support from the corporate community. Businesses can direct donations to general support of RGS or to support specific RGS projects of interest to them. RGS will give special recognition to major corporate givers in its annual report.
RGS desires to develop relationships with businesses that share its mission or benefit from its programs. For additional information on marketing ideas for business in cooperation with RGS, contact John Eichinger, President & CEO, at 1-888-JOIN-RGS.
RGS has created the Legacy Circle to recognize those who have established planned gifts in any amount to benefit RGS upon their deaths. You may become a Legacy Circle member by letting us know that you have included RGS as a beneficiary in your will or revocable trust, or under a life insurance policy, retirement plan or IRA. Both income tax and estate tax benefits can accrue from such gifts.
The Ruffed Grouse Society is a 501(c)(3) organization, and gifts to it are tax deductible as provided by law. Its EIN is 54-0846925.
RGS files its non-profit IRS 990 return annually and is rated highly by Charity Navigator based solely on information within its 990. You may review a copy of the online basic 990 for the last two years here: 2014 and 2013. In order to show fiscal responsibility, RGS also has an audit of its books completed annually. You may review those for 2014 and 2013 online.
We hope that this information is useful as you consider your support of RGS. For additional information on the benefits of life income gifts in your particular situation, please write to:
Ruffed Grouse Society
451 McCormick Rd
Coraopolis PA 15108
You may also contact RGS at 1-888-JOIN-RGS (1-888-5646-747) or by E-mail to RGSDevelopment@ruffedgrousesociety.org.
This publication is designed to provide accurate and authoritative information in regard to the subject matters covered. It is published with the understanding that, in this publication, the authors are not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. (From a Declaration of Principles jointly adopted by Committee of the American Bar Association and a Committee of Publishers.)
Revised May 4, 2016