Some people’s legacies are written on monuments. Yours can be written on lives. The Salvation Army has many financial planning options to help you plan your estate. The Salvation Army planned giving advisors are professionals with many years of experience in estate and gift planning who care about your goals and plans. They will work with your attorney or accountant to explain the many gift opportunities available to you and the financial advantages of each. Contact The Salvation Army to learn how confidential, personal financial planning can help you achieve your goals while helping to sustain out life-changing mission.
The principal benefits of planned gifts accrue to The Salvation Army at a later time, after your death, or the death of your last named beneficiary. Planned gifts take many forms, providing additional income for you and/or your heirs, reducing income and estate taxes, relieving you and your heirs of complicated financial management responsibilities, and helping to fulfill your personal, humanitarian, and charitable objectives. Planned gifts can be made in cash, real estate, stocks, bonds, personal property, or life insurance.
One of the simplest planned gifts is a bequest through your will in which you designate either a specific dollar amount or a percentage of your estate after other disbursements. In addition to supporting The Salvation Army, it serves as an example to your heirs of the values and ideals you hold dear. A bequest also can reduce the amount of your taxable estate, which may increase the actual amount available to loved ones.
A gift annuity is an agreement between you and The Salvation Army. In exchange for your irrevocable gift, The Salvation Army pays a fixed dollar amount during your life and/or the life of a designated loved one. The amount you receive is determined by the size of your gift, your age, and the age of your beneficiary. Your income is guaranteed, regardless or market fluctuation. A major portion of your income is a tax-exempt return of principal, and the income may be deferred until a later time as part of your retirement plan.
A charitable trust transfers ownership and management of cash and/or appreciated securities to The Salvation Army. The Army manages the trust and pays income to you for the remainder of your life and/or the life of another beneficiary. An annuity trust provides a fixed annual income for those wanting consistent, predictable payments. A unitrust pays a variable return based on market changes, providing an effective hedge against inflation.
You can help support The Salvation Army’s mission, without changing your will or parting with any assets now, by designating The Salvation Army as a beneficiary of certain assets or accounts you own. Unlike retirement assets left to someone other than a surviving spouse, retirement funds that are passed to a charity by beneficiary designation are not subject to income and estate taxes. From a tax standpoint, a transfer of assets remaining in an IRA, 401(k), 403(b), or other retirement account is the very best charitable gift. This beneficiary designation is one of the simplest ways to make a gift to the charity you love. It’s literally as easy as filling out a form from your institution.
A pooled income fund is a trust designed to provide variable yet reliable income. Like a commercial mutual fund, it combines your gift with the contributions of other fund participants, wisely investing the sum for a balance of income and growth. Dividends are paid to the shareholders in proportion to each person’s contribution. Your donation results in a tax deduction for the year your gift was made, elimination of capital gains tax if you invest appreciated securities, and reduction of estate taxes for your heirs.
Contributions of life insurance can provide a substantial gift to The Salvation Army. The value of an ordinary policy at the time of the gift is tax deductible. If you continue paying the premiums, they also are deductible as charitable contributions. If a paid-up policy is given, the cost of purchasing a new paid-up policy at your current age is the value of the charitable deduction.
A hometown endowment is a perpetual gift that can be designated for a specific Salvation Army location or program. The original gift remains intact, and the income is used toward the designated area of service. An endowment can be established in memory of a loved one, or a donation can be added to an existing fund that will contribute to your local community indefinitely.
It is important to reach out to our Planned Giving Department for the proper language and tax identification number before you finalize your plans.
For more information, please contact Kim Rutherford, Divisional Planned Giving Director, at Kim.Rutherford@uss.salvationarmy.org or (502) 664-8582.