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(Bequests, Gift Annuities & Charitable Trusts)
As a nonprofit community service agency, Planned Parenthood
of Rhode Island invites gifts, bequests and endowments from
individuals, corporations and foundations. These donations
will assist PPRI in building our future and protecting access
to reproductive health care and information for generations
to come. All investment income from the Fund is allocated
to the agency's general operating expenses.
Outright gifts of cash, securities, or real property generally
allow a current charitable tax deduction and have the effect
of reducing federal estate taxes by reducing the amount of
assets in the estate at death. Gifts of appreciated stock
or real property (held over one year) permit the donor to
make a larger gift at a lower cost through use of the charitable
deduction for the full fair market value of the gift. Such
a gift also enables the donor to escape any tax on capital
gains with respect to the property contributed.
Bequests through a donor’s last will and testament
and/or distributions through a donor’s trust at death
are also common means of charitable giving. The donor’s
estate can reduce its federal estate tax liability, as the
estate will receive an estate tax deduction for the charitable
gifts.
A charitable gift annuity is one of the oldest, simplest
and most popular methods of making a deferred charitable gift.
A gift annuity is part gift/part investment, where in exchange
for a transfer of cash or marketable securities. Planned Parenthood
of Rhode Island will contractually guarantee to pay a specific
income to the donor or another beneficiary for his or her
lifetime. The donor can claim a current charitable deduction
for that portion of the transfer and a portion of each annuity
payment is income tax free.
Charitable trusts can provide income to the donor and/or
beneficiaries for either a period of years or for the beneficiaries’
lifetimes. At the end of that period or at the death of the
last beneficiary, Planned Parenthood of Rhode Island receives
the remainder of the Charitable Remainder Trust. Essentially,
these plans are funded in two different ways.
· The primary feature of the Unitrust is that it provides
for payment to income beneficiaries in an amount that varies
from year to year. At inception, the donor determines the
fixed percentage to be distributed of at least five percent.
· The donor is allowed a charitable deduction equal
to the present value of Planned Parenthood of Rhode Island’s
remainder interest. The charitable deduction is based on the
valuation of the principal, and the age(s) of the beneficiaries,
along with the payout selected.
A specified annual payment, based on a fixed percentage of
the trust (at least five- percent) at the date of inception,
paid annually to the income beneficiary or beneficiaries for
life. Planned Parenthood of Rhode Island receives the remainder.
There can be no additional contributions.
Charitable Lead Trust provides for a gift of an income interest
from property to Planned Parenthood of Rhode Island for a
term of years of any duration, after which the property either
reverts to the donor or passes to a non-charitable beneficiary
designated by the donor. Charitable Lead Trusts may be established
either during the donor’s life or through the donor’s
will.
Life
Insurance Gifts 
A donor can
irrevocably name Planned Parenthood of Rhode Island as the
owner and primary beneficiary of a life insurance policy.
The donor is allowed a federal income tax charitable deduction
for the lesser of the policy’s fair market value or
the future premiums paid. An income tax reduction for contributions
to enable the charity to pay subsequent premiums is also allowed.
Planned Parenthood of Rhode Island owns the policy and has
access to the policy’s cash value. On the donor’s
death, the face value of the policy will not be included in
the gross estate, and therefore no federal estate tax due
on the insurance.
Retirement
Plans
If a donor names
Planned Parenthood of Rhode Island as the beneficiary of his/her
retirement plan, there is no estate tax or income tax on that
portion of his or her retirement funds. The donor also can
name a Charitable Remainder Trust as the beneficiary as long
as certain conditions are met.
Because
many variables can change the effectiveness of planned gifts,
donors should review their circumstances and objectives with
their own lawyers or financial advisors. I f you would like
to know more about any of the above ways of giving to Planned
Parenthood of Rhode Island , please call the Planned Parenthood
of Rhode Island Development office at 401-421-7820, Ext. 3115
or email rosem@ppri.org.
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