If you are considering making a gift to The Good Shepherd Fund but are uncertain what type of
gift to make, let us guide you through some helpful steps.
What type of gift would be your preference at this time?
I would like to make a charitable gift during my lifetime.
I would like to make a charitable gift through my estate.
Creating a Gift
How would you like to fund the gift(s) you prefer to give in your
lifetime?
I would like to fund my gift with cash.
I would like to fund my gift with real estate.
I would like to fund my gift with appreciated securities.
I would like to fund my gift with life insurance.
A Gift of Cash
Making a gift of cash is probably one of the easiest and quickest ways to make a gift to the
Good Shepherd Fund. It is certainly the most common gift. Simply write a check to
The Good Shepherd Fund and mail to 1641 North First Street, Suite 155, San Jose, California,
95112, and the Fund, upon receipt, will send a timely thank you letter acknowledging your
generous gift.
Charitable cash contributions are eligible for a tax deduction. According to IRS Publication 78,
“You may deduct charitable contributions of money or property made to qualified organizations if
you itemize your deductions”. Generally, you can deduct cash contributions in full up to 50% of
your adjusted gross income. Charitable contributions in excess of these limits can be carried
over to the following tax year. The excess contributions can be carried over a maximum of five
years.
The Good Shepherd Fund is a qualified 501 (c) (3) tax-exempt organization under the Internal
Revenue Tax code.
Cash gifts provide the foundation for the charitable outreach of The Good Shepherd Fund. It is
the goal of The Good Shepherd Fund to adequately fund its Guardianship/Conservatorship program
through fees, cash, and estate gifts so that it can carry a charitable load of at least 40% of
its clients. Your cash gift is needed to accomplish this goal and is certainly appreciated.
Cash is commonly used in establishing a Special Needs Trust for an individual with a
developmental disability or other disabling conditions. There is, however, generally no
charitable deduction for a contribution to a Special Needs Trust.
To learn more about the benefits of cash gifts to The Good Shepherd Fund, contact:
Reverend Dr. Ron Beckman, +1 303 474 4609.
A Gift of Real Estate
A gift of real estate to The Good Shepherd Fund can be a fitting contribution that helps the
Fund fulfill its mission while providing the donor with significant tax benefits.
Many times a home or other real estate property, held for more than one year, has increased
significantly in value. That may also mean significant capital gains tax if sold. Before you
sell your real estate, consider the option of gifting the property outright to The Good Shepherd
Fund.
When you make this outright gift of real estate property to The Good Shepherd Fund,
and it has been in your possession for more than a year, you can realize an income tax
charitable deduction equal to the property’s full fair market value and also avoid capital
gains tax on the property’s appreciation. Generally, your deduction for a gift of appreciated
real estate property in any year is limited to 30 percent of your adjusted gross income. You
can carryover any of the unused deduction for five years. If you choose to base your charitable
deduction on the original cost of the property, you can raise your adjusted gross income
limitation to 50 percent. Again, you can use a five-year carryover.
If you have held your real estate property for less than one year but still choose to gift it
to The Good Shepherd Fund, your charitable deduction will be limited to the property’s cost
basis. However, the appreciation can still be free of tax. Here the deduction can be claimed
up to 50 percent of your adjusted gross income and the excess value can again be carried over
for five years.
The Good Shepherd Fund welcomes your outright gift of real estate property to assist in
fulfilling its mission. The transfer will require approval of the Board of Trustees. It will
also require a properly executed deed under your state law, suitable for recording. A qualified
appraisal will be needed to substantiate fair market value.
Real estate is also an excellent way to fund a Special Needs Trust. There is, however, no
charitable deduction when used this way unless a Charitable Remainder Trust is first established.
If you have questions about the suitability of a real estate gift, the gift of a home or other
property, qualified appraisals, funding special needs trusts, potential tax savings or other
details, please feel free to contact the Reverend Dr.
Ron Beckman, CFRE. +1 303 474 4609.
A Gift of Appreciated Securities
Outright gifts of publicly traded securities (stocks, bonds, and mutual funds) can easily be
made to The Good Shepherd Fund. You can transfer securities to the Fund in a couple of ways.
Your broker can transfer the securities electronically. You can also mail to the Fund the stock
certificates and a signed stock power for each certificate. The certificates and the stock
powers must be mailed separately. Communication is critical in the transfer process. Please
contact both The Good Shepherd Fund and the holder of the certificates for routing instructions
before attempting to transfer securities.
The best securities to transfer as a gift to The Good Shepherd Fund are ones that have increased
in value and have been held for more than one year. This transaction will not be subject to
capital gains tax and you will be able to make a charitable deduction based upon the full fair
market value. The fair market value is calculated by using the average of the high and low
share price on the date the gift transfers. The maximum charitable deduction you may take within
a given tax year is 30% of your adjusted gross income.
For electronic routing instructions and more information on gifts of appreciated securities,
please contact the Reverend Dr. Ron Beckman,
CFRE. +1 303 474 4609.
A Gift of Life Insurance
To make an outright gift of a life insurance policy to The Good Shepherd Fund, it will be
necessary to irrevocably transfer ownership of the policy to the Fund. Contact the insurance
company representative and fill out the proper change of ownership forms. Once The Good
Shepherd Fund becomes owner and beneficiary, several good things happen.
There is a charitable deduction for income taxes. If it is a paid-up policy, the tax deduction
cannot be greater than your net investment (total premiums paid less any dividends received).
If premiums on the policy are still payable, you may stipulate that the assignment of ownership
of the policy at its current value is the total charitable gift.
Another option might be more attractive, however. The policy can remain in force and you may
pledge to make unrestricted gifts at least annually, which the Fund will use to pay the
premiums. The gifts are deductible and the policy is kept in force to grow the asset.
You can receive lifetime income for the exchange of a life insurance policy for a Charitable
Gift Annuity. The insurance policy must be given irrevocably for the benefit of The Good
Shepherd Fund. The Charitable Gift Annuity agreement amount is determined by the current value
of the policy. Suppose the current value of the insurance policy is $150,000 and the age of
the individual making the gifts is 86. Charitable Gift Annuity return rates are determined by
the age of the donor; a one-life rate of return for an 86 year old is 9.9%.
This means that this donor, age 86, will receive a return of 9.9% on the current value of the
life insurance policy of $150,000 or $14,850.00 annually for the rest of his or her life. In
addition, there is a charitable deduction based upon the lesser of cost basis (total amount of
premiums paid so far) or policy value.
People are discovering that life insurance can be an important tool in funding Special Needs
Trusts. Although there is no charitable deduction with this use, the leverage that life
insurance can bring in building the asset base of the special needs trust can be significant.
These are a few outright gift options that can give you satisfaction and significantly enhance
the ministry of The Good Shepherd Fund. For more information about the gifting of life
insurance, contact the Reverend Dr. Ron Beckman,
CFRE. +1 303 474 4609.
Creating a Gift
How would you like to fund the gift(s) you prefer to give through your
estate?
I would like to fund my gift through a bequest.
I would like to fund my gift through retirement plan assets.
I would like to fund my gift through life insurance.
Creating a Gift through a Bequest
You may be planning to include The Good Shepherd Fund in your Will or Living Trust.
Bequests through Wills and Living Trusts make it possible for virtually everyone to express
specific charitable wishes. In fact, the bequest is the most frequently utilized method for
support to charities in America. Thank you for your interest in leaving a legacy that supports
people with developmental disabilities and related disabling conditions through the ministries of
The Good Shepherd Fund.
Forms of Bequests
There are various forms of charitable bequests. Examples include:
- A specific dollar amount. In general, any amount can be given to a qualified charity during life or at death, free of federal gift and estate taxes, because of unlimited gift and estate tax charitable deductions (IRC sections 2055 and 2522)
- A percent of the estate’s residual value. Most people have no way of knowing exactly how much property they will own at death. To be sure that charitable gifts remain in proportion to their other legacies, many people designate that a certain percentage of their estate be given to a favorite charity.
- A specific asset. Gifts of property are often as welcome and helpful as gifts of cash. Stocks and bonds or a house, farm, and other marketable real estate are examples of property that often make excellent gifts and may provide tax benefits for your estate.
Special Needs Trusts
All of the above forms of bequests are excellent ways of funding a special needs trust for an
individual with developmental disabilities and other disabling conditions.
Use the Proper Legal Name
When you include a charitable gift in your Will, give your attorney the full legal name and
address of The Good Shepherd Fund:
The Good Shepherd Fund, a California non-profit corporation
1641 North First Street, Suite 155
San Jose, California 95112
+1 408 573 9606 or +1 888 422 4904 (toll-free)
Maintain Flexibility in your Bequest
When you make a bequest in your will or living trust, please remember that future needs do
change. For this reason, it is usually best to keep your gift flexible. Generally, the least
restrictive, the more helpful gift you provide.
Communicate Your Plans
After you have named The Good Shepherd Fund in your Will, consider informing us of your
intentions. We will want to appropriately thank you for your generous expression of support.
If acceptable to you, we would like to properly recognize your planned gift publicly as
appropriate.
For Assistance
Contact the Reverend Dr. Ron Beckman,
CFRE. +1 303 474 4609.
Creating a Gift through a Retirement Asset
In our tax laws, retirement plan assets are generally subjected to the highest income and estate
taxes, sometimes as high as 65%. Therefore, charitable donations of these assets may be the
best estate planning option for many people. One of the easiest ways to leave the balance of a
retirement account to The Good Shepherd Fund after your lifetime is to list the Fund as the
beneficiary on a form provided by your plan administrator. This permits you to continue to take
withdrawals from your account during your life and then leave the remaining value to The Good
Shepherd Fund. Always be sure to discuss your interest in making a beneficiary change with your
professional advisor before doing so.
If married, your surviving spouse is entitled by law to receive the entire amount in most
qualified plans. Therefore, in order for the assets to be transferable to The Good Shepherd
Fund, your spouse must execute a written waiver. If you prefer to make your spouse the primary
beneficiary of the retirement account, you can name The Good Shepherd Fund as the secondary
beneficiary.
Congress has recently changed the rules for charitable gifts made in year 2007 from individual
retirement accounts (IRAs). This is good news for charities like The Good Shepherd Fund and it
is good news for donors. During the year 2007, donors, over the age of 70 ½, are permitted to
roll over amounts from an IRA account to charity without claiming increased income or paying
additional tax. These tax-free rollover gifts can be in any amount up to $100,000 in one year.
Contact your IRA custodian to arrange these gifts.
Like many individuals, your IRA may have increased in value over the years and you have more
income than you may need. The IRA is a simple way to provide for The Good Shepherd Fund, while
not increasing your taxable income. While there is no added charitable tax deduction for an IRA
charitable rollover gift, avoiding any addition in taxable income may save income taxes not
otherwise available.
A designation for distribution through a retirement account after your death might be an
excellent way of funding a Special Needs Trust for an individual with a developmental disability
or other disabling condition. There would be no charitable deduction for this use of retirement
assets.
For more information, contact: the Reverend Dr. Ron Beckman,
CFRE. +1 303 474 4609.
Creating a Gift through Life Insurance
Some of the most satisfying uses of insurance, believe it or not, are connected to charitable
giving! It may be a hidden asset. The versatility of life insurance is worth revisiting.
Consider naming the Fund as a beneficiary of an existing or new insurance policy. The Good
Shepherd Fund would receive the insurance proceeds at your death. You make this change by
contacting your insurance representative and requesting that a change in beneficiary be made.
There will not be a charitable income tax deduction available for this gift, because you have
not made an irrevocable charitable contribution.
Families are discovering that life insurance can be an important tool in funding Special Needs
Trusts. Although there is no charitable deduction with this use, the leverage that life
insurance can bring in building the asset base of the special needs trust can be significant.
For more information on how to make a charitable gift of life insurance to The Good Shepherd
Fund through an estate, or about funding a Special Needs Trust through life insurance, contact
the Reverend Dr. Ron Beckman,
CFRE. +1 303 474 4609.
The information on this web site is not intended for individual legal, tax or financial
investment advice. Please consult your legal, tax and financial advisors.