Box Lunch Sponsorship

The Need

You may desire to leave your home or farm to charity at death but would like a current tax benefit.

The Solution

You can deed your home or farm to CASA El Dorado but keep the right to use the home or farm for your remaining lifetime.

The Benefits

Tax Deduction
You receive a current federal income tax deduction for the present value of the remainder interest in the home or farm.

Preserves Lifetime Use
You are able to use and control the home or farm while alive.

The Details

You execute a deed transferring your home or farm to CASA El Dorado. On the deed, you retain a “life estate” that grants you the right to use the home for life. You receive an income tax charitable deduction for your gift.

Duration

The Life Estate typically lasts for your lifetime or the life of you and another person.

MIT Agreement

You agree to be responsible for the maintenance, insurance and taxes while you remain living on the property.

Next Steps

Contact our Executive Director to talk more specifically about options and benefits: director@casaeldorado.org

Life insurance is an excellent tool for making charitable gifts for a number of reasons. Life insurance provides an “amplified” gift that enables you to purchase immortality on an installment plan. Through a relatively small annual cost (the premium), a benefit far in excess of what would otherwise be possible can be provided for charity. This sizeable gift can be made without impairing or diluting the control of a family business or other investments. Assets earmarked for family members can be kept intact.

For example, a 50-year old committed to giving $5,000 annually for 10 years could leverage the $50,000 gift into a $360,000 gift. A second-to-die, or survivor life policy, adds even more leverage. A 50-year old couple could make a gift of $800,000 with the same $5,000 annual commitment. (Assumes 50-year old(s), preferred non-smoker(s) using variable life policy earning 10% gross return.)

Keep in mind that using a traditional permanent life insurance contract will generally yield a 6% to 7% internal rate of return to life expectancy on premiums paid.

Life insurance can be a self-completing gift. For a donor committed to making annual gifts, a portion of the annual gift can be directed to an insurance policy guaranteeing the continuation of that gift in perpetuity. If the donor becomes disabled, the policy can remain in force through the “waiver of premium” feature (if elected). This guarantees the ultimate death benefit to the charity and, in some cases, the same cash values and dividend build-up that would have been earned had disability not occurred. Even if the donor dies after only a few premium payments, the charity is assured a full gift. The death proceeds can be received by the designated charity, free of federal income and estate taxes, probate, and administrative costs, and without any delay, fees, or transfer costs.

Next Steps

Contact our Executive Director to talk more specifically about options and benefits: director@casaeldorado.org

Here’s how a Qualified Charitable Distribution Works:

• You must be 70 ½ or older at the time of distribution.
• You may distribute an amount, not to exceed $100,000 in a calendar year, to one or more public charities, so long as it is completed by December 31 of the year in which you intend to make the charitable distribution. The amount of the distribution will be reduced by any deductible contributions made to an IRA on or after you reach 70 ½.
• Your IRA administrator must make the distribution directly to CASA El Dorado, or you may write a check payable to CASA El Dorado from your IRA checkbook (special rules apply when a check is written from an IRA checkbook, please contact your CPA or financial advisor).
• If you make a gift to CASA El Dorado from your IRA, please include written instructions on how you would like to designate your gift.

Next Steps

Contact our Executive Director to talk more specifically about options and benefits: director@casaeldorado.org

The Need

You desire to change appreciated property that produces little or no income into a productive asset without paying capital gains tax on the sale of your property.

The Solution

You contribute appreciated property to a Charitable Remainder Trust that will sell the property tax free and make payments for your lifetime or a specified term of years. The trust may pay income to multiple beneficiaries.

The Benefits

Bypass Gain
The trust pays you a percentage of its value.

Increased Income
The trust pays you a percentage of its value.

Tax Deduction
You receive a current federal income tax deduction.

The Details

You transfer cash or appreciated property to the CRT. The CRT is a tax-exempt trust that can sell the property without paying capital gains tax.

Duration

A CRT can last for the lifetime of one or more beneficiaries or for a specified term of years.

Annuity vs. Unitrust Payout

A Charitable Remainder Trust (CRAT) pays a fixed dollar amount each year. By contrast, a Charitable Reminader Unitrust (CRUT) pays an amount equal to a percentage of the trust value at the beginning of each year.

Taxation of Payouts

Most CRT payouts are taxed to you as ordinary income and/or capital gain.

Payout Flexibility

A Unitrust offers flexible payout options. Check with us to see which option is right for you based on your assets and goals.

Next Steps

Contact our Executive Director to talk more specifically about options and benefits: director@casaeldorado.org

A future gift to help your favorite chairty. A bequest is one of the easiest ways for you to make a planned gift.

The Need

Many people want to give to charity but are unable to donate property during their lifetime. For example, you may have property that will be needed during life to cover living expenses or rising health care costs. You may benefit from donating this property through your estate.

The Solution

You can retain ownership and use your property during your life while also benefiting CASA El Dorado County by leaving the property to us when you pass away.

The Benefits

Gift to Charity
CASA El Dorado County receives cash or property.

Tax Deduction
The amount given to charity is not subject to federal estate tax.

Flexible
You are able to use and control your property during your lifetime.

The Details

You can leave a gift to charity by including a bequest in your will or trust. Property that passes through a beneficiary designation (such as individual retirement accounts) can be left by designating CASA El Dorado as a beneficiary.

Specific Asset Bequests

Many bequests transfer a specific item to a beneficiary: “I give my car to Joshua”.

Specific Amount

Another common transfer via a will is the gift of a specific dollar amount: “I give $1,000 to Sarah”.

Bequest of a Percent of the Residue

A fractional amount or percent of what is left of the estate may be transferred to charity: “I give 50% of the residue of my estate to Ann”.

Undivided Percentage of Asset Bequests

You may bequeath or devise an undivided percentage of a particular asset: “I give half of my home to Brian”.

Next Steps

Contact our Executive Director to talk more specifically about options and benefits: director@casaeldorado.org