Bequests | Appreciated Assets | Life Insurance | Life Income Gifts | Retirement Assets

Besides making cash donations, you can help Un Mundo now and in the future through a variety of planned giving options. Planned gifts can be arranged during a donor’s lifetime to benefit both the donor and people of Honduras through Un Mundo’s programs. The advantages to you the donor are many: tax benefits, recognition and the knowledge that you are helping Un Mundo achieve its mission.

Planned gifts benefit Un Mundo tremendously by providing a reliable, steady flow of income that allows us to continue our programs well into the future. Here we review the most popular types of planned gifts and explain current charitable income-tax deductions for each gift.

Please note that the information provided here is not intended as specific legal advice. You should consult with your attorney when considering a planned gift. Laws governing wills and contracts vary from state to state and are subject to change.

For additional information or questions, email Tim Watson, Un Mundo board member and Financial Director.

Bequests

Un Mundo is committed to long-term solutions in Honduras. As long as there is poverty and inadequate health care education in Honduras, we will be there. Will you be there with us? By including Un Mundo in your will, you can ensure that your giving will continue in perpetuity. Un Mundo pledges to put your gift to the best possible use promoting dignity, community and self-sufficiency in Honduras. There are several ways to make distributions through your will. You can give:

A Percentage “I give, devise, and bequeath to Un Mundo of Mountain View, California, _________% of my estate to be used for charitable purposes.”

A Specific Dollar Amount “I give, devise, and bequeath to Un Mundo of Mountain View, California, $_____________ to be used for charitable purposes.”

A Residue (the amount remaining after other bequests have been granted) “All the residue of my estate, including real and personal property, I give, devise, and bequeath to Un Mundo of Mountain View, California, to be used for its charitable purposes.”

Note: The above wording is suggested. Please consult with your attorney when preparing your will or other legal document.

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Give Appreciated Assets

United States tax laws are structured so that donors are encouraged to give as generously as possible to their favorite charitable organizations. Gifts of those assets which have gone up in value since their purchase are particularly attractive to the donor under current tax laws. Gifts of appreciated assets to not-for-profit organizations are deductible at their full fair market value if they have been held for longer than twelve months. Click here for more information on gifts of stock.

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Gift of Life Insurance

This is an underutilized form of planned giving in the nonprofit sector, yet its flexibility makes it possible for many people to make a very substantial gift. Here are some options:

Give a Percentage You can opt to designate a small percentage of your life insurance policy to Un Mundo.

Give a Paid-Up Policy Most people own life insurance, and many people have policies that outlived their original purpose. For example, policies for a child’s college education, those insuring a business, or protecting a mortgage can make excellent gifts when given to a charitable organization such as Un Mundo. And, the donor can deduct the replacement value of the policy.

Buy a New Policy Some people find they can make a much larger gift than they could otherwise afford by purchasing a life insurance policy and naming Un Mundo as the owner and beneficiary. The future premiums paid are deductible as cash contributions.

Add a Beneficiary Regardless of financial circumstances, almost anyone can name Un Mundo as a secondary or final beneficiary of a new or existing policy. This simply means that if the first beneficiary(ies) predeceases you, our organization becomes the beneficiary. Because the gift is not definite, there are no income tax benefits for the donor; but, if any funds do finally go to Un Mundo, they will be deductible from federal estate taxes.

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Life Income Gifts

A life-income gift allows you to make a gift to Un Mundo and receive payments from your gift during your lifetime. Such gifts include charitable gift annuities, charitable annuity trusts, and charitable unitrusts. Each plan allows you to help us in the future and enjoy immediate benefits in exchange for your future contribution. Benefits to you include these:

• The opportunity to receive fixed or variable payments for life.
• The opportunity to proved benefits for a surviving beneficiary.
• Income tax deductions can be taken in the year the life income plan is established and can be carried forward into as many as five additional tax years if necessary.
• Avoiding or reducing capital gains tax that would otherwise apply if you use appreciated assets to fund life income arrangements.
• Savings from estate and inheritance taxes.

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Gifts of Retirement Assets

Gifts of retirement assets may save your heirs undue tax burdens and allow you to accomplish your charitable objectives. When you bequeath retirement assets to your heirs, you are leaving them taxable assets. After your heirs pay the taxes due on these assets, their inheritance will be considerably less than the original amount. However, if you bequeath retirement plan assets to Un Mundo, we will not have to pay income taxes on the assets. This will allow you to make a larger gift and possibly save other nontaxable assets for your heirs. You may also want to consider setting up a charitable trust with retirement assets. With a trust, you simply transfer your retirement assets to Un Mundo as the last beneficiary. The trust can provide payments for your spouse or another loved one for the rest of his/her life. After the death of your beneficiary, the assets remaining in the trust can be used by Un Mundo to continue our work. There will be no estate or income taxes imposed on the assets at the time of the gift.

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This information is not intended as specific legal advice. Please consult your attorney when considering any of the above giving situations. If you would like to learn more about Planned Giving, please do not hesitate to contact Tim Watson, Un Mundo board member and Financial Director.