Planned Giving is a method that allows you to make maximum use of your charitable donations. It often enables you to make gift initially thought to be beyond your means. Depending on your individual circumstances, gift planning may also involve state and federal tax advantages. Visit the sections below for more detailed information.
By planning carefully, you may be able to diminish or even completely eliminate income taxes (including capital gains) and transfer taxes (gift, estate and inheritance).
Gift planning with KIND can significantly affect your life while you also help the most vulnerable children in Colorado:
A bequest is a transfer, by will, of property such as cash, securities (stocks), or tangible property to any individual or charitable organization. Bequests are an important way for KIND to continue and expand its service to individuals, families and communities throughout our fine state. For many, a bequest has been the favored way to give and ensure a lasting legacy. Donors often find bequests attractive, as they are able to maintain control and use of their assets during their lifetime.
An individual can use a bequest as a means to transfer (upon death) ownership of specific assets (such as cash, securities and real property — even saleable art) to charitable organizations. The means to accomplish the transfer is in the donor’s will.
Life insurance can be a valuable gift because it is leveraged, meaning that a small amount of money (premium) produces a large death benefit. Thus, the donor is credited for a much larger amount than the actual donation (premium). In fact, the only way for some donors to make a gift of magnitude is through life insurance.
State laws govern and regulate issuance and operation of life insurance policies. These laws can affect gift deductibility for federal income tax purposes. The information presented below is in summary form. All donors should consult with and rely exclusively on professional advisory assistance, including your life insurance representative.
| If you donate this... | You may deduct this... |
| Give a paid-up policy | Approximate cash surrender value |
| Give a policy on which you are paying premiums | Approximate cash surrender value and future premiums paid |
| Purchase a new policy for charity | Premiums (if charity is named owner) |
| Assign dividends to charity | Value of dividends |
| Buy a policy to guarantee a pledge to charity | Premiums (if charity is name owner) |
| Name a charity as first, second, or final beneficiary on policies you own | Premiums are not deductible unless the first beneficiary is irrevocable owner of policy |
Your insurance agent can assist in your gift request. To request information or to implement changes in your policy, contact your insurance agent or the life insurance company directly. Refer to your policy number.
To make a charitable gift of life insurance benefits, you will need to complete the necessary forms. Each life insurance company will have different procedures. Here are some of the major changes or additions you could make to your life insurance policy that would benefit KIND and allow it to expand its programs and services to benefit children in need.
Please send a copy of your life insurance bequest to KIND. For assistance in this process, please contact KIND at 303.733.3710 x13.
By making a gift of real estate, you may reduce a sizeable capital gains tax and at the same time receive a charitable deduction for the full fair market value of the property.
There are many ways to make a gift of real estate to KIND: