“The act of creating enlightened society is an act of generosity. We are engaged in fearlessness by protecting others from the setting sun. Ultimately, by engaging and acknowledging basic goodness, we are shown the path to goodness.”
— Sakyong Mipham Jampal Trinley Dradul —
A planned gift is any major gift, made in one’s lifetime or at death as part of a donor’s overall financial and/or estate planning. These include gifts of equity, life insurance, real estate, personal property, or cash. The benefits of funding a planned gift can make this type of charitable giving very meaningful both the donor and the charity. Three types of planned gifts are outright gifts
WAYS TO FUND YOUR GIFTS
Cash
A gift of cash is one of the easiest and most common ways for you to support the Potrang. Cash can be used to support our work today in the form of an outright gift by check, credit card or money order. You will also receive a federal income tax charitable deduction when you itemize on your taxes.
Gift of cash can also be made payable on death (POD) account. A POD bank account or certificate of deposit names one or more persons or charities as the beneficiary of all funds once you, the account owner, passes away. The beneficiary you name has no rights to the funds until after your lifetime.
Gifts of Appreciated Assets
When you donate appreciated securities or mutual funds to support the Sakyong Potrang, you can reduce or even eliminate federal capital gains taxes on the transfer. You may also be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer. Securities gifts can be:
- An outright gift. When you donate securities to the Sakyong Potrang, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.
- A transfer on death (TOD) account. By placing a TOD designation on your brokerage or investment account, that account will be paid to one or more persons or charities after your lifetime.
Retirement Accounts (IRA, 401K, 403B, Pension)
This popular gift option is commonly called the IRA charitable rollover, or sometimes referred to as a qualified charitable distribution, or QCD. Once you are 701/2 or older, you can give any amount up to $100,000 per year from your IRA directly to a qualified charity such as the Potrang without having to pay income taxes on withdrawal. If you’re at least 59½ years old, you can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions, you can take a charitable deduction for the amount of your gift.
Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the Potrang. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Life Insurance
When the original purpose for a life insurance policy no longer applies—such as educating children now grown or providing financial security for a spouse—your policy can become a meaningful way to support our work. There are three ways to give life insurance to the Potrang:
- Name us a beneficiary of the policy. This gift is as simple as updating your beneficiary designation form with the policy holder. You can designate us as the primary beneficiary for a percentage or specific amount. You can also make us the contingent beneficiary so that we will receive the balance of your policy only if your primary beneficiary doesn’t survive you.
- Make an outright gift of an existing policy. You can name us as owner and beneficiary of an existing policy. You qualify for a federal income tax charitable deduction when you itemize on your taxes. If you continue to pay premiums on the policy, each payment is tax deductible as a charitable gift if you itemize.
- Make an outright gift of a new policy. You can take out a new policy and irrevocably name the Sakyong Potrang as the owner and the beneficiary of the insurance contract. This method may be particularly attractive for the younger donor. Whether you make one single premium payment for the policy or pay annual premiums, each payment is tax deductible as a charitable gift when you itemize on your taxes.
Real Estate
Gifts of real estate can be a personal residence, vacation home, rental property, farm, commercial property or undeveloped land. There are many ways to donate real estate to the Sakyong Potrang. It can be an outright gift or bequest in your will. You can also set up a retained life estate, charitable remainder trust and charitable lead trust, and memorial or endowed gift with the value of the real estate donation. In addition, through bargain sale you can sell real estate assets for less than fair market value to us. The difference between the actual value and the sale price is the gift, for which you are eligible to receive tax benefits. Your generous gift of real estate helps us continue our activities for years to come.
When you give an appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction and you may minimize or eliminate capital gains tax. You can also deed the property directly to the Potrang or ask your attorney to add a few sentences in your will or trust agreement.
Personal Tangible Assets
Your treasures like valuable antiques, stamp and coin collections, works of art, cars, boats and other personal property can be charitable gifts today or after your lifetime. The financial benefits of the gift depend on whether the Potrang can use the property in a way that is related to our activities. You can donate personal assets as an outright gift or bargain sale today and receive a federal income tax charitable deduction. You can also create a legacy by donating personal property as part of your will or living trust or through a memorial or tribute gift, endowed gift, charitable remainder trust or a donor advised fund.
Closely Held Stocks or Shares of Business Ownership
If you hold stock in a closely held business, you may be able to use that stock to support our future. Closely held stock is most often used as an outright gift. You can make a gift of closely held stock as long as the constituting documentation for the business permits additional owners and it is debt-free.
TYPES OF PLANNED GIFTS
BEQUESTS
A bequest is a specific gift in your will or trust that is designated to a family member or friend, an organization, or a charitable entity such as the Sakyong Potrang. Anyone can make a bequest and it can be any amount. Learn more about leaving a bequest.
LIFE INCOME GIFTS
A life income gift allows you to give assets to the Potrang while providing yourself or others with income for a period of time. You may make a life income gift by transferring securities, cash, or other property to the Potrang or a trustee. The Potrang or trustee then manages the investment of the assets and pays an income to you, your designated beneficiaries, or both. Income payments continue for the beneficiaries’ lives or, in some cases, for a term of up to 20 years. There are several kinds of life income gifts available:
Charitable Gift Annuities
In exchange for an outright gift, the Potrang agrees by contract to pay a fixed amount each year to you and/or another beneficiary for life.
Charitable Remainder Unitrusts
You establish a trust from which you and/or other beneficiaries receive variable annual payments for life and/or a term of years. At the end of the term, the remainder of the trust assets go to the Potrang for the purposes you designate.
Charitable Remainder Annuity Trusts
You establish a trust from which you and/or other beneficiaries receive annual payments of a fixed dollar amount for life and/or a term of years, after which the remainder of the trust assets pass to the Potrang for the purposes you designate.
An Honorary or Memorial Gift
Establishing a memorial or tribute gift is a meaningful way to honor or celebrate events or someone special in your life. Your memorial or tribute gift will be a lasting tribute to your loved one and will make a difference.
Endowment Funds
An endowment fund is a self-sustaining source of funding where the principal investment remains intact. Endowment assets are invested and a portion of investment income is granted annually to support the fund’s purpose. Any undistributed earnings are reinvested to grow the fund. In this way, an endowment fund can provide support for its designated purpose in perpetuity. Endowments are built over the course of generations, and are funded with ongoing gifts and bequests. By establishing an endowment fund, donors can create a permanent legacy.
You can support our existing endowment fund, or create your own.
