Planned Giving

Why make a planned gift?

When you and WE CAN work together to establish a charitable bequest, you leave a legacy and enable the organization to advance its work in perpetuity.

What are the benefits of planning a gift in a will?

  • It helps to maximize available tax, financial and estate benefits

  • It ensures that your personal and financial objectives are met

  • Your property is distributed according to your wishes

  • It enables you to increase your gift potential by looking at other ways of giving

  •  It provides a lasting gift to WE CAN

What is the most popular planned gift?

By far, the most popular planned gift is a charitable bequest through your will. It is simple to establish and because it is revocable, the donor can make changes at any time. Gifts can also be made through a trust or gift of a beneficial interest in a Life Insurance Policy, Annuity or Retirement Account.

Required Minimum Distributions (RMD) from IRA

Can be disbursed directly to a charitable organization to reduce your taxable income by the amount distributed.

EXAMPLE

Donors are 70½, married, and have an estimated Taxable Income of $400,000. Their current federal tax liability is estimated to be $107,218. The couple must take RMDs this year. which will total $20,000 of additional income. The RM Os will push the donors from the 33% to the 35% tax bracket. which means that their new federal tax liability will be 

$113,883. By disbursing the $20,000 directly to a charitable organization. the donors will maintain their Taxable Income of $400,000 and keep their tax liability in the 33% bracket. 

Estate Tax

Including a Charitable Bequest in your will allows you to reduce the size of your taxable estate.

EXAMPLE

Donor is a Massachusetts resident with an estimated estate valued at $1,100,000. The Donor's estate will be taxed in Massachusetts in the amount exceeding the taxable threshold ($1,000,000) at an estimated rate of 30%. By including a Charitable Bequest of $100,000 to a charitable organization in the Donor's will, the Donor's estate is reduced to $1,000,000 and not subject to any Massachusetts estate tax. 

Capital Gains

A Planned Gift of appreciated stock allows the donor to avoid capital gains taxes by donating the stock directly to the charity.

EXAMPLE

Donor gives 100 shares of ABC stock to charitable organization on 12/31/17. On the donation date, ABC stock was valued at $50/share. and the Donor purchased the stock one year ago at $25/share. The Donor can deduct as a charitable contribution the full value of the stock on the donation date ($5,000) and also exclude the capital gain from her/his income ($2,500). 

*This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Please contact Lisa Guyon, Executive Director at (508)-430- 8111 or lisa@wecancenter.org for more information.