Planned gifts can be very helpful to donors planning their retirement and estates. In many cases, planned giving allows the donor to:
- Avoid paying tax on capital gains
- Receive a significant tax deduction for their gift
Here are some examples of how Westar Associates could benefit by a planned gift to Westar.
Nam and Mai: charitable remainder annuity trust
Nam and Mai were fascinated with a start-up company in a nearby suburb called Apple. They were early investors and held on through thick and thin. Now they are in their 70s and need more income. The cost basis of their Apple stock is extremely low, and if they were to sell the stock, they would have to pay taxes on a large capital gain. (At the same time, the stock pays them no dividends.)
They decided to create a charitable remainder annuity trust that pays them 5% of the corpus as originally valued annually. They avoided the tax on the capital gain and got a very significant tax deduction for making the gift. They were able to use this deduction against this year’s taxes with a five-year carryover. Most important, when they have both died, one of their favorite nonprofit organizations, Westar, will be the beneficiary of the trust remainder.
Marjorie: charitable reminder unitrust
Marjorie is a retired physician who is very interested in Westar’s work. Early in her career she completed a residency in Arizona and had an opportunity to buy two, five-acre ranchettes that were part of a planned development. The area is now being developed, and she anticipates an increase in her property taxes. She decided to gift the two properties to Westar. Westar sold the properties and helped Marjorie to create a charitable remainder unitrust, paying her income for life and giving her a significant tax deduction, while avoiding the tax that would have been due on the appreciation of the property that occurred over the 30 years Marjorie has owned the ranchettes.
Jack and Linda: Westar as beneficiaries of retirement funds
Jack spent 34 years teaching Biblical history in the religion department of a midwestern liberal arts college, and Linda worked in the school’s library. They are now both retired. Their two children have done extremely well in their careers. Jack and Linda regularly attend Westar meetings, and they decided to make Westar the beneficiary of what will remain of their TIAA-CREF funds when they die. They planned for this money to create a special fund that would award travel scholarships for Westar meetings to young faculty members in the field of religion.
Profiles of Giving
Find out what Westar Associates and Fellows say about why they give to Westar.