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Planned Giving

Planned giving allows you to leave a legacy of commitment to animal welfare. Please consider including Shelby Humane Society in your estate plans. The following are a few planned giving options that will help you meet your charitable goals:

The Will

Revocable Living Trusts

A Gift With a Fixed Income

A Gift With a Variable Income

Future Generation Gift

Life Estate

Life Insurance Gift

Retirement Plan Gifts

Tributes and Memorials

The Will

A will provides for the orderly distribution of property.  In addition to being one of the simplest ways to distribute your estate, your will can also be a creative vehicle in making thoughtful charitable gifts.  Your attorney can draft, revise or add a simple amendment to your will instructing that Shelby Humane Society receive a set dollar amount; property; a set percentage of your estate, or what remains after other distributions are made.

Revocable Living Trusts

If you have chosen to rely on a revocable living trust to pass your property to loved ones while minimizing probate costs, consider how you might add a charitable dimension to this plan as well.

You can provide that at the termination of your revocable living trust, a portion of the assets in the trust be used for charitable purposes in support of Shelby Humane Society. Much like a charitable bequest through a will, such gifts are deductible from estate taxes and can be delayed until all other needs have been met.  Most importantly, this type of trust allows you to make changes as factors change in your life, thus protecting your economic freedom and financial security.

A Gift With a Fixed Income

A charitable remainder annuity trust is a way to make a gift that allows you to retain income from your property for life or for another period of time that you specify.  Your funds are held separately and invested for payment of a fixed and regular income to you or someone you name.

Such payments can be a welcome supplement to your retirement plan.  Also, the trust provides the added benefit of asset management.  When the trust ends (at the death of the income recipient(s) or at the end of the period you specify), whatever remains in the trust is distributed to Shelby Humane Society for the specific charitable purposes you have outlined.

The payments you receive each year will be at least 5% of the total amount placed in the trust.  You determine the exact amount when the plan is created; federal law does not allow you to make subsequent changes.  In addition, a charitable deduction against your income taxes is allowed when the trust is established.  Its size depends on your age, payment percentage, and other factors.  For more information or details contact the Shelby Humane Society.

A Gift With a Variable Income

Like the annuity trust, a charitable remainder unitrust is a gift arrangement that provides income to you or someone important to you.  But unlike the annuity trust, the income from a unitrust will increase or decrease with the value of the assets placed in the trust.

You determine the payout percentage when the gift is made.  Each year this percentage of the value of the trust assets is paid to you or others you select.  When the value of the trust investments increases, more income is received, the income will be less if the value of the assets decline.

Since the trust is evaluated each year, you can make additional contributions to this type of trust, and an income tax deduction is allowed for a portion of each amount contributed. When the trust ends (at the death of the income recipient(s) or at the end of the period you specify), whatever remains in the trust is distributed to the Shelby Humane Society for charitable purposes you specify. For many people, the unitrust can play a welcome role in planning for retirement years.

Future Generation Gift

People who wish to make a substantial gift over a period of years while ensuring that their property will ultimately return to themselves or their loved ones may be interested in the charitable lead trust.  The lead trust can be one of the few ways to reduce or eliminate taxes that would otherwise be due on assets left to children or grandchildren.

Under the terms of a charitable lead trust, assets are transferred to a trust that pays income to the Shelby Humane Society to benefit one or more charitable purposes for a set number of years determined by you.  At the end of that period, the assets are returned to you or other persons you specify in the trust agreement. This type of trust is ideal to leave assets to grandchildren as they reach their adult years.

Life Estate

You can make a gift of a home or certain other real estate while retaining the use of the property for as long as you live.  Using a life estate arrangement, you make a gift of your home or farm now, but retain the security of knowing you may live there as long as you wish.

The satisfaction of giving, as well as an income tax deduction, is enjoyed now rather than later.  You continue to take care of the property, pay the taxes, and even receive any income it generates.  But, because you have made a gift of the property by deed, it does not pass through your probate estate at death, possibly saving unnecessary expenses, taxes and delays.

Life Insurance Gift

The reason and the need for life insurance changes as life progresses.  Children become self-sufficient, and investments may provide unexpected income and security.  As a result, not all life insurance coverage may be needed for the reason it was initially intended.

One of the simplest ways to make a significant gift is to name the Shelby Humane Society as the charitable beneficiary to receive all or a portion of the proceeds of a life insurance policy no longer needed for its original purpose.  By simply requesting a change of beneficiary form from your insurance company, you can make a significant gift to fund animal welfare.

Retirement Plan Gifts

Whether you participate in a company pension plan or a qualified retirement plan you have established yourself, such as an Individual Retirement Account (IRA), you may accumulate funds beyond your needs for comfortable support for yourself and loved ones.  You should consult your financial or legal advisor regarding the income and estate taxes associated with large pension plans.  Without a careful estate plan, some pensions can devalue as much as 80% due to estate and income taxes.

Making a gift from an IRA or qualified plan to perpetuate work you consider vital for the well being of future generations can be simple and convenient.  It can be satisfying to know that the funds you carefully saved over a lifetime may ultimately be put to good use now or as part of a prudent estate plan. 

Tributes and Memorials

Shelby Humane Society can establish tribute and memorials funds for animal-lovers who have passed on. Friends and family can donate to the shelter in memory of these supporters. Contributions to memorial funds are recognized in the shelter newsletter and on the Humane Society website. The staff will be glad to assist you in choosing an appropriate commemoration for your gift in honor or in memory of someone special to you. 

About Taxes

Income Tax Savings:  Taxpayers are generally permitted by the federal government to deduct gifts to qualified charitable institutions based on the following IRS rates:

●        Up to 50% of their adjusted gross income each year for gifts of cash and cash equivalents.

●        Up to 30% of their adjusted gross income each year for gifts of appreciated property, such as stock or real    estate.

If these limits are exceeded or if a combination of gifts of cash and appreciated property totals more than 50% of adjusted gross income in one year, the excess can be “carried forward” and deducted over the next five tax years.

Capital Gain Tax Savings:  There are special giving opportunities when long-term capital gain property (such as stocks and real estate) is donated.  Under the federal income tax law and the laws of many states (including Alabama), property that has increased in value and has been held longer than one year may be given and deducted at full value rather than at its original cost.  Contributions of long-term appreciated property also avoid capital gains tax (15%) at the time of the gift, which can help provide a larger gift than otherwise thought possible.

Federal Estate Tax:  Your lifetime accumulation of assets may be subject to estate taxes of up to 45% or more at death.  However, through careful planning, it can be possible to pass all property, or a significant portion, free of federal estate taxes.  As illustrated above, a well-planned estate can protect your distributable assets and allow you to leave or direct estate taxes to those issues most important to you.

Congress has structured the law to encourage charitable giving to the organizations and institutions of our choosing.  In fact, federal estate tax laws place no limit on the amount of property that may be given in this manner.  If the ideas presented here address your charitable needs, please discuss your plans with your legal or financial advisors and then contact the Community Foundation to finalize your plans. 

The staff and Board of Directors offer this information to help expand the charitable giving opportunities in our area.  We sincerely hope that as you make your plans, you will join in building a permanent endowment on behalf of your community.  Please feel free to contact us 205-669-3916 if we can be of further assistance.