Planned Giving Options
Wills
Wills are the cornerstone of a planned giving program. They are the simplest planned gift for Ability Beyond Disability or fund to initiate.
Gifts in a will take one of four forms:
- Fixed bequest: "I leave Ability Beyond Disability $10,000."
- Percentage bequest: "I leave Ability Beyond Disability 25% of my total estate."
- Residual amount: "I leave the remainder of my estate to Ability Beyond Disability
- Contingent bequest: "If my children predecease me I leave my estate to Ability Beyond Disability."
Charitable gift annuities:
An annuity is simply a contract where an individual gives Ability Beyond Disability a large sum of money, which may be from the sale of property, in return for a guarantee of smaller cash payments over a period of time—typically for the rest of their life.
Charitable remainder trusts:
A charitable remainder trust (CRT) is a contract between the donor and the Ability Beyond Disability that works similarly to an annuity, but with more flexible terms and different tax consequences.
The two types of CRTs are:
- A charitable remainder annuity trust—which pays a fixed amount like an annuity but has all the flexible options of a CRT
- A charitable remainder unitrust—which has a fluctuating payment based on a fixed percentage of the trust’s value each year
Charitable lead trusts:
A charitable lead trust (CLT) is a contract between the donor and Ability Beyond Disability where the donor sets aside funds to benefit the organization. Ability Beyond Disability invests the funds and keeps the income during the donor’s life. After the death of the donor, the principal goes back to the donor’s estate or another person.
Donors use these for three main reasons:
- To pass property to heirs at a reduced tax rate
- To make charitable gifts beyond the IRS ceiling on deductible contributions
- To accelerate the charitable income tax deduction for future gifts into the present year
Life insurance:
Life insurance is an easy option for making planned gifts. The donor buys a single premium life insurance policy or agrees to pay the premiums on a life insurance policy over time. When the donor dies, Ability Beyond Disability collects.
If you are interested in supporting Ability Beyond Disability and would like to pursue your giving options, please contact: Laura Sinitsky at 203.826.3171 or laura.sinitsky@abilitybeyonddisability.org.
