GIFT PLANNING

Make a Future Gift of Retirement Assets

Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, is an excellent way to make a gift to United Way.

If you are like most people, you probably will not use all of your retirement assets during your lifetime. You can make a gift of your unused retirement assets to help further our mission.

Benefits of gifts of retirement assets

Simplify your planning
Support the causes that you care about
Continue to use your account as long as you need to
Heirs can instead receive tax-advantaged assets from the estate
Receive potential estate tax savings from an estate tax deduction

How to make a gift of retirement assets

To leave your retirement assets to United Way of North Central Oklahoma, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate United Way as beneficiary, we will benefit from the full value of your gift because your retirement assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.

Future gifts from your retirement assets

Did you know that 40%-60% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to United Way. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets. You can use the "Make a Future Gift of Retirement Assets" tool to contact your retirement plan custodian and designate a future gift to United Way.

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If you have any questions about gifts of retirement assets, please contact us. We would be happy to assist you and answer any questions that you have.

A charitable bequest is one of the easiest and most flexible ways that you can leave a gift to United Way of North Central Oklahoma that will make a lasting impact.

Benefits of a bequest

Receive an estate tax charitable deduction
Reduce the burden of taxes on your family
Leave a lasting legacy to charity

How a bequest works

A bequest is one of the easiest gifts to make. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to family, friends or United Way as part of your estate plan, or you can make a bequest using a beneficiary designation form.

Here are some of the ways to leave a bequest to United Way

Include a bequest to United Way of North Central Oklahoma in your will or revocable trust
Designate United Way of North Central Oklahoma as a full, partial or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension)
Name United Way of North Central Oklahoma as a beneficiary of your life insurance policy

A bequest may be made in several ways

Percentage bequest - make a gift of a percentage of your estate
Specific bequest - make a gift of a specific dollar amount or a specific asset
Residual bequest - make a gift from the balance or residue of your estate

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If you have any questions about leaving a bequest to us, please contact us. We would be happy to assist you. If you have been so generous as to include a bequest to United Way as part of your estate plan, please take the time to let us know. We would like to recognize you and your family for your generosity.

The method used to make a bequest will depend on the kind of gift you choose to leave to United Way.

Bequests of real estate, personal property, business interests and cash are typically made by way of a will, revocable trust or even a simple codicil to your current estate plan. Your estate-planning attorney can assist you in preparing the necessary papers for you to complete the bequest.

Other bequests, such as those involving retirement assets, insurance policies, bank accounts and stocks and bonds, are typically made by completing the appropriate beneficiary designation form. Simply contact your retirement plan administrator, life insurance company, bank or investment broker and ask them to send you the appropriate "beneficiary designation" or "payable on death" form. To complete your bequest, you will need to complete and sign the form and then send it back to the person who originally sent the form to you.

The last step in leaving any bequest involves the transfer to charity. When you pass away, the bequest property will be transferred to United Way of North Central Oklahoma. The full value of this gift will be transferred tax-free and your estate will receive an estate tax charitable deduction.

You may be tired of living at the mercy of the fluctuating stock and real estate markets. A charitable gift annuity is a gift made to our organization that can provide you with a secure source of fixed payments for life.

Benefits of a charitable gift annuity

• Receive fixed payments to you or another annuitant you designate for life
• Receive a charitable income tax deduction for the charitable gift portion of the annuity
• Benefit from payments that may be partially tax-free
• Further the charitable work of United Way with your gift

How a charitable gift annuity works

A charitable gift annuity is a way to make a gift to support United Way of North Central Oklahoma.

1. You transfer cash or property to United Way.
2. In exchange, we promise to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
3. You will receive a charitable income tax deduction for the gift portion of the annuity.
4. You also receive satisfaction, knowing that you will be helping further our mission.
    

If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.

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If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.

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Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to United Way.

Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.

Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.

You may be looking for a way to receive fixed income for life or a number of years. You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes and plan for retirement. A charitable remainder annuity trust may offer the solutions you need.

Benefits of a charitable remainder annuity trust

• Receive fixed income for life or a term of up to 20 years
• Avoid capital gains tax on the sale of your appreciated assets
• Receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to United Way

How a charitable remainder annuity trust works

1. You transfer cash or assets to fund a charitable remainder annuity trust.
2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
3. The trust is invested to pay fixed income to you or any other trust beneficiaries you select based on a life, lives or a term of up to 20 years.
4. You receive an income tax deduction in the year you transfer assets to the trust.
5. Our organization benefits from what remains in the trust after all the trust payments have been made.

More on charitable remainder annuity trusts

If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded.

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If you have any questions about charitable remainder annuity trusts, please contact us.  We would be happy to assist you and answer any questions you might have.

Are your appreciated assets, such as stock, bonds or real estate, producing little or no income?

If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution to avoid capital gains tax.

Benefits of a sale and unitrust

• Receive cash from the sale. You can use this cash to purchase another residence, to save for retirement, to travel, to meet your daily needs or to meet some other financial goal
• Receive income from the unitrust for the rest of your life and future retirement
• Obtain an income tax deduction that may reduce your tax bill this year
• Further the work of United Way Worldwide with your gift
   

How a sale and unitrust works

1. You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
2. The assets are then sold. You receive cash from the sale, and the rest of the sale's proceeds are paid to the charitable unitrust.
3. The trust will provide you with income for the rest of your life.
4. You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.
    

More on sale and unitrust

When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.

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If you have any questions about a sale and unitrust, please contact us. We would be happy to assist you and answer any questions you might have.

You may be looking for a way to provide your children with income while making a gift to United Way of North Central Oklahoma. The "give it twice" trust is a popular option that allows you to transfer your IRA or other asset at death to fund a term of years charitable remainder unitrust. We call this kind of unitrust a give it twice trust because you can use the trust to pay income first to your family for a number of years and then distribute the balance of the trust to charity.

Benefits of a give it twice trust

• Use the full value of your unused retirement account to provide income to your surviving spouse and to provide income to children or other loved ones for a specified period of time
• Create an estate tax deduction and savings from the charitable gift
• Support the important charitable work of United Way 
   

How a give it twice trust works

1. We can help you and your attorney with the process of creating a charitable remainder unitrust.
2. You complete an IRA or other retirement account beneficiary designation form, naming the charitable trust as the beneficiary, and return the form to the account custodian.
3. When you pass away, the custodian will transfer your retirement account to the charitable trust.
4. The trust will pay income to your spouse, children or other individual beneficiaries for their life, term of years or life plus term of years.
5. At the conclusion of the payments, the balance of the trust will be transferred to United Way.
    

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If you have any questions about a give it twice trust, please contact us. We would be happy to assist you and answer any questions you might have.

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Provides Tax Savings. The give it twice trust produces income and estate tax savings.

Promotes Fairness. The give it twice trust establishes a mechanism that will help you treat each of your children equally. This can help promote peace in your family.

Teaches Your Children. Give children income rather than a lump sum. Studies of inherited wealth have concluded that many children spend lump sum inheritances, whereas they learn to be more responsible with inheritances paid out over time.

A gift of your life insurance policy is an excellent way to make a gift to United Way Worldwide. If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to United Way Worldwide. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.

Another option for you to fulfill your philanthropic goals is to secure a new policy through our United Way Life® program with United Way as the beneficiary. You receive a tax deduction for your gifts that support the premium payments. This policy can help you make a substantial investment in communities to strengthen and improve the lives of individuals and families by supporting our vital mission of improving the health, education and financial stability of our communities, supporting them in disaster relief and recovery efforts and helping transform them into more resilient communities. The premium payments are limited to no more than five years and result in a substantial investment in improving lives in our communities while you receive a current tax benefit.

Benefits of gifts of life insurance

• Receive a charitable income tax deduction
• If United Way retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums
• If United Way cashes in the policy, you will be able to see firsthand how your gift supports our charitable work
• If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to our organization so that we can use the proceeds to further our charitable work
   

How to make a gift of life insurance

To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include United Way as the beneficiary of your policy.

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If you have any questions about making a gift of a life insurance policy, please contact us. We would be happy to answer questions that you have.

Please let us know if you have already named us as a beneficiary of your life insurance policy. We would like to thank you and recognize you for your gift.

You can also designate United Way as a partial, full or contingent beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. Your estate may benefit from an estate tax charitable deduction.

Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.

Royalty Income can support our mission today and tomorrow. 

Some of our supporters gift their royalty income stream, during their lifetimes or after, via their estates, to United Way so that they are providing continuing support to improve the health, education and financial stability of our communities, support them in disaster relief and recovery efforts and help transform them into more resilient communities. Your support with a royalty income stream can continue your impact into the future.

Royalty income derives from assets such as income from natural resources assets, sales of published books and recorded lectures, patents, other copyrighted assets, published music or other intellectual property. Supporters of our mission donate this royalty income stream directly to United Way, either during lifetime or from their estates.

For more information on how you can support United Way through your royalty income, please contact us

As a business owner, you have the opportunity not only to build your business and accumulate wealth for yourself and your family, but also to accomplish your philanthropic goals through charitable planning. 

A gift of your corporate stock or assets can provide you with tax and income benefits and help further our mission.

Benefits of gifts of business interests

• Receive a charitable income tax deduction
• Avoid tax on the sale of your business stock or assets
• Receive lifetime payments if your business stock or assets are used to fund a planned gift

How gifts of closely held stock work

1. Give a percentage of your voting or non-voting shares in your business to us outright and receive an income tax deduction. We will hold your shares for a future sale or redemption and can use any dividends paid for our charitable purpose.
2. Give a percentage of your voting or non-voting shares in your business for a donor advised fund (DAF) and receive a charitable deduction. The DAF will hold your shares for a future sale or redemption and can use any dividends paid for charitable grants. On an annual basis, you can advise us on how to make grants from the fund to your favorite charitable causes.
3. If your corporation is an S corporation, there are special rules that apply to gifts of corporate stock. Please contact us to discuss the most tax-efficient way to structure your stock gift.
    

How gifts of business assets work

1. If your business makes a gift of a non-inventory asset, it will receive a charitable income tax deduction based on the appraised fair market value of the asset.
    
2. The income tax deduction for a gift from a business is limited to 10% of the corporation's taxable income. Your business may carry forward any unused deduction up to five years.
3. If your business is an S corporation, the charitable deduction will flow through to the shareholders in proportion to their ownership interest. Check with us on the most tax-efficient way to make a gift of corporate assets from your business
    

Contact us

If you have any questions about making a gift of a business interest or your business assets, please contact us. We would be happy to assist you and answer your questions.

Business Succession Planning and Charity - When you are ready to sell your business, before you sign a binding agreement, consider a charitable gift to reduce or completely avoid capital gains on the sale. If you give enough of an interest in your business to us or a donor advised fund, you can use the resulting charitable income tax deduction to offset part or all of the capital gains on the interest you retain and sell.

Tax Planning Strategies for Business Owners - If you would like to sell your business and receive income, ask us how you can transfer part or all of your business stock or assets to fund a charitable remainder trust. The trust will sell your business interest tax-free and pay you (and your spouse) income for life. You will receive a charitable income tax deduction to further offset any capital gains.

A donor advised fund (or DAF) might be a great solution for you. You can use a DAF to distribute gifts to numerous charities. 

With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children or you can grant all or a portion of the remaining balance to United Way of North Central Oklahoma to fulfill your philanthropic legacy.

You enjoy several benefits with your donor advised fund

• Establish a flexible vehicle for annual charitable giving
• Benefit from a more tax and cost efficient alternative to a private foundation
• Obtain a charitable income tax deduction in the year of your gift
   

How a donor advised fund works

1. You make an initial, irrevocable gift of cash or stock to fund a DAF at a sponsoring organization.
2. The assets in your DAF grow tax-free.
3. You make annual recommendations on gifts to be made from your DAF.
    

Gifts from your donor advised fund

Your donor advised fund has several advantages. You can make one larger gift to a DAF and then recommend grants to us and other nonprofits. You can use the "Make a Gift From My DAF" tool to contact your DAF provider and make a grant. We will acknowledge your generous gift as a DAF distribution.

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If you have any questions about donor advised funds, please contact us. We would be happy to assist you and answer any questions you might have.

If you are 70½ or older you may also be interested in a way to lower the income and taxes from your IRA withdrawals. 

An IRA charitable rollover is a way you can help continue our work and benefit this year.

Different ways IRA donors support our communities

• Annual gift of your required minimum distribution (RMD)
• Recurring gift of your annual RMD
• Leave all or a portion of your IRA as a legacy or testamentary gift in the future
   

Benefits of an IRA charitable rollover

• Avoid taxes on transfers of up to $108,000 from your IRA to our organization
• May satisfy your required minimum distribution (RMD) for the year
• Reduce your taxable income, even if you do not itemize deductions
• Make a gift that is not subject to the deduction limits on charitable gifts
• Help further the work and mission of our organization
   

How an IRA charitable rollover gift works

Contact your IRA plan administrator to make a gift from your IRA to us.
Your IRA funds will be directly transferred to our organization to help continue our important work.
Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
Please contact us if you wish for your gift to be used for a specific purpose.
Gifts from your IRA
If you are 70½ or older, you can use your IRA to fulfill your charitable goals. You can use the "Make a Gift From My IRA" tool to contact your IRA custodian and make a qualified charitable distribution. We will acknowledge your generous gifts as a qualified charitable distribution, which may satisfy your RMD, if applicable.

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If you have any questions about an IRA charitable rollover gift, please contact us. We would be happy to assist you and answer any questions you might have.

You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. 

Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. 

A charitable remainder unitrust might offer the solutions you need!

Benefits of a charitable remainder unitrust

• Receive income for life, for a term of up to 20 years or life plus a term of up to 20 years
• Avoid capital gains on the sale of your appreciated assets
• Receive an immediate charitable income tax deduction for the charitable portion of the trust
• Establish a future legacy gift to our organization

How a charitable remainder unitrust works

1. You transfer cash or assets to fund a charitable remainder unitrust.
2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
3. The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
4. You receive an income tax deduction in the year you transfer assets to the trust.
5. Our organization benefits from what remains in the trust after all the trust payments have been made.
    

Contact us

If you have any questions about a charitable remainder unitrust, please contact us. We would be happy to assist you and answer any questions you might have.

Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.

How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.

Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.

Benefits of a bargain sale

Avoid capital gains tax on your charitable gift
Receive a tax deduction that will reduce your tax bill this year
Take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals
Help United Way further our important charitable work

How a bargain sale works

You sell United Way your property for a price less than fair market value.
You receive cash from the sale.
You can take a charitable deduction for the value of your gift which is the difference between the fair market value of the property less the sale price.
While you may owe some tax on the sale proceeds you receive from United Way, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.

More on bargain sales

A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.

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If you have any questions about a bargain sale, please contact us. We would be happy to assist you and answer any questions you might have.

You may desire to leave your home or farm to United Way at your death but would also like to receive a current charitable income tax deduction. A life estate might offer the solution you need!

Benefits of a life estate

• Receive a federal income tax deduction for the value of the remainder interest in your home or farm
• Preserve your lifetime use and control of your home or farm
• Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child

How a life estate works

1. You deed your home or farm to United Way. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
2. You and United Way sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
3. When the owners of the life estate have passed away, your home or farm will belong to United Way Worldwide. We will use or sell the property to further our charitable work.

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To learn more about a life estate, please contact us. We would be happy to assist you and answer your questions.

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Life Estates Work for Spouses Too - The life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.

Mortgage Debt - It is possible for you to make a gift of your property even though there is a mortgage upon the residence.

Maintenance Issues - You will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.

Life Estates Are Flexible - If, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund a charitable remainder trust or charitable gift annuity).

Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to United Way.

Benefits of gifts of real estate

Avoid paying capital gains tax on the sale of the real estate
Receive a charitable income tax deduction based on the value of the gift
Leave a lasting legacy to United Way 

How to make a gift of real estate

Your real property may be given to United Way by executing or signing a deed transferring ownership. You may deed part or all of your real property to United Way Worldwide. Your gift will generally be based on the property's fair market value, which must be established by an independent appraisal.

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If you have any questions about gifts of real estate, please contact us. We would be happy to assist you and answer any questions that you have.

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Mortgaged Property - Please contact us if the property you wish to give has existing debt or a mortgage. Indebtedness can affect your charitable tax deduction.

Difficult Property Gifts - Certain properties pose challenges. We have adopted policies to limit the acceptance of certain kinds of real estate. Please check with us before making a gift of real estate so we can explain our gift acceptance policies.

Capital Gains Tax - Check with us on the capital gains tax implications of your gift. You may also be interested in life income options.