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Planned Giving: Legacy Builders

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PLANNED GIVING

Since 2003, Hope House of Colorado has empowered nearly 1,000 parenting teen moms to reach self-sufficiency.  Our programs benefit teen moms and their children –breaking the cycle of poverty for two generations.

The struggles faced by teen moms will likely always exist.  But you can help ensure that young, at-risk teen moms will have a place to turn for help and hope.  As a Legacy Builder, your financial resources will be used wisely for years to come. 

There are many ways to make a planned gift.  Hope House can help you learn about the various planned giving options so that you can decide which options are right for you.  The easiest ways to make a planned gift include:

  1. How to include Hope House in your will
  2. Gifts of Life Insurance 
  3. Gifts of Retirement Plans 
  4. Gifts of Stock

1. How to include Hope House in your will

BEQUESTS – The simplest way to leave a planned gift to benefit Hope House is to make a bequest by including specific language in your will or living trust naming Hope House of Colorado as the recipient of your gift.  We would be happy to provide sample language to include in your will or trust.  The most straightforward bequests include:

  • Specific bequest – A specific bequest involves making a gift of a specific asset, such as a gift for a specific dollar amount. For example, you may wish to leave $25,o00 to Hope House of Colorado. 
  • Percentage bequest – A percent bequest involves leaving a specific percentage of your overall estate to charity. For example, you may wish to leave 10% (or any other percentage) of your estate to Hope House of Colorado.
  • Remainder (Residual) bequest – A remainder bequest is made from the balance of an estate after the will or trust has given away each of the specific bequests. For example, you may wish to leave 40% of the residual of your estate to Hope House of Colorado. 
  • Contingency bequest – A contingent bequest is made to charity only if the purpose of the primary bequest cannot be made. For example, if the original bequest is for a relative who is not alive at the time of your death, then the asset goes to Hope House of Colorado. 

Benefits of Bequests

  • Leave a legacy that will be remembered.    
  • Have the flexibility to change or modify your bequest at any time.
  • Have the peace of mind knowing that your gift will be used as intended.
  • Lessen the burden of taxes on your family.
  • Receive an exemption from federal estate taxes.

2. Gifts of Life Insurance

LIFE INSURANCE – A gift of your life insurance policy is an excellent way to make a gift to charity.  If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy.  For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.  You may also transfer ownership of a paid-up policy, donate insurance policy dividends, give a percentage of the policy, or choose to name Hope House as a designated owner and beneficiary.

Benefits of Life Insurance Gifts

  • Leave a legacy that will be remembered.
  • Utilize an asset that you and your family may no longer need.    
  • Receive an income tax deduction equal to the cash surrender value of the policy.
  • Make a larger donation, while generating current tax benefits.

3. Gifts of Retirement Plans

RETIREMENT PLANS – Naming Hope House of Colorado as a beneficiary of your retirement funds, such as an IRA, 401k or 403b, is a simple and effective way to empower teen moms well into the future while avoiding tax penalties.

The IRA Qualified Charitable Distribution became a permanent part of the tax code in December 2015. This provision allows people age 70 ½ or older to direct up to $100,000 of their required minimum distribution (RMD) from an IRA to a qualified charity, while realizing significant tax savings because the distribution is not counted as taxable income.  IRA Qualified Charitable Distributions can be gifted directly to Hope House of Colorado.

Benefits of Retirement Plan Gifts

  • Leave a legacy that will be remembered.
  • Avoid taxes on transfers of up to $100,000 from your IRA.
  • 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.

4. Gifts of Stock

STOCK – A contribution of stock is straightforward.  The donor transfers ownership of the shares to the charity and is allowed an income tax charitable deduction for the fair market value of the stock on the date the transfer is completed.  

In order to maximize the tax advantages, it is critically important that the stock be transferred directly to Hope House of Colorado.  If the donor sells the shares and then gives the proceeds to charity, the donor will be liable to capital gains tax on the sale.

Benefits of Stock Gifts

  • Leave a legacy that will be remembered.
  • Receive an immediate income tax deduction for the fair market value of the stock on the date of the transfer.
  • Pay no capital gains tax on the transfer when the stock is sold.

 

For more information, contact Motria Ramos at motria.ramos@hopehouseofcolorado.org or 303-429-1012, ext.220.