Angels works with donors to establish and manage planned giving vehicles, bequests, several pooled income funds, and charitable remainder trusts. In partnership with the Santa Barbara Foundation, we will help prepare the documents, provide financial projections for various trust options, and work with your legal and financial counselors. In addition to outright, tax-deductible cash gifts, there are other creative ways to give, including:
- Wills and Living Trusts
One of the simplist ways to provide an enduring gift of support to Angels Foster Care is through your Will or Revocable Living Trust. By including Angels in your estate plans, you can specify some or all of your assets come to us after your lifetime. At that time, the asset(s) you specify will pass to us, and your estate can take a charitable deduction for the amount of your bequest, reducing the estate taxes payable.
- Name us in in your will or trust
We should be named as: Angels Foster Care of Santa Barbara,a non-profit corporation, organized and existing under the laws of the state of California, and with principal business address of 3905 State Street, #7-115, Santa Barbara, CA 93105. Our tax identification number is 16-1749619.
- Beneficiary Designations
Angels Foster Care accepts gifts of life insurance as the beneficiary of your policy. We also may be named as the beneficiary (primary or contingent) on your retirement accounts. In addition to providing you with the tax advantages described below, beneficiary designations are a quick, hassle-free way to make a gift. Changing your beneficiaries is easy: You may simply contact your insurance carrier or employer/plan administrator and request a beneficiary form. As with bequests, you have the freedom and flexibility to change your mind and your beneficiaries at any time.
- Life Income Gifts
A Life Income Gift is a highly effective way to contribute assets to Angels Foster Care, while allowing you to keep an income for yourself and others for the reminder of your life, their lives or a fixed term of years. To create a Life Income Gift, you make an irrevocable gift of cash, securities or real estate to Angels Foster Care, and in return, receive an income (fixed or variable, depending on the option you choose). After your lifetime and/or the lifetime(s) of other designated beneficiaries, the remaining balance of your gift would be used to support Angels Foster Care. Your age, assets, and income objectives will help you determine the best type of Life Income Gift. A fixed income option would be a Charitable Remainder Annuity Trust (CRAT), while a variable income option is the Charitable Remainder Unitrust (CRUT)
- Charitable Remainder Annuity Trust (CRAT)
A CRAT allows you to secure a steady stream of income and reduce your taxes while helping to support Angels Foster Care. To create a CRAT, you place assets into an irrevocable trust and name a trustee (for example, Angels Foster Care, or a bank trust department). The trustee invests the assets (which can grow tax-free) and pays a fixed dollar amount to the trust beneficiaries (yourself, your spouse, your children, or whomever you designate) for life or for a set term of years. When the last income beneficiary dies or the trust’s term ends, the trust dissolves, and the remaining assets are distributed to the charitable beneficiary. This option may be the right one for you if you are concerned about meeting your current financial needs.The longer income stream is distributed to you and your family, the less of a taxable deduction you are entitled to. However, the deduction may be taken in the year the assets are transferred to the CRAT, and you need not wait until the assets are actually distributed to the charitable organization.
- Charitable Remainder Unitrust (CRUT)
A CRUT works the same way as the CRAT, with this main distinction: the income distributed is not a fixed amount. Instead, with a CRUT, you or your family receive a lifetime or term income that is a percentage (by law, a minimum of 5 percent) of your trust’s assets valued annually. Income payments increase or decrease with the changing value of the trust. The unitrust provides a potential hedge against inflation as income payments may rise over time. In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets. Another benefit to both the CRAT and CRUT is that no capital gain should be recognized by you upon contribution of appreciated property to the trust. Furthermore, you would be able to diversify your holdings within the trust without triggering capital gain.
If you have a sizable estate, wish to avoid taxes, and your heirs are generally taken care of for the foreseeable future, yet you wish to provide them with a substantial inheritance after your lifetime, a Charitable Lead Trust may be the right planned giving option for you. A Charitable Lead Trust is an excellent way to give an immediate gift to Angels Foster Care while ultimately transferring assets to your loved ones – often with significantly reduced gift and estate taxes.
- Lifetime Charitable Trusts
You establish a Charitable Lead Trust by transferring cash or appreciated assets, such as securities or real estate during your life, to a trust for the benefit of Angels Foster Care. The trustee may be the charity, a financial institution, you, or an individual or your choice. Your trust then provides annual income based on fixed dollar amounts (annuity trust) or a fixed percentage of the value of the trust (unitrust) to Angels Foster Care for a fixed period, usually 10 to 20 years. In the year you establish the trust, you would be entitled to receive a charitable tax deduction for the present value of the income that will be distributed to Angels Foster Care over the duration of the trust. This is particularly tax-advantageous, because you are entitled to the deduction up front, rather than being required to wait until distributions to Angels Foster Care are made. Upon termination of the trust period, the principal transfers to your beneficiaries, enabling you to pass significant assets to family members with little or no gift or estate tax. It is possible, depending on your charitable desires, for Charitable Lead Trusts to be drafted so that there are no taxable gifts generated, even though your family members will eventually receive the assets. Amounts held by the Charitable Lead Trust should not be includable in your taxable estate.
- Testamentary Charitable Lead Trust
You may also establish a Charitable Lead Trust under the terms of your Will. This is effective way to make a sizable gift to charity while reducing your estate taxes. Your Will or Revocable Trust would provide that either a certain portion of your estate assets(or the amount that would create a non-taxable estate) should be transferred to a charitable lead trust upon your death. As with the lifetime lead trusts, there must be a fixed dollar amount (annuity trust) or a fixed percentage of the value of the trust (unitrust) that will be distributed to Angels Foster Care. There are a variety of somewhat complex requirements that must be met in order for a Charitable Lead Trust to provide you with the tax advantages discussed above. We invite you to contact us for details on implementation of the Charitable Lead Trust.
Angels Foster Care would be pleased to work with you and your financial or tax advisor to establish the planned gift that is most appropriate for you to achieve your financial planning goals. We are partnered with the Santa Barbara Foundation in the administration of our planned giving program. Please contact Holly Carmody, Executive Director of Angels Foster Care, at (805) 884-0012 or firstname.lastname@example.org for a confidential inquiry without obligation to you.