| Legacy Giving -- Give for Tomorrow
Friends and supporters of the National Center for Missing & Exploited
Children (NCMEC) play a vital role in ensuring the organization’s
future and financial health. NCMEC's Gift Planning Office administers major current and deferred gifts
to the organization. To help you plan a gift, we are available to
meet with you and your financial advisor to answer your questions, provide
tax assistance, and help you answer bequest and beneficiary questions.1
Types of Giving
The Gift Planning Office can help you create an immediate or deferred gift
plan that will best express your desire to benefit the organization, at
the same time fulfilling your personal financial goals. A properly designed
gift can:
- Save taxes in three simultaneous ways.
- Build a brighter future for your children.
- Provide life-long income.
- Convert low-yielding assets into a higher income stream.
- Reduce or eliminate taxes on capital gains.
- Generate a substantial federal income tax deduction.
- Eliminate or reduce federal estate taxes.
Securities
Gifts of appreciated stocks or bonds have the same positive benefit to NCMEC
as a gift of cash; however, a gift of securities is usually more beneficial
to you, the donor, than a gift of cash. With a gift of marketable
securities which have been held longer than one year, you receive a charitable
deduction of the full fair market value (FMV) of the securities. The FMV
is determined by the average of the high and low sales prices of the stocks
on the gift date. You may apply the gift as a deduction up to 30 percent
of your adjusted gross income (AGI) in the case of securities, and avoid
gift and estate taxes as with gifts of cash. In addition, you avoid paying
any taxes on capital gains on the appreciation in the value of the securities.
This can be a major benefit to you if you have held securities over a
number of years and if they have grown in value.
Real Estate
You receive a charitable deduction for the full fair market value of any
unencumbered real estate. You may apply the deduction up to 30 percent of
your AGI in the year of the gift with the five-year carry-over provision.
You avoid capital gains taxes on the appreciation you have in the property.
There are no gift taxes, and you have removed the property from your estate,
thereby reducing your estate taxes. Almost any type of real estate
may be contributed such as undeveloped land, farms, commercial buildings,
vacation homes, or your residence.
Potential gifts of real estate are evaluated by NCMEC on a case-by-case
basis before acceptance. NCMEC must consider insurance, environmental
issues, maintenance, property tax liability, and other potential risk
factors including special tax provisions which apply to certain types
of real estate.
Charitable Lead Trusts
A donor creates a Charitable Lead Trust by transferring ownership of an
asset to a trust. The trust gives the income, or a percentage of the income,
to NCMEC each year for a period of years (usually 15-20). At the end of
the period of years, the trust assets are given back to the donor or to
named beneficiaries. The lead trust typically is used with assets with a
potential for continued high appreciation. The trust permits the assets
to be transferred to other family members at a low transfer cost.
Utilizing the lead trust, donors may leave a significantly larger inheritance
to their heirs than they could have left via a will or other trusts.
Bequests (Gifts by Will)
A bequest may be particularly attractive as a gift option if you are unable
to make a current (outright) gift, but would like to contribute to NCMEC
in a meaningful way. Bequests may be restricted or unrestricted and
will be used where need is greatest. "Specific" bequests are most
common. You leave a specific amount of money, a specific asset, or a specific
percentage of your estate to the organization or charity of your choice.
"Contingent" bequests are ways for you to contribute to NCMEC even if
you have young children.
Testamentary Trusts
Your Will may direct that a portion of your estate will go to a pooled income
fund or a charitable remainder trust. The pooled income fund or charitable
remainder trust will then pay life income to a named beneficiary. After
the beneficiary's death, NCMEC will receive any remaining funds.
Life Insurance Policies
Two forms of life insurance are typically donated: paid-up whole and universal
life insurance policies, and newly issued whole and universal life insurance
policies. A paid-up policy has a cash value that may be used immediately
if necessary by NCMEC. Taking out a new whole life or universal
life insurance policy is one way to make a significant gift. The policy
may be structured such that you only pay premiums for approximately 10
years and each year's premium payment is tax-deductible. If you are considering
such a life insurance policy, we suggest that you contact the Gift Planning
Office before beginning the insurance policy paperwork.
If you pay any further premiums, those payments are also tax-deductible.
Payments in the amount of the premium should be paid to NCMEC. We will
then pay the insurance company premiums.
Life Income Gifts
Imagine making a gift that will continue to pay you back. You may make a
gift of cash, securities, and/or real estate to NCMEC and keep the right
to receive income from those assets for as long as you live. Usually you
include your spouse or another beneficiary in the gift contract so they
will continue to receive life income if you predecease them. At your death
and/or the death of the last remaining beneficiary, NCMEC receives the remaining
principal.
Pooled Income Funds
Pooled Income Funds were designed to allow you to give away assets, such
as stocks or bank savings, while keeping the right to receive the interest
and/or dividend income. NCMEC may use the remaining principal only after
your death (and the death of one surviving beneficiary if one is designated).
A pooled income fund gift provides several financial and estate planning
benefits
- You retain income for life (if you donate a typical dividend-paying
stock you may approximately double the quarterly income you were receiving).
- You avoid taxes on capital gains on the sale of appreciated securities.
- You remove all or most of the assets donated from your estate, thereby
reducing potential estate taxes.
- You receive an income tax deduction based upon your age (usually
around 40 percent of the amount donated).
- You eliminate your day-to-day investment decisions and worries.
- Eventually your gift will be a significant benefit to NCMEC.
Charitable Remainder Trusts
Charitable Remainder Trusts are basically similar to the Pooled Income Fund.
There are two main types of charitable remainder trusts. They are Annuity
Trusts and Unitrusts. With both types of trusts, you receive a charitable
contribution income tax deduction based on your life expectancy, you avoid
taxes on capital gains on the sale of appreciated securities or real estate,
and you reduce potential estate taxes. The main difference between the two
types of charitable remainder trusts is the way your annual income from
the trust is determined.
Get in Touch
The Gift Planning Office is here to answer your questions about giving to
the National Center for Missing & Exploited Children. Our staff can help
you or your representatives plan a gift that will best benefit NCMEC and
best serve your own financial future. We can provide sample language, tax
calculations, and informational literature and are happy to talk with you
by telephone or meet with you in person. Please feel free to contact
our staff by calling them at 703-274-3900, by E-mailing them from this
page, or by visiting our office. You may also send in the online form
at the bottom of this page to receive a reply to your specific questions.
Privacy Policy
1The definitions noted
below are adapted and reprinted with permission of the University of Georgia,
1998.
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Privacy Policy
