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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
NCMEC's 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. We are available
to meet with you and your financial advisor to answer your questions, provide
tax assistance, and help answer bequest and beneficiary questions.1
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
Types of Giving
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 that 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 capital-gains
taxes 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 they have grown in value.
Real Estate
You receive a charitable deduction for the FMV 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 that 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 a portion of your estate go to a pooled income fund
or 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. They are 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 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 capital-gains taxes 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 on 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 also avoid capital-gains taxes 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.
Contact Us
NCMEC's Gift-Planning Office is here to answer your questions about giving
to the National Center for Missing & Exploited Children. Our staff
members 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 members by calling them at 703-274-3900
or e-mailing  to
receive a reply to your specific questions about planning a gift to NCMEC.
1The definitions noted here are adapted
and reprinted with permission of the University of Georgia, 1998. |
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