Gifts with Financial Benefits to You


Gifts with Financial Benefits to You

Gifts That Pay You Income

You can receive income for life while creating your legacy of small business success with The SCORE Foundation. A charitable remainder trust (CRT) enables you to preserve or improve (or your beneficiary’s) financial security. If you’re considering a charitable remainder trust, we recommend that you consult with your financial advisor.

nothing-now

Charitable Remainder Unitrust:

You can receive income for life and reduce your taxes while supporting The SCORE Foundation by transferring cash or assets to fund the trust. Not only does this pay income to you or your beneficiaries for life, but you also receive an income tax deduction the year you transfer assets to the trust. The remaining portion of the trust, after all payments have been made, goes to The SCORE Foundation.

Benefits:

  • Receive income for life for you or your heirs.
  • Avoid capital gains tax on the sale of appreciated assets.
  • Receive an immediate charitable income tax deduction for the charitable portion of the trust.
  • Create your lasting legacy with The SCORE Foundation.

Charitable Remainder Annuity Trust:

This trust ensures dependable, fixed payments for you or your beneficiaries that you can count on instead of risking your investment in the fluctuating stock market.

Benefits:

  • Receive fixed income for life.
  • Avoid capital gains tax on the sale of appreciated assets.
  • Receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to The SCORE Foundation.

Sale and Unitrust:

If you have appreciated assets, such as stocks, bonds, or real estate, that are producing little or no income, consider the sale and unitrust. You can receive income while avoiding capital gains tax by creating a charitable remainder unitrust and transferring a portion of your assets to the trust. Once the assets are sold and you receive cash from the sale, the rest of the proceeds are paid to the trust, which will supplement income for life. You’ll also receive a charitable tax deduction the year you set up the trust that can offset your tax on the cash proceeds you received from the sale.

Benefits:

  • Receive cash from the sale of your assets.
  • Receive income for life.
  • Reduce your income taxes in the year you set up the sale and unitrust.
  • Create your lasting legacy with The SCORE Foundation.

Give It Twice Trust:

You can use this trust to pay income first to your family and then give the balance to The SCORE Foundation. With our help, and your attorney, we’ll create a charitable remainder trust. Then you’ll complete an IRA (or other retirement account beneficiary designation form) naming the charitable trust as the beneficiary and give it to the account custodian, who will transfer your retirement account to the trust after your lifetime. Your beneficiaries receive income for life and the remaining balance of the trust benefits The SCORE Foundation.

Benefits:

  • Receive income for your spouse or children from the full value of your unused retirement account.
  • Receive an estate tax deduction and savings from the charitable gift.
  • Create your lasting legacy with The SCORE Foundation.

Please contact The SCORE Foundation, Vice President of Business Development, SCORE Foundation, at resa.kierstein@score.org or 1-800-634-0245 if you have any questions.

Then, consult with your tax advisor and lawyer to determine which planned gift strategy is best
for you.

Gifts That Reduce Your Taxes

You can reduce your taxes and keep the small business spirit alive in America with any of these options.

IRA charitable rollover:

Many donors like donating retirement funds that are no longer needed to help them save on their taxes while helping small business owners. Here’s how it works:

  • You must be 70 ½ or older.
  • An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000.
  • Your gift must be transferred directly from the IRA account to The SCORE Foundation.
  • Your gift is a transfer of funds from your IRA to Habitat for Humanity, so it does not create taxable income for you and is not considered a charitable tax deduction.
  • The transfer of funds counts towards your annual required minimum distribution from your IRA.

If you would like to reduce your taxes and ensure 100% of your contribution goes to charity, please download this sample letter to send to your IRA administrator.

Gifts of stock:

Stocks, bonds and mutual funds that have appreciated in value are among the best ways to ensure that SCORE is able to provide small business owners the resources they need. You may receive a charitable income tax deduction for the full market value of the stock and avoid paying the capital gains tax on any increase in the value of the stock.

Please contact us if you want to make an immediate impact by donating stocks or other appreciated assets.

Retirement Plan Gift:

You can reduce your taxes by naming The SCORE Foundation as a beneficiary of your retirement plan. A full 60 to 70% of your retirement assets may be taxed if you leave them to your heirs. Instead, you can leave your heirs assets like real estate and stock, and use retirement assets to create your legacy gift for The SCORE Foundation, which is not taxed when receiving retirement assets.

Benefits:

  • Avoid potential estate tax on retirement assets.
  • Avoid income tax for your heirs on retirement assets funded on a pre-tax basis.
  • Receive potential estate tax savings from an estate tax deduction.

To name The SCORE Foundation as a beneficiary of your retirement plan, contact your bank or insurance company to see whether a change of beneficiary form must be completed.

Life Insurance Plan Gift:

If you have a life insurance policy that has outlasted its original purpose, you can use it to reduce your taxes and create a legacy gift for The SCORE Foundation.

Benefits:

  • Reduce your income taxes.
  • Receive additional tax deductions by making annual gifts so that we can pay the premiums if The SCORE Foundation retains the policy to maturity.
  • See firsthand how your gift supports our work if The SCORE Foundation cashes in the policy.
  • Further the work of The SCORE Foundation. 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 The SCORE Foundation.

Savings Bonds:

When you redeem savings bonds, you or the person you leave your bonds to will owe income tax on the appreciation. You can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Because The SCORE Foundation is tax exempt, 100 percent of your gift of savings bonds will support our mission.

Benefits:

  • Reduce income tax.
  • Reduce income tax and estate taxes for your loved ones.
  • Create your lasting legacy with The SCORE Foundation.

CDs, Bank Accounts, and Brokerage Accounts:

You can receive an immediate income tax charitable deduction when you name The SCORE Foundation as a beneficiary of a certificate of deposit, a checking or savings account, or brokerage account.

Charitable Lead Trust:

With this option, you can reduce or eliminate gift or estate taxes, transfer some of your assets to your children, and create your legacy with The SCORE Foundation. You’ll receive a gift or estate tax deduction at the time of your gift, and after a period of time your family will receive the trust assets as well as any increase in value.

Benefits:

  • Reduce gift or estate taxes.
  • Transfer assets to your family at reduced or no cost.
  • Make annual gifts to The SCORE Foundation.

Bargain Sale:

You can reduce income and capital gains taxes and sell a property that you no longer need or want. Even if you have a mortgage on the property, you can still carry out a bargain sale and benefit yourself and The SCORE Foundation.

Benefits:

  • Avoid capital gains tax on your charitable gift.
  • Reduce your income taxes in the year you make your gift.
  • Receive cash from the sale.
  • Create your lasting legacy with The SCORE Foundation.

Life Estate Reserved:

You can reduce your current income taxes while arranging to leave your home or farm to The SCORE Foundation. This gift allows you to use the property for the rest of your life and the lives of the others named.

Benefits:

  • Reduce your federal income taxes.
  • Retain the use and control of your home or farm.
  • Create a life estate based on more than one life, preserving the use of the property for you and a loved one.

Consult with your tax advisor and lawyer to determine what planned gift strategy is best for you.

Please contact The SCORE Foundation at 1-800-634-0245 if you have any questions.

Then, consult with your tax advisor and lawyer to determine which planned gift strategy is best
for you.