There are several ways to make an estate gift which will help care for the thousands of animals that become homeless or are abused in our community. The following are brief descriptions of ways of giving and the Animal Humane Society’s policies regarding designating the purpose of a gift.
For details on how to amplify your impact, please visit our Estate and Planned Giving Pages.
Note: The information presented below is general in nature and is not intended to be, or a substitute for, professional legal advice. We recommend you consult with your own professional advisor prior to committing any financial resources.
Bequests are made through your will and may take various forms:
Sample wording for a bequest of a specific amount:
I hereby give and bequeath to the Animal Humane Society, a nonprofit Minnesota corporation, located at 845 Meadow Lane N, Golden Valley, MN 55422, Tax ID # 41-0693842, the sum of $_______ to be used for its general purposes.
Note: For a gift other than cash, simply describe the assets.
Sample wording for a bequest of a residual amount:
I hereby give and bequeath to the Animal Humane Society, a nonprofit Minnesota corporation, located at 845 Meadow Lane N, Golden Valley, MN 55422, Tax ID # 41-0693842, all the rest, residue and remainder of my estate, both real and personal, after providing for the specific provisions of this will, to be used for its general purposes.
Note: For a gift of less than 100% of the rest, residue and remainder of the estate, simply delete “all” and state the percentage.
An Animal Humane Society charitable gift annuity for one-life (or two) may be established with a minimum of $10,000 and provides lifetime income for the annuitant(s) as well as an immediate tax deduction. A gift annuity can be a good option for donors age 55 and older. If you are interested I would be happy to provide you a proposal with details and current payout rates.
A charitable remainder trust is one of the more complex estate planning options but its many variations offer the donor greater flexibility. CRT’s can be a very good option for persons who own significantly appreciated assets (such as rental property) and desire to receive income for life. The donor transfers the asset to the trust, where it is sold, avoiding capital gains tax. The proceeds are invested with the donor or other beneficiary receiving payments for life or a set term. At the end of the trust’s life, the remaining principal is gifted to Animal Humane Society.
If you have a life insurance policy that is no longer needed to provide for dependants consider making Animal Humane Society the beneficiary. This may enable you to make a significant gift to Animal Humane Society without using any of your estate’s capital. A further option is to make Animal Humane Society both the beneficiary and owner of a paid-up policy. Doing so will earn you an immediate tax deduction equal to the policy’s cash value. Contact the policy’s issuing agent for instructions.
Some assets such as IRAs, Keogh Plans and other qualified retirement plans do not pass directly through your will and require you to name a beneficiary. Consider making Animal Humane Society a full or partial beneficiary. Such plans can be excellent choices for charitable gifting because they are taxed more heavily than other assets – sometimes greater than 60%. However, by making Animal Humane Society the beneficiary, the full value of the account will pass to Animal Humane Society to be used to benefit the animals.
An easy option is to visit a bank and buy a CD naming AHS as the beneficiary, payable-on-death. The CD can remain on deposit earning interest until the donor dies, upon which AHS receives its value. Make sure the CD is the type that automatically rolls over and maintains the beneficiary designation.
Perhaps you’re receiving payments from the sale of a business, real estate or are receiving royalties? You may be able to designate Animal Humane Society as the successor interest to receive any payments that continue after your death.
Undesignated gifts to the Animal Humane Society are the most desirable donation. Over time the financial needs of the organization can change dramatically. Undesignated gifts provide the Board of Directors and staff leadership the most flexibility in using or investing the funds depending on the organization’s strategic plan and needs.
Due to the accounting and audit requirements of establishing and maintaining a designated or restricted endowment, Animal Humane Societyhas a policy that these gifts must be $20,000 or more, unless they are designated for the Animal Humane Society’s Endowment Fund. If you plan to designate your gift, please contact me to ensure that the designation is worded in a way that will be usable to Animal Humane Society well into the future.