PLANNED GIVING: ENSURING OUR FUTURE

We know you care about the Animal Rescue League of Southern Rhode Island because your faithful and generous donations make possible our work on behalf of homeless pets. But what about the future? There are many ways you can ensure that the ARL/SRI can continue that work for years to come.

Bequests

Leaving a bequest in your will is one way, but definitely not the only way, to leave a lasting legacy to the ARL/SRI. You may have a retirement plan such as an IRA or a 401(k) that requires a beneficiary designation. Your beneficiary does not have to be a person. You can name the ARL/SRI as your beneficiary. Retirement plan assets left to heirs other than a spouse are subject to estate and income taxes that can take as much as 70% of the bequest. The same assets, if left to the ARL/SRI, would not be subject to the same tax liabilities, meaning the greatest portion of your gift will be used for your intended purpose. Naming the ARL/SRI as a beneficiary of a life insurance policy is another simple way to ensure that your gift goes directly to fund the League’s programs and services.

Charitable gift annuities

If you are looking for a way to provide for your retirement, enjoy an immediate tax benefit, and leave a lasting legacy to help animals, then a charitable gift annuity may be just the thing for you! A simple agreement is written between you and the ARL/SRI whereby a gift of cash, stocks, and/or bonds is transferred to the League. In return, you (and/or another person you so designate) will receive fixed payments for life. You would be entitled to a tax deduction for a portion of the gift amount in the year the gift is made. A portion of each payment made to you is also tax free for a period of years.

Charitable remainder trust

If you are considering leaving a larger amount to the ARL/SRI, you may want to consider a charitable remainder trust. As with the charitable gift annuity, you receive payments for your life or for a fixed period. This concept is especially suitable if you are planning to sell a highly appreciated asset, such as real estate, and want to avoid paying the capital gains taxes.

IRA “rollover”

Another option to consider, if you are 70.5 years young, or more, is an IRA rollover. In 2007 the President signed into law legislation allowing tax-free direct distributions to qualified charities from IRAs. Before this legislation, the transferred amount was included in the individual’s taxable income.

Leave a Reply