Planned Giving: Building a Legacy

Cash, Check, and Online Gifts: Nothing could be easier than making a gift of cash to Habitat for Humanity. It is the most common gift and the one you probably think of first. If you itemize in the year of contribution, all cash donations are tax deductible up to 50% of your adjusted gross income. Any excess deductions can be carried forward for the next five years. You can make year-end gifts, or make a gift in memory or honor of a friend or loved one, perhaps on the occasion of a birthday, graduation, anniversary or other special day. It is the perfect gift for someone who has everything!

Check gifts can be mailed to PV Habitat at PO Box 60642, Florence, MA 01062.

Begin your legacy with us! To help you get started on your plans and legacy, you can use FreeWill, an online tool that guides you through the process of creating your will or trust. It’s easy to use, accessible online and can be completed in 20 minutes. You can use this resource on its own, or use it to document your wishes before finalizing your plans with an attorney.

Have you already included a gift in your will or trust? Please fill out this form to let us know! We
would love to thank you for your generosity.

Do you have an IRA, 401(k), life-insurance policy, or any other assets not included in your will? If so, these are called non-probate assets and you must plan your beneficiaries for them separately. Use this online tool to make your plans and designate us as a beneficiary of one or more of these assets.

Securities: Stocks and publicly traded securities are easy to give and offer great tax advantages. The best stocks to use for charitable giving are those that have increased greatly in value, particularly those producing a low yield. If you have held them for more than one year, you will pay no capital gains tax on this transaction, and you can deduct the full fair market value.

Bank Accounts and CDs: Are you aware that you can name us as the “payable-on-death beneficiary” of your bank accounts or on certificates of deposit? You own the assets for your lifetime and have them available for your use. Upon your death, the assets pass directly to us without going through probate. Simply visit your bank and request the necessary forms to name a beneficiary on your accounts or CDs. You can change beneficiary designations at any time.

Real Estate: A gift of real estate offers you the opportunity to make a significant charitable contribution with a tax-friendly outcome. There are several ways to donate real estate depending on your situation.

Outright Gift: An outright gift may be the simplest solution if you own property that is not mortgaged, has appreciated in value and that you no longer need or use, such as a second home or vacation property. You can deduct the fair market value of your gift and avoid all capital gains taxes. Plus, you no longer have to worry about the costs of continued ownership, and you have removed that asset from your taxable estate.

Retained Life Estate: Did you know that you can transfer the deed of your personal residence or farm to us now and keep the right to use the property for your lifetime and that of your spouse? You will receive a current charitable deduction in an amount that is based upon the life expectancy of you and your spouse and the value of the property.

Bargain Sale: A bargain sale can generate a gift that is less than the full fair market value of the property. In this scenario you agree to sell the property to a charitable organization at less than its fair market value. The difference between the sale price and the fair market value is your charitable deduction. While the tax rules relating to a bargain sale are somewhat complex, the net result is often more favorable than selling the property at fair market value and making a charitable contribution from the realized capital gain.

Charitable Gift Annuity: This is a simple contract between you and a charitable organization that pays you a fixed dollar amount (an annuity) for your lifetime and that of another individual, if desired, based upon your age(s) at the time of your gift. The older you are, the higher the annuity. If you use appreciated property to fund the gift annuity, you will escape the capital gains tax on the gift portion of the transaction and the remaining gain will be apportioned over your lifetime. This is a wonderful way to increase income from stocks that pay small dividends and carry heavy capital gains.

We can assist you with establishing your annuity through Habitat International! Contact resource@pvhabitat.org for more information and to get started.

Charitable Remainder Trust: A charitable remainder trust is a trust that will pay the donor (and one or more other named beneficiaries, if desired) a fixed or variable income depending on the type of trust selected. The payments are made either for life or a period of time not to exceed 20 years. The annual payments cannot be less than 5 percent of the initial fair market value of the trust. At the end of the trust’s term, the balance in the trust helps support our mission.

Charitable Lead Trust: This type of charitable trust pays income to one or more charitable organizations, typically for a period of years, and then the remaining assets of the trust pass to non-charitable beneficiaries, such as family members. While this type of trust usually does not provide a current income tax deduction, it can effectively pass property to family members at reduced estate and gift tax costs.