Leave a Legacy
Express your support for our hunger and homelessness-relief efforts through a planned gift or “legacy” gift which will help us to secure food and housing to those in need, raise public awareness in our community, and promote viable solutions to poverty.
The best place to begin is by speaking to your bank or financial planner about wills, trusts, annuities, or other planned giving options.
When planning a legacy gift, you should consider some important factors:
- Purpose of the gift and the assets to be used to fund the gift
- The gift’s timing, its effect on income tax and estate-tax planning
- Impact on the donor’s family members and friends.
A planned gift is best made with the counsel of one’s financial adviser, such as your attorney, accountant, banker, financial planner, or insurance professional.
Below, we list options for planned giving. If you would like more information about planned giving, please call the South County Outreach at 949-380-8144.
Bequests — Wills or Revocable Living Trusts
Remembering the South County Outreach in your will or revocable trust is often the most meaningful way to leave a legacy. These gifts make it possible for the South County Outreach to plan ahead in the fight against hunger and homelessness. The following is suggested language for a bequest:
“I give (describe dollar amount, percentage of estate, or property to be given) to South County Outreach, a non-profit corporation organized and existing under the laws of the State of California and having its principal place of business in the City of Irvine, County of Orange, State of California, to support where the need is greatest, (or a specific purpose, ie. housing, food pantry, computer learning lab, endowment).”
Most people who include South County Outreach in their wills often benefit their heirs at the same time. A charitable bequest is completely deductible from the estate. Depending on your needs, there are many forms a bequest can take.
- General Bequest: specifies a designated sum of money from your estate, such as $10,000. These are among the first bequests to be fulfilled in an estate.
- Specific Bequest: a specifically designated item, such as stock in a certain company, a specific home or piece of land, art work, etc. If you do not own the item at the time of your death, the beneficiary will get nothing.
- Percentage Bequest: a designated percentage of your estate, such as 10%. A good way to ensure that inflation will not reduce the value of your bequest to South County Outreach.
- Residuary Bequest: a designation that gives South County Outreach all or a percentage of any estate remaining after all your general and specific bequests are satisfied. There may or may not be any gift for South County Outreach with such a bequest.
- Contingent Bequest: a bequest that will not take effect unless another bequest fails, such as to a spouse or other relative that might predecease you.
Many donors also establish testamentary charitable trusts in their will or living trust. These may be annuity trusts or unitrusts just like those created during life but are funded or created in a will.
For those already with wills, simple changes can easily be made with a codicil. A codicil is a simple addition or amendment to an existing will. As with all bequests, codicils remain revocable during your lifetime. Regardless of your charitable plans, it is important to regularly review your will and make sure it meets the changing needs of you and your family.
Please consult with your legal counsel to help you with your will or trust.
Donating appreciated securities (stocks, bonds, or mutual funds held by you for more than one year) can allow you to reduce or avoid more capital gains taxes and receive a federal income tax charitable deduction. Designating South County Outreach as the beneficiary of your securities is another way to donate. This type of gift can be especially appealing if you are holding shares that have appreciated significantly in value but yield a low dividend.
If you have excess life insurance, you may enjoy tax benefits by designating the South County Outreach as the beneficiary of an existing life insurance policy. In order to deduct premium payments as charitable deductions, the donor must name South County Outreach as both owner and beneficiary of the policy.
Retirement Plan Assets
After a person’s passing, qualified retirement plan assets may be subjected to both estate tax and deferred income tax, which combined can exceed 80 percent. You can designate South County Outreach as a tax-free beneficiary of the remainder of your IRA, Keogh, tax-sheltered annuity, qualified pension, or profit-sharing plan. A charitable gift of insurance proceeds or the remainder of retirement plan assets is normally deductible from a donor’s estate.
Tax-Free IRA Contributions
People over the age of 70-1/2 can donate as much as $100,000 from their IRAs and Roth IRAs to South County Outreach, tax-free. These IRA distributions can count toward the required minimum distribution that IRA holders who are 70½ and older must take from their accounts each year. If the distribution is contributed directly to the South County Outreach, then the donor is not required to pay income taxes on the withdrawal. This process must be conducted through your IRA custodian or representative.
If you have included the South County Outreach in your will, please let us know so that we can thank you. Contact Lara Fisher at 949-380-8144, ext. 202.
Please consider this site as an informational resource to help you in meeting your philanthropic goals. The information provided here is for illustrative purposes only and should not be considered investment, legal, accounting, tax or other professional advice.