Planned Giving

A Gift in Your Will


We hope you'll consider including a gift to Ronald McDonald House Charities of the Coastal Empire in your will or living trust. Called a charitable bequest, this type of gift offers these main benefits:
• Simplicity. Just a few sentences in your will or trust are all that is needed. The official legal bequest language of RMHC is: "I, [name], of [city, state ZIP], give, devise and bequeath to Ronald McDonald House Charities of the Coastal Empire, Inc., [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
• Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
• Versatility. You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.
• Tax Relief. Your estate is entitled to an estate tax charitable deduction for the gift's full value.
How It Works
To make a charitable bequest, you need a current will or revocable living trust. Your gift can be made as a percentage of your estate. Or you can make a specific bequest by giving a certain amount of cash, securities or property. After your lifetime, Ronald McDonald House Charities receives your gift.
Putting Your Family First
When planning a future gift, it's sometimes difficult to determine what size donation will make sense. Emergencies happen, and you need to make sure your family is financially taken care of first. Including a bequest of a percentage of your estate ensures that your gift will remain proportionate no matter how your estate's value fluctuates over the years. Consulting an estate planning attorney is a smart investment that can save you and your family money and heartache in the long run. Please seek legal advice before deciding who will get what in your estate plan.

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Gifts of Stock


A stock portfolio is often among the most valuable assets you own—and one that can carry substantial capital gain, or appreciation in value. With careful planning, you can reduce or even eliminate federal capital gains tax while supporting our work. Read on to see why donating stock can offer even more tax benefits than writing a check.
How It Works
As stock prices increase, so do the taxes you owe on the long-term capital gain, which are generally charged at a rate of 15 percent (0 percent if you are in the 10 and 15 percent tax brackets) through 2010. But when you donate publicly traded stock you've owned for more than one year to a qualified charitable organization such as RMHC, you enjoy two major tax benefits:
• You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
• You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.
The income tax deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.
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IRA &  Retirement Plan Beneficiaries


Most retirement plans, including 401(k)s and IRAs, are income tax–deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones.
Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt charitable organizations such as RMHC. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 35 percent. This means that an IRA worth $100,000 will be worth only $65,000 by the time it reaches your heirs.
On the other hand, the naming of a charity as the beneficiary of retirement assets upon death generates no income taxes. Ronald McDonald House Charities is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that in the above example, RMHC would receive the full $100,000 benefit.
Changing Beneficiaries
To name or change a beneficiary, simply contact the administrator of the IRA or retirement plan for a change of beneficiary form. If you would like to name Ronald McDonald House Charities as beneficiary, simply decide what percentage of the plan's value (0 percent - 100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to the administrator of the plan.
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Life Insurance Policy Beneficiaries


Life insurance is a popular method of providing much-needed funds to a beneficiary at your death. It is also a low-cost way to provide a large benefit for someone in need. Life insurance proceeds are almost always income tax–free to the beneficiary. The beneficiary designation in your life insurance policy determines where the proceeds will be distributed. The death proceeds, therefore, are not typically transferred through your will. Life insurance can be distributed to a charitable organization such as Ronald McDonald House Charities, if we are named as a beneficiary of the policy at the time of your death.
Changing Beneficiaries
Contact your insurance company for its change of beneficiary form for the life insurance policy. If you would like to name RMHC as a beneficiary, simply decide what percentage of the policy's value (0 percent - 100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to your insurance company.

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Insurance Annuity Beneficiaries


Insurance annuities, unlike life insurance, carry an income tax burden. Your named beneficiary is responsible for paying the income tax due on the growth of the annuity while you owned it. The tax burden makes these assets a popular choice to leave to a charitable organization like RMHC because we, as the recipient, can eliminate the tax bill.
Changing Beneficiaries
Contact your insurance company for its change of beneficiary form for the insurance annuity. If you would like to name Ronald McDonald House Charities as a beneficiary, simply decide what percentage of the annuity's value (0 percent - 100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to your insurance company.
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Charitable Remainder Trusts


With a charitable remainder trust, you can receive income each year for the rest of your life from assets you give to the trust you create. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the charities of your choice.
Your Possible Benefits
• A partial charitable income tax deduction
• Potential for increased income
• Up-front capital gains tax avoidance
• Professional management of trust assets available
Choose Between 2 Main Types
There are two types of charitable remainder trusts:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
Example: Elizabeth, 76, owns several stocks worth $100,000 that currently pay dividends of only $2,000 a year. She decides to give these stocks to a charitable remainder annuity trust. She will qualify for a partial income tax deduction of $46,587, receive $6,500 a year and provide a future gift to a qualified charitable organization.
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Charitable Lead Trusts


Do you want to benefit from the tax savings that result from supporting Ronald McDonald House Charities, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.
How It Works
You give assets to a trust that pays Ronald McDonald House Charities an income for a number of years, which you choose. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to your family or other beneficiaries you select.
This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal tax cost. This type of charitable lead trust (also called a nongrantor, or family lead, trust) is especially appealing to Ronald McDonald House Charities supporters who are financially comfortable enough that they can forgo investment income on some assets.
Fixed or Variable Charitable Payments?
A charitable lead trust can make payments in one of two ways: a charitable lead annuity trust pays a fixed amount each year to Ronald McDonald House Charities, whereas a charitable lead unitrust (the less common type) pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, the payments to our organization go up as well. On the other hand, if the assets decrease in value, so do our payments.
Example
Assume your estate is subject to estate taxes in 2011. Assuming no further changes from Congress, for each $1 million over the threshold that you leave to your family, estate taxes could consume up to $550,000 and your heirs will get $450,000. With a lead trust, you can transfer $1 million to your heirs—albeit after your death—leaving only $107,3702 subject to tax, instead of $1 million.
To accomplish this, you create a $1 million lead trust from your estate (a testamentary charitable lead trust) that will pay a qualified charitable organization $70,000 annually for 17 years. When the trust ends in 17 years, the remaining trust assets will go to your named beneficiaries.
This is just one example. The size of your trust and its terms are up to you.
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Endowed Gifts


Each year we rely on your generous support, along with the gifts of many others, to help us carry out our work.
But have you ever thought about what will happen after you die? Without special measures, your support will die with you. To ensure our programs and funding do not suffer, please take time now to consider leaving an endowed gift—an enduring statement of your support.
How It Works
When you make an endowed gift, only a small portion of your gift will be spent, allowing the remaining amount to continue growing. That portion of your gift will supplement our programs forever.
You can give cash, securities or other assets to an endowment you create. Or, you can contribute to our organization's already established endowment.
Example: Let's say you would like to make sure a qualified charitable organization receives $1,000 every year after your lifetime, and the organization spends 4 percent of its endowment each year. This means that the organization spends that amount and any earnings over that are reinvested in the fund for future growth.
To calculate the amount needed to perpetuate your gift, divide the annual gift amount, $1,000, by the amount called for in the spending policy, 4 percent, and you get $25,000. So, contributing just $25,000 can continue your $1,000 annual gift indefinitely!

Endow Your Gift1

If your annual
gift is:

Perpetuate it by giving:

$100

$2,500

$250

$6,250

$500

$12,500

$1,000

$25,000

$2,500

$62,500

$5,000

$125,000

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