PLANNED GIVING2019-11-26T15:28:21+00:00


Bequests: A simple and very popular way to make a significant future gift to Grace Place is to include it in your Will. You may state that Grace Place will receive a percentage of your estate, a fixed dollar amount, or the residue of your estate. We can assist you with the proper wording for this type of gift.

Life Insurance: 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 Grace Place, if we are named as a beneficiary of the policy at the time of your death.

IRA and 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 Grace Place. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 39.6 percent. This means that an IRA worth $100,000 will be worth only $60,400 by the time it reaches them. On the other hand, the naming of a charity as the beneficiary of retirement assets upon death generates no income taxes. The charity is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that in the above example, Grace Place would receive the full $100,000 benefit.


On December 17, 2015, the Senate passed the Protecting Americans from Tax Hikes Act (PATH). The bill was signed into law on Dec. 18th by President Obama and includes a number of provisions that are favorable for philanthropy and charitable giving. Charitable gifts using IRA distributions: The new law permanently allows IRA owners age 70½ and older to make a “Qualified Charitable Distribution” – which is excluded from income tax (up to $100,000 per taxpayer per year) – to a qualified charity, such as Grace Place for Children and Families. This action allows owners to convert otherwise taxable “Required Minimum Distributions” into non-taxable “Qualified Charitable Distributions.” This distribution means no increased taxable income or payment of additional tax.   Donors are provided with the following gift options:

You can turn a 2015 Required Minimum Distribution into a Qualified Charitable Distribution. Individuals who have already made a Qualified Charitable Distribution in 2015 to Grace Place for Children and Families will receive a letter in January reconfirming this distribution for their tax records. Gifts must have been sent from the donor’s IRA custodian directly to Grace Place for Children and Families. This donation qualifies as a 2015 direct IRA donation and is not subject to 2015 income tax and may fulfill all or part of your Required Minimum Distribution.

You may now make a Qualified Charitable Distribution from your IRA any time from this point forward. Individuals may make a Qualified Charitable Distribution to a charity such as Grace Place for Children and Families at any time. The gift must be sent directly from the IRA custodian to a qualified charity, such as Grace Place for Children and Families. The gift qualifies as a direct IRA donation and is not subject to income tax and may fulfill all or part of your Required Minimum Distribution. We are happy to provide you with a sample letter that you can email to your IRA administrator to make this gift. Just reply to this email requesting the sample letter language.

Gifts through this process cannot be made from 401(k) or 403(b) accounts and cannot be made to charitable remainder trusts, gift annuities, or donor advised funds.


Charitable Gift Annuity: Charitable Gift Annuities are simple contracts that pay the donor a fixed percentage based on their age at the time of the gift. Lifetime income and tax benefits are valued by donors of charitable gift annuities. Custom illustrations can be made for you at no charge.

Charitable Remainder Trust: Similar to charitable gift annuities, charitable remainder trusts also pay lifetime income to the donor and provide tax savings. The advantages of charitable remainder trusts are the options not afforded charitable gift annuities, such as setting a fixed percentage, setting a fixed annual payout amount and opting for “make up” provisions.  

Charitable Annuity Trust: Similar to charitable remainder trust, these gift plans provide lifetime income, tax savings and pay to the donor a fixed percentage of the trust’s value. Additional options are available.


Marianne Lambertson