Planned Giving

Your Guide To
Planned Giving

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How A PlAnned Gift Benefits You



the benefits go both ways Consider these advantages Your Giving options
A gift to Desert AIDS Project
of various gift plans:
We understand that your own
(D.A.P.) provides you with far
• Current income tax deduction financial needs and those of
more that just the satisfaction of
• Avoidance of long-term
your loved ones come first. And
knowing that you’re helping us
capital gains
with planned giving options,
continue to provide services to
• Increase in income and
everyone wins; you provide for our
those infected with or affected
effective rate of return
needs later, and we provide
by HIV and AIDS. Because the
• An added bonus of planned
for your needs now.
donation of your assets to D.A.P.
gifts is that they allow good

is on a time-deferred basis, you
things to happen for your heirs We encourage you to explore
could receive very real financial
as well
the possibilities and opportunities
benefits during this period.

for creative gift planning that

Without eroding the estate,
Your planned gift could
planned gifts often cut the taxes
are discussed in this booklet.
provide a lifetime
imposed on it. That is why gift
With your legal and tax advisors,
of income
we can help you create a


planning is such a vital part of
plan that suits your personal
Depending on your particular
another process: estate planning.
circumstances and blends your
circumstances, your gift plan
philanthropic giving with your
might begin improving your tax

financial needs and tax planning.
situation almost immediately. In

fact, life-income planned gifts

al ow you and any designated


beneficiaries to receive lifetime
income from the investment of the
Planned gifts provide you with a
assets you donate.

way to help yourself, your loved




ones and Desert AIDS Project.
















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tHe need for An estAte PlAn
Estate planning is deciding
And there are other factors.
buy-sel agreements, joint
what will happen to your
What wil happen to any business
ownership, a living will, a durable
possessions and your heirs after
enterprise in which you have an
power of attorney and
your lifetime. Almost everyone
interest? Are there charitable
deferred employee benefits/
needs an estate plan, even
organizations you favor that
retirement plans.
though many people think estate
could use help from your estate?

planning is only for the very

How to Begin
wealthy. But the more modest
the tools of
The first step of every estate
your estate, the more important
estate Planning
plan is to compile an inventory
it is to arrange for its careful
A good estate plan includes
of personal data — the current
handling and disposition. Plus, if
various instruments to ensure
value of al your assets, how they
you examine all of your assets, you the job is done right. The tools
are owned, your liabilities, and
wil probably find that your estate
of estate planning are written
names and addresses of intended
is bigger than you think. Perhaps
documents that precisely indicate
estate beneficiaries. The planned
the most important reason for
your intentions, then provide
giving officer at Desert AIDS
making an estate plan, however, is the powers to accomplish them.
Project can get you started in
that it gives you the peace of mind Elements of an estate plan include the right direction. Then, see an
that you are doing al you can to
a wil , trusts, life insurance policies, attorney who specializes in estate
benefit those you care about most.
planning for more information.


setting estate

Planning Goals

Act now to secure
In setting goals, first ask yourself
financial success.
whom you want to benefit. Your

number one concern is most likely
your loved ones. They might have

to face new and heavy burdens

without you. How can you keep

taxes and administration costs

to a minimum so that your loved

ones receive your assets intact?





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wHY Your will is so imPortAnt
Procrastinating about creating what should my
How Can i set up a
or updating a will occurs for
will do for me?
will that Benefits the
many reasons. You may think it
To begin with, your wil al ows
most People?
costs too much to make a wil .
you to give specific possessions
We recommend you obtain
Perhaps you are having a hard
and amounts of money to
the professional counsel of a
time deciding about how to leave
whomever you wish. What remains lawyer who specializes in probate
your money. Or, you may simply
is the residue of your estate, which and estate planning. If you are
have an aversion to confronting
you can then give in various
considering a gift to Desert AIDS
your mortality. Many people
proportions to your partner,
Project, our planned giving officer
wonder how the benefits of a
children, relatives, friends and
wil be glad to help you and
wil can outweigh the headaches
charitable organizations. Also,
your attorney design the best
mentioned above, and the
your wil lets you choose an
plan for your wishes, financial
fol owing questions are common
executor who is capable of
circumstances and tax concerns.
ones. We have provided the
settling your estate.
answers to help you see that a

wil is a privilege you should

not dismiss lightly.



why is a will even

necessary?

Your wil is a way to be sure all

of your property wil go to those

relatives, friends and organizations
you care about most. Without

a wil , the state wil decide who

gets what, without consulting

anyone or considering the special

needs and financial circumstances
of your particular situation.






Bring us your gift planning questions.
We will help you find the answers.
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How to fund A Gift
Your primary reason for a gift
If you contribute long-term
Personal Property
is probably your desire to support
appreciated securities to us,
This category includes items
the goals of Desert AIDS Project to you get a twofold income tax
like an art object, prized col ection
continue providing much needed
benefit—you can deduct the full
or antiques. You can donate such
funding. But a gift to Desert AIDS
present fair market value, and you property to Desert AIDS Project
Project also has tangible personal
owe no tax on the appreciation in
and take a deduction for its full
benefits for you, and these
value. The limit on deductibility
fair market value if the item’s use is
benefits vary depending on what
in any tax year is 30 percent of
related to our exempt function.
assets you use to fund your gift.
your adjusted gross income, but
But if you are unable to establish

any excess is deductible over the
that we can use the gift property
Gift of Cash
next five years. If you want to give
for a purpose related to our
This is the simplest way to give.
us securities on which you have a
function, you can deduct
However, for income tax purposes, loss, consider selling them instead only the cost basis.
you must deduct the cash gift in
and then donating the proceeds

the year in which you contribute
to Desert AIDS Project. That way,
find out more
it. Your cash gifts are deductible
you wil have a loss deduction
A contribution of any
up to 50 percent of your adjusted
to offset any gains on sales,
type of asset to Desert AIDS
gross income for the taxable year,
plus you wil stil get your
Project results in an income
but any excess is deductible over
charitable deduction.
tax deduction. But remember,
the next five years.

there may be other tax benefits


to your contribution as well.












What you receive




depends


on what you give.




Gift of securities
Gift of tangible
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You Are in Control witH A liVinG trust
A living trust lets you provide
• The beneficiaries you name to
for yourself and your loved ones
receive the trust remainder
before and after your death. It
after your lifetime (such as
has built-in flexibility because it
your partner, children, other
al ows you to stay in control of
individuals or a charitable
your assets. Living trusts are ful y
organization like Desert
revocable, so you can change or
AIDS Project can receive an
terminate them at any time during
outright distribution, or the
your life. With an irrevocable trust,
assets can continue in trust.
you give up this power, general y
• A living trust cuts probate
in order to save income taxes.
costs; because none of the
But even though you reserve the
living trust assets are included
right to change your mind, the
in your probate estate,
possibility of major estate tax
probate costs and

A living trust can take
savings remains with a living trust. delays are reduced.

• The terms are private, so
effect immediately, so
Benefits of a revocable
the details about the
living trust
beneficiaries and assets of
you benefit now.
If you make yourself the initial
a living trust usual y do not
beneficiary, you receive the
enter the public record.
income from the trust assets. Plus:
• You are in charge, so you have learn more About
the right to set the investment Your options
objectives, add or withdraw
During your lifetime, either
principal, change the terms
a revocable living trust or an
of the plan, or even change
irrevocable plan is a superb
the ultimate beneficiary,
way of arranging a contribution
at any time.
to us. Irrevocable trusts give
• You can turn over the
you an income tax charitable
responsibility of investment
deduction immediately, but if
management to a
it is flexibility you desire, then a
professional trustee,

living trust may be right for you.
freeing you from day-
to-day financial worries.
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Put Your life insurAnCe to worK
When you first bought your
• You can also use life

• Name us a beneficiary, but
insurance policies, you obviously
insurance to replace,

keep ownership, and you
felt a need for them. But perhaps
for your loved ones, the
retain control of your policies.
you do not need all that life
value of a different gift to
• Create a trust to receive the
insurance coverage today. Yet, you Desert AIDS Project.
policy proceeds. Then the funds
stil have those policies.

are invested for a loved ones

would You rather Keep it? support after your lifetime; when
An easier way to Give
We realize that if you stil need
that person dies, the trust
If you are thinking about a
your life insurance for your future
remainder can be paid to us.
contribution to Desert AIDS
financial security or that of your

Project, a gift of your life insurance loved ones, those concerns come
These plans wil not entitle you
could be a sensible as wel as
first. But here are ways you can
to an income tax deduction, but
generous course of action:
safeguard personal requirements
they wil satisfy your natural desire
• You save taxes this year
and stil remember Desert
to use the policies for personal
through an income tax
AIDS Project:
and loved ones responsibilities as
charitable deduction when
• Name us the contingent
long as required and to support
you name Desert AIDS Project
beneficiary, with D.A.P. receiving our work. You can use your life
the beneficiary and

the proceeds should your
insurance to support our mission.
assign us ownership.
primary beneficiary

• You increase spendable income predecease you.
when you no longer have to

pay policy premiums.

• Or make the gift and continue

paying the premiums, then you
can claim the premium amount
as an annual tax deduction.

• You reduce estate taxes

because the proceeds are

completely removed from

your taxable estate so long as

you do not retain any incidents
of ownership.



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donAte Your retirement PlAn Assets
Did you know that your
Your retirement Plan may many ways to Give
retirement plan assets are facing
offer tax Advantages
If you have already provided
double taxation? If you leave
Individual account plans —
for your loved ones in your
the assets to your heirs, you will
such as an IRA, Keogh or 401(k)
estate plan, simply name us as
generate “income in respect of
account — resemble tax-sheltered the primary beneficiary of your
a decedent.” So not only is the
savings accounts. If a participant
retirement assets. But if you want
amount diminished by estate
dies before the entire account has
to make sure you do not
taxes, but the recipient also
been distributed, the remaining
shortchange those closest to
must pay income taxes on it!
balance can be transferred to an
you, here are a couple of other
Undoubtedly, your decision of
heir or to a charitable organization possibilities:
who gets the remainder depends
like Desert AIDS Project. The
• Designate a specific amount
on your loved one’s circumstances; principal advantage of donating
to be paid to us, before the
their needs come first. But if you
retirement plan assets to us is that division of the remainder
can make other provisions for
you avoid al income and estate
among loved ones.
them, there is a better option for
taxes, whereas giving the assets to • Name us the beneficiary of
your retirement plan assets —
individual heirs may trigger
part, or even all, of the balance
a charitable gift.
a total effective marginal tax rate
remaining after your partner’s

that is incredibly steep —
or another beneficiary’s lifetime.

even exceeding 75%


in some cases.
To implement your wishes,


advise the plan administrator


of your decision and sign whatever


form is required. For an IRA or


Keogh plan you administer


personal y, notify the custodian


in writing, and keep a copy


with your valuable papers.





















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CHoose tHe Gift oPtion tHAt mAtCHes Your GoAls

Avoid the two-fold taxation on IRAs
or other employee benefit plans
Make a gift of property no longer needed
and generate an income tax deduction
Secure a fixed and often increased income,
or create a hedge against inflation
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Gifts And Benefits

• Donation exempt from federal estate tax
• Control of your assets for your lifetime
)

• Immediate income tax deduction
• Removes property from estate

• Immediate charitable deduction
• Avoidance of capital gains tax

• Charitable deduction based on the
full market value

• Al ows you to make the gift from the most
highly taxed assets, leaving better assets
for family

• Current income tax deduction
• Possible future deductions through gifts
to pay policy premium

• Valuable charitable income tax deduction
• Lifetime use of residence

• Immediate income tax deduction
• Reduction or elimination of capital gains tax

• Variable or fixed income for life
• Immediate income tax charitable deduction

• Reduces your taxable estate
• Property kept by your family, often with
reduced gift taxes
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