Giving Through a Donor Advised Fund (DAF)
A DAF is like a charitable giving account that you set up through a sponsoring organization such as a community foundation or financial institution (Fidelity Charitable, Schwab Charitable, Vanguard Charitable, etc.). You contribute to the fund, receive an immediate tax deduction, and then recommend grants to charities over time.
Benefits of Giving Through a DAF:
- Immediate Tax Deduction: You receive a tax deduction in the year you contribute to your DAF, even if you distribute funds to charities later.
- Simplicity: Manage all your charitable giving from one place without tracking multiple receipts.
- Flexibility: Recommend grants on your timeline, whether now or in the future.
- Privacy: You can choose to give anonymously if you prefer.
- Invest and Grow: Funds can be invested, potentially increasing the amount available for charitable giving.
DAF Direct makes it easier to support your favorite charities by giving directly from your donor-advised fund.
Other Common Ways to Give
Beneficiary on Account
Beneficiary on Account is another way you can support the PMHS. An easy way to make a gift is to designate Pope Memorial Humane Society as a beneficiary on a bank account or IRA. These are called Transfer on Death or Payable on Death forms for bank accounts. By establishing a beneficiary, the accounts are also removed from probate.
Life Insurance Policies
If you have life insurance policies that you bought years ago for reasons that no longer apply, consider donating their value to PMHS.
Benefits include:
- Cost of a gift of life insurance is small compared to the leveraged benefit of the face amount of the policy.
- The cash value of your policy may qualify for an immediate income tax charitable deduction.
- You will have the potential to make a significant and lasting impact to a program of your choosing.
Charitable Bequests
Charitable Bequests allow you to make a gift to the shelter in one of three different ways: specific bequest, percentage bequest, and residuary bequest. You can choose to make the gift unrestricted, restricted, in honor or memory of, or as an endowed gift.
How To Include Pope Memorial Humane Society In Your Will
You do a wonderful service when you include PMHS in your will. Your gift will assure that outstanding care will continue to be provided for the homeless animals of Strafford County into the future.
Your bequest to PMHS may be expressed in these words in your will:
“I bequeath the sum of $(insert amount) to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
or
“I bequeath the (insert percentage)% of my estate to Pope Memorial Humane Society a not-for-profit organization with tax identification number 22-2561784 located at 221 County Farm Road, Dover, NH 03820 to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
or
“I bequeath the residue of my estate to Pope Memorial Humane Society a not-for-profit organization with tax identification number 22-2561784 located at 221 County Farm Road, Dover, NH 03820 to be used by said organization to meet the most immediate needs of the institution, as determined by the governing board.”
The following language restricts the funds:
“This fund is to establish an endowment fund to be known as (name the fund) the income from which shall be used for (state specific purpose of the fund). If Pope Memorial Humane Society (“PMHS”), in its sole judgment, determines that the original intent is no longer feasible, or if the amount of my bequest is insufficient to establish a separate restricted fund, PMHS may use my gift and the income therefrom for such related purposes as, in its sole judgment, will most nearly fulfill the original intent.”
Endowments
Endowments are established in perpetuity for a specific purpose, stated by the donor. Endowments blend donors’ visions with the needs and objectives of the shelter. By working together, the Development Director, Executive Director, and the benefactor create a distinctive endowment that reflects their common goals. Endowed funds provide support that is reliable, because it is perpetual; earnings from an endowed fund are used to carry out the donor’s purpose while the principal is safeguarded.
Named Endowments
A named endowment is a gift to the shelter which is permanently invested. The investment return is used each year to support projects or priorities specified by the donor. The principal remains intact and professionally managed for growth and income. The endowment can be named to honor the donor, relatives, or other special friends.
Charitable Remainder Trusts
Enables you to place cash, securities, or real estate into a trust that pays lifetime income to you and/or to other beneficiaries, with the trust principal eventually passing to Pope Memorial Humane Society.
Retained Life Estate
Allows you to make a current gift of a personal residence or vacation home to Pope Memorial Humane Society while retaining the right to live in your personal residence or use your vacation home for your lifetime.
For a retained life estate, you give Pope Memorial Humane Society your personal residence or vacation home and then continue to live there for the rest of your life. We will own the house, but you will continue to be responsible for its ongoing taxes, structural maintenance, and upkeep. And we mutually agree upfront about what we will do if you no longer wish to live in the house or become physically unable to continue living there.
You will receive a charitable deduction based on the fair market value of your home minus the present value of the life tenancy you have retained.
With a retained life estate you make a significant gift to Pope Memorial Humane Society with the most valuable asset you hold, without disturbing your cash flow or your living arrangements.
Retirement Assets
Donating retirement assets is one of the most cost-effective gifts that you can make. If you leave your assets in retirement accounts to children or other heirs, these funds will be included in your taxable estate for federal estate tax purposes. Additionally, beneficiaries must also include any withdrawals they receive from retirement accounts in their taxable income. So both estate taxes and income taxes are charged on the same asset.
If you can make other provisions for your family, leaving retirement assets to PMHS is a great way to make the most of these funds that you have accumulated.