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Planned Giving

As you plan for your future and the security of loved ones, Habitat for Humanity has numerous planned giving options that allow you to make a meaningful gift to support the ministry’s home building after your lifetime. Some of the most popular methods are described below. Please consider this information as a starting point. The most effective planned gifts are made in coordination with an estate plan.

Traditional Legacy Gifts

Cash

Nothing could be easier than making a gift of cash to Habitat for Humanity. All cash donations are deductible, if you itemize in the year of contribution, up to 50% of your adjusted gross income. Any excess deductions can be carried forward for the next 5 years. You can make year-end gifts, or make a gift in memory or in honor of a friend or loved one.

Life Insurance

Do you have life insurance policies that are no longer needed? You may either donate the life insurance policy to us, or simply name us as the beneficiary.

Bequests

Bequests are the most popular type of planned gifts. Anything you leave to Habitat for Humanity will reduce the size of your taxable estate while helping a great cause. You can leave to us a specific bequest of a predetermined sum of money or a particular piece of property. Other options are to leave a percentage of your estate or a percentage of the residual to us after making provisions for family and friends.

Securities

A gift of appreciated securities, either publicly traded or from a closely-held company, may provide you with greater tax advantages than a gift of cash. Under current tax regulations, you may deduct the current fair market value as a charitable gift and avoid capital gains tax on the appreciation.  (Please contact your financial advisor or tax preparer for information.)

For more information regarding gifts of stock, or for instructions on how to make a transfer, please call Erin Eaton, Director of Development at (920) 967-8883.

Bank Accounts & Certificates of Deposits (CD's)

Are you aware that you can name us as the “payable-on-death beneficiary” of your bank accounts or on certificates deposit? You own the assets for your lifetime and have them available for your use. Upon your death, the assets pass directly to us without going through probate. Simply visit your bank and request the necessary forms to name a beneficiary on your accounts or CDs.

Retirement Plan Assets

Because our tax laws often subject retirement plan assets to the highest combined income and estate taxes, charitable donations of these assets may be the most efficient estate planning option.

Real Estate

A gift of real estate offers you the opportunity to make a significant charitable contribution with a tax-friendly outcome. There are several ways to donate real estate depending on your situation.

Outright Gift

An outright gift may be the simplest solution if you own property that is not mortgaged, has appreciated in value and that you no longer need or use, such as a second home or vacation property. You can deduct the fair market value of your gift and avoid all capital gains taxes. Plus, you no longer have to worry about the costs of continued ownership, and you have removed that asset from your taxable estate.

Retained Life Estate

Did you know that you can transfer the deed of your personal residence or farm to us now and keep the right to use the property for your lifetime and that of your spouse? You will receive a current charitable deduction in an amount that is based upon your and your spouse’s life expectancy and the value of the property.

Bargain Sale

A bargain sale can generate a gift that is less than the full fair market value of the property. In this scenario you sell the property to a charitable organization at less than its fair market value. The difference between the sale price and the fair market value is your charitable deduction. While the tax rules relating to a bargain sale are somewhat complex, the net result is often more favorable than selling the property at fair market value and making a charitable contribution from the realized capital gain.

Gifts that Give Back to You

There are several ways you can make a significant future gift to us while retaining, or in many cases increasing, the income you receive from the asset. We would be happy to discuss any of these methods with you in more detail or share sample illustrations of how a life income gift can benefit you first, then eventually us.

Charitable Gift Annuity

This is a simple contract between you and a charitable organization that pays you a fixed dollar amount (an annuity) for your lifetime and that of another individual, if desired, based upon your age(s) at the time of your gift. The older you are, the higher the annuity. If you use appreciated property to fund the gift annuity, you will escape the capital gains tax on the gift portion of the transaction and the remaining gain will be apportioned over your lifetime. This is a wonderful way to increase income from stocks that pay small dividends and carry heavy capital gains.

Charitable Remainder Trust

A charitable remainder trust is a trust that will pay the donor (and one or more other named beneficiaries, if desired) a fixed or variable income depending on the type of trust selected. The payments are made either for life or a period of time not to exceed 20 years. The annual payments cannot be less than 5% of the initial fair market value of the trust. At the end of the trust’s term, the balance in the trust helps support our mission.

Charitable Lead Trust

This type of charitable trust pays income to one or more charitable organizations, typically for a period of years, and then the remaining assets of the trust pass to non-charitable beneficiaries, such as family members. While this type of trust usually does not provide a current income tax deduction, it can effectively pass property to family members at a reduced estate and gift tax costs.