About the Legacy of Hope
The Mary Rigg Legacy of Hope is the Charitable Bequest Society honoring and thanking donors who have planned a legacy gift in their estate plan that supports Mary Rigg Neighborhood Center. In continuing the legacy of the center’s namesake, Mary Rigg, the Legacy of Hope will ensure that residents in Indianapolis will continue to receive help, hope, and opportunity well into the future.
Why should I/We create our Legacy of Hope at Mary Rigg?
By creating your Legacy of Hope with Mary Rigg Neighborhood Center, you are ensuring that your dedication, passion, and philanthropic philosophy will continue to assist those in Indianapolis.
What is Considered a Legacy Gift?
Legacy Gifts are special gifts made with the sole purpose to allow those who have supported Mary Rigg Neighborhood Center currently and over the years, will continue to impact lives in Indianapolis for far longer. These types of gifts are typically categorized in four general groups; gifts that give now, gifts that give later, gifts that provide income to the donor, and gifts that give forever.
A Planned Gift Now
Charitable Lead Trust (CLT) – This type of trust pays income annually to Mary Rigg for a period of years that are determined by the donor. Once completed, the gift can either revert to the donor or their heirs.
Benefits of the CLT is that this gift is returned to the donor or their heirs at a reduced tax cost. The donor receives gift or estate tax savings for the value of the payments made. The trust pays tax on its income and capital gains and, it also deducts the amounts paid to the charity.Additionally, the amounts paid to the organization can be a percentage or fixed amount of the trust.
A Planned Gift Later
Wills and Bequests – Of all planned giving, this is the simplest.All you have to do is name Mary Rigg in your will. This allows you to plan for your family as you wish and designate a percentage or fixed amount to the organization. There may also be an estate tax deduction for the full amount of the bequest.
You can add Mary Rigg to your will by using this suggested bequest language:
“I give Mary Rigg Neighborhood Center, Inc, Indianapolis, IN, tax ID #35-0868954 (____ percent of the residue of my estate) or (the sum of $______).”
Life Insurance – While not the most common, naming Mary Rigg as the beneficiary of a new or existing life insurance plan can be done by completing a form with your life insurance company. This gift allows you to make a large gift with little expense, there are no tax deductions, and there is no estate tax when the insurance proceeds are paid to the charity.
Retirement Plans – Think Individual Retirement Accounts (IRAs, 401k, and 403b).Like the others in this category, you simply name Mary Rigg as the beneficiary of the account. And, if the retirement plan assets pas from the plan to a charity, both income and estate taxes may be avoided.
A Planned Gift that Gives Back to the Donor
Charitable annuities and trusts are more complex ways to support Mary Rigg. They can be structured in ways that meet your specific needs. Three of the most common ways to give through trusts are: Charitable Gift Annuities, Charitable Remainder Trusts, and Charitable Lead Trusts.
Charitable Gift Annuity (CGA) – This type of planned gift is actually a contract.In the contract, the donor transfers cash or stock and the organization pays the donor a percentage of the gift annually for the donor’s lifetime. This is a great option if someone wishes to received a form of fixed income. A portion of each payment is a return of the donor’s principal and is free from income tax. Additionally, the capital gains tax is reduced and spread over a donor’s lifetime with this particular trust.
Charitable Remainder Unitrust (CRUT) – The difference between the Charitable Remainder Unitrust and a Charitable Gift Annuity is that pays a variable income (a fixed percentage) to the donor or other beneficiaries for the donor’s life or for a specific term up to 20 years. The CRUT is beneficial to donors who are looking for a potential increase in annual income and would like a partial tax deduction.CRUTs are also a nice option because there are no capital gains taxes paid when assets are transferred into the trust and there are possible estate tax savings.
Charitable Remainder Annuity Trusts (CRAT) – The Annuity Trust option is similar to the Remainder Unitrust when in comes to most benefits to the donor: partial income tax deduction, go capital gains tax when the assets are transferred into the trust and there is the estate tax savings possibility. However, with CRATs, the trust will pay the donor or other beneficiaries a fixed dollar amount for their lifetime or a specific term for up to 20 years. This means there is no possibility of an increase in annual income that comes with the CRUT.
A Planned Gift that Gives Forever
Permanent Endowment Gift - If you are looking to give a gift that keeps on giving, donors may wish to consider a permanent endowment gift in their family’s name. This type of gift ensures that your gift will continue to make an impact at Mary Rigg as long as we are in existence. This type of gift is also used to provide a permanent source of income with the stipulation that the invested amount is kept intact and only the income generated is used by Mary Rigg.Often, permanent endowments are created as part of an estate plan and are considered “Legacy Gifts” honoring or memorializing a beloved family member or other important persons involved in an organization.
Endowments are established by a gift to Mary Rigg in the amount of $50,000 or more. Once received, the funds are invested using the Mary Rigg’s board approved investment policy.Distributions are then made by the financial institution and used by the organization to support the overall programming and costs associated with Mary Rigg’s mission.
How will I/We be recognized for Creating my/our Legacy of Hope?
Once we receive your written commitment to support Mary Rigg through a planned gift, you will be recognized as a member of the Legacy of Hope through:
Whichever way you choose to create your Legacy of Hope, rest assured that your personal, financial, and estate planning goals will be fulfilled. Your Legacy of Hope commitment will show your lifetime commitment to the families and individuals served at Mary Rigg.
The Fine Print
The information presented in this booklet is not offered as legal or tax advice. Mary Rigg is not engaged in legal or tax advisory services. For advice or assistance in specific cases or to make certain contemplated gifts that fit well into your overall planning, the services of an attorney or other trusted professional financial planner should be obtained.
We offer only general gift, estate, and financial planning information. Watch for federal tax revisions (IRS Publication 526 – Charitable Contributions), state laws governing wills and charitable gifts before entering your contractual agreement.