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The Difference for Children
reasons that people give are as diverse as the philanthropists
themselves. The ways to give to Love Our Children USA are varied and can be tailored to each individuals situation.
Philanthropists make major gifts with various objectives.
Be sure to review with a competent financial, tax and
estate planner to determine the method, or mix of methods,
that makes the most sense for structuring a specific gift.
thoughtfully planned estate gift can help us reach those
who are most at risk: America's Kids! The effect of your
gift will go well beyond children. Your influence will
extend to educating parents, childcare givers, and the
general public. Your contribution can significantly advance
our mission throughout the country.
Planned or legacy giving is an increasingly popular way
for individuals to make charitable gifts, enabling a donor
to arrange charitable contributions in ways that maximize
his or her personal objectives.
Private philanthropy is the foundation
of almost every nonprofit organization, including Love
Our Children USA. To preserve the memory of a loved one,
to fulfill a moral obligation, to express gratitude for
a service well-performed, to demonstrate deep felt humanitarian
concerns -- these are some of the reasons hundreds of
thousands of people each year contribute to charitable
on the state, the asset given and the gift arrangement
selected, a donor can generally expect to obtain some
or all of the following benefits:
Fulfill personal philanthropic goals
- Reduce income tax through a deduction for the gift
- Avoid capital-gain tax on gifts of long-term appreciated
- Retain a stream of payments for life for the donor and
for other beneficiaries
- Eliminate federal estate tax on property passing to
charity upon the donor's death
- Reduce costs and time in estate settlement
are many ways to make a planned gift. The most popular
gifts include naming Love Our Children USA in a will,
making Love Our Children USA the owner and beneficiary
of a life insurance policy or real estate.
Outright gifts are available immediately for use by Love
Our Children USA. The gift can be used or sold for cash.
Examples of such gifts include cash, securities, real
estate, tangible personal property and paid up life insurance
Cash is the most common form that most
donors choose, either as an annual gift or pledged over
a number of years.
and Real Estate
Popular alternatives to cash are gifts of appreciated
property, such as securities and real estate.
Deferred gifts are not available for use by Love Our Children
USA immediately. Usually, they become available only after
the death of the donor, or for certain trusts, after a
period of years. Examples of such gifts include bequests,
life income arrangements (gift annuities, charitable remainder
trusts, charitable lead trusts, etc.) and life insurance.
Deferred gift vehicles provide donors the opportunity
to help ensure the future of our movement.
Gifts of Appreciated Assets
Stocks and bonds are the most popular
forms of giving after cash. If these are long-term assets,
the contributor is allowed a charitable deduction for
the fair market value, with no capital gains tax.
Many people may choose to include Love
Our Children USA in their wills. A bequest to Love Our
Children USA will not incur state or federal estate or
inheritance taxes. A bequest is the most common form of
planned gift. A bequest is actually the element of a person's
will that speaks to the making of a charitable gift. Bequests
enable individuals to make significant gifts that they
may not have been able to make during life.
Charitable Remainder Trusts
The two types of trusts are the unitrust,
where income is calculated according to the value of the
trust through an annual revaluation, and an annuity
trust, where income is calculated up front and fixed
at that level. They are held in separate accounts. The
charitable remainder trust is a popular plan because of
the financial and estate-planning flexibility it offers.
A donor transfers property under a trust agreement that
specifies how trust income and principal are to be distributed,
and the trust may be created to become effective during
life or at death. This trust is similar to the charitable
lead trust, except that a charitable beneficiary receives
the remainder interest.
A charitable remainder trust can provide financial security
for the donor and the beneficiaries while generating significant
federal estate-tax savings.
To qualify for favorable tax treatment, a charitable remainder
trust must be in the form of either an annuity trust or
The annuity trust provides for payment of a fixed dollar
amount annually --or at more frequent intervals--to the
designated beneficiary or beneficiaries. The amount must
equal at least 5% of the initial fair-market value of
The unitrust provides for payment of a variable amount--equal
to at least 5% of the value of the trust as it is revalued
each year --at least annually to the designated beneficiary
Both the annuity trust and the unitrust provide that at
the death of the last beneficiary the trust principal
is distributed to charity. The key difference is that
payments from an annuity trust are fixed and do not change
even though the value of the trust may change. Payments
from a unitrust, however, fluctuate according to changes
in the value of the unitrust.
The lead trust is different from
the remainder trust in that the charity receives the income
payments from the trust for a given number of years rather
than the donor's beneficiaries. Also, at the end of the
trust term, the assets of the trust are returned to the
owner or his or her designee. This allows the transfer
of assets to heirs while greatly reducing gift taxes.
This vehicle is used many times to transfer assets to
children and grandchildren. Again, the trust must be in
the form of either an annuity trust or unitrust.
is a contract under which Love Our Children USA agrees
to pay a guaranteed annuity in exchange for a gift of
cash or marketable securities. The rates depend on a donor's
age and are based upon the Committee on Gift Annuities'
actuarial tables. The charitable gift annuity is among
the oldest, simplest and most popular of the charitable
life income arrangements. In exchange for a transfer of
cash or marketable securities, Love Our Children USA contractually
guarantees to make specified annuity payments to the donor
and/or another beneficiary. The payment rate depends on
the age and the number of beneficiaries. Some state restrictions
may apply to gift annuities.
may begin immediately or, with a deferred gift annuity,
at a set time in the future - at retirement, for example.
This type of annuity is attractive to donors who have
a high current income and who are interested in augmenting
potential retirement income on a tax-favored basis.
most people own some form of life insurance because of
its unique ability to meet a variety of needs
for financial protection, its role in planned giving is
frequently overlooked. Life insurance itself can be the
direct funding medium of a gift, permitting the donor
to make a substantial gift for a relatively modest annual
outlay. Insurance can also replace the value of an asset
given to Love Our Children USA. Life insurance allows
a donor to make a substantial gift on an installment basis
by making a series of modest payments, and a gift of life
insurance is certain, the proceeds are paid promptly,
without going through the time-consuming process of probate.
Depending on the arrangement of the gift, life insurance
can create a number of favorable tax consequences.
In Kind Gifts
Underwrite Printing Costs
Donate Airline Tickets/Frequent Flyer Mileage
Make an "In-Kind" Donation of Office
Equipment, Office Supplies, Furniture, etc.
Provide Warehouse/Freight Services
Donate Media Space
Donate Advertising Dollars
Underwrite an Event
Donate Designing of Brochures
Other Ways You Can Give
Organize and Host a Fundraiser
Raise Public Awareness Through Our Speakers Bureau
Purchase Items that Support Love Our Children USA
Host an Educational Presentation
Be a Friend to a Stressed Out Parent
Be a Friend to a Child Who Has Been Victimized
more information contact:
Love Our Children USA
Love Our Children USA is a 501(C)(3) tax-exempt organization. We do not accept any government funds or funding that might seek to influence our positions. Love Our Children USA is a private, nonprofit charitable organization. All donations are tax-deductible to the extent allowed by law.
Love Our Children USA's Federal Taxpayer ID Number is: 06-1563232
Disclosure: If you would like further information you may obtain it directly by writing to the office of the Attorney General, Department of Law, Charities Bureau, 120 Broadway, New York, NY 10271. Registration with a state agency does not constitute or imply endorsement, approval, or recommendation by that state.
For further financial and descriptive information please refer to Love Our Children USA's profile at www.guidestar.org
© All rights reserved. Love Our Children USA 1999 - 2018