Planned giving is sometimes referred to as gift planning or legacy giving. It is a way to support non-profits that enable you as a philanthropic donor to make larger gifts than you could make from ordinary income.
Some planned gifts provide life-long income to you. Other gift plans use estate and tax planning to provide for charity and heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate.
Whether you use cash, appreciated securities/stock, real estate, partnership interests, personal property, life insurance, a retirement plan, etc., the benefits of funding a planned gift can make this type of charitable giving very attractive to everyone concerned.
Hoʻi ka Hā is a fiscally managed program of Hawaiʻi Children’s Action Network), a 501(c)(3) nonprofit organization (Tax ID 94-3257650). Gifts are tax deductible to the full extent allowable under IRS regulations.
It is important to consult with your own attorney, accountant, and financial advisors to determine if any of the below gift options are appropriate for you. If you are planning to leave Hoʻi ka Hā a lasting gift, please consider letting us know.
Make a bequest in your will: A bequest to Hoʻi ka Hā in your will is the easiest and most common method of making a planned gift; also, as a charitable bequest, it is deductible when calculating any estate taxes. There is no limit to the amount of a charitable deduction.
Make a gift of real estate property: Subject to meeting the criteria of its gift acceptance policies, Hoʻi ka Hā will accept gifts of tangible personal property when the items are useful to Hoʻi ka Hā in the pursuit of its non-profit mission or easily liquidated. Under the right circumstances, Hoʻi ka Hā may also accept gifts of real estate, including a remainder interest, which allows you and your spouse to continue occupying the real estate for life.
Making a gift of life insurance: You can contribute a policy which you no longer need or make Hoʻi ka Hā a designated beneficiary for all or a portion of the proceeds, resulting in either an immediate income tax deduction or a reduction of your estate for purposes of estate taxes.
Name Hoʻi ka Hā as a beneficiary of your IRA or retirement plan: You can have a portion or all of your IRA or retirement plan paid out to Hoʻi ka Hā. The tax advantage stems from the fact that most retirement plans (other than Roth IRAs) are subject to income taxes – and possibly estate taxes – if left to an individual beneficiary. However, a charity that is named as the beneficiary does not pay income or estate taxes on the distribution.
Charitable gift annuities: Make a lifetime gift, generating income and tax deductions for you and a future gift to Hoʻi ka Hā. You can create a charitable gift annuity CGA) or a charitable remainder trust (CRT) which will provide you and/or a loved one with a fixed annual income for life – often at a higher rate than provided by the securities donated; after which the remaining funds go to Hoʻi ka Hā. In addition, you receive a charitable income tax deduction for part of your gift as allowed by the IRS. A charitable lead trust (CLT) allows you to provide Hoʻi ka Hā with income from the CLT for a period of years or for the life of an individual. When the trust terminates, the assets are distributed back to you or to other individuals chosen by you.
Types of Bequests
There are a number of ways you can make a bequest to Hoʻi ka Hā.
Specific Bequest: A specific bequest involves making a gift of a specific asset such as real estate, a car, other property or a gift for a specific dollar amount. For example, you may wish to leave your home or $10,000 to Hoʻi ka Hā.
Percentage Bequest: Another kind of specific bequest involves leaving a specific percentage of your overall estate to charity. For example, you may wish to leave 10% of your estate to Hoʻi ka Hā.
Residual Bequest: A residual bequest is made from the balance of an estate after the will or trust has given away each of the specific bequests. A common residual bequest involves leaving a percentage of the residue of the estate to charity. For example, you may wish to leave 30% of the residue of your estate to Hoʻi ka Hā.
Contingent Bequest: A contingent bequest is made to charity only if the purpose of the primary bequest cannot be met. For example, you could leave specific property, such as a vacation home, to a relative, but the bequest language could provide that if the relative is not alive at the time of your death, the vacation home will go to Hoʻi ka Hā.
Bequest Language
In order to make a bequest, you should speak with your attorney. Your attorney can help you include a bequest to Hoʻi ka Hā in your estate plan. We have provided some basic bequest language to assist you and your attorney.
Specific Bequest
If you are considering making an outright bequest to Hoʻi ka Hā, we recommend the following language:
Bequest of a Specific Dollar Amount:
I hereby give, devise and bequeath (X DOLLARS) to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
Bequest of Specific Personal Property:
I hereby give, devise and bequeath (DESCRIPTION OF PROPERTY) to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
Bequest of Specific Real Estate:
I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at (ADDRESS AND DESCRIPTION OF PROPERTY) to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
Percentage Bequest
If you are considering making a bequest of a percentage of your estate to Karmê Chöling, we recommend the following language:
I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
Residual Bequest
I hereby give, devise and bequeath to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
Contingent Bequest
If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to Hoʻi ka Hā which is a fiscally managed program of Hawaiʻi Children’s Action Network, a Hawaiʻi 501(c)(3) nonprofit organization located at 850 Richards St, Suite 201, Honolulu, HI 96813, Federal Tax ID 94-3257650, for Hoʻi ka Hā’s general use and purpose.
