Your Charitable Legacy
Habitat for Humanity of Broward gives thanks for the many hearts whose love and support provide decent homes with affordable mortgages to working, low-income families. We also thank those who our families may never meet, yet whose love is woven into their lives forever…thanks to gifts they planned.
Gifts Anyone Can Make
Many people express that planned gifts are gifts that anyone can make. Nothing could be more true. Everyone can make a planned gift, and these gifts are often very significant—improving more lives than a donor could have ever imagined. You do not have to be rich or famous. Every gift is remarkable, and you can be certain that your future gift will have great impact on the lives of the families we serve at Habitat for Humanity of Broward.
Gifts by Bequest
Bequests are the most popular of planned gifts. They are simple and powerful. They can be created with a single sentence in your will or trust (or in a codicil or amendment to an existing will or trust). Bequests enable you to retain assets while you are living, making your gift only when you no longer need the assets.
Bequests are powerful. In most cases, you can make a more significant gift through a bequest than you could in a single gift during your lifetime. After you have taken care of family and/love ones, your bequest to Habitat for Humanity of Broward can enable you to care for the community…your “additional child,” as we are sometimes called.
Sample Bequest Language
After specifying gifts to your other beneficiaries, you can make a bequest to Habitat for Humanity of Broward with simple language like this:
“I leave the rest and residue (or a dollar amount, specific asset(s), or a percentage) of my estate to Habitat for Humanity of Broward, located in Broward County, Florida (FEI #59-2320573) to fulfill its mission to bring people together to build homes, communities, and hope.”
You can also make Habitat for Humanity of Broward a contingent beneficiary, in the event that your beneficiaries do not survive you or disclaim your bequest. After specifying your other beneficiaries and their bequests you can add:
“In the event my beneficiaries do not survive me, I give (describe gift) to Habitat for Humanity of Broward, located in Broward County, Florida (FEI #59-2320573) to fulfill its mission to bring people together to build to build homes, communities, and hope.”
Talk to your estate planning attorney and/or tax attorney for language that assures your plans fulfill your unique charitable wishes.
Individual Retirement Accounts (IRAs)
One of the most tax-wise ways you can support Habitat for Humanity of Broward is to look first at your IRA. If you are 70 ½ or older, during your lifetime you can transfer up to $100,000 each year to a qualified charity like Habitat for Humanity of Broward. You can avoid having to take your required minimum distribution, which may have a negative tax effect on your income and social security taxes. You can also save heirs from receiving heavily taxed IRA assets by making charitable gifts from your IRA during your lifetime, and/or naming Habitat Broward as the beneficiary of your IRA after your death.
Name Habitat for Humanity of Broward as a Beneficiary of Other Plans
A simple way to remember our families in need of affordable housing in Broward County is to name Habitat for Humanity of Broward as a beneficiary of one or more of your accounts. In addition to your IRA, you can name us as the beneficiary of other retirement accounts, your life insurance policy(ies) and even your bank accounts when these accounts are “outside” of your will and/or trusts.
You can also make Habitat for Humanity of Broward a contingent beneficiary of these accounts, so that the assets come to us only if your beneficiary predeceases you or disclaims the gift.
Real Estate and Other Assets
You can designate certain assets in your will or trust to benefit Habitat for Humanity of Broward. Real estate, such as land and/or buildings and residences owned free and clear may be the ideal way to create a legacy. Art, antiques, jewelry and even business ownership or closely held stock can also make powerful and tax-wise gifts. Discuss these and other elements of your estate with your attorney or tax advisor.
Remember: Gifting stock that has appreciated in value can save capital gains taxes—especially in your lifetime; and even after your death.
Gifts That Provide Benefits
There are several ways to plan a gift for the future which can provide income to you now.
Charitable Gift Annuities
Charitable Gift Annuities provide annual income to you based on the amount of your gift, your age, your marital status and spouse’s age (if married), and the date annuity begins. Charitable Gift Annuities can be a smart way to give cash and/or assets such as stocks to build a legacy and provide added income during retirement. The annuity paid is often higher than earnings from certificates of deposit, savings accounts or stock dividends.
Mary is 68 years old. She decides to give $50,000 to Habitat for Humanity of Broward for a charitable gift annuity. She is eligible for an income tax deduction of $19,619 and will receive $2,650 (5.3%) each year. An estimated $1,736 of that annuity is tax-free. When Mary passes away, what remains of her gift–which has been invested–will be used to fulfill our mission in Broward to build homes, communities, and hope.
$19,619 Income tax deduction
$2,650 Annual payments
$1,736 Tax-free portion
$914 Ordinary income portion
Payments made for life
Charitable Remainder Trusts
A charitable remainder trust is another option that pays you (or your designated beneficiaries) income during your (their) lifetime(s) or for a period of years. The amount paid depends upon the terms of the trust and may be a prescribed annual amount, or an amount based upon a percentage of the trust’s value, which changes and often grows over the years. At the end of the term, the remainder passes to Habitat for Humanity of Broward.
Charitable Lead Trusts
Charitable Lead Trusts reverse the model of a charitable remainder trust and pay a charity like Habitat for Humanity of Broward an annual gift for a period of years. At the end of that term, what remains in the trust goes to you or your designated beneficiaries.
These are just some examples of the many ways you can plan a gift today that will have far-reaching impact for families in need of affordable housing.
We encourage you to talk to your attorney to design the plan that is best for you. If you would like assistance to find an attorney, please contact our office.
We also ask that you contact our office so we may capture your unique charitable wishes and intentions for your future gift. When you tell us of your planned gift you enable us to thank you during your lifetime. You will become a member of our Legacy Society and invited to an exclusive lunch with our CEO and board chair each year.
We will also respect your request to remain anonymous if that is your preference.
For our families, our board, our staff, our volunteers and our mission to build homes, communities, and hope, please know that there is no greater honor for us than to be remembered through a gift planned from your estate.