Less Taxing Ways to Give

Less Taxing Ways to Give

Seven Tax Reduction Ways to Make a Gift

With December 31st just weeks away, you may be like thousands of other individuals who are reviewing their financial and estate plans to ensure your family's goals are being met. Supporting North Shore Animal League America ("NSALA") by making a planned gift can be an effective way to help hundreds of abandoned dogs and cats , while receiving financial benefits and/or saving taxes in 2006 and beyond.

The most common types of planned gifts are:

1. Bequests: Through your Will or Living Trust you can gift to NSALA a fixed amount or a percentage of your estate.
   
   
2. The Pension Protection Act of 2006: If you are age 70 ½ or older, you can make an outright gift to NSALA by transferring funds directly from your individual retirement account (IRA) without paying federal income taxes on the distribution. The gift must be made by December 31, 2006, and will count towards your minimum required distribution. Such a gift can be made up to $100,000 in 2006 and again in 2007.
   
   
3. Charitable Gift Annuities: A North shore Animal League America charitable gift annuity will provide an immediate or deferred fixed-income stream for one or two lives. This is an excellent way to increase retirement income or help support aging parents. Payout rates are based on age, and a portion of your payment will be tax-free. The donor will also receive a charitable income tax deduction in the year of the gift.
   
   
4. Appreciated Assets: Donate stocks, bonds, or real estate to fund a planned gift, and avoid substantial capital gains taxes on these assets.
   
   
5. Paid-Up Life Insurance Policies: When your family responsibilities decrease and your policies are no longer critical to your family's well-being, use them to support NSALA's work.
   
   
6. Retirement Plans: Tax-deferred IRA AND 401K plans may be extremely vulnerable to high income and estate taxes. Naming North Shore Animal League America as a beneficiary will reduce these taxes and allow you to leave other assets to heirs.
   
   
7. Trusts: A charitable lead trust will generate funding for NSALA until the time comes to transfer the remainder of the fund to your heirs. In the meantime, taxes cam be minimized. A charitable remainder trust will provide lifetime income to you or your heirs, along with some tax benefits. When the income payout period ends, the remainder of the trust flows to North Shore Animal League America.
   
   

For more information about these types of gifts or other giving opportunities, please call us at (516) 812-7218 or e-mail us at plannedgiving@nsalamerica.org.