Gift plans create opportunities for both our donors and the American Red Cross. Determining what gift is right for you is just as important as making the gift. There are many options from which you can choose. The correct plan for you balances what you wish to accomplish for yourself, your family, and your charitable interests in your overall estate and financial plans.
Learn about giving strategies that allow you to make a meaningful charitable gift while possibly enhancing your, and your family's, future financial well being.
This is one of the simplest and most used methods of making a planned gift – from your estate after your death when you no longer need the assets.
How to include the American Red Cross in my will?
Many of our supporters make charitable gifts by naming the Red Cross as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.
To make a bequest to the Red Cross, the following language will be helpful to your lawyer:
I give, devise, and bequeath to the American Red Cross for the benefit of the Silicon Valley Chapter the sum of ______ (or otherwise describe the gift or specify a percentage of the estate).
There are three ways you can make a bequest:
You designate a specific dollar amount, specific percentage, or specific property to the American Red Cross.
My estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount, the residue, will be transferred to the American Red Cross.
If all of my beneficiaries predecease me, my estate shall pass in its entirety to the American Red Cross.
When you are a planned gift donor, the Red Cross will honor you with membership in the Legacy Society. If you have already made a plan to give to the Red Cross in your will or estate plan, please contact one of the planned giving officers.
We realize that with your special gift, you consider us to be part of your family, and we want to do our best to keep you informed as to how your gift will be used and to give you the opportunity to tell us of your wishes.
This life income plan is created by transferring assets to a trust that pays you (and another beneficiary, if you wish) income for life. At the end of the trust, the remaining trust assets are transferred to the Red Cross. A bank or trusted advisor can serve as trustee.
The type of charitable remainder trust you choose determines your annual payments:
- For example: Mrs. Edwards irrevocably transfers $100,000 to create a charitable remainder annuity trust that will provide her with life income payments. Included in the trust agreement is the stated payout percentage of 7. She will receive $7,000 annually for her life ($100,000 x 7%). If income earned by the trust exceeds the fixed payment of $7,000, the excess is reinvested.
- For example: Mr. Edwards irrevocably transfers $100,000 to create a charitable remainder unitrust that will provide him with life income payments. The trust agreement provides that he will receive 6 percent of the fair market value of the assets each year. The first year he receives $6,000 (100,000 x 6%). One year later the trust assets are valued at $120,000, so he is paid $7,200 ($120,000 x 6%). If the trust assets are worth $110,000 at the beginning of the next year, he will receive $6,600 ($110,000 x 6%). And so on each year. If trust income exceeds the stated payout percentage, the excess is added to the unitrust assets and reinvested.
How do I establish a life income gift?
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without significant sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to the Red Cross now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out our mission.
By making a life income gift to the Red Cross, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do. The benefits include:
- A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
- You free up appreciated investment to maximize yield, diversify, or both–often without paying tax on the capital gain.
- Your effective yield is increased by substantial income tax savings.
- Income can be taxed more favorably in some plans.
- You unburden yourself of investment concerns.
- Your probate and estate administration costs may be reduced.
1. What is the Federal tax identification number for the American Red Cross Monterey Bay Area Chapter?
The federal tax identification number is 94-2257274.
2. Can the American Red Cross serve as Executor for an estate?
The American Red Cross National Headquarters and local Red Cross Chapters cannot serve as Executor for any estate due to potential liability and conflict of interest issues.
3. What are the ways in which a donor can designate their gift to the American Red Cross Monterey Bay Area Chapter through their will?
A donor can bequeath a sum certain or a percentage of their estate for either specific or general purposes. The gift can be designated to the American National Red Cross and/or a local American Red Cross Chapter.
4. Who can answer the bequest and legacy questions of an executor/trustee?
Please contact the Director of Gift Planning, Bill Ruettinger, (415) 427-8989 or William.Ruettinger@redcross.org.