Planned Giving means designating Coptic Orphans as a beneficiary in your will, your retirement, and your insurance policies. While Coptic Orphans focuses on children in need today, it is vital to ensure that we can keep our commitment to support these children through their educational years and prepare for the vulnerable children of tomorrow’s generation. By establishing a planned gift you can ensure that both the children we currently support and generations of children to come will receive the tools to break the cycle of poverty and become change-makers in their communities. Planned Giving can take several forms, some of which we have outlined for you in the information that follows. This information is not legal advice and should not be taken as such. We highly recommend that you seek the counsel of your financial or legal advisor before you establish the gift.
Perhaps the simplest way to establish a planned gift is gifts of cash through your will. To leave a specified monetary amount you may want to consider the following wording: “ I give, devise and bequeath to Coptic Orphans, P.O. Box 2881, Merrifield, VA 22116, the amount of $________.” On the other hand you may decide to leave a gift by specifying a certain percentage of your entire estate: “I give, devise and bequeath to Coptic Orphans, P.O. Box 2881, Merrifield, VA 22116, _______% of my estate.” We can help you ensure that your wishes are carried out. Mail us a copy of your will at: Coptic Orphans PO Box 2881 Merrifield, VA 22116.
Although cash gifts are the simplest way to make charitable gifts, they may not always be the most tax-efficient. If you were to donate an appreciated asset that you have owned for at least a year not only would your entire gift be tax-deductible, you may also avoid having to pay capital gains taxes. For example, you purchased stock some years back for a total of $1,000. The current market value of that same stock is now $5,000. This means that you have a capital gain of $4,000 on which taxes would be due if you were to sell it. Donating it, however, may mean that you don’t have to pay those taxes. Examples of appreciated assets: Appreciated securities, publicly traded stocks, or other investments that have been in your possession for more than a year are generally not exposed to capital gains taxes and you would be getting an income tax deduction based on the market value of the gift on the date that it was made. Real estate tends to appreciate over time and may be exposed to capital gains taxes if the holdings were to be sold. Given as a donation, it could reduce the chances of a capital gains tax and would also ensure a tax deduction based on the fair market value of the property. Donations of real estate would have to be reviewed by Coptic Orphans first. Other assets, personal property, and others can be donated but would have to be considered by Coptic Orphans on a case by case basis in the event the asset is not one that Coptic Orphans can easily take on.
A retirement plan is considered part of the taxable estate at death, and could be exposed to up to or more than 70% taxes. By making Coptic Orphans the beneficiary of your retirement plan, you can ensure that the amount becomes completely tax deductible.
Life insurance enables you to leave a very significant donation to the children at a very low cost to you. Planned giving using life insurance can take three forms. You can name Coptic Orphans as a beneficiary to your current insurance policy, you can gift a fully paid policy to Coptic Orphans, or you could purchase a life insurance policy in Coptic Orphans’ name. Donations to Coptic Orphans in the amount of the premium can qualify for up to a 50% deduction against adjusted gross income. For further information about how to leave a legacy for vulnerable children in Egypt through planned giving, contact us.