In light of the challenges we face and opportunities that we have, and to ensure that CARECEN continues to serve the community with quality services and maintains its leadership in key policy initiatives the CARECEN board has agreed to establish a reserve fund, a capital fund, and a planned giving program.
To fund CARECEN's endowment, we are asking some of our most valued supporters to consider some form of planned giving. Planned giving is a deferred gift--a person decides to give at some future date, either a number of years from now, or in their wills. This can make financial sense for our donors—because of the tax benefits involved—while giving important support to CARECEN.
Wills and Living Trusts: You can designate CARECEN generally or the endowment specifically as a beneficiary of your will or living trust. You can leave a percentage of your estate, a fixed amount, or a residual bequest (the amount after specific gifts to loved ones or other charities have been made).
Charitable Remainder Trust: This is designed to reduce estate taxes on highly appreciated stock, real estate, or other assets. Supporters can transfer assets into an irrevocable trust (during the donors’ lifetime or at their death), which then generates income for the donor and/or for the lifetime of their partner or other heir(s), or for a specific number of years. At the end of the period, the remainder goes to CARECEN.
Charitable Lead Trust: A charitable lead trust is an especially useful tool in taxable estates. Assets that would otherwise be subject to a hefty estate tax are invested so that the income goes to CARECEN, offsetting much of the tax liability. After a period of years, the principal transfers back to the donor’s heir(s) with little or no tax owed.
Retirement Plans and Life Insurance: Naming CARECEN as the beneficiary of a donor’s life insurance, 401(k), 403(b), IRA or other retirement plan is a powerful way to provide a lasting legacy of social justice to Los Angeles. It can also offer significant tax benefits, particularly on retirement plans. While your heirs would face both estate taxes and income taxes, often leaving them with only a fraction of the original amount, naming CARECEN as a beneficiary would pass the total amount to the foundation without being taxed.
Securities: A donation of appreciated stock, mutual funds, bonds or other appreciated assets can be an effective way to maximize charitable giving while minimizing the tax burden on your estate and eliminating capital gains.
Real Estate: Gifts of real estate can provide significant resources to CARECEN, while offering donors benefits such as reducing income tax liability, avoiding capital gains taxes on the property’s appreciation, and relieving you or your executor of the burden of selling the property.
Notes on Planned Gifts to CARECEN
CARECEN staff and volunteers cannot offer legal advice on planned giving, but can suggest ideas of what might be possible for our supporters to consider in their gift planning. Our donors should consult an estate attorney in deciding which options would work best for them and to help them set up various options.
All unrestricted planned gifts that are given to CARECEN will be designated as follows: 60% of unrestricted planned gifts will go to CARECEN’s reserve fund, 40% to CARECEN’s capital fund. As soon as the reserve fund reaches an amount equal to six months of our operating expenses, we will reverse these percentages.
The value of planned gifts are recognized only for irrevocable deferred gifts. For all others, the gift value is recognized and recorded when the gift arrives at CARECEN. However, all individuals who notify the foundation that they have named CARECEN as a beneficiary of any deferred estate gift will be listed as a member of our Safe Haven Society in recognition of their thoughtful plans.
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If you have any questions or want to support CARECEN by being a planned giver, contact CARECEN's Development Director
Elda Martinez at (213) 385-7800 ext. 128 or at firstname.lastname@example.org