Planned Giving
Welcome!
You can take steps today to ensure the future through a planned gift to United Way of Greater Portland. Planned giving allows you to donate assets during your lifetime and create a legacy that will continue to grow, improve lives, and build a stronger community for years to come without impairing the resources you have available today or those your family may benefit from in the future.
Thank You
Any planned gift that you and your family make to United Way of Greater Portland Foundation is much appreciated and valued. Your gift is an exceptional gesture of leadership, generosity, and caring. Please let us know if you have already made a planned gift – through your will, your trust, or by naming United Way as a beneficiary of your life insurance or retirement plan. We would like to express our appreciation. Your gift matters. We thank you.
For More Information
To talk about planned giving options that might be ideal for you or your family or to let us know that you have already included United Way in your gift planning, please contact Lisa Fraley at 207.874.1000 x 320 or by e-mail. We would like to recognize you and thank you for your gift.
Planned Giving Possibilities
United Way will work closely with you to design the plan best suited to your circumstances and wishes. There are the many ways to leave a lasting benefit to our community. You and your financial advisors can select a form of gift that carries out your desire to benefit the community through United Way, while at the same time realizing important tax savings and fully providing for your family’s needs.
Click on any of the links below to go to more information about that planned giving possibility.
Cash Donations
- Bequests through a Will or Trust
- Endowment Gifts
- Charitable Gift Annuities
- Deferred Charitable Gift Annuities
- Charitable Gift of Securities
- Life Insurance
- Retirement Plans
- Charitable Remainder Trust
| How to Endow Your Annual Gift Forever (Annual payout calculated at 5% investment return) |
|
| If you annually donate: | Perpetuate your gift with a donation of: |
| $100 | $2,000 |
| $300 | $6,000 |
| $500 | $10,000 |
| Leadership Giving | |
| $1,000 | $20,000 |
| $2,500 | $50,000 |
| $5,000 | $100,000 |
| $7,500 | $150,000 |
| Alexis de Tocqueville | |
| $10,000 | $200,000 |
| $15,000 | $300,000 |
| $25,000 | $500,000 |
| $50,000 | $1,000,000 |
| $100,000 | $2,000,000 |
| $250,000 | $5,000,000 |
| $1,000,000 | $20,000,000 |
Remember United Way in your will. Charitable bequests are the most common form of planned gifts. You may make a bequest to United Way of Greater Portland by naming UWGP as a beneficiary in your will or trust.
The gift may be a specific dollar amount,a percentage or residual of your estate. Bequests vary in size and scope - from $50 to $5,000,000. United Way of Greater Portland values each and every bequest no matter how large or small.
Here are two possible options for bequest language, depending on your need and interest:
"I bequeath to United Way of Greater Portland, Inc. now of 400 Congress St., Portland, ME 04112-1520 (insert number of) dollars."
“I bequeath to United Way of Greater Portland, Inc. now of 400 Congress St., Portland, ME 04112-1520 (insert number) percent of my total or residual estate."
A bequest to United Way of Greater Portland is a win-win situation: It reduces your overall estate tax obligations and United Way of Greater Portland receives the entire value of a bequest tax-free.
Each year we give gifts to commemorate birthdays, anniversaries, graduations, weddings and other occasions. The beauty of an endowed gift is that unlike an annual gift, it keeps on giving for you, year after year, to support lasting change in our community. And, you can often name an endowment gift in honor or in memory of someone you love.
How does an endowed gift work?
You make a contribution to The United Way of Greater Portland Endowment Fund through a gift of cash, stock, retirement plan assets, or life insurance. You could also arrange for your planned gift to give back income to you through a Charitable Gift Annuity or Charitable Remainder Trust.
Your endowed gift is managed by United Way professionals to produce a steady and secure source of funds. By leaving the principal of your gift intact year after year, United Way ensures a continuous funding source that counterbalances economic downturns and swings.
An endowed gift:
• Provides meaningful support for the United Way
• Avoids capital gains taxes on appreciated assets
• Removes assets used for the gift from your taxable estate
• Provides a charitable income tax deduction
• Allows you to honor a loved one through a naming opportunity
Charitable Gift Annuity / Deferred Gift Annuity
Are you concerned about having enough income for your retirement? Consider funding a Charitable Gift Annuity – or a Deferred Gift Annuity – to supplement your income. A Charitable Gift Annuity is a contribution to United Way that also directly gives back to you and/or a loved one at the same time.
When you contribute cash and/or appreciated marketable securities to United Way of Greater Portland, we guarantee that you and/or a beneficiary of your choice will receive a predetermined fixed income for life. The amount of the fixed income you receive is determined by your age when you make the gift – the older you are at the time of the gift, the greater the fixed payments you will receive. In most cases, a portion of the annuity payments are considered tax-free income, and if you transfer appreciated securities you have held for more than 12 months, you may also reduce and defer the payment of capital gains taxes and take a charitable deduction for the full fair market value of the stock.
Here are a few examples:
Example 1: Arthur who is 65 years old makes a gift of $50,000 to United Way to establish a Charitable Gift Annuity. In return, United Way promises to pay Arthur 6%, or $3,000, a year for life.
Example 2: Arthur and his wife Karen, both aged 65, make the same gift of $50,000. In return, the United Way promises to pay 5.6% or a total of $2,800 a year to them jointly, and will continue to do so for the rest of their lives.
Charitable Gift Annuities may be created with a contribution of $10,000 or greater by individuals who are at least 60 years of age when the payments begin. If you are between 45 and 60 years old, you may be interested in a Deferred Gift Annuity which is a similar tool. Deferred Gift Annuities delay the start of income payments which allows you to receive a more favorable rate of income than if you opted for immediate annuity payments. The vehicle is an option for the younger donor who wants a reliable future income stream and could benefit from a current tax deduction.
A Charitable Gift Annuity – or a Deferred Gift Annuity - is a great tool for helping you achieve personal financial and philanthropic goals and provides meaningful support for United Way of Greater Portland.
Our nation's tax laws offer special incentives for charitable gifts of stock or securities, especially when they have increased in value. A gift of appreciated securities will allow you a tax deduction for the fair market value of the securities and free you from paying tax on the appreciation of the stock. Consult with your tax or financial advisor to determine the best time or market conditions to donate securities.
Donating securities is optimal:
• Whenever you prefer not to incur capital gains taxes
• When you wish to readjust your cost basis on a stock you wish to hold
• When you wish to upgrade your portfolio
A donation of a life insurance policy allows you to make a gift to the United Way of Greater Portland at no cost to yourself. What could be easier?
You can donate a paid-up life insurance policy by assigning the policy to the United Way and designating United Way as beneficiary. It costs you nothing to make the change and you will receive an income tax deduction for the gift. Another cost-free method is to designate the United Way as a beneficiary of all or a portion or your workplace life insurance policy.
If you are the director or trustee of an organization that has purchased a life insurance policy with you as the insured, you may designate the United Way as a beneficiary.
There are other still other ways to use life insurance as a means of making a very substantial gift.
You may not remember that pension plans, profit-sharing plans, 401(k) plans, 403 (b) plans and IRAs are not exempt from income tax. If you didn't pay incomes taxes on your contribution before it went into the retirement plan, you will have to pay income tax when it comes out. And if you name your children as the ultimate beneficiary of your retirement plan, your children will be the ones paying the income tax because the inheritance is income to them. Retirement plans also can be subject to estate taxes. Therefore, the total tax liability from this asset could be as much as 70% of your child's inheritance!
How to preserve your retirement plan assets by donating them:
Simply designate the United Way as the beneficiary of a specific amount or the remainder of this asset after the death of you or your spouse. Notify your plan's administrator of your wish to change the beneficiary. A "change of beneficiary" form will be required. If you designate that your qualified retirement plan come directly to United Way at your death and reside in a community property state, your spouse will need to sign consent to the designation.
By creating a Charitable Remainder Trust, you can take an immediate tax deduction in the year of your gift. And, it can reduce your overall estate tax burden.
You can work with your financial advisor to irrevocably transfer cash and/or appreciated marketable securities to a trust during your lifetime or via your will. If you fund the trust with appreciated securities, you can avoid the payment of capital gains taxes on the appreciation of the securities. Charitable Remainder Trusts provide security to you and your family because you can designate yourself and/or another individual to receive income for your life (lives) or a specific period of time (but not more than 20 years). At the conclusion of the income payments, the remainder of the trust principal will be paid to the United Way.
One attractive feature of the Charitable Remainder Trust is the ability to tailor the annual income to meet your needs. If you like the security of receiving a fixed dollar amount of income, the Charitable Remainder Annuity Trust is a good option. Charitable Remainder Trusts can be established with gifts of $100,000 or greater.
Charitable Lead Trusts are the opposite of Charitable Remainder Trusts. With a Charitable Lead Trust, you transfer assets to a trustee up front, such as United Way. The trustee pays an annual sum to United Way for a specific term of years, usually 10 – 20 years. When the trust terminates, the principal plus any appreciation is transferred to your heirs. In essence, the charitable organization receives a fixed amount and at the end of the term the remainder goes to your heirs or family members.
When you make the gift, you receive a federal estate tax deduction for the estimated value of the annual payments to United Way. Any appreciation in the assets during the term of the trust is not subject to additional estate tax. As a result, you are often able to pass on to your heirs a larger estate after tax than otherwise would be possible. A gift of $250,000 is recommended to establish a Charitable Lead Trust.
For More Information
For questions about these planned giving options or other aspects of gift planning, please contact Lisa Fraley, Vice President, Major Gifts & Gift Planning at 207.874.1000 x320. Thank you for your support!
This information is solely for educational and illustrative purposes and is not to be considered legal, financial, or tax advice. For specific recommendations, please consult your attorney, accountant or financial advisor. The United Way of Greater Portland encourages donors to explore all aspects, opportunities, costs, and alternatives associated with gift planning decisions.