Planned Giving

Making a direct donation is a powerful way to make a difference. But it’s not the only way. You can help Freedom from Hunger now and in the future through a variety of planned giving options.

Planned gifts are arranged during a donor's lifetime and benefit both the donor and Freedom from Hunger's programs. The advantages to the donor are many: tax benefits, recognition, and the knowledge that you are helping Freedom from Hunger achieve its mission for the long term. Planned gifts made to Freedom from Hunger benefit its programs by providing a reliable, steady flow of income that allows us to serve those in need well into the future.

This quick review of the most popular types of planned gifts will explain current charitable income-tax deductions for each gift.*

We strongly recommend that, before you make any donation that could have a tax implication, you consult a qualified tax specialist or estate planning attorney.

For additional information or questions on how to make a planned gift to Freedom from Hunger, email Chris Dodson or call her at (530) 758-6200 ext. 1042.

Give Appreciated Assets

United States tax laws are structured so that donors are encouraged to give as generously as possible to their favorite charitable organizations. Gifts of those assets which have gone up in value since their purchase are particularly attractive to the donor under our current tax laws. Consider that:

  • Sales of stock, bonds and mutual funds that have appreciated in value generate a taxable capital gain.
  • Gifts of those appreciated assets to not-for-profit organizations are deductible at their full fair market value if they have been held longer than twelve months.
  • The fair market value of the asset(s) can be deducted up to 30 percent of the donor's adjusted gross income.
  • Excess deductions can be carried forward into as many as five additional tax years.

Click here for more information on Gifts of Stock.

Consider a Gift of Life Insurance

Life insurance is a very under-used asset in charitable giving, yet its flexibility makes it possible for virtually everyone to make a meaningful gift. Here are a few possibilities:

  • Give a Percentage - You could opt to designate a small percentage of your life insurance policy to Freedom from Hunger.
  • Give a Paid-Up Policy - Most people own life insurance, and many have policies that have outlived their original purpose. For instance, policies for a college education, those insuring a business, or those protecting a mortgage can make excellent gifts when given to a charitable organization. And the donor can deduct the replacement value of the policy.
  • Buy a New Policy - Some people find they can make a much larger gift than they could otherwise afford by purchasing a life insurance policy and naming our organization as owner and beneficiary. The future premiums paid are deductible as cash contributions.
  • Buy Insurance to Replace a Bequest - Some people find they can make a current gift of assets they had planned to bequeath in their wills. They receive the income-tax benefits now and replace the assets by buying a life-insurance policy for that amount. They enjoy the satisfaction of giving now and receiving the tax deduction now, when they need it most. The beneficiaries will still receive the same amount.
  • Add a Beneficiary - Regardless of financial circumstances, almost anyone can name Freedom from Hunger as a secondary or final beneficiary of a new or existing policy. This simply means that if the first beneficiary(ies) predeceases you, Freedom from Hunger becomes the beneficiary. Because the gift is not definite, there are no income tax benefits; but, if any funds do finally go to Freedom from Hunger, they will be deductible from federal estate taxes.

Gifts of Retirement Assets

You may find that gifts of retirement assets can save your heirs undue tax burdens and allow you to accomplish your charitable objectives. When you bequeath retirement assets to your heirs, you are leaving them taxable assets. After your heirs pay the taxes due on these assets, their inheritance will be considerably less than the original amount. However, if you bequeath retirement plan assets to Freedom from Hunger, we will not have to pay income taxes on the assets. This will allow you to make a larger gift and possibly save other nontaxable assets for your heirs.

You may also want to consider setting up a charitable trust with retirement assets. With a trust, you simply transfer your retirement assets to Freedom from Hunger as the last beneficiary. The trust can provide payments for your spouse or another loved one for the rest of his/her life. After the death of your beneficiary, the assets remaining in the trust can be used by Freedom from Hunger to continue our work. There will be no estate or income taxes imposed on the assets at the time of the gift.

This information is not intended as specific legal advice. Consult your attorney when considering any legal matter. State laws which govern wills and contracts vary and are subject to change.

Your donation is 100% tax-deductible.

Freedom from Hunger is organized under the laws of the State of California, United States. Applicable laws permit Freedom from Hunger to solicit contributions only within the United States where it is registered as a charity. For a copy of Freedom from Hunger's latest Annual Report, please send your request to Freedom from Hunger. Please include your mailing address and phone number and allow 2-3 weeks for delivery.

* Most of the information on this page is reprinted with permission of Converse and Associates. Copyright: 1998 Converse & Associates.