PLANNED GIVING PROGRAM

Planned Giving is term used to describe a variety of ways a donor can leave money/assets to a charitable nonprofit organization at his/her death; or a way to invest money so that the donor receives benefits during his/her life and then bequeaths the remaining funds  either to their heirs or to a nonprofit.  A planned or deferred gift to the Squam Lakes Association provides a legacy opportunity for donors to ensure that future generations will be afforded the continued natural beauty of the Squam Lakes Watershed.

Planned giving allows a donor the opportunity to support a non-profit while lowering their income, gift or estate taxes.  The Squam Lakes Association can accept planned gifts as a qualified non-profit organization with 501 c 3 status as determined by the US Department of Treasury Internal Revenue Service.

If you are considering a Planned Gift it is important that you discuss this with your family members and seek the advice of a professional to determine the best option for your future.  The following is some general information on several strategies available for Planned Giving:

BEQUESTS

Bequests are the transfers of wealth that occur upon a donor's death and include transfers by means of a will or a trust. Bequests can take several forms such as:

• Specific bequest - a certain amount of cash, securities, or property.
• General bequest - property that is similar to all other items distributed, usually cash.
• Percentage bequest - a stated percentage of the donor's estate.
• Residual bequest - all or a portion of the remainder of an estate after specific and general bequests are distributed.

BENEFICIARY DESIGNATION

Another way to make a gift is to name one or more nonprofits as beneficiaries of a bank or stock brokerage account, an insurance policy or as the recipient of your IRA or retirement fund proceeds.

CHARITABLE GIFT ANNUITY

These relatively simple gift plans provide the donor, or someone named by the donor, with a fixed income for life.  For a period of years, part of that income is tax-free. The donor also enjoys an income tax charitable deduction in the year the gift annuity is funded.

CHARITABLE LEAD TRUST

A donor can transfer assets, such as cash, stocks and artwork, to a trust for a set term of years.  The designated non-profit is entitled to the lead (or first) interest in the trust assets, and a non-charitable beneficiary receives the remaining interest.  Once the trust's term expires, what is left goes to the donor's heirs. Each year, payments are made from the trust to the donor's designated non-profit. There are two types of charitable lead trusts: annuity trusts where the donor sets a fixed annual gift to the non-profit; and unitrusts where the non-profit receives a percentage of the trust value annually.

CHARITABLE REMAINDER TRUST

A charitable remainder trust allows a donor to irrevocably transfer assets into a trust.  The trust pays income to the donor or other beneficiaries during their lifetimes, and the remainder goes to a qualified non-profit.  Charitable remainder trusts may be established during a donor's lifetime or at death. The donor usually names a bank or trust company to serve as trustee of the trust.  Charitable Remainder Trusts can also be established as either an annuity trust or a unitrust.