Planned Giving

Create Your Legacy Through a Planned Gift

Charitable gifts help you meet your current philanthropic goals and extend your generosity well into the future. But did you know that a planned gift can also protect your assets, provide for your family, and guarantee you income for life? You can even make a significant impact through a gift that costs nothing in your lifetime (through a charitable bequest under your will).

Ways to Make a Planned Gift

To read about one of the basic ways to make a planned gift, select the one below that best fits your situation:

Gifts by Will

Make a gift that costs nothing now.

How It Works

• You include a bequest provision in your will or revocable trust
• At your death, BMC receives the bequest you specified

Benefits

• You may change your bequest or trust designation at any time
• You control the funding property during your lifetime
• Your bequest or trust designation will not be subject to any potential federal estate tax
• You provide future support for BMC

Gifts from Retirement Plans

• Consider retirement-plan benefits for a significant gift to BMC
• Your retirement-plan benefits are very likely a significant portion of your net worth. And because of special tax considerations, they could make an excellent choice for funding a charitable gift.
• Retirement-plan benefits include assets held in individual retirement accounts (IRAs), 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans.

Gifts from Retirement Plans During Life

How It Works

• You take a distribution from your qualified retirement plan or IRA that is includable in your gross income
• You make a gift of the distribution or of other assets equal in value to the distribution
• You receive an offsetting charitable deduction
• If you are 70½ or older, read ahead about the IRA rollover opportunity available to you

Benefits

• You may draw on perhaps your largest source of assets, with no adverse tax consequences, to support the programs that are important to you at BMC
• The distribution offsets your minimum required distribution
• If you use appreciated securities instead of cash from your distribution to make your gift, you’ll avoid the capital-gain tax on the appreciation

Gifts from Retirement Plans at Death

How It Works

• You name BMC as beneficiary for part or all of your retirement-plan benefits
• Funds are transferred by plan administrator at your death

Benefits

• No federal income tax is due on the funds that pass to BMC
• No federal estate tax on the funds
• You make a significant gift for the programs you support at BMC
• Special note: Call or email us to tell us of your intent, and we will assist you with the details of the transfer.

Qualified Charitable Distribution (QCD) or “IRA Rollover” Gifts for Donors Aged 70½ or Older

How It Works

• You are 70½ or older and instruct your plan administrator to make a direct transfer of up to $100,000 to BMC
• Plan administrator makes transfer as directed to BMC

Benefits

• Your gift is transferred directly to BMC; since you do not receive the funds, they are not included in your gross income*
• Your gift will count towards your minimum distribution requirement, which, under the 2019 SECURE Act, begins at
  the age of 72
• You support the programs that are important to you at BMC
• *No income-tax deduction is allowed for the transfer.

Gifts by Estate Note

An estate note is an irrevocable pledge or debt against the donor’s estate

How It Works

• You make a pledge of support to SFI
• You execute an estate note to pay off pledge from estate assets in case pledge remains unpaid at death

Benefits

• You are assured that the programs you wish to support at SFI will receive all the funds you intend

What to Give

• Giving cash is simple, but giving assets such as stocks often offers additional tax savings.
• The simplest way to support BMC is through cash gifts. But creative gifts of assets can include stocks, bonds, and property (real estate and personal property such as artwork). These provide you with charitable deductions and can offer additional tax savings as well.
• Choose the category of assets below that best fits your situation.

Gifts of Cash, Checks, and Credit Cards

A gift of cash is easy to make.

How It Works

• You transfer cash to BMC—via a check through the mail or online by debit or credit card
• BMC can put your gift to immediate use or add it to an endowed fund if you so specify
• You receive a charitable deduction

Benefits

• Your gift is made simply and quickly
• You receive a federal income-tax deduction
• You provide immediate support for BMC

 

Gifts of Appreciated Securities

Smart gift planning combines charitable intent with cost-efficient planning techniques.

How It Works

• You can send unendorsed stock certificates by registered mail or instruct your broker to make the transfer from your account to our account
• You receive an income-tax deduction
• BMC may keep or sell the securities

Benefits

• You may receive a federal income-tax deduction for the full fair-market value of the securities
• You avoid long-term capital-gain tax on any appreciation in the value of the stock
• Your gift will support BMC as you designate
• Special note: You should call or email us to tell us of your intent, and we will be able to assist you with the details of the transfer.

Gifts from Retirement Plans

Consider retirement-plan benefits for a significant gift to SFI.
(Retirement plan information – 3 sections above – during life, death and over 70½ )

Gifts of Life Insurance

Life insurance may fund a gift or replace the value of a gifted asset.

Life Insurance Policy

An important but frequently overlooked role of life insurance is the one it can play in charitable gift planning. Life insurance itself can be the direct funding medium for a gift, permitting the donor to make a substantial gift (face value of policy) for a relatively modest annual outlay (i.e., the premium payment).

How It Works

• You assign all the rights in your insurance policy to BMC, designate us as irrevocable beneficiary, and then receive an income-tax deduction
• BMC may surrender the policy for its cash value or hold it and receive the proceeds at your death

Benefits

• You receive a federal income-tax deduction
• If premiums remain to be paid, you can receive income-tax deductions for contributions to BMC to pay these premiums
• You can make a substantial gift on the installment plan
• BMC receives a gift they can use now or hold for the future

Life Insurance to Replace Gift

Life insurance can also be used to replace an asset that has been given to BMC. How it works: After a donor makes a gift to BMC, the tax savings produced by the charitable deduction are used by his or her children or an irrevocable trust to purchase and pay the premiums on a life insurance policy on the donor’s life. Such an arrangement can ensure that the interests of family beneficiaries will not be adversely affected.

How It Works

• You make a gift to BMC
• You give the tax savings from the charitable deduction to your children
• Your children purchase an insurance policy on your life with the tax savings
• Your children will receive the proceeds upon your death

Benefits

• You can make a significant gift to BMC without diminishing the amount your family will receive
• Your tax savings finance this life insurance policy

Tangible Personal Property

Tangible property contributions provide charitable deductions based on a standard of “related use.”

How It Works

• Please call us to discuss the type of tangible property, possible uses of your gift by BMC, and getting an appraisal
• You receive a charitable income-tax deduction for the full fair-market value of the property if the gift’s use is related to BMC’s exempt purposes
• If the use is unrelated to our exempt purposes or if it’s understood that we will be selling the property, then the deduction is limited to your cost basis

Benefits

• You receive a federal income-tax deduction for the fair-market value if the gift’s use is related to BMC’s charitable purposes
• You avoid capital-gain tax on long-term related-use property (capital-gain tax on tangible personal property is 28%)
• You provide significant support for BMC without affecting your income
• Special note: You should call or email us to tell us of your intent with regards to the property, and we will be able to assist you with the details of the transfer.

Gifts of Real Estate

• Most kinds of real estate may be donated to BMC
• Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence.

Real Estate – Outright Gift

How It Works

• Transfer title of property to BMC
• Receive income-tax deduction for fair-market value of property
• BMC may use or sell the property

Benefits

• Income-tax deduction for fair-market value of property based on qualified appraisal
• Avoid capital-gain tax on appreciation in value of the real estate
• Relieved of details of selling property
• Significant gift to BMC

Gift of Personal Residence or Farm with Retained Life Estate

How It Works

• Transfer title to personal residence or farm to BMC
• No change in your lifestyle—you (and spouse) occupy and enjoy residence or farm for life
• BMC keeps or sells property after your death(s)

Benefits

• No out-of-pocket cost for substantial gift to BMC
• Federal income-tax deduction for remainder value of your residence or farm
• You (and spouse) can occupy residence for life

Closely Held Business Stock

Business owners contributing closely held stock are allowed a charitable deduction.

How It Works

• You make a gift of your closely held stock to BMC and get a qualified appraisal to determine its value
• You receive a charitable income-tax deduction for the full fair-market value of the stock
• BMC may keep the stock or offer to sell it back to your company

Benefits

• You receive an income-tax deduction for the fair-market value of stock
• You pay no capital-gain tax on any appreciation
• Your company may repurchase the stock, thereby keeping your ownership interest intact
• BMC receives a significant gift