The Most Common Types of Planned Giving in New Mexico

There are many ways to support Greater Albuquerque Habitat for Humanity.  By planning ahead and following investment strategies, you can make a difference in the lives of families in your community and create opportunities for decent and affordable housing in Albuquerque.

Below are some of the most common and easily implemented giving vehicles you can use to benefit Habitat, a well-known and trusted New Mexico charity, while also realizing tax advantages for yourself. Planned giving in New Mexico has never been easier.

Charitable Bequest

A charitable bequest is a gift to charity made at death through a donor’s will or trust. Bequests can be specified by gift amount or a percentage of the donor’s estate. Charitable bequests are appealing because they allow donors to leave a lasting impact on an organization with assets that only become liquid upon their death. As the recipient of a bequest, we can provide simple bequest intent language to incorporate into your living will or trust.

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Charitable Gift Annuities

Charitable gift annuities provide immediate tax benefits and a regular source of income to the donor. A charitable gift annuity is a gift vehicle engineered by a contract, whereby a donor transfers cash or property to a charity and in turn, that gift is invested by the charity recipient. In return, the donor receives a lifetime stream of income through the harvest of the investment, and a partial tax deduction at the time of the gift. The terms of the gift agreement lock in the rate and timing of investment payments, and the remaining balance of the investment is bequeathed to charity upon the donor’s death.

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IRA Charitable Rollover and Gifts of Stock

This type of giving allows taxpayers age 70½+ to transfer up to $100,000 directly from their IRA to charity. This benefits a donor because they do not need to transfer income to their private account to make a gift to charity, and the transfer from a donor’s IRA directly to charity allows them to make the gift tax-free.

Similarly, gifts of stock, bonds, or mutual funds can be a tax efficient way for donors to support Greater Albuquerque Habitat for Humanity. Rather than paying tax when you sell appreciated stock, you can use this asset to make charitable donations directly to us. You’ll receive a federal tax deduction for gifts of stock based on the asset’s fair market value on the date of the gift. Beneficiary designations are easy to implement from a donor perspective, and once completed, you simply need to notify your bank/broker for gift execution.

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Life Insurance

Gifts of life insurance can be made on life insurance policies that are currently owned with a transfer of ownership, established with a charitable beneficiary, or purchased by a charity on a donor’s life. Most commonly, gifts of life insurance are transferred to a charity when the policy is no longer needed for its original purpose. In these instances, the donor is putting an idle asset to work, and funding a larger, future gift. Additionally, if premiums are paid, the benefits to the nonprofit are guaranteed.

When a policy is established on behalf of charity, the donor is entitled to an income-tax charitable deduction for the net premiums paid and the value of the policy, plus any premiums they pay after the transfer of ownership. The benefit of life insurance gifts is that at the donor’s death, proceeds from the policy paid promptly are not subject to the probate.

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Are you thinking of making a planned gift to Greater Albuquerque Habitat for Humanity? Your gift can make a significant difference in our community. Contact us today to learn more.

Liz Vincent, Director of Development and Communications

liz@habitatabq.org

(505) 359-2423