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Open Hands acts as a steward of every gift received, demonstrating the highest standards in receiving; managing and distributing funds to our clients in need.
Make a donation. Make a difference.
» Bequests
» Life Insurance
» Retained Income Gifts
» Charitable Remainder Trusts
» Retirement Plan Assets
» Local Support
After providing for your loved ones, a bequest in your will can designate a gift to Open Hands. Knowing that your gift will help elderly, disabled and economically challenged members of our community can provide you with a great deal of satisfaction.
Some of the benefits of a bequest are:
• It is not payable until death, so it does not affect your assets or cash flow during your lifetime.
• It is private. Your will is not filed or made public until your death.
•It is revocable. You can change the provisions in your will or trust at any time until death.
A bequest allows you to make a substantial contribution without reducing current income. It operates like a postdated check payable only after death. Charitable bequests can include cash, securities, real estate, or other property. These assets may be identified specifically as a percentage of your entire estate, or that part of your estate remaining after making specific bequests. The gift is revocable during your lifetime, providing a hedge against unforeseen events.
Simple wills, leaving everything to a loved one and/or charity are generally used for donors with estates under the Federal Estate Tax threshold, which is currently $1.5 million.
Life insurance gifts empower you to make a generous financial contribution to Open Hands when you may not have many assets. Your gift will help support vital programs that assist elderly, disabled and economically challenged members of our community.
There are several ways that you can structure a gift of life insurance to Open Hands:
You can make Open Hands the owner and beneficiary of an already existing paid-up life insurance policy. By doing so, you may be able to deduct an amount equal to the approximate cash value in the year that you make the gift. Since Open Hands becomes the owner of the policy, the proceeds will not be included in your estate for tax purposes.
You can make Open Hands a beneficiary of an already existing life insurance policy. Upon your passing, the full face value amount of the policy will go to the national organization. Although the proceeds from the policy will be included in your gross estate, the full amount received by Open Hands may be deductible as a charitable deduction.
To make Open Hands a beneficiary of an already existing life insurance policy, you can simply request a beneficiary designation form from your employer or insurance company. You can make Open Hands owner and beneficiary of a policy on which you are still paying premiums. As with donating an already existing paid-up policy, you may be able to deduct an amount equal to the approximate cash value of the policy in the year that it is made. You may also be able to deduct any future premium payments, and the proceeds will not be included in your estate for tax purposes. You can purchase a new policy and make Open Hands the owner and beneficiary.
Because Open Hands is the owner, you may be able to deduct premiums as charitable contributions for as long as the premiums are paid, subject to state limitations. In addition, the proceeds will not be included in your estate for tax purposes. You can donate your excess group-term coverage to Open Hands (if you participate in a group-term life insurance policy through your workplace). Excess coverage is an excellent way to make a valuable gift to Open Hands that not only doesn't cost you a dime in premiums, but also in fact, saves you money. To make this gift, simply inform your company's benefits department.
A retained income gift enables you to receive income and make a lasting gift to Open Hands. We offer several gift options to help you meet your planning goals and provide income for yourself and/or others you designate. After your lifetime and/or the lifetime(s) of another designated beneficiary (or a fixed term of years), the remaining balance is used to support Open Hands community initiaves. You can specify which Open Hands program or initiative you would like your gift to ultimately support.
By giving a retained income gift, you will:
• Receive regular income payments for life (or term of years).
• Get an income tax charitable deduction in the year you make the gift.
• Reduce or possibly eliminate federal estate taxes.
• Avoid or reduce your capital gains taxes if you fund your gift with an appreciated asset (such as securities or real estate).
•Know that your gift will help vital programs that assist elderly, disabled and economically challenged members of our community continue in the future.
To create a retained income gift, you make an irrevocable gift of cash or securities to a Charitable Remainder Trust.
How a charitable remainder trust works:
You create a charitable remainder trust and transfer assets to it.
The trustee invests the assets in order to pay the beneficiary an annual income. The income may continue for one or more lifetimes, or for a term of 20 or fewer years.
When the trust term ends, whatever remains in the CRT passes to one or more qualified nonprofit organizations.
Assets that can be used to fund a charitable remainder trust:
• Cash
• Appreciated securities sold on a major stock exchange
• Real estate (as long as it isn't mortgaged)
• Stock in a closely held corporation
There are two types of charitable remainder trusts:
Unitrust: By establishing a charitable remainder unitrust, you (and/or others you designate) receive income for life or a term of years while ultimately helping to provide services for those in need through Open Hands. The trust's annual payments are based on a fixed percentage of the trust's value. Each year the trust's assets are revalued and your income payment will change and may grow over time. A unitrust can provide an excellent hedge against inflation if the trust principal increases. Additional gifts can be made to a charitable remainder unitrust.
Annuity Trust: An annuity trust has been likened to "giving away the tree" and still "keeping the fruit." It will pay you a fixed dollar amount every year for the rest of your life, with no investment worries or unanticipated surprises caused by unstable stock or bond markets. By establishing a charitable remainder annuity trust you (and/or others you designate) receive fixed income either for a term of years or for life, while ultimately helping to provide services for those in need through Open Hands. Annuity trusts provide significant tax benefits along with paying regular income. Additional gifts cannot be made to a charitable remainder annuity trust. This type of trust works best for individuals who would like a fixed income for a term of years.
At the request of the donor, Open Hands designated trustee or Open Hands may serve as trustee for a charitable remainder annuity trust or a charitable remainder unitrust in an amount of $100,000 or more when Open Hands is the only charitable beneficiary. At the death of the beneficiary(ies), the principal is paid to Open Hands for its restricted or unrestricted use.
Sample Bequest Language
Legal documents such, as wills should be prepared by attorneys. The following language is for the guidance of attorneys preparing wills containing bequests for the benefit of Open Hands.
Specific Bequest "I give, devise, and bequeath to Open Hands, a 501c3 non profit organization having its principal office at 2976 Rodeo Park Drive East, Santa Fe, NM 87505 to be used for the general purposes of the organization”
If the largest asset in your estate is your Retirement Plan (your 401(k), IRA, Keogh, or other such accounts) you may be surprised to learn that the IRS will impose income tax on any balance that you direct to a non-spouse beneficiary. This tax is in addition to the estate tax that will be imposed on the account. For estates fully subject to the estate tax, the result can be that 75% of the value of your retirement plan will be consumed in taxes before your child, relative, or friend receives it.
There is a sensible charitable alternative: name Open Hands as the beneficiary of your retirement plan, and then use other assets not subject to income tax to make gifts to your heirs. Open Hands won't pay income tax on its distribution and your heirs will receive their share of your estate without the burden of extra taxes.
Here are some of the benefits of making a gift from your retirement plan:
• The deferred income tax, which would be due upon distribution to an individual beneficiary, is exempted for distributions to a charitable beneficiary.
•The pension or retirement plan account, which would normally be subject to estate taxes, is instead deducted from the gross estate.
Your gift will help support vital programs that assist elderly, disabled and economically challenged members of our community.
Donors who wish to make a gift from a retirement plan may do so by simply contacting their plan administrator and designating Open Hands as beneficiary. If you would like to make a charitable gift through a retirement plan, your plan administrator will ask you to complete a Change of Beneficiary form. You may need the following information:
Legal Name:
Open Hands, Inc. 2976 Rodeo Park Drive East, Santa Fe, NM 87505
Please call us at: 505 428 2364 should you need our E.I.N. number.