Planned Giving
With the support of generous donors and volunteers Habitat for Humanity East Bay has made great strides in the East Bays affordable housing market. However, with many families in the area struggling to keep a roof over their heads, we can all acknowledge that there is a lot of work to do still. We know that the work to ensure everyone access to affordable housing will extend beyond our lifetimes. With a little bit of financial planning you can leave a lasting legacy on the East Bay that will extend beyond your lifetime.
What is it?
There are a variety of options in your estate planning that will ensure a continued contribution to affordable housing in the East Bay. You may decide to bequeath to Habitat for Humanity East Bay an amount of money, a certain percentage of the estate, or all/part of the residue of your estate.
Your Options
The Charitable Gift Annuity -- A CGA is a contract with Habitat for Humanity East Bay that guarantees fixed payments to one or two annuitants for as long as any annuitants survive, the remaining balance of the CGA is released to Habitat East Bay.
While helping to build homes for families in need, purchasing a CGA also results in a partial charitable income tax deduction, and a portion of the annuity payment may be free from income taxes for a period of time. In addition to cash, CGAs can be funded with appreciated stock, which if transferred directly to Habitat East Bay, can save you a significant portion of the capital gain. There is also a deferred version of the CGA that allows payments to begin at a later date, resulting in a higher payment rate.
Pension Assets -- A simple and effective way to change families' lives while reducing income and estate taxes is to name Habitat East Bay as a beneficiary of your pension assets (e.g. IRA, 401(k), 403(b)). Simply request a Change/Add Beneficiary form from the institution that manages your IRA or pension plan.
In 2008, Congress passed the Economic Stabilization Act, which extended the IRA rollover provision. The Act allows individuals 70 1/2 years and older to donate IRA assets without incurring tax penalties on the asset's appreciation. Read more about how this provision helps you leave a legacy with Habitat East Bay.
Stock Donations -- You or your company can donate stock, stock options, and other investments to Habitat East Bay in one simple transaction. A gift of stock owned for more than one year usually entitles you to a charitable deduction for the full market value at the time the gift is made. You benefit by avoiding capital gains taxes and reducing income taxes. Habitat East Bay gains by receiving property that is easy to sell and will generate funds to support affordable housing in the East Bay.
Other Planned Giving Opportunities -- There are many more ways to create a legacy of affordable housing through Habitat East Bay. To discuss options such as Charitable Lead Trusts, Charitable Remainder Trusts, and more, please contact our Donor Development Officer, Sue Howell, at (510) 251-6304 ext. 307 or SHowell@HabitatEB.org.
