Deferred Donation

Although outright gifts provide vital resources for SPIRIT Center today, deferred gifts help ensure SPIRIT's future. Life income gifts and other “tax wise” gift plans may be particularly suitable for individuals who would like to provide significant support for SPIRIT, but need income from their assets during their lifetimes. The following gift options are discussed on this page:

  • Life Income Gifts
  • Charitable Lead Trusts
  • Gifts of Life Insurance
  • Gifts of Retirement
  • Retained Life Estate
  • Tax Deductions

Bequests By Will or Revocable “Living” Trust

The most common form of deferred or planned gift of support to SPIRIT is a bequest contained in a person's will or revocable “living trust". The following language is an example of how a bequest to benefit SPIRIT may be worded:

"I give, devise and bequeath to SPIRIT, Inc., a qualified 501(c)(3) Public Benefit Non-profit Corporation, located in Grass Valley, California, ______percent of my personal residual estate (or a specific bequest of $_________ or other personal or real property appropriately described) to be used for ( a Specific Program, the Building Acquisition and Improvement Fund or for unrestricted use.)”

Life Income Gifts

Donors may receive numerous tax and financial benefits by creating a life income gift, such as a charitable gift annuity or charitable remainder trust. The donor makes an irrevocable contribution of assets to fund the trust or annuity, gets an immediate income tax deduction for part of the contribution's value, and receives income for life or for a term between one and twenty years. When the term of the trust or annuity ends, the remaining assets will support SPIRIT programs selected by the donor.

Charitable Lead Trusts

A charitable lead trust can make payments to SPIRIT for specific term of years or for someone's lifetime. Thereafter, the assets of the lead trust are either returned to the person who created the lead trust or passed on to the children, grandchildren, or other loved ones. If the assets are to be returned to the person who created the trust, this person receives an income tax deduction when the trust is created. If the assets are passed on to the heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated.

Gifts of Life Insurance

A donor can name SPIRIT as a primary or contingent beneficiary of a life insurance policy. If the donor retains control over the policy, no income tax deduction is allowed; however, if SPIRIT is named both the sole owner and beneficiary of a paid up policy, the donor may receive an immediate charitable deduction for the lesser of the policy's fair market value and the net premiums paid. Additional premiums paid by the donor may also be tax deductible.

Gifts of Retirement Plans

Naming SPIRIT as a primary or contingent beneficiary of a private pension fund (e.g. IRA, SEP, 401(k)) can result in a tax-wise testamentary gift because these assets do receive favorable tax treatment at their owner's death. In some cases, it is best to divide one retirement account into two separate accounts, one for the spouse and one for SPIRIT. Your retirement account's “plan administrator” (the company that manages the account) can help you designate SPIRIT, Inc. as a beneficiary on the plan's “beneficiary designation form.” Please send SPIRIT a copy of this form. Go to Contact Us for our address.

Retained Life Estate

You may generate a current income tax deduction by giving a home or farm to SPIRIT, while retaining the right to use the property during your lifetime. The property will also be removed from your taxable estate.

Tax Deductions

SPIRIT Center qualifies as a "Public Benefit Non-profit Corporation" and meets the requirements of the Internal Revenue Code Section 501(c)(3). Gifts to SPIRIT, Inc. will be determined at the highest limits allowed for federal income or estate tax purposes.

Estate Tax Deductions: Testamentary gifts are deductible at 100% of the value of the assets donated to SPIRIT.

Income Tax Deductions: A person may deduct gifts or cash (or elect to deduct only the cost basis of an appreciated asset) up to 50% of their adjusted gross income in a year. Gifts of appreciated real or personal property may be deducted up to 30% of a persons adjusted income. Excess deductions may be carried over for up to five additional years.