Donate OnlineOur Impact | Other Ways to Give

Making charitable gifts through your estate plan (your will, trust, or other arrangement) allows you to balance your personal financial goals and your charitable interests, with significant tax benefits. Your estate plan gift can help to ensure MCUM’s ability to respond to the needs of our neighbors in the future, as we have done for over 80 years. You may choose from a variety of planned gift arrangements, from simple bequests or beneficiary designations on retirement assets to more sophisticated forms such as charitable trusts.

Some of the options for giving through an estate plan are listed below. To discuss how a planned gift can benefit MCUM, please contact Mary Jean Holwager. You should also contact your financial advisor or attorney for more information on your giving options.

Bequests

Giving to MCUM through your will is one of the simplest ways to make a planned gift. A bequest is a transfer of property by will – such as cash, stocks, bonds, real estate – and you may specify whether the use of the funds is unrestricted or restricted. In addition, a bequest to MCUM can save your estate a significant sum in tax payments if the estate is subject to federal estate tax. Below are just a few types of bequests.

  • Specific Bequest: You bequeath a designated sum or specific assets to MCUM.
  • Percentage Bequest: You determine the percentage of your estate that should be left to benefit MCUM.
  • Residual Bequest: You direct that MCUM receive all, or a stated portion, of your estate after payment of all debts, taxes, expenses, and other bequests.
  • Contingent Bequest: You name MCUM as the beneficiary of your estate if others named in your will are not living at the time of your death.

Restricted Bequests

You can support a particular program or accomplish a specific goal with your bequest by making a restricted bequest. If you plan on making a restricted bequest to MCUM, please contact our Executive Director, Katie Broadfoot at (812) 339-3429 x11. We can work with you to design a unique gift that will combine MCUM’s needs with your wishes. Restricted bequests can be structured in the same way as unrestricted:

  • Specific Bequest: You bequeath a designated sum or specific assets to MCUM.
  • Percentage Bequest: You determine the percentage of your estate that should be left to benefit MCUM.
  • Residual Bequest: You direct that MCUM receive all, or a stated portion, of your estate after payment of all debts, taxes, expenses, and other bequests.
  • Contingent Bequest: You name MCUM as the beneficiary of your estate if others named in your will are not living at the time of your death.

Suggested Bequest Language Unrestricted General Bequest

I hereby leave [percentage of estate/dollar amount/residue of estate/percentage of residue] of my estate to Monroe County United Ministries Inc., a not-for-profit corporation in Bloomington, Indiana, to be used for the benefit of the organization in such manner as the board of directors may elect.

Suggested Restricted Bequest Language Restricted General Bequest

I hereby leave [percentage of estate/dollar amount/residue of estate/ percentage of residue] of my estate to Monroe County United Ministries Inc., a not-for-profit corporation in Bloomington, Indiana, for the following restricted purpose:…

Gifts of Life Insurance

Life insurance is a great way to make a larger gift to MCUM in the future by making smaller contributions in the present. Life insurance can be used in different ways. You may choose to name MCUM beneficiary of a policy or of part of a policy at any time – all you have to do is contact your insurance company. Although this does not allow an income tax deduction, an estate tax reduction is possible. MCUM may also be irrevocably named beneficiary and assigned ownership of a new or existing policy. If you do so, your gift will entitle you to an income tax deduction, and future premium payments will be tax deductible.

Gifts of Retirement Assets

Because retirement plan assets are subject to heavy taxation, they are popular for charitable giving. If your IRA, TIAA-CREF, 401k or other qualified plans pass through your estate, your heirs must pay both income taxes and estate taxes (if applicable) as they receive distributions. As a tax-exempt organization, MCUM will benefit from 100% of your retirement asset donation. You may name MCUM as part or full beneficiary of one or more retirement plans or arrange for MCUM to be an alternative or contingent beneficiary on your retirement plan.

Charitable Remainder Trusts

A charitable remainder trust can provide income to you for life, or for a specified term of years. You create the trust through the financial institution of your choice, and you may fund the trust with assets such as cash, securities, or real estate. A charitable remainder trust may qualify you for a current income tax deduction as well as capital gains tax avoidance on the property used to fund the trust.The trust pays you, or another non-charitable beneficiary of your choice, a minimum of 5% as income for life or for a term of years. Upon the death of the income beneficiary or the expiration of the term of years, the trust ends and the principal passes to MCUM. You can often avoid capital gains tax, increase income, and save estate taxes. There are two basic types of charitable remainder trusts, the CRAT and CRUT.

Charitable Remainder Trusts: Charitable Remainder Annuity Trust

A Charitable Remainder Annuity Trust (CRAT) pays the named beneficiaries a fixed dollar amount of not less than 5% of the trust’s initial value. This planned giving vehicle is great if you are looking for a stable, predictable stream of income. Once the CRAT has been set up, no additional contributions can be made, and the payout rate cannot be changed.

Charitable Remainder Trusts: Charitable Remainder Unitrust

Charitable Remainder Unitrust (CRUT) can provide you with variable income, based upon a fixed percentage of the fair market value of the trust, which is re-valued each year. You can add to your CRUT any time, and you may structure the trust to grow tax-free and defer the income until a later date if you wish. This trust vehicle is a highly flexible financial planning instrument.

Charitable Lead Trusts

Charitable lead trusts provide current support to MCUM and subsequently transfer the remaining principal back to you, or to your family members, with little or no gift or estate tax. You receive a federal estate tax deduction equal to the estimated value of the annual trust payments to MCUM. You can specify the amount of income to be paid from the trust, name the beneficiaries, and indicate the length of time—either a certain number of years or your lifetime.

Check it out!

MCUM hosted a two part, informational session on Better Practices in Planned Giving in September 2020. The first part is a prerecorded session by Pam Davidson of Davidson Gift Design.  In her video Pam provides in-depth information on the types of planned giving and donor benefits (with real world examples), as well as offering parctical suggestions to help you get the most of your planned giving.  The second part is a recorded zoom session that featured a short presentation by MCUM, followed by a live Q&A featuring both Pam Davidson and Joel Schneider, a board member at MCUM and a financial advisor with Edward Jones.

Link to Pam’s session: https://youtu.be/sdgZ1HqbtNw

Link to presentation and Q&A: https://youtu.be/ZWSU1x1-qjY