The ZPG Society
If you would like to extend your support of Population Connection to make a lasting impact, there are several options you can choose from. Whether you would like to put your donation to work today or benefit us after your lifetime, we can help you choose a giving vehicle that suits your preferences and current circumstances.
The ZPG Society honors those who have included Population Connection in their estate plans, such as including a bequest in their will or establishing a charitable gift annuity. We are proud to honor their legacy of protecting the environment and defending women’s rights with far-nearsightedness and a deep commitment to our mission.
If you would like more information about including Population Connection in your estate planning, please contact:
Shauna Scherer, VP for Marketing and Development
Charitable Gift Annuities
If you would like to make a legacy gift to Population Connection that will also provide payments for you now, you may choose to establish a charitable gift annuity (CGA). CGAs allow you to donate assets to Population Connection now and receive fixed payments for your lifetime.
Leaving a legacy
Your bequest to Population Connection can be:
- A stated dollar amount or percentage of your estate, or a gift of securities;
- A gift of property—real estate, collections, art, jewelry, etc.;
- A share of the “residue” (the amount that remains after paying all inheritances, debts, and costs);
- The remainder, or share of the remainder, of a trust.
To name Population Connection in your will, you may use the following simple paragraph in a new will, or as a codicil (amendment) to an existing will:
“After fulfilling all other provisions, I give, devise and bequeath ___% of the remainder of my estate [ or $___ if a specific amount] to Population Connection [Tax ID # 94-1703155], a charitable corporation currently located at 2120 L Street, NW, Suite 500, Washington, DC 20037.”
Or, instead of a specific sum or asset, you may want to think about naming a percentage (e.g. 5% or 10%) of the estate—or all, or portion of all, that remains of the estate after others have been remembered.
You might consider naming Population Connection as a beneficiary of your life insurance policy. You may request a change-of-beneficiary form from the insurance company and indicate on the form what portion (all or a percentage) of the proceeds are payable to Population Connection. If it appears in the future that your family would need all of the proceeds from this policy, you can always change the beneficiary again.
Proceeds from a policy you own would be included in your estate, but proceeds paid to charity would qualify for an estate tax charitable deduction. For larger estates, the estate tax savings can be quite significant.
You may also name Population Connection as a beneficiary of your IRA, 401(k), 403(b), or other retirement plan. Experts say that this is probably the most tax-advantageous of all gifts you can make, because retirement plan assets given to charity are not subject to income or estate tax.
On the other hand, if you name individuals as beneficiaries of your retirement funds, they definitely will be subject to income tax, and if your estate is over a certain size, and anyone other than your spouse is named as beneficiary, the retirement funds will also be subject to federal estate tax (and to state estate tax if your primary residence is in a state with such a tax). In some cases, these income and estate taxes taken together consume more than 65 percent of the retirement funds.
The procedure for naming Population Connection as a beneficiary is similar to the one for life insurance. Request a change-of-beneficiary form from the plan administrator and indicate on it the percentage of assets you want Population Connection to receive.
Now, to look at a legacy gift that actually “returns the favor,” I’ll highlight how you can combine a charitable gift with life payments for yourself or other beneficiaries you might choose to designate.
Charitable Remainder Trust
A Charitable Remainder Trust pays you and/or other beneficiaries income for life or a term of years. The payments could be made to you alone, to you and a spouse jointly and then to the survivor, to you first and then to someone else, or to other persons from the outset.
The amount paid to beneficiaries must be either (1) a fixed dollar amount between five and 50 percent of the initial fair market value of the property transferred to the trust or (2) a fixed percentage, also between five and 50 percent of the net fair market value of trust assets re-valued annually.
• A charitable remainder annuity trust pays a fixed dollar amount.
• A charitable remainder unitrust pays a variable amount, a fixed percentage of trust assets as revalued each year. It is possible to design the unitrust to pay the lesser of net income or a percentage of trust assets, and also to have it convert from this “net income” type to a regular unitrust upon the occurrence of a certain event, such as the sale of an illiquid asset contributed to the trust.
In addition to life income, there may be three tax advantages for you:
• An income tax charitable deduction for the present value of what the charity will eventually receive.
• Avoidance of tax on the capital gain when appreciated property is transferred to and subsequently sold by the trust.
• Gift and estate tax charitable deduction. If you are the only income beneficiary, none of the trust assets will be subject to gift or estate tax.
To qualify for these tax benefits, the trust must be irrevocable, though you can retain the right to change charitable beneficiaries, and the amounts going to each.
Upon the termination of the trust, the remaining trust assets will be distributed to any charitable beneficiaries you have named. You might give the entire trust remainder to Population Connection, or, if you have other charitable interests as well, you could divide the remainder among various charities.
You would select the trustee of the trust. The trustee could be a financial institution, such as a bank trust department, or a trust associated with your broker. It could be another individual, or you could act as trustee yourself. In the latter case, you probably would arrange for an accountant to do trust accounting and tax filing.