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Dr. Anne Carlsen, our namesake and former administrator, believed in the worth of every individual. Throughout her life she exemplified strength and nurturing, advocating for individuals with disabilities, and teaching them how to advocate for themselves, while creating a life of independence.

With your generous gifts, whether big or small, your donations make a lasting impact on all the individuals we serve – whether on our Jamestown Campus or throughout the state of North Dakota. Please take a few moments to read through the many different ways you can help the individuals at the Anne Carlsen Center lead a life full of greater independence while also finding a match that best fits the goals of your family, friends, loved ones, finances and philanthropy.

Just as there are many different ways we serve our individuals at the Anne Carlsen Center, there are almost as many variations on ways to make a donation as there are needs to be met at ACC. Read more about a specific giving plan, or click through the many different ways in which you can give to see how you can make a difference in an individual’s life and help us fulfill our work’s mission.

Gifts You Can Give Anytime

The easiest, most common way for you to support the Anne Carlsen Center is with cash gifts—typically gifts by check.

Is This Gift Right for You?

If are looking to give an outright gift of cash, the maximum deduction for cash gifts is 50 percent of your adjusted gross income. If filing jointly, use your aggregate adjusted gross income. Any excess deduction may be carried over for up to five additional years.

Benefits of This Gift

When you make a cash gift by currency, credit card or check to the Anne Carlsen Center, both parties benefit. Your generosity enables us to meet our most urgent needs and carry out our mission on a daily basis. Your benefits include:

  • The ability to choose how your gift is used.
  • The opportunity to see the results of your generosity.
  • An immediate charitable deduction on your federal income taxes, when you itemize.

How to Make This Gift

For gifts by check of less than $250, a copy of the check is sufficient documentation. For a check of $250 or more, you should obtain a receipt from the charity.

For other contributions, be sure to get a written acknowledgement of your gift from the Anne Carlsen Center, It must include:

  • The amount of cash contributed.
  • Whether you received any goods or services in exchange for the gift.
  • A description and good faith estimate of the value of any goods or services you received in return.

For more Information

We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to further discuss your giving options.

A donor advised fund is a fund within a community foundation that distributes funds to other non-profits such as the Anne Carlsen Center. You can open one with a written agreement between you and the organization that gives you (or other family members) the right to recommend distributions (i.e., grants) be made from your fund to the Anne Carlsen Center.

You cannot however direct distributions. You have the right only to make recommendations regarding how much, how often and to which non-profits. Most donor advised funds will follow your advice if it is consistent with the fund’s objectives and the selected non-profits are qualified charities.

Once you have created a donor advised fund, you can:

    • At any time, make contributions to your fund, which are invested by the sponsoring charitable organization, which then provides a regular accounting to you.

 

  • Recommend that various amounts be distributed to qualified charitable organizations of your choice.

 

 

  • Receive an income tax charitable deduction for gifts to your donor advised fund. You receive no further tax advantage, however, when grants are made from the fund to other charitable organizations.

 

Most donor advised funds allow you to start a fund for $5,000 – $10,000, although additional contributions may be less. You should expect that a donor advised fund typically charges a 1 percent annual administration fee. Others charge an annual fee, such as $25, plus a fee for each transaction, such as $5.

Profile of a Giver of this Gift

    • You like the idea of a private foundation but prefer to defer the investment and administrative decisions to someone else and to simplify your tax filings.

 

  • You want to take advantage of greater tax benefits for your philanthropy.

 

 

  • You want to avoid the ongoing expense and management of a private foundation.

 

Is This Gift Right for You?

For donors who want to stay involved in advising on the use of their gifts, a donor advised fund offers participation without being as restrictive or as expensive to operate as a private foundation.

Benefits of this Gift

    • Convenience and timing: You can take a tax deduction now—when you make a gift to the fund—without immediately having to choose the charities you want to support.

 

  • Simplicity: You can support a number of charitable organizations and centralize your giving without having to retain records for separate contributions.

 

 

  • Expertise: You can take advantage of the staff’s expertise to research which programs you want to support.

 

 

  • Family philanthropy: Families can build a tradition of giving and teach their children the value of philanthropy by involving them in the decisions about which grants to recommend. Plus, you can name your children as the next generation of fund advisors to carry forward a true legacy of giving.

 

How to Make this Gift

If you determine that a donor advised fund is the best way for your family to support the Anne Carlsen Center while meeting your financial goals, here are some things to consider and steps to take.

1. Evaluate the charitable organization carefully. When you make a gift to a donor advised fund, your gift is irrevocable. Make sure the donor advised fund you select is one that supports your values.

2. Understand the fund’s policies and procedures. Minimum contributions, as well as the amount and frequency of grant recommendations, all vary depending on the sponsoring organization.

3. Consider costs and investment. All donor advised funds charge administrative fees that can vary considerably. In addition, investment performance will vary from one donor advised fund to the next, affecting the amount that will actually be distributable to charitable organizations.

Do you want to benefit from the tax savings that result from supporting the Anne Carlsen Center yet you don’t want to give up any assets that you’d like your family to receive someday? A charitable lead trust works for Anne Carlsen Center supporters who would like to support our work and protect their family’s inheritance as well.

As a donor, you give assets to a trust that pays the Anne Carlsen Center an income for a number of years, which you choose. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to your family and other beneficiaries you select.

A charitable lead trust can make payments in one of two ways: A charitable lead annuity trust pays a fixed amount each year to the Anne Carlsen Center, whereas a charitable lead unitrust (the less common type) pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, the payments to our organization go up as well. On the other hand, if the assets decrease in value, so do our payments.

This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal tax cost. This type of charitable lead trust (also called a nongrantor, or family lead, trust) is especially appealing to Anne Carlsen Center supporters who are financially comfortable enough that they can forgo investment income on some assets.

Given the complex nature of this gift, please refer to our helpful definitions page to help guide you though the terminology referenced. To go directly to the helpful definitions

Profile of a Giver of this Gift

If these statements resonate with you, contact your estate planning attorney to further look into the benefits of charitable lead trusts, or contact The Foundation with further questions.

  • You’d like to provide the Anne Carlsen Center with ongoing support over a certain period of years.
  • You want to ultimately transfer property to loved ones at minimal tax cost.
  • You are able to temporarily forgo access to an asset, with your heirs receiving the asset later on.
  • You could benefit from estate or gift tax relief.
  • You want to act on this giving opportunity now, while interest rates are low and it’s a tax-efficient time to implement this strategy into your estate plans.

Is this Gift Right for You?

The charitable midterm federal rate (the interest rate used in calculating the amount of the gift subject to tax) is the lowest it has been in years meaning a higher tax savings for funding a charitable lead trust. The best gift tax breaks, combined with assets that may be depressed in value temporarily, create the perfect opportunity to consider a lead trust.

Benefits of this Gift

  • You support an organization you love while also making sure your family is taken care of after your lifetime.
  • The gift qualifies for gift or estate tax savings based on the current value of the income paid to the Anne Carlsen Center over the trust term.

How to Make this Gift

The tax savings is in the form of gift-estate taxes, not income taxes. So this strategy may be right for you if you’re in a situation where your wealth would most likely be subject to estate taxes at your death. Creating a charitable lead trust can provide you with significant tax relief while providing us with financial support. The charitable lead trust is especially attractive to Anne Carlsen Center supporters when interest rates are low, because of the increased tax benefits. Consult your legal and tax advisors for more information about your possible tax savings.

If you’re interested in using a charitable lead trust to benefit your family and the Anne Carlsen Center, the following steps will guide you through the process of setting up this arrangement.

1) Meet with your estate planning attorney.

A charitable lead trust is one of the more complex giving arrangements, and your attorney can help you create the trust in a way that best meets your needs. Some things you’ll need to consider are:

  • Which assets to donate.
  • How much to donate.
  • Which charities you’d like to receive payments.
  • What rate to pay the charities and for how long.
  • Whether you should set up a lifetime trust now (with the charities starting to receive trust payments today) or as a testamentary trust at death (with the charities starting to receive payments after your lifetime.

2) With your attorney’s help, set up the trust.

The process will depend on whether you choose a lifetime trust or a testamentary trust.

For a lifetime charitable lead trust:

Your attorney will draft the trust and assist you with the process of funding the trust. You’ll fund the trust with assets you know you won’t need in the future, but that you want your loved ones to ultimately receive. You will receive a partial gift tax charitable deduction, and the rest of the gift is taxable and subject to gift taxes.

For a testamentary charitable lead trust:

Your attorney will draft the trust as part of your will. After your lifetime, your estate will receive a partial estate tax charitable deduction, and the rest of the gift is taxable and subject to estate tax.

Life insurance is an asset you may not think of donating to the Anne Carlsen Center until you hear what a powerful tool it can be to contribute and help our work’s mission.

When you own a life insurance policy with accumulated cash value, you’re essentially sitting on money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is to simply name the Anne Carlsen Center as the primary beneficiary. However, naming us as beneficiary while you still retain ownership of the policy does not qualify you for an income tax deduction. On the other hand, naming us as the beneficiary and also assigning us ownership of the policy as a current charitable gift does provide you tax benefits.

Don’t own an existing policy but still realize how beneficial giving life insurance can be? If so, you can—in most states—purchase a new insurance policy and name a qualified non-profit like the Anne Carlsen Center as the beneficiary and owner of the policy. Rather than paying premiums to the insurance company, you make tax-deductible cash gifts to cover the annual premiums. Even greater leverage is possible when two donors, usually spouses, purchase a two-life second-to-die policy. With two lifetimes before the payment of death benefits, a future gift to us will cost you even less.

Profile of a Giver of This Gift

  • Do you have a life insurance policy that no longer fits the need for which it was originally intended?
  • Would you like to receive tax benefits from your gift this year?
  • Would you like to support our organization?

Is This Gift Right for You?

If you’re concerned making a donation to the Anne Carlsen Center Children’s could threaten to reduce the amount you can leave to your loved one’s, breath easier for life insurance can make up the difference. Depending on your age, health and marginal income tax rate, the money you save in taxes thanks to the charitable deduction you will receive for your donation can be used to purchase life insurance with death benefits equal to the value of your gift.

Another option is rather than owning the new life insurance yourself, it may be preferable to own the policy inside an irrevocable life insurance trust (also called a wealth replacement trust). You would typically name a bank trust department or trust institution as trustee. Doing so will enable your heirs to receive the death benefit of the life insurance without having to pay estate taxes. Plus, life insurance is generally income tax–free to your beneficiaries.

Benefits of This Gift

  • You receive an income tax charitable deduction, available under most circumstances.
  • You realize tax savings from use of the deduction, and these savings can be invested for future income.
  • You reduce your future estate tax liability.

How to Make This Gift

Contact your insurance company to arrange for assignment of ownership of the policy at its current value to the Anne Carlsen Center. Then, one of three scenarios could unfold:

  • We might surrender the policy for cash once we receive ownership, providing us much-needed funds and relieving you of the obligation to make ongoing premium payments.
  • We may keep the policy in force so that the original face value will ultimately become your gift. In this case, you pledge to make cash gifts at least annually, which we will use to pay the premiums. The gifts are tax-deductible.
  • Another alternative is that we might decide to accept a smaller amount of paid-up insurance and still keep the policy in force for your lifetime, and you would be relieved of the obligation to make further premium payments.
Closely held stock is shares in a Corporation in which the majority of stock is held by a few shareholders. A gift of closely held stock can be a powerful way to contribute to our future while realizing valuable tax benefits.

Say you decide to give some of your shares of closely held stock to us (not so much as to reduce your ownership to 50 percent or less). Because there is no market to resell these shares, we may present the stock to your corporation for redemption, which could be paid for with your company’s retained earnings. This gift provides us with much-needed funds once we can liquidate your stock and gives you an income tax deduction in an amount equal to the fair market value of your stock.

Some things to keep in mind with this charitable giving option though – The Internal Revenue Service has ruled that you cannot legally bind a charitable organization to go through the redemption at the time it receives the shares. There can be no prearranged contract or agreement for the corporation to buy the stock. But the IRS accepts a tax court holding that a charitable organization may independently offer the donated stock for redemption.

Profile of a Giver of this Gift

  • You are a majority shareholder in a closely held corporation.
  • You would like to remove retained earnings from the corporation, without having them taxed again.
  • You would like to support our work’s mission.
  • You would like to maintain a controlling position in the corporation’s outstanding stock.

Is this Gift Right for You?

We encourage you to consult your professional legal and tax advisors to see how to maximize the benefits of this tax-efficient strategy for making a difference at the Anne Carlsen Center.

Benefits of this Gift

  • Neither you or the Anne Carlsen Center will owe capital gains taxes on the shares you donate to charity.
  • You qualify for an income tax deduction for the full appraised value of the stock.
  • You maintain control of the corporation.

How to Make this Gift

1) Let the Anne Carlsen Center know of your intentions – Be sure there are no restrictions on the transfer of your stock, and it is debt-free. Once we know your plans for making a gift of closely held stock, we can evaluate it to ensure that we can accept the stock according to our guidelines.

2) Determine how you would like the Anne Carlsen Center to use your gift of closely held stock – Do you have a particular program in mind that you would like to fund with your gift? Or will your gift be unrestricted, enabling us to use the proceeds for our most crucial needs? If you choose to specify the purpose for your gift, please let us know so we can ensure that your intentions can be fulfilled at the time of your gift.

3) Meet with your professional advisor – Discuss your possible tax and financial benefits with your professional advisors to ensure that this gift meets your goals. If the value of your shares is greater than $10,000, you will also need to arrange for a qualified appraisal to document your charitable income tax deduction.

4) Meet with us to finalize your gift – During this meeting, we will discuss the three steps above and complete any necessary paperwork, including endorsing the stock certificates to us

If you have a family member or friend whose life has been touched by the Anne Carlsen Center, we hope you’ll consider making a gift to us in honor of that person or yourself.

Is this Gift Right for You?

By providing a honorary gift it establishes a living tribute that allows you to:

  • Honor a loved one or yourself
  • Support our continuing efforts
  • Receive personal financial benefits from your contribution.

If you feel reluctant to condition your gift upon personal recognition, please keep in mind that allowing us to use your name, or the name of a loved one, can inspire philanthropy in others and further a cause that’s important to you, such as the mission here at the Anne Carlsen Center.

Benefits of this Gift

No matter if you choose to give a gift outright today, or wish to list us as part of your will, you have the ability to endow your gift so that it lasts forever. Endowments are structured so that a small portion of your gift, rather than the whole amount, is used each year to fund a particular purpose or program at the Anne Carlsen Center. To perpetuate the fund forever, the majority of the fund always remains intact and is invested for the future.

How to Make this Gift

Any charitable gift you arrange can be made in honor of someone. Consider these two basic methods of establishing an honorary gift.

Giving a gift today—An outright gift can help fund our immediate needs, upcoming project or event. The financial benefits include an income tax deduction and possible elimination of capital gains tax.

Giving a gift through your will or living trust—You can include a bequest in your will or living trust stating that a specific asset, certain dollar amount or—more commonly—a percentage of your estate will pass to us at your death in honor of your loved one.

Your property opens the door to a unique giving opportunity. From townhomes to farmland, many types of real estate assets can be donated to qualified non-profit organizations like the Anne Carlsen Center. You’ll be helping a good cause, enjoying tax benefits, and potentially setting up a lifetime stream of income.

You can donate your property outright, place it in a trust or give it through your will. All of these methods will enable you to enjoy personal financial benefits while supporting our work in a meaningful way.

Profile of a Giver of This Gift

  • You want to make a significant gift that benefits our organization.
  • The expenses and obligations of owning your property outweigh the income you receive from it.
  • You don’t have family members or loved ones who wish to take on the responsibilities or costs of owning your property after you’re out of your home.
  • You want immediate income tax relief as well as elimination of capital gains tax on the property’s appreciation.

Is This Gift Right for You?

Aside from a lifetime of memories, your home or other real estate may also carry the weight of a growing capital gains tax liability and the physical responsibilities of ownership. Making a donation of real estate can ease these burdens. But most important, it can help fund your desire to be a part of the future success of the Anne Carlsen Center.

Benefits of This Gift

In addition to freeing you from the costs and responsibilities of ownership, making an outright gift of property that you’ve owned for more than a year offers these benefits:

  • You obtain an income tax charitable deduction equal to the property’s full fair market value. This deduction reduces the cost of making your gift and frees cash that otherwise would have been used to pay taxes.
  • You eliminate capital gains tax on the property’s appreciation.
  • The transfer isn’t subject to the gift tax, and the gift reduces your future taxable estate.

How to Make This Gift

1.) Let us know your intentions. Once we are aware of your plans for making this type of donation, we will want to make sure your goals can be realized within our gift acceptance policies. We will also need to inspect the property and perform other types of due diligence.

2.) Determine how you would like your donation used. Do you have a particular program in mind that you would like to fund with your gift? Will your gift be unrestricted, enabling us to use the proceeds for our most crucial needs? If you choose to specify the ultimate purpose of your gift, please let us know so we can ensure that your intentions can be fulfilled.

3.) Meet with your professional advisors. Discuss your possible tax and financial benefits with your professional advisors to ensure that this gift meets your goals. An estate planning attorney can also prepare the necessary legal documents, including a deed transfer, to the Anne Carlsen Center. You will also need to arrange for a qualified appraisal of the property to document your charitable income tax deduction.

4.) Meet with us to finalize your gift. During this meeting, we will review the three steps above and complete any necessary paperwork on our end. The details will vary depending on your property and the nature of your donation.

Stock that has increased in value is one of the most popular assets used for charitable giving, once it has been held for more than one year. A stock portfolio is often among the most valuable assets you own—and one that can carry substantial capital gain, or appreciation in value. With careful planning, you can reduce or even eliminate federal capital gains tax while supporting our work’s mission.

As stock prices increase, so do the taxes you owe on the long-term capital gain, which are generally charged at a rate of 15 percent (0 percent if you are in the 10 and 15 percent tax brackets) through 2012. But when you donate publicly traded stock you’ve owned for more than one year to a qualified charitable organization such as the Anne Carlsen Center, you enjoy major tax benefits.

The income tax deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.

Profile of a Giver of This Gift

  • Do you have securities that you’ve owned for more than one year and are worth more than you originally paid for them?
  • Do you want to avoid paying taxes on their appreciation?
  • Can you afford to give up ownership of these securities?
  • Would you like to support the Anne Carlsen Center mission?

Is This Gift Right For You?

You can also use stock to fund a charitable gift that provides you with life income, such as a charitable remainder trust, or leave us stock in your will or living trust. Your legal and tax advisors can help you determine whether one of these options is right for you.

Benefits of This Gift

  • You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
  • You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.

How to Make This Gift

  • If you have the physical securities:
    • Hand-deliver them to us; or …
    • Mail us the stock and stock power separately.
  • If you don’t have possession of the physical securities:
    • Instruct your broker to electronically transfer your intended shares.
    • Ask your broker to notify us once the transfer is complete.
  • If you have stock losses:
    • Sell the stock yourself to realize the loss and take any allowed deduction for tax purposes.
    • Then generate a charitable deduction by donating the cash proceeds of the sale to the Anne Carlsen Center.

Gifts that Pay You Income

If you’d like to support the Anne Carlsen Center’s mission while receiving steady payments during your retirement years, a charitable gift annuity may be right for you. If you are not yet retired, there are options for you as well. A deferred charitable gift annuity may be the right charitable gift for you. You’ll receive the same benefits as regular gift annuities but with considerably higher rates.

Through a simple charitable gift annuity contract, you agree to make a donation of cash, stocks or other assets to the Anne Carlsen Center. In return, we agree to pay you, and one other person if you choose, a fixed amount each year for the rest of your life.

With a deferred charitable gift annuity you make the contribution to us now, securing a current income tax charitable deduction. Anne Carlsen Center provides you with fixed payments for life starting at any date you select. This is especially advantageous if your tax bracket is higher now than it will be later when you retire. The rate depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than with an immediate gift annuity. Your charitable deduction is also larger when you choose to defer the start of your payments.

Profile of a Giver of this Gift

  • You want to support the Anne Carlsen Center over a long term period.
  • You desire stable payments that are unaffected by changes in the economy.
  • You are nearing retirement and would like to arrange for an extra steady stream of payments to supplement other retirement income, either now or later.
  • You are able to part with cash, stocks or other assets today while maintaining and possibly increasing income received from these assets.
  • You desire income tax relief this year.

Is this Gift Right for You?

A charitable gift annuity works for Anne Carlsen Center supporters who would like to make a gift and receive steady payments in return whether retired currently or planning to retire in the future.

Benefits of this Gift

  • In addition to providing a gift to the Anne Carlsen Center and receiving fixed payments for life, you also receive these benefits:
  • Your initial gift is partially income tax–deductible.
  • Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy.
  • Your payments are not affected by ups and downs in the economy.
  • The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.
  • If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.
  • Contributions to IRAs, 401(k) plans and other retirement plans are limited therefore the deferred payment gift annuity is a good way to provide the additional retirement income you desire.

How to Make this Gift

In just five steps, you can create a gift that will provide for your future as well as ours.

1) Finalize your charitable goals – Think about your goals for our organization’s future and then determine what you wish to support. You may either restrict your gift to benefit a particular program or area within ACC or leave the gift unrestricted, allowing our senior management to use your gift for our most pressing needs.

2) Determine which asset to donate – You can fund your gift annuity with cash, stocks or another asset. When making your decision, consider the asset’s fair market value and cost basis. Also, compare the asset’s income to the proposed gift annuity payments.

3) State who should receive the payments – Gift annuities make lifetime payments you can never outlive. You can also provide payments for another individual—typically your spouse, but could also be a parent, other family member or friend.

4) Decide your payment date – Your payments may begin immediately, or you can defer your payments into the future, such as five or ten years from now. Deferring your payments benefits you by increasing your annual payout as well as your income tax deduction. You must also decide if you want to receive your payments quarterly, semiannually or annually.

5. Complete the paperwork – Contact us to finalize your plans. We can meet with you and help you complete the simple contract that puts your generous plans into action. Please keep in mind that your donation is irrevocable, meaning that you cannot change your mind once you complete the gift. Also, there may be minimums associated with this type of gift.

For More Information

We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to futher discuss your giving options.

With a charitable remainder trust, you can receive income each year for the rest of your life from assets you give to the trust you create. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the charities of your choice. In the right circumstances, this plan can increase your income, reduce your taxes, unlock appreciated investments, rid you of investment worries, and ultimately provide very important support both to the Anne Carlsen Center and you and your family.

You can choose between two types of charitable remainder trusts: annuity trusts and unitrusts

The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. However, If the value decreases so will your payments.

Say you want to give through a charitable remainder trust, but you don’t need your payments from your charitable remainder trust to begin immediately. Try considering one of these three additional types of unitrusts and their benefits.

  • One of the most common types of unitrusts is called a net income with makeup unitrust (NIMCRUT). It offers great flexibility in retirement planning because income can effectively be deferred until later years. The trust pays the lesser of the fixed percentage specified by the trust agreement or the actual trust income. Such trusts provide, however, that in any year the trust income exceeds the fixed percentage payout, the excess must be used to make up any prior deficiencies.
  • The second version is called a net income unitrust (NICRUT) uses the same payout structure but without a makeup provision.
  • The third common type of unitrust is the flip trust. It begins as a NIMCRUT or NICRUT and then “flips,” or changes, to a regular payment unitrust during the term of the trust. The triggering events to enact the flip can be marriage, divorce, death, birth of a child, or the sale of unmarketable assets such as real estate or closely held stock. Real estate is commonly used to fund this type of trust, with payments delayed until after the real estate is sold.

Profile of a Giver of this Gift

For Annuity Trusts

  • You are looking for more future income.
  • You want a fixed income you can count on.
  • You own low-yield assets that are worth more now than when you first purchased them.
  • You want a higher current income without incurring up-front long-term capital gains taxes.

For Unitrusts

  • You are looking for more future income.
  • You want payments that hopefully keep up with inflation, and you don’t mind if the payments vary from year to year.
  • You own low-yield assets that are worth more now than when you first purchased them.
  • You want a higher current income without incurring up-front long-term capital gains taxes.
  • You like the idea that additional assets can be added to the trust during your lifetime.

Benefits of this Gift

  • A partial charitable income tax deduction
  • Potential for increased income
  • Up-front capital gains tax avoidance
  • Professional management of trust assets available

Other Key Information

Choose Your Trustee: A trustee oversees the assets you place in a trust and administers the trust for the beneficiaries. You may decide to serve as your own trustee or name a professional advisor as your trustee. You can also choose a professional trustee, such as a bank or trust company. Many people name a professional as a co-trustee along with a family member. You will want to decide which traits are important to you.

Your trustee will:

  • Make trust payments to you
  • Invest the assets prudently
  • Complete the necessary tax returns
  • Notify you how much of your payments are taxable.

How to fund your trust:

A charitable remainder trust can be funded with a variety of assets all in which are up to you. While some assets are easier to give to your charitable trust, you’ll want to consider other important issues such as asset availability and capital gains tax savings. Here’s a breakdown of three popular possibilities and their effects.

  • Cash. Writing a check is the least complicated way to fund the trust. The trustee can then invest the cash in a diversified portfolio of securities.
  • Stock. Stock that is currently worth more than you paid for it and that you’ve owned for more than one year is an ideal funding choice. This stock is an especially attractive choice if it now produces only a modest income. Contributing low-yield stock can immediately boost your cash flow by means of a higher payout from the trust. You escape up-front tax on the stock’s capital gain and receive a substantial income tax charitable deduction. Plus, these assets are easily transferred to the trust.
  • Real estate. You can contribute any type of appreciated real estate you’ve owned for more than one year, provided it’s unmortgaged, and realize benefits similar to those for a stock gift. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts (i.e., a flip unitrust). Your estate planning attorney who will draft your trust can give you more details.

How to Make this Gift

After you have decided who should serve as your trustee and how you would like to fund your trust, work with your attorney to follow these five steps to create a charitable trust that fits your financial needs.

  • Decide which assets you’d like to put into the trust. Donating appreciated, low-yield stock or real estate you’ve owned longer than one year is typically more advantageous than giving cash. You may boost your cash flow by means of a higher payout from the trust. And you’ll escape up-front tax on the asset’s capital gain.
  • Determine who you want to receive the payments and how much. The rate you select must be at least 5 percent. Usually, the rate selected is 5 percent to 7 percent. Also consider whether you want someone else to receive payments, too.
  • Consider how long you’d like the payments to last. Would you like to receive payments for your lifetime (or the lifetime of another beneficiary)? Or for a fixed number of years up to a maximum of 20?
  • Decide which type of charitable remainder trust will work best for you. You can choose to receive payments that vary from year to year (unitrust) or steady payments (annuity trust). Choosing a unitrust allows you to make gifts of additional assets into your unitrust at any time in the future.
  • Decide which charities you’d like to receive the balance of the trust after your lifetime (or the fixed term). Please let us know if you include the Anne Carlsen Center in your trust so we can thank you for your generosity, support of our mission and encourage you to tour our Jamestown Campus to see the impact you’ll be making on the individuals we serve.

Gifts that Benefit ACC After Your Legacy

Continue supporting our mission even after your lifetime by naming us as beneficiary of your retirement plan, life insurance or insurance annuity assets.

The beneficiaries of the following assets can be modified at any time in your will to meet your changing needs:

  • IRAs and retirement plans
  • Life insurance policies
  • Insurance annuities

Life Insurance Policy Beneficiaries – Life insurance is a popular method of providing much-needed funds to a beneficiary at your death. Life insurance proceeds are almost always income tax–free to the beneficiary. The beneficiary designation in your life insurance policy determines where the proceeds will be distributed. The death proceeds, therefore, are not typically transferred through your will. Life insurance can be distributed to a charitable organization such as the Anne Carlsen Center if we are named as a beneficiary of the policy at the time of your death.

Insurance Annuity Beneficiaries – Insurance annuities, unlike life insurance, carry an income tax burden. Your named beneficiary is responsible for paying the income tax due on the growth of the annuity while you owned it. The tax burden makes these assets a popular choice to leave to a non-profit organization like the Anne Carlsen because as the recipient we can eliminate the tax bill associated with this annuity.

To name or change a beneficiary, simply contact the administrator of the IRA, retirement plan, or your insurance agent for a change of beneficiary form. If you would like to name the Anne Carlsen Center as beneficiary, simply decide what percentage of the plan’s value (0–100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to the administrator of the plan.

Profile of A Giver of This Gift

  • You want to support the Anne Carlsen Center after your lifetime.
  • You want to avoid paying costly income taxes
  • You want to get the full value out of your investments
  • You want to support the Anne Carlsen Center while also supporting your family as your lifetime.

Is This Gift Right For You?

Most retirement plans, including 401(k)s and IRAs, are income tax–deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones after your lifetime.

Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt non-profit organizations such as the Anne Carlsen Center. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 35 percent.

On the other hand, the naming of a non-profit as the beneficiary of retirement assets upon death generates no income taxes. The charity is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that the Anne Carlsen Center would receive the entire lump sum compared to as low as 65 percent of the original total amount invested.

Benefits of This Gift

  • You provide the Anne Carlsen Center with support after your lifetime.
  • You avoid paying costly income taxes on your investments.
  • You can determine the percentage in which you want to donate, and leave the rest to your family or loved ones.
  • The non-profit organization you choose, such as the Anne Carlsen Center, receives the full amount of your investments compared to your other beneficiaries receiving as low as 65 percent of the investment.

How to Make This Gift

Naming individuals and charities that will receive your assets once you are gone can be a simple process. Most assets can pass to your intended beneficiaries just by the terms of your will. The other assets mentioned here, such as retirement plans, life insurance and insurance annuities, however, are not controlled by the terms of your will. These assets instead require separate beneficiary forms. Consulting an estate planning attorney is a smart investment that can save you and your family money and heartache in the long run. Please seek legal advice before deciding who will get what in your estate plan, but please do keep the Anne Carlsen Center in mind when seeking legal advice about estate planning.

For More Information

We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to further discuss your giving options.

We hope you’ll consider including a gift to the Anne Carlsen Center in your will or living trust. Your gift can be made as a percentage of your estate or you can make a specific bequest by giving a certain amount of cash, securities or property and, after your lifetime, the Anne Carlsen Center receives your gift. To make a charitable bequest, you need a current will or revocable living trust.

When planning a future gift, it’s sometimes difficult to determine what size donation will make sense. Emergencies happen, and we know you need to make sure your family is financially taken care of first. Including a bequest of a percentage of your estate ensures that your gift will remain proportionate no matter how your estate’s value fluctuates over the years.

Profile of A Giver of This Gift

  • You want to support the Anne Carlsen Center after your lifetime.
  • You have a will or living trust, or are ready to create one.
  • You are young or old, wealthy or middle class.
  • You want to make a charitable gift while ensuring your family is taken care of first.
  • You want to maintain the flexibility to change your mind at any time should you choose to.
  • You want estate tax relief.

Is This Gift Right For You?

A charitable bequest works for anyone who would like to support the Anne Carlsen Center in the future. Because you can change your mind at any time and make your gift in relative proportion to bequests to family and friends, this type of gift has universal appeal for any or all age groups and income classes.

Benefits of This Gift

  • Simplicity – Just a few sentences in your will or trust are all that is needed. The official bequest language for the Anne Carlsen Center is: “I give, devise, or bequeath to the Anne Carlsen Center Foundation, a North Dakota organization, for its general purposes, all (or a fraction) of the rest, residue, or remainder of my estate, whether real or personal.”
  • Flexibility – Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
  • Versatility – You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.
  • Tax Relief – If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift’s full value.

 

How to Make this Gift

1) Choose what you would like to give – Pick from one of these four options.

A specific bequest gives us a particular piece of property. If you disposed of the property before your death, we won’t receive your intended gift because we cannot claim any other property.

A general bequest gives us a stated sum of money. If there is insufficient cash in your estate to cover the bequest, other assets will be sold for cash to honor your wishes for us.

A residuary bequest gives the “rest, residue and remainder” of your estate, or, more commonly, a percentage of the residue after all other bequests, debts and taxes have been paid.

A contingent bequest requires a certain event to occur before the gift can happen. For example, you could bequeath funds to a family member provided that person survives you; if not, the funds would then go to the Anne Carlsen Center.

2.) Decide how you would like the Anne Carlsen Center to use your gift – Choose from one of these three options.

An unrestricted bequest allows us to use the assets in the most beneficial way according to the needs of ACC.

A restricted bequest allows you to specify how we are to use the funds such as for programs or a specific events. Contact us in advance to be certain your intent can be fulfilled.

Each year the individuals at the Anne Carlsen Center rely on your generous support, along with the gifts of many others, to help us carry out our organization’s mission. But did you know you can support the Anne Carlsen Center even after you pass away by leaving an endowed gift?
When you make an endowed gift, only a small portion of your gift will be spent, allowing the remaining amount to continue growing. That portion of your gift will inturn supplement our programs forever.
Endowments you can make include cash, securities or other assets you create. Or, you can contribute to our organization’s already established endowment. Endowments can also be made in honor of a loved one or someone special.
Profile of a Giver of This Gift
You are a regular supporter of the Anne Carlsen Center and want to make sure your support continues after your lifetime.
You want to honor your family name, or someone special to you, through a charitable gift to our organization.
You have a favorite program, or student, here at ACC and you want to support their future(s).
Is This Gift Right For You?
An endowed gift works for you if you are looking to support the future of the Anne Carlsen Center. Your endowment can provide annual funds to finance a particular project, sustain a continuing program or support our current prioritized needs.
Benefits of This Gift
You support the future of the Anne Carlsen Center
You can honor a loved one by naming the endowment after them
You allow the Anne Carlsen Center to fund critical needs immediately
How to Make This Gift
To extend your support of the Anne Carlsen Center after your lifetime, consider these factors when establishing an endowed gift.
1) Choose if you’d like the endowment to be an unrestricted or designated fund.
With an unrestricted fund, our leadership will direct your gift to our most critical needs. Many of our supporters endow their annual gifts into an unrestricted fund.
With a designated fund, you determine in advance what programs or services you want your donation to support. The specific details will be incorporated into a written description of your endowment, which must be approved by you and the Anne Carlsen Center.
2) Decide if you’d like to fund your endowment now or after your lifetime.
If you choose to establish a designated fund through your estate, we encourage you to let us know of your wishes in advance to be sure we can honor them. We have sample language to establish an endowment that you can share with your attorney when drafting your estate plan.
3) Determine the amount needed.
Any amount can be contributed now or upon your death to an endowment that we have already established. If you are creating an endowment today, we can inform you of the minimum amount required to establish a fund that we can name after you or someone you select. If you intend to create a designated or named endowment through your estate, however, we recommend that you:
Specify a minimum amount in your will or living trust.
Include a provision directing your executor to distribute more funds if needed to meet any future changes in the minimum amount to start an endowment.
4) Include safety language for designated funds.
Nationwide, millions of dollars directed to permanent endowments are sitting in bank accounts because the original use of the funds has become obsolete. This is why we encourage you to include a statement that allows our board of directors to redistribute the funds to another area if the original use is no longer necessary. We can provide you with the language to avoid your fund becoming obsolete. This won’t be necessary if your gift is left unrestricted. We will ensure that your name still remains associated with the gift, regardless of its final use.
You can make a gift to the Anne Carlsen Center of a remainder interest in your home, receive sizable tax benefits now and continue living in your home for the rest of your life.
With a retained life estate, you deed a personal residence or farm to the Anne Carlsen Center now. You retain the right to occupy the home for life and continue to pay real estate taxes, maintenance fees and insurance on the property. In addition, you can later decide to rent your home or make improvements to it. After your lifetime—and the lifetime of your spouse or another person you choose to retain rights to live in the home—we take possession of the property.
Profile of a Giver of This Gift
You want to make a major gift to the Anne Carlsen Center after your lifetime.
You enjoy living in your home and envision living there for the rest of your life.
You’re happy to retain many of the rights and responsibilities of homeownership (maintenance, insurance, property taxes, etc.) and feel comfortable deeding us your home today.
You want immediate income tax relief.
Is This Gift Right for You?
Many of our supporters would love to make a major gift to the Anne Carlsen Center but don’t have the means to make such a gift today. If this sounds like you, you may want to consider a charitable giving arrangement called a retained life estate. The amount of your income tax deduction depends, in part, on the value of the property and your age (and the age of any other person given life use). Your tax professional can help you determine what your benefit will be.
Benefits of This Gift
You get the satisfaction of using your home to make a significant gift to the Anne Carlsen Center while retaining the right to live there for life.
You qualify for a sizable income tax deduction in the year the gift is made. The amount of your tax deduction is based, in part, on your age and the value of the property.
You can immediately deduct the amount of your gift up to 30 percent of your adjusted gross income and carry over any unused deduction for up to five additional years.
The gift isn’t subject to capital gains tax.
The property gift eliminates federal estate tax as long as the life estate was created for you and/or your spouse.
If at any point you no longer wish to occupy the property, you can rent it to provide you with an additional source of income. Or, you can give the Anne Carlsen Center the right to use the property for the rest of your life. This will provide you with yet another tax deduction.
How to Make This Gift
To extend your support to the Anne Carlsen Center, consider these factors when arranging a retained life estate.
1) Decide whether you’d like the Anne Carlsen Center to receive your home after your lifetime – You could also decide to give a second home, vacation home, some other personal residence or farm. You’ll want to work with legal or tax advisors to help you determine the best assets to leave to family vs. charity. If you determine that you would like us to receive your home at your death, it is beneficial to arrange the gift via a retained life estate now because you receive an income tax deduction in addition to possible future estate tax benefits.
2) Instruct your estate planning attorney to prepare a deed to the Anne Carlsen Center – The deed will give title to our organization, yet specifically give you a life estate in the property.
3) Give the deed to the Anne Carlsen Center – This step completes the retained life estate arrangement. For all intents and purposes, your living arrangement remains largely the same. You agree to continue maintaining the home and paying taxes and insurance throughout your life. The main change—and benefit to you—is that you receive an immediate sizable income tax deduction for your charitable plans.
4) Enjoy your tax deduction this year and continue living in your home for life – Your tax advisor will work with you to determine the specific amount of your tax deduction based on the appraisal of your property. You still retain the rights to the property no matter what life changes occur. For example, even if you choose to move to a nursing home, you still have the right to occupy the property. We will not take possession of the property until after your death.
Savings bonds are normally taxed when they’re cashed in, reissued to another person or reach final maturity. Fortunately, you can reduce, or even eliminate, income taxes when you choose to leave your bonds to the Anne Carlsen Center. Although the bonds themselves can’t be directly donated to a charitable organization during your lifetime, there are three different strategies that allow you to use your bonds to support our mission.

Three Charitable Options

  • Redeem your savings bonds and use the cash to make a gift to us. The redemption will trigger a tax liability to you on the interest income, but if you itemize, you will receive the benefit of a charitable tax deduction to help offset the additional taxable income.
  • Leave the bonds to us through your will. Because we are a tax-exempt organization, we will receive the full value of the bonds, which could have otherwise been reduced by up to 35 percent for income taxes. For a small percentage of people, federal estate taxes might also reduce the amount available.
  • Leave the bonds upon your death to a charitable remainder trust. They will first benefit your selected loved ones with lifetime payments, and then the balance will support our mission

For More Information

We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to further discuss your giving options.