frIendS fOrever The Maryland SPCa F riends Forever is The Maryland SPCA (Society for the Prevention of planned a special group of Cruelty to Animals) is one of the nation’s oldest animal individuals who have welfare organizations. Founded in 1869, today we help made provisions in their thousands of animals each year find new homes. Our estates to benefit the animals mission is to improve the lives of pets and people in GIVING at The Maryland SPCA. the community by fostering healthy animal-human Friends Forever is the SPCA’s way of thanking relationships. Our success depends upon the generosity people for their generosity and foresight. Members of people who care about the well-being of animals. We receive a lapel pin with the Friends Forever logo, and rely upon donations and adoption fees to operate. We are their names are listed in the annual report of giving not funded by the government, and we are independent if they choose. from other animal welfare organizations. Annuities & Trusts The Maryland SPCA has helped animals since 1869. Caring individuals who have made provisions in their estates have made life better for countless COnTaCT InfOrMaTIOn needy animals. The generosity of these individuals If you would like more information about planned helps the animals every day. giving, talk with your financial advisor or contact: David Drake Director of Development and Marketing Planned GIvInG SerIeS The Maryland SPCA of Baltimore City, Inc. Please contact the SPCA Development Office to 3300 Falls Road receive a brochure on any of these topics: Baltimore, MD 21211 • Charitable Bequests—the benefits of (410) 235-8826, ext. 132 giving through your will firstname.lastname@example.org • Securities & Real Estate—gifts of This brochure is intended to give you ideas that may be appreciated property helpful as you consider your financial and estate plans. It is not a comprehensive description of financial, estate, or • Life Insurance & Retirement Plans charitable gift planning. The Maryland SPCA does not • Annuities & Trusts—gifts that offer legal, tax, or financial advice. Persons interested in provide lifetime income legal, tax, or financial advice should contact competent professional counsel. Changes in Federal and state laws • Legacy of Care—a gift that provides may affect some of the ideas discussed in this brochure. 3300 Falls Road care for your pet when you cannot Our Federal tax identification number is 52-6001558. Baltimore, MD 21211 410-235-8826 www.mdspca.org Find a friend for life at The Maryland SPCA. The Maryland SPCA is a nonprofit 501(c)(3) organization registered with the Maryland Secretary of State. lIfe InCOMe GIfTS I t almost seems too good to be true. By making a charitable gift, you can help the animals and, at the same time, receive income for life and for the Do more to help the animals than you ever imagined. life of a beneficiary. How is this possible? Charitable gift annuities and charitable trusts are the answer. Maryland SPCA to establish a gift annuity, she receives The annual dividend rate has averaged 2 percent, These methods of giving are used by many nonprofit a charitable deduction of nearly $8,000. Her annuity or $2,000. The Smiths would like to increase their organizations to benefit both their programs and rate, which is fixed for life, is 6.2%, giving her annual income, but selling the stock would subject them to their supporters. income of $1,240. This is $840 more than she was capital gains taxes. Instead, they donate the stock Annuities and trusts are wonderful strategies if receiving before! Plus, she has the benefit of knowing to The Maryland SPCA to establish a charitable you have appreciated assets (typically stocks or real that her gift will help animals in need. remainder unitrust. The Smiths elect to receive a estate) and you would like to increase your income. payout of 6 percent annually, which increases their By creating a charitable gift annuity or a charitable income from the stock to $6,000 in the first year. They trust, you can have income for life while benefitting CharITable reMaInder and also receive a tax deduction based upon contributing The Maryland SPCA. You also will qualify for lead TruSTS $100,000. The Smiths end up with higher income membership in Friends Forever, a special group For people with appreciated assets (stocks, mature that continues for their lifetime, a substantial tax honoring individuals who have made provisions in certificates of deposits, real estate, etc.), a trust gift can deduction, and the knowledge that they have helped their estates to benefit the animals at the SPCA. provide an immediate boost to their income and a tax a cause they care about deeply. deduction. This is a great strategy, especially for people who have highly appreciated assets that are producing CharITable GIfT annuITIeS little income. The trust is funded by the asset, and it lead TruSTS Similar to annuities offered by insurance companies is professionally managed. At the time the trust is A Charitable Lead Trust works in reverse from a and investment houses, charitable gift annuities established, the donor selects a rate of return for the trust. remainder trust. It preserves your principal for your provide a fixed income to you for life. The income The trust pays out that percentage of the trust’s value on heirs. Once the trust is established, income is paid to is guaranteed, regardless of market conditions. A a regular schedule each year for the donor’s lifetime and, the charity for a fixed length of time. At that time, charitable gift annuity is simple to establish. It does if desired, the lifetime of the surviving spouse or other the principal passes to your heirs. This allows you to not require an attorney to create. There is a minimum beneficiary. Upon the donor’s (or beneficiary’s) death, see your favorite cause benefit from your generosity gift of $10,000 to create a charitable gift annuity, and the principal passes to The Maryland SPCA without during your lifetime and still leave assets to your you must be at least 65 years of age. any estate taxes. loved ones. Tax benefits for charitable gift annuities include The tax benefits of establishing a charitable remainder an immediate deduction. A portion of the annual trust will vary depending upon the donor’s age at the income also may be tax free. The rate of return you time the trust is established, the payout rate desired, hOw TruSTS wOrk will receive is based upon your age at the time of the and whether there is a beneficiary. A trust is a legal entity. An attorney is needed to gift and does not change. The older you are at the These trusts can also preserve principal for heirs. Some draft a trust agreement, and you will need to appoint time you make the gift, the higher your rate of return donors use the income from unitrusts to purchase life a trustee who will oversee the fund’s investment and will be. Annuities are typically funded by donating an insurance and designate their heirs as the beneficiaries. distribution of payments. To qualify as a charitable appreciated asset such as stocks or real estate. This provides an immediate tax deduction and removes trust, the gift must be irrevocable. The Maryland Example: Sue Stevens has $20,000 in stock that the asset from the donor’s estate for tax purposes. SPCA can serve as the trustee for gifts of $25,000 or she purchased many years ago. It has a 2% dividend Example: Elizabeth and John Smith have stock worth more. You are always free to select your own trustee rate, or $400 a year. By donating the stock to the The $100,000 that was purchased 30 years ago for $15,000. for any size trust.