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					frIendS fOrever                                                     The Maryland SPCa

       riends Forever is                                            The Maryland SPCA (Society for the Prevention of

       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

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                               
    •   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
         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.

      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.