The most common planned gift is one made in a will or a trust. You also have the flexibility to change your will in the event that circumstances change.

Bequests are made by anyone, at any time, and at any income level by including language in your will or trust that specifies a gift to be made to United Way of Olmsted County. When you make a bequest, you are choosing to make a lasting impact.

How

• Gift of a percentage of your estate
• Gift of a specific dollar amount or asset
• Gift from the balance or residue of your estate
• Gift by designating a beneficiary of a certain asset(s)

Benefits

• Change or modify your wishes at any time
• Lessen the burden of taxes on your family
• Offset or eliminate estate taxes, leading to a larger inheritance for your heirs
• Receive (possible) estate tax savings
• Peace of mind knowing that your gift will be used as intended
• Leave a legacy in Olmsted County

Next Steps

• Contact your lawyer and express your desires

• View our recommended bequest language

• Visit www.FreeWill.com/UnitedWay to use our writing tool to start your will or make additions to yours, and ultimately save you time with your lawyer

• Reach out to Resource Development at 507.287.2000 or email at RD@uwolmsted.org to get connected with local planners and advisors that have worked with our donors to include the United Way of Olmsted County in their wills and estate plans

• Contact Resource Development at 507.287.2000 or email at RD@uwolmsted.org to get your questions answered

For all bequest documents, please include following is the Legal Name and Address:

United Way of Olmsted County, Inc.
903 West Center Street, Suite 100
Rochester, Minnesota  55902
Telephone: 507-287-2000
Fax:  507-287-2063
President: Jerome Ferson

Already have the United Way of Olmsted County in your Will or Estate Plans? Please let us know so that we can properly thank you by contacting  Contact Resource Development at 507.287.2000 or email at RD@uwolmsted.org. 

Don't have a will yet?

The United Way of Olmsted County, along with United Ways around the country, provide a free and easy way to create a will in less than 30 minutes. All you need is two witnesses and you can make amends at anytime. Visit www.FreeWill.com/UnitedWay to create your will today with no strings attached. 

* The above information is not legal advice.  For legal advice, please contact your attorney or contact us at RD@uwolmsted.org to speak with a local attorney who has partnered with United Way of Olmsted County. 

As a donor, you make a sizable gift to United Way of Olmsted County using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life.

Charitable Gift Annuities provide a structured, stable stream of income for yourself and your family and can be established with a gift of cash or appreciated securities.   

How

As a donor, you make a sizable gift to United Way of Olmsted County using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. Individuals or couples can set up a charitable gift annuity. You are the “annuitants,” which is the specific name for beneficiaries of annuities and many insurance policies. Minimum gifts for establishing a charitable gift annuity may be as low as $5,000, but are often much larger. 

Benefits

• Convert highly appreciated buy low-yielding assets into a lifetime income stream.  
• Reduced capital gains costs with immediate income tax deduction.  
• Guaranteed fixed income payments (higher payment rate from any other life-income gift) for life, a portion of which is nontaxable. 
• Possibility of donating many types of assets: cash, securities plus personal property.  

The pay-out rate on an annuity is based on the age of the donor at the time the gift is made. At the time of death, the amount remaining in the charitable gift annuity is given to United Way. This is an irrevocable gift to the United Way in return for a guarantee to receive a life-time annuity payment from United Way. 

"Loan" assets (and income) for a term or for life and receive accelerated income tax deduction or significant estate tax benefits.

There are two ways that Charitable Trusts can provide you with income and payments to United Way of Olmsted County: 

CHARITABLE LEAD ANNUITY TRUST (CLT): Pays a fixed amount each year to United Way of Olmsted County and is attractive when interest rates are low.

BENEFITS

• "Loan" assets (and income) to charity for a term of years or for life
• Receive accelerated income tax deducation or significant estate tax benefits

 EXAMPLE

Teresa Olsen is a 65-year-old widow with three adult children. Due to their investment acumen, Lois now has a net worth of about $10 million, and that is growing, so more than half of her estate will be subject to estate taxes, under the current rules. Lois owns a self-storage property, currently worth $1 million. Lois may use this asset to establish a 10%, ten year Charitable Lead Annuity Trust. Cash flow from the Property will pay $100,000 per year to the United Way foundation for the next ten years for a total of $1 million to the endowment. At the end of ten years, the self-storage property will pass to Lois’s three children. Because the value of the property grows free of gift and estate taxes, the series of ten $100,000 distributions to the United Way of Olmsted County actually increase the amount received by Lois’s children from her estate by more than $250,000. 

 
CHARITABLE LEAD UNITRUST (CLU): 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, for example, the payments to United Way of Olmsted County go up as well.
 

BENEFITS

• Partial income tax deduction
• Receive a percentage of the trust's value as income every year for one or more lifetimes or a set term of years
• Customizable to meet differing objectives
• Variable income can grow (or shrink) depending on investment performance

EXAMPLE

Mary Lou Lambert, aged 62, started working for the local savings bank as a teller when she was just 19 years old. Over the years she worked her way up in the company. When it went public ten years ago, she was one of the largest shareholders. All the while, Mary Lou has been very actively involved with the United Way, a role she felt important both for the community and her bank. Four years ago, Mary Lou’s bank was acquired in a stock swap, making Mary Lou’s share of the bank worth about $4 million. While she enjoys her newfound wealth, Mary Lou is approaching retirement age and it concerns her that the single bank stock represents over two-thirds of her net worth. She would like to diversify her portfolio, but, because her basis is near $0, she would be subject to Federal capital gains taxes, state income taxes and other taxes, which could total as much as 25% of the value of any stock she sells. 

After talking with one of the United Way’s planned giving specialists, Mary Lou decides to establish a 5% Charitable Remainder Unitrust (CRUT) using one third of her stock, worth $1 million. She will be eligible for a charitable deduction of about $400,000 which she can use to shelter capital gains from the sale of an additional $500,000 of her stock, proceeds of which can be reinvested elsewhere. The $1milion worth of shares she placed in the CRUT can be sold without any capital gains (since the CRUT is a charitable entity) and can be reinvested in other assets. Mary Lou will receive income of 5% of the trust’s value each year, at the outset about $50,000 per year. When Mary Lou dies, the trust’s assets will pass to the United Way and will establish an endowment in Mary Lou’s name. 

Mary Lou will have reduced her risk by reducing her exposure to the bank stock from $3 million to $1.5 million without paying any net capital gains taxes, which might have cost her as much as $375,000 had she simply sold $1.5 million of the stock, and might have reduced her investable principal (and thus her income) by up to 25%.  

Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. 

A donor advised fund is like a charitable savings account. It gives you the flexibility to recommend how much and how often money is granted to United Way of Olmsted County and other qualified nonprofits. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.

Your financial and charitable goals are a reflection of your commitment to support the future of your loved ones, charitable organizations you value, such as ours, and the greater community. But sometimes it can be difficult to keep track of the organizations you wish to support and the documents required to receive your benefits from charitable gifts. A convenient and easy way to organize your charitable intentions is to create a donor advised fund.

HOW IT WORKS

• You open a donor advised fund by a written agreement at a community foundation or sponsoring organization. Most donor advised funds require a minimum gift to open your fund, although additional contributions may be less.
• You can name your loved ones as your successor to continue to recommend grants to charitable organizations, or you can name United Way of Olmsted County Iowa as a beneficiary to receive all or part of the account after your lifetime.
• You can make contributions to your fund at any time. Your contributions are invested by the sponsoring organization, which provides a regular accounting to you.
• You make the recommendations that various amounts be distributed to charitable organizations of your choice, such as ours.
• You qualify for a federal income tax charitable deduction for gifts to your donor advised fund.

BENEFITS

• Convenience: Setting up a donor advised fund qualifies you for a federal income tax charitable deduction 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 without having to retain records for a number of separate contributions.
• Family philanthropy: Families can build a tradition of giving and teach their children the values of philanthropy by involving them in the decisions about which grants to recommend.

NEXT STEPS 

1. Contact Resource Development at 507.287.2000 or email at RD@uwolmsted.org to discuss using your donor advised funds to support United Way and our mission.
2. Seek the advice of your financial or legal advisor.
3. If you include United Way in your plans, please use our legal name and federal tax ID.

Legal name: United Way of Olmsted County 

Address: 903 West Center St, Ste 100 Rochester, MN   

Federal Tax ID # 41-0695594

You can designate United Way of Olmsted County as partial, full or contingent beneficiary of your life insurance policy.

You will continue to own and can make use of the policy during your lifetime. The policy will be included in your taxable estate when you pass away. Your estate will benefit from an estate tax charitable deduction for the value of the gift to us. Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made. 

BENEFITS OF GIFTS OF LIFE INSURANCE 

• Receive a charitable income tax deduction 
• If United Way of Olmsted County retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums 
• If United Way of Olmsted County cashes in the policy, you will be able to see firsthand how your gift supports our charitable work  
• If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to United Way of Olmsted County so that we can then use the proceeds to further local impact.  
• Your deduction for the gift of life insurance may vary from face value.  

OPTIONS  

1. Gifts of Percentage Interest in a Policy: designate United Way of Olmsted County to receive only a partial interest (e.g., a percentage) of a life insurance policy. 
2. Gifts of New or Partial-Paid Policies:  assign a partially paid policy to United Way of Olmsted County and keep the policy active by sending premium payments to United Way of Olmsted County. Or you may purchase a new policy and name United Way of Olmsted County as owner and irrevocable beneficiary. All of your payments would be tax deductible if you itemize. 
3. Gifts that Save Capital Gain: Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with United Way of Olmsted County named as a beneficiary. By donating securities, capital-gain tax can be eliminated entirely. 
4. Insurance Dividends: designate the dividends of a whole life insurance policy to United Way of Olmsted County without reducing the death value of the policy for your beneficiaries. The donor, who remains the owner of the policy, retains the right to borrow against the policy. 
5. Name United Way of Olmsted County as the primary beneficiary or co-beneficiary of a life insurance policy: You would keep ownership of the policy and access to the policy’s cash value. Because you retain ownership, no charitable income-tax deduction is allowed at the time of the gift. Although the face value of the policy will be included in your gross estate at your death, your estate will be entitled to an offsetting charitable estate-tax deduction. 

HOW TO MAKE A GIFT OF LIFE INSURANCE 

To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include United Way of Olmsted County as the beneficiary of your policy. 

Use our legal name and address as follows: 

United Way of Olmsted County 
903 West Center St, Ste 100 
Rochester, MN 55902  

Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch, or commercial property can make a great gift to United Way of Olmsted County.

BENEFITS OF GIFTS OF REAL ESTATE

• Avoid paying capital gains tax on the sale of the real estate
• Receive a charitable income tax deduction based on the value of the gift
• Leave a lasting legacy to United Way of Olmsted County

HOW TO MAKE A GIFT OF REAL ESTATE

• Your real property may be given to United Way of Olmsted  County by executing or signing a deed transferring ownership.
• You may wish to deed part or all of your real-estate property to United Way of Olmsted County. Your gift will generally be based on the property's fair market value, which must be established by an independent appraisal.

LIFE ESTATE RESERVED

Give a residence or farm during your lifetime but retain the right to use it for the rest of your life (and/or the life of a loved one).

Benefits of a life estate reserved

• Receive a federal income tax deduction for the value of the remainder interest in your home or farm
• Preserve your lifetime use and control of your home or farm
• Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child

How life estate reserved works

• You deed your home or farm to United Way of Olmsted County. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
• You and United Way of Olmsted County sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
• When the owners of the life estate pass away, the home or farm will belong to United Way of Olmsted County. We will use or sell the property to further our charitable work.

There may be other scenarios in which special considerations will need to be given. 

• Mortgaged Property - Please contact us if the property you wish to give has existing debt or a mortgage. Indebtedness can affect your charitable tax deduction.
• Difficult Property Gifts - Certain properties pose challenges. Please contact us before making a gift of real estate so we can explain our gift acceptance policies.
• Capital Gains Tax - Contact us about the potential capital gains tax considerations of your gift. You may also be interested in learning about planned giving options that provide life income.

Did you know, if you are 72 1/2 or older, you can make charitable gifts directly from your IRA?

Naming a charity as a beneficiary of a portion of your IRA or other retirement asset can be a tax-wise, simple way to make a legacy gift to United Way of Olmsted County.  You can use pre-tax basis retirement assets to fund your legacy gift while leaving other non-taxable assets to heirs. Naming beneficiaries for your retirement assets is done using a beneficiary form, not a will or trust.

DONOR BENEFITS

• Counts towards minimum distribution requirements from IRAs. 
• Allows you to give from pre-tax assets
• Helps avoid limits on charitable deductions
• Minimizes the effect of charitable giving on your cash flow since the gift is from your assets, not your checkbook
• Further the impact and mission of United Way of Olmsted County

HOW TO MAKE A PLANNED GIFT THROUGH YOUR IRA

• Contact your IRA plan administrator and indicate that you wish to make a direct distribution from your IRA to United Way of Olmsted County.
• Request a check made payable to United Way of Olmsted County and indicate it is a distribution from your IRA account.
• Provide United Way of Olmsted County's Federal Tax ID # 41-0695594
• Your IRA funds will be directly transferred to United Way of Olmsted County to help continue our important work. 
• Please note that IRA charitable rollover gifts do not qualify for a charitable deduction.
• Please contact us if you wish for your gift to be used for a specific purpose.