Legacy Gifts to JA

If you die with retirement plan assets in your estate, those assets are subject to income taxes that may dramatically reduce the amount that would otherwise pass to your beneficiaries. Instead, consider designating JA as a beneficiary of your retirement accounts. Because we are a nonprofit organization, JA is able to take a tax-free withdrawal of retirement assets, allowing us to use their full value to advance our important work.

Most people think of life insurance as protection, particularly for loved ones. But life insurance is also a powerful charitable tool that can be used to champion our work far into the future. By designating JA as a beneficiary on your life insurance policy, you are able to create a charitable legacy without invading cash and other assets designated for your heirs.

By making a gift of appreciated securities, you may be able to avoid paying the capital gains tax that would otherwise be due at the sale of those securities, and may also receive a charitable income tax deduction at the time of the gift. Because securities enjoy favorable capital gains treatment, they often provide greater tax benefits than a cash gift of equivalent value, particularly if they have a low cost basis.

Under the right set of circumstances, a Charitable Trust may enhance your income, minimize taxes, unlock appreciated investments and ultimately provide JA with a significant charitable gift. Although Trusts are complex legal instruments that require competent advice and careful consideration, many donors realize optimal estate planning by establishing a Charitable Trust.

Gifts made through Wills and Trusts have become the foundation of the American philanthropic tradition. Indeed, the overwhelming majority of planned gifts are the result of bequests, commonly known as planned or “legacy” gifts. If you have considered making a gift to JA but aren’t ready to relinquish your assets today, consider leaving us a legacy gift. A simple provision in your Will or Trust may enable you to make significant contributions not otherwise possible during your lifetime.

Although you should carefully review the terms of your Will with an appropriate professional advisor, we are happy to provide the following Sample Bequest Language:

Sample bequest language:

I give, devise and bequeath to Junior Achievement of Arizona, 636 W. Southern Ave., Tempe, AZ 85281, the sum of $____________ /or ___ % of my estate/or the following specific asset ____________________________ for the benefit of Junior Achievement of Arizona and its general purposes/or to be added to its endowment.

Retirement and qualified account distributions are taxed as ordinary income and they have a death tax (Income in Respect to Decedent (IRD)) that is not included in estate tax exemptions.

Beneficial Designations: Heirs must pay death taxes on retirement assets, so it should be the first asset a donor gives to a charity if they want to leave tax free assets to heirs.

Qualified Charitable Distribution (QCD): A QCD allows a donor to gift up to $100,000 per year to a qualified charity after the age of 70 1/2. Better than an income tax deduction, the donor never takes receipt of the money and these gifts can potentially lower the donor’s tax bracket and save Social Security and Medicare Taxes and avoid IRD Tax to heirs.

Donors can plan for retirement by donating a lump sum and securing an income stream for life. The claims paying (income) is the responsibility of the charity’s general account and it is a liability to the organization.  Care needs to be taken when exploring a GA and other income tools could be considered.

If you’d like to learn more about including Junior Achievement of Arizona in your will or estate plan, please contact Sam Alpert, our SVP of Development at sama@jaaz.org or 480.219.0212.

If you have already listed Junior Achievement of Arizona as a beneficiary in your will, please let us know so that we may properly recognize you and your commitment to equipping Arizona’s future.