The Legacy Society

Join JBWS' Legacy Society

What is the Legacy Society?

The legacy society is available to those who are uniquely committed to investing in JBWS' mission to end domestic violence. For nearly 50 years, JBWS has been providing vital services to people impacted by domestic violence. You can help ensure 50 more years of service by making a legacy gift. Often, some of the greatest opportunities to make significant charitable gifts occur at the times you are making other major business, personal, and financial decisions, such as writing or revising your will, and planning your retirement. Gift Planning offers an effective way to maximize your personal charitable goals and estate planning needs.

Below are just some of the options that may be available to you. We encourage you to seek the advice of your tax advisors concerning tax benefits that are available to you before you make a charitable gift. If you would like to make a contribution, please contact the VP of Development at 973.267.7520 x123 for more details.

Charitable Bequests

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A charitable bequest is one of the easiest ways to make a gift to JBWS. Although there are no current income tax advantages, the savings in estate taxes resulting from your gift can be significant.

Ways to design a charitable bequest in your will or trust agreement include:

a specific dollar amount
a contigent gift
a percentage of the overall estate
a percentage of the residuary estate

Since bequests to charities are deductible, it's important to consider whether or not these bequests should share in the estate's tax burden. If estate taxes might reduce the charitable bequest, that reduction will similarly reduce the value of the charitable estate tax deduction for your estate. It is generally best, from a tax perspective, to specifically provide in your will that your charitable bequests will not bear the burden of any estate taxes.

Gifts of Appreciation Property

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Charitable gifts of appreciated property that you have held for more than one year (long-term capital gain property), such as investments and real estate, can be deducted from your adjusted gross income. If the property is held for less than one year (short-term capital gain property), then the deduction is limited to the lesser of its fair market value or your "basis" in the property.

This is generally the amount you paid for the property. If you've held the property for at least one year and then donate it to JBWS, you will receive a deduction for the full fair market value of the property, regardless of what you originally paid for it. As you can see, it is usually better to make charitable gifts of long-term, rather than short-term, capital gain property.

Gifts of IRAs & Retirement Benefits

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Naming a tax-empty charity like JBWS as the beneficiary of your IRA or qualified retirement plan may be one of the most tax-effective ways to make a charitable gift. Most people are surprised to learn that retirement plans are subject to multiple layers of taxation at their death. Your heirs may actually be receiving a net benefit of only a few cents on the dollar.

When you compare what your family might receive after income and estate taxes to the full economic benefit a charity would receive, you can see why this is a particularly good way to give to charity. Check with your plan administrator or IRA custodian on the specific rules applicable to your particular retirement plan.

Charitable Remainder Trusts

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By arranging a gift through a charitable remainder trust, you, your spouse or other loved ones, retain the right to receive regular, specified distributions from the trust for a certain number of years or lifetimes. At the end of the specified term, or at the death of specified individuals, the charity receives all of the trust's assets.

When the trust is created, the donor generally receives an income tax deduction for the present value of the future gift. In most cases, the trust's assets are not subject to estate tax at your death, and are usually exempt from Federal income tax throughout their existence.

Charitable Gift Annuities

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Purchasing a charitable gift annuity is one of the simplest and most popular ways of providing for an income for you or others for a certain number of years or lifetime(s) while providing for a future gift to JBWS. You receive a current income tax deduction in the year the annuity contract is acquired, less the present value of the annuity benefit that was retained for you or other individuals.

JBWS effectively gets the benefit of the excess of your purchase price over the value of the annuity. Charitable gift annuities for the benefit of JBWS can be acquired through the Community Foundation of New Jersey.

Outright Lifetime Gifts

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All outright charitable gifts made during your lifetime will qualify for the gift tax charitable deduction. These donated assets are also excluded from your estate for federal estate tax purposes. You can also get a current valuable income tax deduction when you make a lifetime charitable gift.

When you consider the taxes you save with the income tax deduction, as well as the fact that assets passing to your family may bear taxes at a substantial rate, the "cost" of your lifetime charitable gift to your heirs may not be that significant.

Reducing Required Minimum Distributions (RMDs) With Qualified Charitable Distributions (QCDs)

A qualified charitable distribution (QCD) can be a great way to reduce required minimum distributions (RMDs) and optimize the tax benefits of giving.

For retirees who've accumulated significant savings in their tax-deferred accounts, the onset of required minimum distributions (RMDs) at age 73 can have serious tax consequences. That's because the higher the balance in your tax-deferred accounts, the higher your RMDs—and potentially your tax bracket.

If charitable giving is part of your financial plan, a qualified charitable distribution (QCD) can further your philanthropic goals and help reduce the tax hit from your RMD.

What is a QCD?

QCDs allow individuals age 70½ and older to make tax-free donations directly from an IRA to a qualified charity, potentially satisfying all or part of their annual RMDs. Generally, you can make a QCD from any tax-deferred IRA account, such as a traditional IRA, inherited IRA, SIMPLE IRA, and SEP IRA. However, a direct transfer of a QCD from a SIMPLE or SEP IRA can only be done if the account is inactive—meaning you're no longer contributing to it. That said, the IRS does not allow you to make a charitable contribution from a workplace retirement plan, like a 401(k).

What are the QCD limits?

Are QCDs tax deductible?

Let's look at an example of when a QCD could make sense. Say you're 75 years old and single, and you need $125,000 in income this year to cover your living expenses. Your RMD for the year is $110,000 and you'll receive another $50,000 from a pension and Social Security—pushing your total taxable income to $160,000. That leaves you with an additional $35,000 of income that you don't need.

If you're charitably inclined, you could donate the excess cash to your favorite charity and write-off the amount on your tax return. But by using a QCD to transfer the $35,000 directly to a charitable organization, you could potentially pay $4,080 less in income taxes.

Charitable donations: Cash vs. QCD

Taking your full RMD and then donating cash could result in a higher tax bill than if you were to give through a QCD.

Scenario 1

Take full RMD and donate $35,000 in cash

Pension and Social Security Benefits: $50,000

RMD: + $110,000

QCD: $0

Adjusted gross income: = $160,000

Itemized deduction: – $35,000

Taxable income: = $125,000

Estimated taxes due: $22,847

Scenario 2

Donate $35,000 of RMD directly to charity using a QCD

Pension and Social Security Benefits: $50,000

RMD: + $110,000

QCD: – $35,000

Adjusted gross income: = $125,000

Standard deduction: – $17,000

Taxable income: = $108,000

Estimated taxes due: $18,767

Become a Member of our Legacy Society

After providing for your family and loved ones, you may want to remember JBWS in your estate plans. A bequest, annuity, or trust will help to assure the long-term future of the work of the agency. If you are interested in leaving a legacy to JBWS please contact the Vice President of Development at [email protected]. We’d love to hear from you if you have already included JBWS in your plans. Thank you!

An example of specific bequest language: “I give, devise, and bequeath the sum of $_______ to Jersey Battered Women’s Service Inc.” Deviation from this basic language, such as imposing conditions on the gift, may cause your estate to lose valuable estate tax charitable deductions.

Thank you to the following partners that have already made Legacy gifts to JBWS or have included JBWS in their plans:

Anonymous

Ms. DiAnne Arbour

Mr. James M. Bergen

Ms. Linda Grandis Blatt

Ms. June E. Briant

Mr. Felix Braun

Mr. Robert B. Callahan

Mr. Edward M. Doda

Dr. Dawn Gabriel

Ms. Maria M. Hale

Mr. Jon and Mrs. Janet Harrington

Ms. Barbara Ridder Irwin

Ms. Dorothy H. Irwin

Mrs. Leokadia Sardi Jensen

Ms. Mary Kufta

Lee-DeSimone Family Fund

Ms. Mary J. Mooney

Ms. Eleanore Moore

Ms. Virginia H. Pace

Mr. Philip Pagano

Ms. Dorothy J. Parker

Mr. Fred W. Radel

The Children of Carol G. Simon

The William E. Simon Foundation

Mrs. Anne Singleton

Ms. Margaret Stone

Ms. Claire Sullivan

Ms. Maureen Thompson

Mrs. Barbara Dydek Tomlinson

Mr. Norman B. Tomlinson, Jr.

The Tomlinson Family Foundation

Mrs. Gretchen S. Wilcox

Ms. Lucia G. Worley

"The world is a vast and complicated place and it needs each of us doing all we can to ensure a brighter tomorrow for future generations."

-Jeff Skoll in his Giving Pledge