Planned Giving

Bequests are donations made through a will or revocable trust. They will not affect your cash flow in your lifetime but will provide a meaningful gift upon your death. A bequest to AAUW can lower the total federal tax owed by your estate. You can designate a specific dollar amount, asset or a percentage of your estate.

Here is sample language to give to your lawyer:

“After fulfilling all other provisions, I hereby give, devise and bequeath to AAUW (Federal Tax ID #52-6037388), a charitable organization duly existing under the laws of the District of Columbia
and located at 1310 L St. NW, Suite 1000, Washington, DC 20005, ___ percent of the rest, residue and remainder of my estate [or $___ if a specific amount] to be used in the areas of
greatest need as the board of directors may determine.”

You can donate your life insurance policy to AAUW, which will then become the owner of the policy. In doing so, you may be eligible for a charitable deduction based on the current value of the policy, determined in accordance with IRS rules. Contact your insurance company to determine the deduction amount.

Alternatively, you can make AAUW the beneficiary of the policy. It’s easy to do so — just update the beneficiary form and submit it to your insurance company. While there is no income tax deduction for this gift, you would retain the same flexibility as you would through a bequest.

Retirement plans, including 401(k)s, 403(b)s and IRAs, can be donated to AAUW directly upon death, which may help your heirs to avoid estate taxes. Alternatively, you can name AAUW as a beneficiary of a retirement plan. This is an easy way to leave a legacy to AAUW. Naming AAUW as the beneficiary of other types of accounts — such as bank accounts and donor advised funds — is another straightforward option that allows you to make a lasting impact.

Please check with your tax adviser before making your gift to determine the particular benefits to you and your estate.

Residential, commercial or other real estate can be donated to AAUW, either outright or as a vehicle to fund a lifetime income arrangement. For example, it may be possible to transfer real estate to fund a charitable remainder trust that will pay you and your spouse or partner income for your lifetimes. You might also be able to transfer the title to your home (or other personal residence, such as a vacation home) to AAUW and reserve a life estate in the deed for you and your spouse or partner. This enables you to continue to live in the home for the rest of your lives.

Only upon the death of the last person on the title will AAUW possess the property. This gift of a “remainder interest” to AAUW enables you to qualify for a current federal tax deduction. Our planned giving team will be glad to explain how the tax deduction is computed. The gift of a remainder interest to AAUW also can reduce your exposure to federal estate tax by removing the property from your estate.As with other gifts of property, you can claim a charitable deduction for the fair market value of the real estate. Such gifts require a property appraisal, to be paid by the donor, before AAUW can accept them. We recommend that you consult an attorney if you choose to make this special type of gift.

Charitable gift annuities, often called CGAs, can be a wonderful way to help AAUW provide for the next generation of women. In addition to the benefits of making a gift to the organization, you will receive fixed payments for the rest of your life. A substantial portion of these payments is tax free, and you will receive a charitable tax deduction based on your initial donation.

Each quarter, AAUW will pay up to two beneficiaries a fixed amount, which the recipients cannot outlive. If your annuity is funded with appreciated securities, you may be able to avoid “up-front” capital gains taxes on the transfer of those securities to AAUW.

Gift annuity rates are based on your nearest birthdate. Your age will determine the payment amount, the tax-free portion of the annuity and your tax deduction.

You must be 75 or older to set up an AAUW charitable gift annuity. If you have not yet reached that age, consider instead funding a deferred charitable gift annuity, which offers all the same features and tax benefits. Payments are simply started later, at an age for which rates are higher.

AAUW adheres to the charitable gift annuity rates recommended by the American Council on Gift Annuities. CGAs are not offered in every state. Please contact the planned giving team to inquire about availability.

Charitable remainder trusts can provide regular payments (e.g., monthly or quarterly) of income for up to two beneficiaries for their lifetimes or for a set period of years, up to 20. When the income interest expires, the remainder is distributed to AAUW. By creating a charitable remainder trust, you may become eligible for a federal tax charitable contribution deduction equal to the present value of the remainder interest designated for AAUW.

In addition, you could possibly avoid capital gains tax on property transferred to the trust. You can create this form of trust during your lifetime or in your will. Payments to income beneficiaries can be designated to be a certain amount or as a fixed percentage of the value of the principal of the trust, determined annually, in which case the income payments may increase over time. The charitable remainder trust is an extremely flexible financial planning vehicle that can provide highly significant benefits to you while also enabling you to make a generous gift to AAUW.

Charitable lead trusts (also referred to as charitable income trusts) can be thought of as the “inverse” of the charitable remainder trust. They provide for a gift of the income to AAUW with the assets in the trust returning to the donor or to someone designated by the donor when the income interest expires.

Charitable lead trusts can help reduce or eliminate gift and estate taxes on trust assets that would pass to your heirs. After paying income to AAUW for a term of years, the remaining assets will be returned to you or your beneficiaries. Depending on how the trust is formed, you may be eligible for a charitable contribution deduction based on the present value of the income payments to be made to AAUW.