Planned Gifting
Thank you for taking time to review this
material on ways you can make donations or bequests to the Society.
As you will see as you read this basic material, there are many ways
to make donations to the Society through planned giving. However,
this material does not cover every possible means of giving and is
meant primarily to give a variety of examples.
In addition, while we are all highly devoted to the cause of people
living and working in thriving communities beyond the Earth, you should
be sure to take care of your family and friends first as you consider
the following planned giving opportunities. Consulting with your personal
attorney, and financial advisors, is also highly advised.
Wills
Vast sums have been transferred by wills. The largest transfer of
wealth in recorded history is predicted to occur in the next few decades.
Here are some standard approaches to making bequests to the Society
as part of a Will.
The laws in your state may vary. These examples are not intended to
be legal advice, but only suggestions. You should consult with your
personal attorney to ensure compliance with all applicable laws.
1. Include a percentage bequest of your estate.
Example: “I give, devise, and bequeath to the National Space
Society, a non-profit organization currently located at 1620 I Street NW,
Suite 615, Washington, D.C. 20006, (or its properly constituted
successor organization), ______ percent of my estate, both real and
personal property of whatever kind and wheresoever situated.”
2. Include a residual bequest. This would cover any remainder of your
estate once you have made your specific bequests.
Example: “I give, devise, and bequeath to the National Space
Society, a non-profit organization currently located at 1620 I Street NW,
Suite 615, Washington, D.C. 20006, (or its properly constituted
successor organization), all (or ______ %) of the rest, residue and
remainder of my estate, both real and personal property of whatever
kind and wheresoever situated.”
3. Include an explicit bequest to the Society of money or specific
items (stocks, bonds, land, or other real property).
Example: “I give, devise, and bequeath to the National Space
Society, a non-profit organization currently located at 1620 I Street NW,
Suite 615, Washington, D.C. 20006, (or its properly constituted
successor organization), the sum of ______ dollars (or describe the
specific property you intend to bequeath.)"
4. Include a contingent bequest to the Society based on whether one
or more named
beneficiaries not survive you.
Example: “If any of the above named beneficiaries should pre-decease
me, I hereby bequeath his/her share of my estate to the National Space
Society, a non-profit organization currently located at 1620 I Street NW,
Suite 615, Washington, D.C. 20006, (or its properly constituted
successor organization).”
5. Include a life income bequest whereby after your death, income
is paid to another individual for his/her lifetime. After that individual’s
lifetime, the Society will receive the principal. This type of bequest
is often set up to provide for elderly parents, family members or
friends in special circumstances. Example: “I give, devise,
and bequeath unto ________________, all of my right and interest in
the following property, _______________, for and during his/her lifetime,
and upon his/her death, I give, devise, and bequeath said property
to the National Space Society, a non-profit organization currently
located at 1620 I Street NW, Suite 615, Washington, D.C.
20006, (or its properly constituted successor organization).”
6. Include an NSS Endowment Fund Bequest. The Society’s main
endowment fund, the NSS Endowment Fund, is designed to generate funds
for the operating expenses of the organization in perpetuity. Bequests
received by the NSS will be placed in the NSS Endowment Fund if the
bequest is more than $1,000, and the bequest is not donor restricted.
Any of the examples mentioned above can be modified to become a bequest
designated for an endowment fund.
Example: “I give, devise, and bequeath to the National Space
Society, a non-profit organization currently located at 1620 I Street NW,
Suite 615, Washington, D.C. 20006, (or its properly constituted
successor organization), the sum of __________ dollars for its NSS
Endowment Fund.”
7. Include a Supplementary Endowment Fund Bequest. This one is somewhat
more complicated in that a new endowment fund to support a specific
project such as an on-going lecture series, an annual contest prize,
a research fellowship or other educational endeavors must be approved
by the NSS Board of Directors. It would be a good idea to consult
with the NSS national headquarters for assistance. In addition, the
NSS guidelines provide that a supplementary endowment fund for a specific
project may be established only with donated assets of $10,000 or
more. An endowment may be a “named” endowment that honors
a specific individual, in which case the initiating donation must
be $50,000 or more.
Insurance
Insurance has also been used as a standard method for the transfer
of wealth. There are a variety of approaches that can be considered
to make use of insurance to fund a contribution to the Society and
several are mentioned below. Gifts of life insurance are deductible
up to 50% of annual adjusted gross income, and there is a five-year
carry-over for any excess. (As of the time this material was prepared.)
The value of the estate or gift created by a life insurance policy
is potentially much larger than the premiums paid to create the policy.
1. You can receive an immediate income tax deduction by transferring
the ownership and changing the beneficiary status of a life insurance
policy that is now fully “paid up” to the Society.
2. You can make the Society the beneficiary or co-beneficiary of an
existing life insurance policy by contacting the insurance company
that issued the policy and completing the necessary forms required
by the company to accomplish the change.
3. You can purchase a new policy and name the Society as the beneficiary.
Your annual insurance payments are deductible if the ownership and
beneficiary status are transferred to the Society.
Savings and Retirement Plans
Various savings and retirement plan vehicles allow you to designate
the disposition of these funds.
1. Savings accounts, certificates of deposit, as well as other banking
programs allow you to make the Society a joint-owner of the account
with the “right of survivorship” only.
2. You can make the Society the beneficiary of your pension plan,
profit sharing plan, IRA, Keogh plan, tax-sheltered annuity, or other
retirement vehicle. The correct notice or forms need to be completed
in each situation.
Other Options
So far, some of the simpler methods of making a contribution to the
Society have been mentioned. The easiest way of course is always to
just to write a check. However, most of us prefer to retain control
of the majority of our assets until we are sure we will no longer
need them. Some additional options are mentioned in this section,
but they require more thought than those mentioned so far.
Trusts are legal arrangements in which property or other assets are
held by one person for the benefit of another. A trust should be drawn
up with the assistance of an attorney familiar with trust documents.
By putting assets into trusts, probate of an estate can be avoided,
and there can be considerable tax benefits, either for the person
who sets up the trust or his or her heirs.
1. Living Trusts allow all the proceeds of the trust to be distributed
outside of your estate and probate costs will be avoided. You can
change or cancel the trust at any time. Property and income can be
managed through the trust and any current gifts you wish to give to
the Society could be made through the trust. You can also list the
Society as the beneficiary or co-beneficiary of the trust.
2. Lead Trusts cannot be revoked once established. In the case of
a lead trust you place an amount of money, stock, or property into
the trust. While the trust is in effect, the Society receives an annual
donation based on the value of the trust. At the conclusion of the
trust, the principal passes on to your heirs without any gift or estate
tax even if the assets have appreciated in value. It is generally
not recommended to set up this type of trust with less than $100,000
in assets.
3. Life Income Trusts come in several forms; including the Charitable
Remainder Unitrust and the Charitable Remainder Annuity Trust. You
put a specific amount of money, stocks, or property into the trust.
It is generally not recommended to set up this type of trust with
less than $100,000 in assets. These trusts are also irrevocable once
established. You will receive a set amount or a set percentage of
the value of the trust as payments each year for life, or the duration
of the trust, as income. In addition, you are entitled to an income
tax deduction in the year that you establish the trust. After your
lifetime, or at the conclusion of the trust, the principal in the
trust will revert to the Society.
4. A Charitable Gift Annuity is another option that can be used to
establish a fund that provides annual payments for the rest of your
life. You are entitled to a federal income tax deduction in the year
in which you make your gift. You can also create a joint charitable
gift annuity naming yourself and someone else as the annuitants to
receive income throughout both lifetimes. To receive immediate payments
the annuitant(s) must be 60 years or older at the time the trust is
established. If the annuitant(s) are 55 years or older it is possible
to establish a deferred program with payments not being received until
the retirement age.
Additional Opportunities
As mentioned at the beginning, there are many ways to make donations
to the Society. Here are some other ideas you may not have previously
considered.
1. Appreciated Stocks can be donated to the Society often with tax
advantages to the donor.
2. In some cases it might be possible for the Society to accept to
Real Property. By making a donation of appreciated property to the
Society, you would be entitled to a tax deduction and would probably
not have to pay capital gains tax.
3. Memorial/Honor Gifts are a way to give tribute in memory of someone
who has passed away or in honor of a person who is still living. Birthdays,
anniversaries, weddings, retirements, and other special occasions
offer opportunities where gifts could be directed to the Society.
The Society acknowledges gifts of $20 or more. If you wish to make
this type of gift be sure that the person(s) who sends contributions
also sends the pertinent information including the name and address
of the person honored or the loved ones of the person memorialized.
4. If you are thinking about making a donation of any size to the
Society, be sure to check if your employer has a Matching Gift Program.
Many such programs match the employee contribution dollar for dollar.
Hopefully this outline has been helpful in providing a starting point
to consider some of the planned giving opportunities that are available
to aid in making donations to the National Space Society. These methods
can also be considered if you wish to provide funds for the NSS Endowment
Fund or wish to ponder the creation of a new supplemental endowment
fund. The NSS headquarters staff is willing to try and assist you
as you move forward with your gift planning. Please feel free to call,
or send e-mail, to NSS HQ (NSSHQ@nss.org)
in order to get any questions you may have answered.
Again, thank you for taking time to review this material.
Ad Astra!
