If you would like to support Ronald McDonald House Charities of Western Montana with a tax-smart donation this year, a gift of appreciated stocks, bonds or other marketable securities that you have held for more than one year may be just the right gift for you.

Your Benefits

When making a gift of appreciated securities owned for more than one year, you will receive a double tax benefit:

1. You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.
2. You will be exempt from paying capital gains taxes on any increase in the value of the securities since you acquired them–taxes you would pay if you had otherwise sold them.

Steps to Take to Make Your Gift

1. If you have the physical securities, either hand-deliver them to us or mail us the stocks and stock power separately.
2. If you don’t have possession of the physical securities, instruct your broker to electronically transfer your intended shares and notify Amy Peterson at Ronald McDonald House Charities of Western Montana once the transfer is complete.

A Tax-Wise Strategy

While 401(k)s, IRAs and other retirement plans are excellent vehicles for accumulating assets for your use during retirement, much to many people’s surprise, they are a far less attractive way to pass an inheritance to loved ones. Here’s why.

The Tax Burden

Retirement plan assets are subject to income and possible estate taxes when you name anyone other than your spouse as a beneficiary. These taxes can deplete a significant percentage of your hard-earned savings–leaving less for heirs than you had hoped.

A Charitable Solution

If you would like to include a gift to help children and families through your estate, consider the tax-smart strategy of naming Ronald McDonald House Charities of Western Montana the beneficiary of all or a portion of your retirement plan assets and leaving other less-taxed assets to your heirs. Because of our tax-exempt status, the full value of your retirement plan assets make a difference in the lives of children who are sick.

Steps to Take to Make Your Gift

Donating retirement plan assets is easy. And if you need to change or revoke your gift at any point during your lifetime, you can. Simply take these steps:

1. Contact your retirement plan administrator for a simple change-of-beneficiary form or simply download the form from your provider’s website.
2. Decide what percentage (1–100) you would like us to receive.
3. Name Ronald McDonald House Charities of Western Montana and the gift percentage on the form.
4. Return the form to your plan administrator.
5. Contact Amy Peterson at Ronald McDonald House Charities of Western Montana to let us know of your plans.

A Win-Win Donation Option

If you would like to make a donation to Ronald McDonald House Charities of Western Montana, supplement your income during your retirement years and receive valuable tax benefits, consider establishing a charitable gift annuity.

How It Works

You can set up a gift annuity with a simple contract between you and Ronald McDonald House Charities of Western Montana. You make a donation and we, in turn, agree to pay a fixed amount each year for life to you alone or to you and another person you select. The rate of payment is set at the time of your gift and doesn’t fluctuate with the stock market, interest rates or inflation. After the lifetimes of the people receiving payments, the remaining balance is used to support children and families in need.

Your Benefits

• You have potential to receive increased disposable income.
• You are eligible for an income tax charitable deduction for a portion of the gift, when you itemize.
• A portion of your payment is income tax–free throughout your estimated life expectancy.
• Any long-term capital gains income can be reportable over your life expectancy, in most cases.
• After your lifetime, the remaining portion of your gift will support our mission, helping to fulfill your charitable goals.

Steps to Take to Make Your Gift

1. Determine which asset to donate. You can fund your gift annuity with cash, stocks, bonds or possibly another asset.
2. State who should receive the payments. You can receive payments for life, or you can provide payments for another individual—typically your spouse, but it could also be a parent, adult child, family member or friend.
3. Decide your payment date. Your payments can begin immediately, or you can defer the start of your payments into the future. Deferring your payments can increase your annual payout as well as your income tax charitable deduction.
4. Contact Amy Peterson at Ronald McDonald House Charities of Western Montana to help you determine, with your financial advisors, if a gift annuity is right for you.

Receive Lifetime Payments for Your Generosity

If you are looking for ways to receive reliable payments while making a significant gift to Ronald McDonald House Charities of Western Montana, you may want to consider a charitable remainder trust.

How It Works

With this type of gift, you create the trust and fund it with assets, such as cash, real estate or appreciated securities. You receive income (either a variable or fixed dollar amount) each year for the rest of your life or for a period of up to 20 years from the trust. At the end of the trust term, the balance in the trust goes to support our mission.

Your Benefits

• Qualify for an income tax charitable deduction, when you itemize
• Up-front capital gains tax elimination
• Potential for increased disposable income
• Professional management of assets available

Steps to Take to Make Your Gift

1. Decide which asset to donate. You can fund your trust with a variety of assets. Appreciated securities you’ve owned for more than one year are an ideal choice, because you could possibly boost your cash flow with a higher payout from the trust.
2. Choose who receives the payment. Your trust can make payments to you and other beneficiaries you choose, such as a spouse or a child.
3. Identify the income you want from the trust. The rate of payment must be at least 5 percent of the trust asset’s value.
4. Determine the length of the trust. The term of your trust can be the lifetime of the beneficiaries you select or for a period of up to 20 years.
5. Contact Amy Peterson at Ronald McDonald House Charities of Western Montana to help you determine, with your financial advisors, if creating a charitable remainder trust is right for you.

A Low-Cost Way to Make a Big Impact

If you would like to help us support children and families with a substantial gift with little cost to you, a gift of life insurance may be right for you.

Your Charitable Options

Name Ronald McDonald House Charities of Western Montana as Beneficiary

If you would like to obtain the flexibility to change your mind at any time by retaining ownership of a policy, you can:

1. Name us as the primary beneficiary for a percentage of the policy.
2. Name us as the contingent beneficiary to receive benefits only if your primary beneficiary predeceases you.

Name Ronald McDonald House Charities of Western Montana as Owner

You may be entitled to an income charitable tax deduction (when you itemize) for the value of a policy, future annual premiums or both when you:

• Transfer ownership of an existing policy.
• Purchase a new policy and name us as the owner.

Your Next Step

Contact Amy Peterson at Ronald McDonald House Charities of Western Montana to discuss your options for making a bigger impact than you thought possible through a gift of life insurance.