Planned Gift Options
This is one of the simplest and most used methods of making a planned gift – from your estate after your death when you no longer need the assets.
How does it work?
Many of our supporters make charitable gifts by naming PSR as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.
To make a bequest to the PSR, the following language will be helpful to your lawyer:
"I hereby give and bequeath ($______, or ______ percent of the rest, remainder and residue of my estate, or the proceeds from the sale of real estate that I own located at ________ by my estate) to Physicians for Social Responsibility, a nonprofit corporation exempt from Federal taxation under Section 501 (c)(3) of the Internal Revenue Code, currently located at 1111 14th Street, NW Washington DC, 20005, Federal tax identification number 23-7059731 for its general purposes.”
There are three ways you can make a bequest:
1. Specific Bequest
You designate a specific dollar amount, specific percentage, or specific property to Physicians for Social Responsibility.
2. Residual Bequest
My estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount, the residue, will be transferred to Physicians for Social Responsibility.
3. Contingent Bequest
If all of my beneficiaries predecease me, my estate shall pass in its entirety to Physicians for Social Responsibility.
When you are a planned gift donor, PSR will honor you with membership in the Legacy Society. If you have already made a plan to give to PSR in your will or estate plan, please contact the Development Office.
Gift of Retirement Plan
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to Physicians for Social Responsibility. One way to make a gift of your retirement plan is to create a charitable remainder trust through your will.
How does it work?
Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to PSR. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of the PSR's right to eventually receive the trust assets.
Charitable Lead Trust
Individuals with very large estates can use a charitable lead trust to benefit Physicians for Social Responsibility and pass principal back to family members with little or no tax penalty.
How does it work?
You transfer assets to a trust that provides payments to the PSR for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax (GST) is imposed on large transfers to grandchildren and others who are more than one generation younger than you.)
Gift of Life Insurance
Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to Physicians for Social Responsibility. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.
Charitable Remainder Annuity Trust
The charitable remainder annuity trust pays you a fixed dollar amount annually for life. The fixed payments are determined by the payout percentage selected at the beginning of the trust and for five subsequent years if you cannot fully use the deduction in the first year. You can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.
Life Income Gift
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without significant sacrifice. In fact, you can get current income tax and financial benefits. You irrevocably transfer some assets to PSR now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out our mission.
By making a life income gift to PSR, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do. The benefits include:
• A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
• You free up appreciated investment to maximize yield, diversify, or both–often without paying tax on the capital gain.
• Your effective yield is increased by substantial income tax savings.
• Income can be taxed more favorably in some plans.
• You unburden yourself of investment concerns.
• Your probate and estate administration costs may be reduced.
For details on this program, and other giving opportunities, please contact Senior Manager of Philanthropy Christine Herrmann at 202-587-5239 or firstname.lastname@example.org..