Legacy Giving - Starbridge

What are ways to make a Legacy Gift?

A gift of money – in cash, by check, or by credit card – is the most popular and easiest gift to give.

Guidance provided by Legacy Giving Advisory Council

A gift of appreciated securities to Starbridge is another common way to further your charitable legacy and may eliminate the tax you might owe on the gain. By gifting your stocks, bonds, ETFs and mutual funds to Starbridge you will owe no taxes on the gift and you are eligible for a charitable deduction equal to the fair market value of the securities on the date of the gift. A gift of proceeds from the sale of securities you hold also benefits Starbridge, although it may be less tax-beneficial to you than the gift of stocks.

For instance, a mutual fund purchased for $10 in 2015 is worth $110 in 2017. If you donate this stock to Starbridge, you pay no capital gains tax, and your charitable donation and charitable deduction would equal the entire $110. If, instead, you sell the stock and donate the proceeds to Starbridge, you pay $15 in capital gains tax, and your charitable gift and charitable deduction are reduced to $95.

To gift or sell securities to Starbridge, we recommend you consult your financial advisor. Starbridge will be pleased to work with you and your advisor to implement this plan.

Guidance provided by Legacy Giving Advisory Council

We’ve all heard it said that everybody should have a Will. It’s true though! Preparing and signing a Will that includes charitable bequests is the most direct way to leave a meaningful legacy. You can name Starbridge in your Will to receive a specific dollar amount or a percentage of your estate. Either way, you are ensuring that your desire to do good lives on and you are providing your heirs with an example of the values and ideals you hold dear.

The Executor of your estate will notify Starbridge of your generosity and your gift will be sent from your estate’s bank account. It’s as simple as that! Take the time to discuss your plans for sharing your worldly possessions with your loved ones and financial and legal advisors before preparing and signing your Will.

To leave a bequest to Starbridge through your will, we recommend you consult your attorney and financial advisors.

Guidance provided by Legacy Giving Advisory Council

Real property – your residence, vacation home, commercial property, commercially developed raw land or farm land – is often the most valuable asset for most people. Your outright gift of real property to Starbridge allows you to escape any capital gains on the appreciation of the value of the property during your ownership.

If you wish to remain in your home, making a “gift with retained life-estate” allows you to retain the right to use and enjoy your property during your lifetime.

If you cannot afford to forego the proceeds of a sale, consider a “bargain sale” to Starbridge. Selling your property to Starbridge below fair market value allows you to realize proceeds in a tax-beneficial way while allowing Starbridge to resell the property and have significant proceeds to invest into programs to support people who have disabilities and their families.

Whichever option you choose, Starbridge will be able to use the proceeds of any sale of real property to support the work we do for the people we serve.

To gift or sell Real Property to Starbridge, you will need to retain an attorney. Starbridge will be pleased to work with you and your attorney to implement this plan.

Guidance provided by Legacy Giving Advisory Council

For some people, a distribution from their Roth or Traditional IRA is their preferred way to leave a significant charitable gift.

You may wish to name Starbridge as a beneficiary upon your death – either to receive a percentage or a fixed dollar amount. If this is your preferred option, please update your beneficiary designation form today.

You may wish your retirement account to benefit both your heirs and Starbridge. If so, you might consider leaving taxable assets to Starbridge and non-taxable assets to your heirs. Since Starbridge is a charity, we will not have to pay taxes on the withdrawal from your IRA.

If you have a Traditional IRA, you can choose to give your required minimum distribution directly to Starbridge. This option typically allows for a tax benefit to you.

In any of these scenarios, your generosity will make a real difference for the people we serve.

We recommend you review your estate plan with your attorney and family.

Guidance provided by Legacy Giving Advisory Council

Naming Starbridge as a beneficiary of your life insurance policy allows you to leverage pennies of cost – by way of a premium – into a far larger gift than may otherwise be possible – in essence, a legacy gift on an installment plan. Since life insurance proceeds are not subject to income and estate taxes, probate costs, and other expenses, Starbridge will receive 100% of your gift.

Starbridge can be named as a primary or contingent beneficiary on an existing or new policy. A primary beneficiary receives the policy proceeds upon your death; a contingent beneficiary receives policy proceeds only if the primary beneficiary – a spouse or child – does not survive you. You control the portion of benefit Starbridge receives – some, part, or all of the death benefits.

To realize a charitable deduction on a life insurance policy, you can assign ownership of an existing policy to Starbridge. Your deduction will be substantial on a whole life policy versus a term life policy. You may also receive a charitable gift deduction by making a gift to Starbridge equal to the annual premium.

You and your spouse may consider purchasing a “survivorship” policy naming yourselves as insured and Starbridge as beneficiary to receive benefits only upon the death of the second spouse. Benefits are lower premiums than traditional single life policies and the death benefit is paid at the appropriate time.

All of these options will ensure that Starbridge will be here to support generations to come.

We advise you to consult with your attorney and life insurance professional.

Guidance provided by Legacy Giving Advisory Council

A charitable gift annuity is a contract between you and Starbridge. You transfer cash, marketable securities, or other assets to the annuity which entitles you to a partial charitable deduction. In return, Starbridge guarantees to pay you and one other person (i.e. your spouse (annuitants)) a fixed amount of money for your lifetime.

Also known as a “split-gift”, part of this gift is set aside in a reserve account to be invested and used to support the income payments to you and your spouse, if named in the gift. Part of the gift will be available to Starbridge immediately to support the work we do for the people we serve. At your death, Starbridge receives the remaining funds.

For example, if you make a $10,000 gift to Starbridge at age 61 and name yourself as sole beneficiary of the charitable gift annuity, you will be entitled to an immediate $3,255 tax deduction and $110 quarterly payments during your lifetime.

To create a Charitable Gift Annuity, we recommend you consult an attorney. Starbridge will be pleased to work with you and your attorney to implement this plan.

Guidance provided by Legacy Giving Advisory Council

You can create an Irrevocable Trust, in the form of a Charitable Lead Trust, designed to provide an immediate gift to Starbridge paid over a period of time – for a fixed number of years, or the lifetime of one or more persons, or a combination of those two. Cash or marketable securities typically fund the Trust. At the end of that period, the Trust assets are paid to you or to other non-charitable beneficiaries named in the Trust document. Not only will you make a substantial impact to ensure Starbridge’s financial health, but you will also receive a tax deduction based on the size of the Trust, your age, and the income stream provided to Starbridge.

To create a Charitable Lead Trust, you must retain an attorney. Starbridge will be pleased to work with you and your attorney to implement this plan.

Guidance provided by Legacy Giving Advisory Council

You can create an Irrevocable Trust, in the form of a Charitable Remainder Trust, to provide an income stream to you, and give the remainder to Starbridge at your death or after a set period. Cash or marketable securities typically fund the Trust. By donating highly appreciated marketable securities to the Trust, you can avoid a gain on the sale of those assets, as the Trust would sell them and realize the associated gain. You may also receive a partial income tax deduction when you fund the Trust based on the remainder distribution to Starbridge.

This is a good option if you want an immediate charitable deduction, but also need an income stream for yourself or another person.

To create a Charitable Remainder Trust, you must retain an attorney. Starbridge will be pleased to work with you and your attorney to implement this plan.

Guidance provided by Legacy Giving Advisory Council

How do you get started?

Please contact Starbridge by phone at (585) 224-7247 or email legacygiving@starbridgeinc.org.

“My involvement with the Board educated me about the negative effects learning disabilities can have on our young people – dropping out of school, drug abuse, juvenile delinquency, and unemployment. The statistics are staggering and I knew I needed to help in some way. By designating Starbridge as a beneficiary on one of my life insurance policies, I know that I’ll be giving children a good start in life.”
~ Lynn M. Carleton

Starbridge Legacy Giving Advisory Council

Our Advisory Council consists of experts in law, tax, and finance and can provide guidance to you about the options listed above.

Lynn Carleton

Ms. Carleton administers trusts and estates as well as custody and investment management accounts. Ms. Carleton is a certified Trust & Financial Advisor (CTFA), Certified Special Needs Planner (CSNP), and completed coursework required for financial planning certification from the New York State Bankers Association School for Estate and Trust Administration.

Mario DiLuigi

Mr. Diluigi’s practice includes high net-worth individuals, estate and trust administration, home builders, medical and professional services, and real estate management. Mario was recently recognized by the National Association of Estate Planners & Councils (NAEPC) and given the Accredited Estate Planner (AEP) designation.