Include United Way in your will, estate plans, or charitable distributions

United Way of the Franklin and Hampshire Region Tax ID 04-2104792

1.    Name United Way as a beneficiary in your will

A bequest provision can be included in your will when you are creating it, or you can amend your existing will through the use of a codicil. This arrangement provides you with flexibility and control should your circumstances change. You can designate an exact amount or asset or a percentage of the assets in your will.

Option 1: Add this to your will

“I (name), of (city, state, zip), give, devise and bequeath to United Way of the Franklin and Hampshire Region (written amount or percentage of the estate) for its unrestricted use and purpose.”

Option 2: Fill out a free online will via FreeWill, who collaborates with United Way on this easy tool.

2.    Make an outright gift of cash or appreciated stock or real estate

This is an excellent technique for individuals in the highest tax bracket or those who have sold a business or received a significant bonus and could benefit from an immediate tax deduction.

3.    Name United Way as the beneficiary of a retirement plan

Perpetuating your gift through a retirement plan is simple, flexible and tax wise. Contact the administrator of your retirement plan to designate United Way as the beneficiary of your retirement plan. They can also let you know what restrictions might apply. The benefits of naming United Way as the beneficiary of a retirement account include:

• Avoiding potential double taxation on retirement fund gifts to heirs (estate tax and income tax).

• Allowing you to continue to draw money out of your retirement account while you are living.

• Providing you with the freedom to change your mind if your situation changes.

• Giving you the satisfaction of knowing that your hard-earned retirement funds will continue to impact people’s lives in our community.

4.    Name United Way as the beneficiary of an existing or new life insurance policy

Many contributors are attracted to life insurance because it enables them to make a larger gift than they would otherwise have been able to make. Here’s how it works: you pay the premiums on a life insurance policy that will ultimately produce a sizable gift to United Way. If United Way is named as the owner and beneficiary, you will also receive a tax deduction for the annual premiums.

5.    Qualified Charitable Distributions (or Charitable IRA Rollover Gifts)

If you’re a retiree over age 70½, you have a workaround that preserves the tax benefits of giving, even if you don’t itemize. Once you reach this age, you must start taking required minimum distributions (RMDs) from your individual retirement account every year. In what’s called a qualified charitable distribution (QCD), you can donate all or a portion of your RMDs, up to $100,000 a year, directly to charity.

While you don’t get a write-off for your gift, you also don’t owe taxes on that retirement-account distribution. For a taxpayer in the 22 percent bracket, funneling a $5,000 RMD to charity saves $1,100 in federal income taxes, the same as if you’d been able to deduct it.

The Bequest the Changed Everything

Planned Giving Profile: Frederick Ames

“The $230,000 bequest of the late Fred Ames was the catalyst that put the United Way on the road to financial stability.” — John Ebbets, CEO, United Way of Hampshire County (2007-2011)

While thousands of individual actions have helped with the success of United Way of the Franklin and Hampshire Region over the years, there is one act that stands above the rest. It occurred with the passing of Frederick (Fred) O. Ames (1927-2005).

Fred was an engaged community supporter on many levels, and upon his passing Fred left a bequest of $230,000 to United Way of Franklin and Hampshire Region. This single act of philanthropy was the catalyst that put the United Way on the road to financial stability.

It eliminated our need to operate from a line of credit. It provided the financial foundation that allowed us to focus more on our greatest long-term success factors: our campaign and our donors. With directed oversight and stewardship—through our independent financial, investment, and audit committees—United Way of Franklin and Hampshire Region is now stronger and more capable, all because of one man’s gift. 

We will never forget Fred Ames and the wonderful legacy his generous gift helped to foster for the benefit of this community.