Planned Giving

 

What is Planned Giving?

Planned giving can help you meet your charitable and estate planning goals. Through planned gifts, you can provide for your loved ones and support institutions that are important to you at the same time.

The word “planned” indicates that this type of giving will have a future impact on your estate and on the charitable organization your gift will ultimately benefit. It also suggests that your decision to make a planned gift was likely made with the counsel of a financial planner, estate or tax attorney, or CPA, as well as your heirs.

Planned gifts typically have tax benefits that may enhance your financial situation and/or that of your heirs—while ensuring a legacy of lifelong learning at the Bloomfield Public Library.

The following information is intended to provide you with a general overview of some popular ways you can plan a gift that benefits you, your heirs, and the Bloomfield Public Library. Before making such a gift, be sure to consult with your attorney, accountant, or other advisor on legal and tax-related matters that affect your specific situation.

Bequests

Often, the easiest type of planned gift you can make is a bequest. Including a gift from your estate to the Library in your will or living trust may allow you to make a more substantial charitable gift than possible during your lifetime.

  • A general bequest is one of the most popular ways to make a charitable gift by will. You may simply leave a specific dollar amount to the Library.

  • A residuary or remainder bequest is comprised of any money left after all debts, taxes, expenses and other bequests are paid out of your estate.

  • A percentage bequest is where a set percentage of your total wealth is gifted to the Library.

  • A restricted bequest restricts the bequest for a specific purpose but is often made in broad terms consistent with your wishes (ie. Adult Education, Technology, Children’s Library). If you prefer to make your bequest restricted, we would be happy to sit down and discuss the Library’s greatest areas of need so that your desires can be met. A restricted bequest can include setting up an endowment, which serves as an investment fund established by the Library where annual withdrawals from the invested capital are made, to be put towards a specific Library purpose in accordance with your wishes.

Other Types of Planned Gifts

  • Make a gift to the Library with a distribution from your Individual Retirement Account (IRA). Individuals over age 70½ can directly transfer up to $100,000 per year from their IRA account to one or more charities. This transfer counts toward the minimum required distribution rule for IRA accounts, and such distributions are free of both income and estate taxes.

  • Name the Library as a beneficiary of your retirement plan assets, such as an IRA or 401(k). Your retirement plan administrator will provide a change of beneficiary form upon request. Giving in this way can help maximize tax savings.

  • Name the Library as a beneficiary under your life insurance policy. After your passing, a portion or all of the proceeds will be paid to the Library, and your estate will be allowed a charitable estate-tax deduction. You will need to contact your life insurance provider to designate your library as the beneficiary.

  • Establish a charitable trust benefiting the Library to guarantee lifetime payments and generous tax benefits. For more information on Charitable Trusts, please consult a financial planner, estate or tax attorney, or CPA, as well as your heirs.

Let Us Thank You

If you have already included the Bloomfield Public Library or the Library’s Foundation in your estate plans, please let us know. We would like to thank you for your generosity, make sure the purpose of your gift is understood by our Trustees, and recognize you as a benefactor.