Gifts of an IRA or Other Retirement Plans
One of the best assets to contribute to Philhaven is the remainder left in your retirement account after your lifetime. These are some of the most highly taxed assets so gifting them directly rather than having them go to the estate can be a wonderful way of stewarding resources.
Gifts of Life Insurance
Under certain circumstances, the best way to contribute may be through a life insurance policy with Philhaven as the beneficiary. If Philhaven is the owner of the policy, then your premium payments are also deductible as a charitable gift. Existing life insurance policies that are no longer needed can be an excellent asset to give. Please contact the Development Office for more information.
The information shared on the Ways to Give portion of this website is not offered as legal or tax advice. Please consult your legal or financial professional.
From a Will or Trust
A Charitable Bequest is a gift that comes from someone's estate either through their will or other trust document. This could include a fixed dollar amount, a percentage of the estate, or the remainder of the estate after other specific gifts have been completed. We recommend that you work directly with an attorney that you know and trust when establishing a charitable bequest to Philhaven. We can also provide some resources and assistance to you during this process. For more information, please contact the Development Office.
It is the policy of Philhaven to place charitable bequests in the Philhaven Endowment Fund to help build long-term sustainability for Philhaven’s mission. It is a wonderful way to leave a legacy to our community’s children, grandchildren and their children.
Informing Philhaven of your Bequest Intentions
Philhaven appreciates that bequest intentions are personal and that you might wish to keep them confidential. If you are willing to share them, Philhaven welcomes the opportunity to acknowledge these intentions and make sure that your wishes are understood. Philhaven will hold any information that you share with us in strictest confidence. Letting Philhaven know of your intentions, also gives you opportunity to participate in Legacy Circle events!
Making a bequest intention for the benefit of Philhaven without restrictions will enable Philhaven to use these resources to build our endowment to fund what is needed most in future years. We also recognize that you might desire to designate a bequest for a special purpose. To ensure the flexibility needed by Philhaven to best carry out our mission in the future, we welcome a conversation with you and your attorney to discern an appropriate designation.
Bequest Intention Option 1
Giving a Gift from an IRA or Other Qualified Retirement Plan
If you have a traditional IRA, you already know it can be a powerful vehicle for accumulating tax-deferred savings. But did you know that by donating it directly to Philhaven at your death, you can avoid paying substantial taxes that would be due?
Advantages of an IRA donation:
- Avoid paying taxes
- Increase your legacy for heirs
- Increase amounts available for Philhaven
How it works
The donation of a traditional IRA to charity has many benefits. For example, this type of donation increases the amount available to Philhaven and to children or other beneficiaries of your estate. This type of gift allows your heirs to avoid estate and income tax, which can result in significant tax savings depending on the size of your estate and the amount of income to be reported on the final income tax return.
How to give a gift
Donating a traditional IRA involves a few simple steps.
- Designate Philhaven as beneficiary (or contingent beneficiary if your spouse is beneficiary) of the remainder of your IRA.
- You may also want to purchase a life insurance policy to magnify the power of the IRA. If you are over age 70-1/2 years of age, you are required to take a minimum distribution of the IRA each year. A portion of that distribution can be used to pay life insurance premiums and diminish the effects of taxation during your lifetime. The beneficiary(ies), through an irrevocable life insurance trust, are the owner(s) of the policy.
- Upon the second spouse’s death, benefits of the insurance policy are paid to the beneficiaries and the entire IRA balance goes to Philhaven tax-free.
Bequest Intention Option 2
Giving a Gift Through a Will or Trust
Bequests to Philhaven through wills or trusts contribute to Philhaven’s financial stability and ongoing mission. A bequest to Philhaven through a will or trust will also qualify your estate for an estate tax charitable deduction equal to the entire amount you bequeath.
There are several ways that you can make a bequest to Philhaven:
- You may make a bequest to Philhaven of cash, securities, or other property by designating a specific dollar amount, a particular asset, or a fixed percentage of your estate.
- You may make a bequest of all or a portion of your residuary estate to Philhaven after you have provided for all other beneficiaries by specific bequests.
- You may make Philhaven a contingent beneficiary of your estate by stipulating that Philhaven will receive all or a portion of your estate if your named beneficiaries do not survive you.
- You may make Philhaven the remainder beneficiary of a trust which you establish in your will or during your life to provide income to one or more beneficiaries for life. Philhaven would then receive the principal of the trust at the death of the last surviving beneficiary.
The following suggested language may be used to make a gift to Philhaven through your will for a general bequest:
"I give (a specific asset) or ($_ dollars) or (_ percent of the rest, residue, and remainder of my estate) to Philhaven, Mt. Gretna, Pennsylvania, for its general purposes."
Please contact the Development Office if you have interest in making a bequest for a specific purpose to make sure that Philhaven will be able to carry out your wishes.