Planned Giving

There are many ways to support the McDowell Sonoran Conservancy through a legacy gift. Your gift is a reflection of your own philanthropic goals and a statement about your personal values and interests.

Bequests and Living Trusts
Charitable bequests and living trusts provide estate tax benefits and enable you to make significant contributions that may not be possible during your lifetime. Bequests and Living Trusts can be used to ensure that the donor's annual charitable contributions to the MSC programs continue; or to make a special gift that will enhance MSC's ability to achieve its mission in the future. Suggested wording for a specific bequest may be:

I give, devise, and bequeath to the McDowell Sonoran Land Conservancy DBA McDowell Sonoran Conservancy., a non-profit charitable organization with offices in Scottsdale, Arizona, the sum of $___________ (or describe any real or personal property), to be used for its general purposes.

Life Insurance
Many individuals have life insurance policies that can be used to benefit charities when the insured dies or, in some cases, during life the insured's. Such policies, if left to non-charitable beneficiaries at the insured's death, will in most cases pass free of income tax, but they will be subject to estate taxation in the donor's estate, thus reducing what these non-charitable beneficiaries receive. For this reason, life insurance policies are often excellent assets to use for charitable giving. (Please consult your financial advisor)

Charitable Gift Annuity
By establishing a charitable gift annuity, you can make a gift of cash or securities to MSC in exchange for a guaranteed fixed income for life. In addition to an assured income for the remainder of your life, you receive an immediate tax deduction, tax-advantaged income, and an excellent rate of return.

Charitable Lead Trust
Through a charitable lead trust, you can make a significant gift to the McDowell Sonoran Conservancy. You transfer assets to a trust that pays a yearly (or any determined frequency) income to MSC for specified number of years. At the termination of the trust, the principal is either returned to you or your designated beneficiaries.

Using Retirement and Other Tax Deferred Accounts To Benefit Charity
Many individuals have accumulated significant wealth in their individual retirement accounts (IRAs), qualified pension plans (such as 401K and Keogh plans) and deferred compensation plans. Such accounts are an excellent way to save for the future because contributions to the accounts are income tax deductible, and the assets in the accounts grow on an income tax-deferred basis. No income tax is due on the assets in the account until the owner makes withdrawals from the account, at which time the owner is taxed on the withdrawals at his/her income tax bracket.

Why should I consider using my retirement accounts to benefit charity?
Although such tax-deferred retirement accounts can be an excellent way to increase your savings, they are likely to be subject to significant tax liability in the future. First, any individual who withdraws benefits from these accounts will be subject to income tax on the withdrawals as ordinary income (not capital gains). Second, following the owner's death, if the benefits are paid to someone other than the owner's spouse, then these benefits may also be subject to estate taxation if the owner's estate has a value at his or her death of more than the "unified credit" (currently $675,000). Because the estate tax can be as high at 55% and because state and federal income taxes on retirement accounts can be 25% or more, this double tax on such distributions can approach 75% or more when the accounts pass to any heirs other than a spouse. If, instead, such accounts are left to charity at death, they will be subject to no taxation. For this reason, tax-deferred retirement accounts are excellent assets to leave to charity.

The information provided is not intended to be legal or tax advice. It is always advisable to consult with a qualified estate professional when planning your charitable giving to ensure your wished are accurately documented.