• FOUNDATIONS
• GIFTS OF STOCKS AND SECURITIES
• PLANNED GIVING
• WILLS
• BEQUESTS
• CHARITABLE REMAINDER TURSTS
• CHARITABLE Q-TIP TRUST
• GIFT ANNUITIES

FOUNDATIONS
You may know a trustee or employee in one of the 70,000 foundations and corporate givers in the U.S. and many are located in the Washington area. If so, you could provide an extremely valuable service by arranging an introduction to a foundation principal with whom you have good professional or personal relationship. In the foundation world, personal introductions make all the difference. Please contact us if you can be of assistance to us.

GIFTS OF STOCKS AND SECURITIES
You can give appreciated securities and stocks to United Cerebral Palsy (UCP) and thereby gain a tremendous tax advantage for yourself. Transferring stock is considerably more tax advantageous to you than selling your stock and making a direct gift by check to UCP. So you help yourself (and us) by transferring stock to us through UCP's broker rather than selling it first. There are two main advantages in a stock transfer: (1) you incur no capital gains income tax when you have your broker transfer your shares to UCP, and (2) your gift is fully tax deductible.

Please contact us (or have your broker do so) just before stock is transferred. This is particularly important if it is to be an electronic transfer (known in the trade as a DTC transfer) because our broker probably will have no way of knowing to whom the stock is being transferred. Also, you should know that the day your gift of stock is transferred to our broker is the date used by the IRS to determine the actual value of the gift (a mid-range between high and low figures on the stock exchange for that day). For UCP's broker, please call Charles McNelly at 301-459-0566.

UCP has received stock gifts thanks to the generosity of several of its donors. Won't you please join these contributors and make a stock transfer to UCP? Your gift would be most welcome.

PLANNED GIVING
United Cerebral Palsy has relied on the generosity of its friends for five decades. You can help continue that tradition by considering a planned gift to United Cerebral Palsy.

There are a number of ways to make a gift larger than you may have thought possible, while at the same time maximizing tax and economic benefits for you and your family. Planned gifts generally permit individuals to carry out their charitable intent and, at the same time, maintain financial security for themselves as well as their loved ones. This guide offers brief descriptions of ways to make a planned gift to United Cerebral Palsy.

No matter what type of planned gift to UCP you feel is right for you and your family, it is always advisable to consult with your lawyer, financial advisor, or qualified professional.

WILLS
If you decide to provide a tax-deductible gift to UCP, you might also consider making a will at the same time, or updating your will if your already have one in place. A will can be a powerful philanthropic tool if used in combination with life insurance, trust agreements, stock transfers, joint ownership arrangements, and other financial management methods.

If you don't have a will or similar legal arrangement, you run the risk of your charitable wishes being ignored. To be sure your charitable decisions are legally recorded, you should designate special gifts to qualified nonprofit organizations in your will. Updating is very important, as an out-of-date will can be worse than no will. It is advisable to review your will regularly, and with guidance from your attorney revise it as you change your plans. [Adapted from: What Difference Does a Will Make? 1194 RFS&Co.]

BEQUESTS
Responding to inquiries from a number of potential donors, United Cerebral Palsy has established a planned giving program. Potential donors may feel that they need their capital during their lifetime, but want to make it possible to associate themselves forever with the organization's ongoing work by making bequests that, no matter how modest, will be important to UCP, its mission, and its future.

A bequest to United Cerebral Palsy is not subject to federal or state inheritance taxes. The value of the bequest is deductible in determining the taxes for estate tax purposes, and there is no limit on the amount of deduction. A will is essential if you wish to make a bequest to United Cerebral Palsy. You should consult a lawyer whether you are making a will for the first time or adding a codicil to an existing will.

CHARITABLE REMAINDER TRUSTS
There are two types of charitable remainder trusts that provide ways of giving to United Cerebral Palsy while retaining an income for life. Under these trusts, you (and another beneficiary, if you wish) retain an income for life, and at the termination of the trust, the assets are transferred to UCP.

Unitrust - A Charitable Remainder Unitrust pays you a percentage of the fair market value of the trust assets, which are revalued annually. You choose the payout rate, which must be at least 5 percent. A high rate, however, inhibits growth of principal and reduces the charitable deduction.

The term of a Charitable Remainder Unitrust may be for the life of one or more persons, or for a specified period of time not to exceed twenty years.

Annuity Trust - A Charitable Remainder Annuity Trust pays a fixed amount each year as determined in advance by the donor. The amount must be at least 5 percent of the market value of the assets at the time the trust is established. As with the Unitrust, a high payout rate inhibits growth of principal and reduces the charitable deduction.

The term of a Charitable Remainder Annuity Trust may be for the life of one or more persons, or for a specified period of time not to exceed twenty years. The chief advantage of an Annuity Trust is that is provides you with a predictable income each year regardless of any fluctuation in the earnings or value of the portfolio.

CHARITALBE Q-TIP TRUST
This type of trust pays a life income interest to your spouse. It does not, however, meet the special standard of a Charitable Remainder Unitrust or an Annuity Trust. Unlike the two types of Annuity Trust, no income tax charitable deduction would be available to the donor.

This trust is referred to as a "Q-Tip Trust" because the spouse's interest consists of what is termed "qualified terminable interest property." The terms of such a trust would provide for income to be paid to your spouse for life with the remainder passing to United Cerebral Palsy. If you wish, provisions can be made for principal distribution to your spouse.

GIFT ANNUITIES
Charitable Gift Annuity - This is a contract between you and United Cerebral Palsy with a trustee, such as a bank, managing the principal and the donor retaining a lifetime income. The donor may select a one-or-two-life annuity. The amount of the annual fixed- income payment is determined by the age of the income beneficiary or beneficiaries at the time the donor enters into the contract.

A Gift Annuity qualifies for a charitable income tax deduction. Furthermore, a portion of the payments the donor receives each year is exempt from federal income taxes.

This vehicle may be especially useful to donors who want to give highly appreciated stock in exchange for a lifetime income.

Deferred Gift Annuity - This is a variation in which payments to the donor are deferred for several years, usually until retirement. As a result, the payout to the donor may be greater than any other life income plan. This arrangement is attractive to a donor in a high tax bracket who wants the deduction now and supplementary income at retirement. Establishing a Gift Annuity with United Cerebral Palsy requires a minimum gift of $5,000.00.

Life insurance offers an attractive method for making a substantial gift to United Cerebral Palsy. There are several ways to use life insurance for charitable purposes. For example, you can:

• Liquidate a policy no longer needed for family protection and give the proceeds to UCP.


• Give a policy that is not fully paid up, and take a deduction for the "present value" of the policy (approximately the cash surrender value or the cost basis, whichever is less). If you then continue to pay the premiums to maintain the policy in force, you will be able to deduct the premium payment as a charitable contribution.


• Establish a Charitable Remainder Unitrust for your spouse, and then fund the trust with life insurance. The premium payments are partially tax deductible during the rest of your life, and the trust will provide an income for your spouse after your death.

Click here for information about Traditional Giving.