Gift Planning - Not Just for the Wealthy
You're probably familiar with some of the myths about gift planning (also known as "planned giving"). For instance, It's something that only rich people do. Actually, you don't have to be rich to mention Clausen House in your will or estate plan. You can leave a legacy of nearly any size and still have an impact on our organization.
Clausen House's largest single gift to date was a $500,000 bequest, partly in the form of appreciated property. This gift helped us establish our Community Center in 2002.
Think about this. A similar amount, if placed in Clausen House's Endowment Fund, through its interest only, could cover the gap between state funding and actual costs in our Supported Employment program...forever.
If you're like many donors, you could not possibly contemplate an outright gift to Clausen House of, let's say $450,000. You may not even be able to leave this amount in your estate. However, you yourself could actually benefit by making Clausen House the beneficiary of a Charitable Remainder Trust (CRT) based on the sale of your home.
Here's an example. A 79-year-old woman needs cash but hesitates to sell her home because of the tax consequences. She has lived in it for many decades and its value has appreciated to $1 million — far more than the original purchase price.
Our friend could avoid taxes entirely and receive a lump sum of more than $500,000 now, plus $37,000 per year in future income. How? By putting about $450,000 of the sale proceeds into a Charitable Remainder Trust. The trust will pay her lifetime income. At the end of her life, it will go to Clausen House — a major benefit both to the donor and to our programs.
The process doesn't have to be intimidating! We are happy to help you or refer you to an estate planning specialist. For more information on gift planning options, please contact Jessica Derrick, Director of Development, at (510) 839-1114.