Friends Forever

Planned Giving

By supporting Friends in Action, you’re fueling the 6,000 miles our volunteers have driven to help our clients make medical appointments, go grocery shopping, visit the food pantry, and more. By supporting Friends in Action, you’re preparing the 3,000 hot meals that are served in our Senior Center every year.

By supporting Friends in Action, you’re planning the weekly coffee hours, exercise classes, wellness and information seminars, bridge clubs and art classes, and similar groups that provide conversation and companionship.

Making an estate gift means that your passion for Friends in Action can be carried into the future. Your gift will serve to sustain this organization and enable thousands of people to benefit and make their lives better. Thank you for making a difference.

Your legacy plans can include making critical community connections through Friends in Action.

Types of Planned Giving

Friends in Action is happy to work with you and your financial advisor to design a gift that meets your charitable and financial goals. Call us at (207)664-6016 or fill out the contact form and we will contact you to answer your questions.

Your will is a very personal document. It designates your beneficiaries and spells out your ongoing priorities. You will, when it is drafted by your lawyer, is hand-tailored to incorporate your decisions. A bequest in your will to Friends in Action is exempt from the federal estate tax and the Maine estate tax. The following suggested forms of bequests are examples and can be adapted by you and your lawyer to meet your specific intentions.

Specific Bequest

“I give and bequeath to Friends in Action, a Maine nonprofit organization, PO Box 1445, Ellsworth, Maine, the sum of $___________ (or specify percentage or describe property) to be used for the general purposes of Friends in Action.”

Residuary Bequest

“I give and bequeath to Friends in Action, a Maine nonprofit organization, PO Box 1445, Ellsworth, Maine, all (or stated percentage) of the residue and remainder of my estate to be used for the general purpose of Friends in Action (or to be used for a specific purpose such as endowment, programs, etc.).”

Contingent Bequest

A contingent bequest names Friends in Action to receive part or all of your estate in the event designated beneficiaries predecease you. You might insert in your will language such as the following: “If any beneficiary named in this will is not living at my decease, then I give, devise and bequeath to Friends in Action, a Maine nonprofit organization, PO Box 1445, Ellsworth, Maine, any bequest which said beneficiary would have received if he or she had survived me.”

Gifts to Friends in Action may be included in either a lifetime or testamentary trust. A lifetime trust is sometimes referred to as a revocable, intervivos, or management trust. A testamentary trust is one incorporated in your will. The language included in either a testamentary or lifetime trust would follow the language suggested for inclusion in your will. Trusts provide flexibility to you so that you might leave the income to a named individual with the principal to Friends in Action upon that individual’s death.

There are two types of irrevocable trusts which you might want to consider to benefit Friends in Action:

Charitable Remainder Trust

A Charitable Remainder Trust, which can be in the form of either a unitrust or an annuity trust, provides for the irrevocable transfer of assets to an independent trustee who pays income to you or any beneficiary you designate for life or a term of years and, upon the death of the last beneficiary, the trust principal goes to Friends in Action. A unitrust provides that the fluctuating amounts paid during any one year to the beneficiary are a percentage of the fair market value of the unitrust assets, which by law cannot be less than 5 percent. An annuity trust provides that a fixed amount is paid annually to the beneficiary regardless of the value of the assets, but by law that amount cannot be less than 5 percent of the fair market value of the trust when it is established.

Charitable Lead Trust

A Charitable Lead Trust provides income to a charity such as Friends in Action for a fixed number of years (ten or twenty, for example) and then the principal of the trust reverts to you or your family members. Such a trust can be used to transfer income you may not need for a period of time to a charity for either its general purposes or a specific purpose, and then the principal reverts to you, or those named by you, often children or grandchildren. Under the internal Revenue Code, there are tax advantages to the various trusts described and your legal, financial and tax advisors can assist you in maximizing those benefits.

If you have a life insurance policy which you no longer require for family needs such as education, such a policy creates a charitable tax deduction for you on your federal and estate income tax returns in the year you transfer title to the policy to Friends in Action. The amount of the deduction is roughly the cash value of the policy. Any premiums you pay on policy after transferring title to Friends in Action qualify as a charitable deduction on your federal and state income tax returns for the year in which the premium is paid. The gift of a life insurance policy to Friends in Action removes that policy from your estate and reduces your federal estate tax. You can consult with your insurance agent or advisor for assistance in making a gift of an insurance policy.

Retirement accounts can be used as a bequest to support Friends in Action and reduce tax burdens. Here are some ways to use retirement account assets as a bequest:

Name a charity as a beneficiary

The estate will receive a tax deduction for the donation, which can offset estate taxes. Friends in Action will receive the total amount of the donation.

IRA Qualified Charitable Distributions

Qualified Charitable Distributions (QCDs) can be made from traditional IRAs or Roth IRAs, provided the beneficiary has reached the age of 70 ½. You can direct your IRA to distribute up to $100,000 per year to one or more charities.

Planned Giving

I would like more information on planned giving to Friends in Action.