Guide to Planned Giving

Providing for San Elijo Lagoon Conservancy in your estate planning creates a timeless legacy, helping to assure that future generations will also be able to appreciate and enjoy the natural beauty of our community. All donations are used to further our mission to preserve, protect, and enhance the San Elijo Lagoon Ecological Reserve. The Conservancy regards bequests and other planned gifts as permanent investments in our organization's work. Estate gifts are generally used to fund endowments, which generate income while keeping the principal intact. Donors may choose to have their gift used for a specific project, or dedicated to honor a friend or relative. Please feel free to contact the Conservancy at (760) 436-3944 for more information and assistance.   Who we are   San Elijo Lagoon Conservancy (Conservancy) is recognized by the Internal Revenue Service as a tax-exempt, 501 (c)(3) nonprofit organization. Our taxpayer's identification number is 33-0358660. A copy of the Conservancy's non-profit status determination letter from the IRS, and most recent financial statement and annual report are available on request.   Planned Giving - Achieving Your Charitable, Tax, and Estate Planning Goals There are a number of approaches to structuring a charitable contribution to the San Elijo Lagoon Conservancy to best reflect the individual needs and financial circumstances of the prospective donor. This guide is for general purposes only and is not intended as legal or financial advice. The Conservancy strongly recommends that each person considering a planned gift consult with his or her own financial or legal advisor.   Cash Donations and Tax Deductions A supporter wishing to make a cash donation may, of course, simply write out a check payable to the San Elijo Lagoon Conservancy and mail it to our post office address: SELC; P.O. Box 230632; Encinitas, CA 92023. An alternative would be to instruct your financial institution to wire the amount of the donation directly to the Conservancy's general checking account. Please contact us for address and wire instructions. All donations are formally acknowledged in writing. Your financial advisor can provide you information regarding IRS regulations, which limit the amount of tax deductions allowed for charitable donations in a given year.   The San Elijo Lagoon Conservancy has embarked on a multi-year fund-raising campaign designed to fund several significant endowments. Rather than make a one-time large cash donation, a supporter may wish to make a pledge of cash donations to be made over a period of several years. Please contact us to discuss your pledge and set up a schedule for your donations. We will provide the documentation necessary to substantiate your tax deduction, and will automatically send a reminder when it is time for your next donation.   Appreciated Securities - A Double Tax Deduction While a prospective donor can sell shares of stock or mutual funds and use the proceeds to fund a cash donation to the Conservancy, in some cases a direct gift of the unsold shares of those holdings may be of greater advantage to both the donor and the Conservancy. If the value of the stocks or mutual funds has increased from the time of their original purchase, selling the appreciated holdings results in a capital gains tax liability. The amount of money available for the charitable contribution is thus reduced by the amount of the capital gains tax imposed on the donor. By directly donating shares of appreciated assets to the Conservancy, the donor avoids a capital gains tax liability, the Conservancy receives a donation equal to the full market value of the holdings at the time of the gift, and the donor receives a tax-deduction also equal to the full market value of the holdings being donated. As a non-profit corporation, the Conservancy is then free to sell the donated stock, mutual funds, or bonds with no tax liability.   A donation of shares of stock or mutual funds can be arranged by instructing your broker to transfer the donated shares to the Conservancy's brokerage account. Please contact the Conservancy for a letter of instructions to help facilitate a gift of securities.   Charitable Gift Fund - A Cost Effective Way to Establish Your Own Family Foundation A prospective donor may wish to maximize tax deductions in one year while spreading out the distribution of that donation over several years or among several different charitable organizations. One method of accomplishing this is by establishing a charitable gift fund account, now being offered by a number of charitable foundations (such as the Rancho Santa Fe Foundation), as well as the larger financial services companies. The account is established with an initial contribution of cash, stocks, mutual funds, or bonds that are immediately converted to cash by the account custodian. This non-reversible contribution is tax-deductible by the account holder (the donor) in the year in which it is made. The account custodian invests the money in the account, generally among several choices of mutual fund-type investments offered. The account holder can then direct that distributions be made from the account from time-to-time to qualified non-profit organizations like the Conservancy. The value of the account will change over time depending upon the amount of distributions from the account each year and the investment performance of the account portfolio. The account custodian handles all the paperwork and documentation, manages the portfolio, distributes the donation checks as directed by the account holder, and issues a periodic account statement. Please contact the Conservancy if you would like the names of several financial institutions or local charitable foundations offering charitable gift fund accounts.   The San Elijo Lagoon Conservancy Endowment Fund at the Rancho Santa Fe Foundation A special endowment account to support the San Elijo Lagoon Conservancy has been established with the Rancho Santa Fe Foundation. Interested prospective donors may contact the Rancho Santa Fe Foundation at (858) 756-6557 for information on how to contribute to the "San Elijo Lagoon Conservancy Endowment Fund."   Combining Charitable Giving with Increased Income and Tax Deductions Some prospective donors may be interested in designating a donation of certain assets from their estate upon their death, but would like to have those assets provide them with an annual income stream during their lifetime. Perhaps their assets are tied up in stock or mutual fund investments which may have appreciated in value over time but which do not provide sufficient annual distributions of income or dividends. Depending on the amount of the assets in question, a gift annuity, pooled income fund or charitable remainder trust might be an appropriate program to consider. The San Elijo Lagoon Conservancy will work with the prospective donor to set up a charitable account with a financial services company of the donor’s choice. The donor receives a lifetime monthly income stream, and the Conservancy is listed as the beneficiary on the account. Upon setting up the account, the donor receives a partial tax credit for a charitable donation. Upon death of the donor and spouse, the Conservancy receives the balance of the donation.   Gift by Will - Leaving a Lasting Legacy A prospective donor may wish to make a gift to the San Elijo Lagoon Conservancy by naming the organization as a beneficiary in their will. A bequest may be anything of value--money, securities, land, a house, collectibles, and/or books. It can be for a specific amount of money or property, or for a percentage of the estate. A bequest can be for all or a portion of the residual of the estate (that portion remaining after all specific bequests to others are fulfilled). Creating or amending a will is not a complicated procedure, however certain technical requirements must be observed. It is a legal matter best handled by an attorney. The Conservancy has prepared the following suggested language for a simple amendment to a will:   "I hereby give, devise, and bequeath (dollar amount, percentage of estate, specific itemized assets, or percentage of residuary) to the San Elijo Lagoon Conservancy, Encinitas, California, for its general purposes."   The donor can fill in the nature and amount of their desired gift, take the recommended language to their attorney, and ask that the amendment be made to their will. Upon the donor's death, the executor to the estate will contact SELC and arrange for the gift to be transferred from the estate. While the donor does not receive any direct financial benefit during his or her lifetime as a result of naming the Conservancy as a beneficiary, estate taxes could be reduced for other heirs as a result of the gift.   Life Insurance and Retirement Plans-A Way to Contribute No Longer Needed Assets Another method of making a significant donation to the Conservancy is for the donor to list the organization as the beneficiary on his or her life insurance policy, IRA account, or retirement plan. This might be a consideration for those who are retired and whose families may no longer need protection from a loss of their earnings, the usual reason for taking out a life insurance policy in earlier years. Changing the named beneficiary on a life insurance policy or retirement plan generally requires completing a new beneficiary form, which can be obtained upon request from your agent or plan administrator. The form should include the following information:   Legal name of new beneficiary:     The San Elijo Lagoon Conservancy Address:Post Office Box 230634 Encinitas, CA 92023 Employer Identification Number:33-0358660   Other Donations The San Elijo Lagoon Conservancy would be happy to consider any gift of value offered by a prospective donor. SELC must follow specific procedures before accepting any gifts of real property, to officially determine value and identify any potential problems for the donor and the Conservancy. Please feel free to contact us.   Please Let Us Know If you have included the San Elijo Lagoon Conservancy in your estate planning, or are considering doing so, please let us know. Not only does it help in our financial planning, we would also like to officially recognize and express our appreciation to you personally. Of course, if you wish your contribution to remain private, we would be happy to honor your request.   THE SAN ELIJO LAGOON CONSERVANCY Meant for informational purposes only. Please consult with your financial or legal advisor.

 

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