Planned Giving
Bolsa Chica Endowment for the Future
Why Establish an Endowment for Bolsa Chica Land Trust?
The Bolsa Chica Land Trust was established in 1992 as a 501(c) (3) non-profit. Our mission is the acquisition, restoration and preservation of all of Bolsa Chica, and to educate the public to its natural wonders and cultural significance. Located in the intensely urban setting of coastal southern California, in the northwest corner of Orange County, Bolsa Chica is a rare refuge for humans and wildlife.
To support this vision, we must have resources that are committed to the future. Accordingly, we have launched the Bolsa Chica Endowment for the Future as our first endowment focused on advancing our mission.
An endowment is a principal gift which remains intact, and is invested for long-term growth. Only the interest is used each year for the specified purpose of the fund. This Fund, the Bolsa Chica Land Trust’s Endowment for the Future, will ensure the flow of capital necessary for long-range planning.
We will be working with our partner, the Orange County Community Foundation, to efficiently manage this first endowed fund in our projected endowment portfolio. Individual endowed funds can be established by a single donor, and can be added to or enhanced by other, future donors. The Bolsa Chica Land Trust’s Endowment for the Future is the lead fund for the Land Trust.
We invite you to invest in this opportunity to make your legacy part of Bolsa Chica’s enduring future. Please contact our Executive Director, Kim Kolpin, at (714) 846-1001 and Kim@BCLandTrust.org to take the next steps.
Planned Giving for The Bolsa Chica Land Trust
Including a planned gift to the Bolsa Chica Land Trust, a 501(c)(3) nonprofit organization, in your estate planning can provide many benefits. In some cases, you can achieve a lifetime income for yourself, a spouse, or heirs. Here are some ways of giving and their advantages:
Lifetime gifts: Cash, stocks or bonds, real estate, or other property. Advantage: an income tax deduction for the value of the gift.
Bequests: Gifts to be completed following the death of the donor may be included in a will or a living trust for a specific dollar amount, for a percentage of the total estate, or for the remainder of the estate after other commitments have been fulfilled. Advantage: an estate tax deduction if the estate is otherwise subject to estate tax, possibly an income tax deduction for the donor’s estate.
Beneficiary designations: The Bolsa Chica Land Trust can be named as beneficiary of a retirement plan or IRA, transfer on death account or life insurance policy. Advantages: any property transferred to the BCLT by virtue of a beneficiary designation will qualify for an estate tax deduction if the estate is otherwise subject to estate tax, and beneficiary designations of certain types of assets may produce income tax benefits as well. For example, although an individual beneficiary of a qualified retirement plan or traditional IRA must pay income taxes on distributions, 501(c)(3) organizations like the BCLT can receive such distributions free of income tax.
Ownership of Life Insurance: Rather than naming BCLT as beneficiary, a donor could realize more immediate income tax benefits by making the BCLT the owner of a life insurance policy. Most advantageous would be the purchase of a new policy naming BCLT as owner and beneficiary. Premiums would be tax deductible. Naming BCLT as owner and beneficiary on an existing policy would allow the donor to receive a tax deduction for either the replacement value or cash surrender value of the policy, as well as for any premiums that he or she continued to pay.
Real Estate (Retained Life Estate): Present gifts of a primary residence, farm, or vacation home (including condominiums) that the donor can continue to use during his or her lifetime. Advantage: An income tax deduction for part of the property’s value (based on the donor’s age and the value of the property), while the donor continues to live in or use it just as before, and continues to be responsible for property taxes and maintenance. After the donor’s lifetime, the property comes directly to the BCLT and its value is not included in the donor’s estate for estate tax purposes.
Life Income Gifts: These include a Charitable Gift Annuity, a Charitable Remainder Trust, or a Charitable Lead Trust. Advantage: Deferred gifts provide regular income to the donor for the term of the gift, an immediate tax deduction in the year of the gift, and other beneficial tax consequences. The Bolsa Chica Land Trust receives the remainder of the gift at the end of the gift’s term.
a) Charitable Gift Annuity: In exchange for the gift, the donor gets a fixed amount annually for life, with a portion of the payments tax free. Rates of payment depend on the age of the annuitant and whether it is a single life annuity or one that involves two lives. The donor can defer payments from a charitable gift annuity by making the gift now and specifying a later date for life payments to begin. Donors often choose to provide retirement income this way.
b) Charitable Remainder Annuity Trust: This vehicle transfers assets to a trust that pays the donor (and/or other beneficiaries) income for life. Payment amounts are determined by the percentage rate selected at the beginning of the trust. In the year a donor creates and donates to the trust, he or she can claim a charitable income tax deduction for the amount donated. A donor may also avoid capital gains tax on long-term appreciated assets used to create the trust. At the end of the trust, the remaining assets are transferred to the Bolsa Chica Land Trust.
c) Charitable Remainder Unitrust: A Unitrust differs from an Annuity Trust in that the payout amount is based on a set percentage of the value of the trust assets, reassessed each year. This plan is more flexible than the annuity trust and may serve as a supplemental retirement plan.
d) Charitable Lead Trust: For complex estates, this trust allows a donor to pass assets to family members with significant tax savings while making a gift to the Bolsa Chica Land Trust. During the term of the trust, BCLT receives the income earned from your gift. When the term of the trust is completed, the principal may be transferred to other beneficiaries (often children or grandchildren), with estate or gift taxes usually reduced substantially or even eliminated
Designated gifts: With the approval of the Board of Directors, BCLT may accept gifts designated for particular areas of focus, such as K-12 education, or funding for research in partnership with appropriate college/university programs and their directors, but all gifts for which use has not be restricted by a written Gift Agreement describing the uses to which the gift is to be put shall be considered unrestricted gifts.
Legacy Society: BCLT Legacy Society recognizes the generous and forward-thinking people who remember the organization in their estate planning. Membership enables donors to show their enthusiastic support without revealing the amount of a planned gift. It does not even require a name. In Legacy Society listings donors can appear as “anonymous.” Benefits include permanent listing in all media and public relations materials, plus invitations for donors and their families to Legacy Society events, including all educational opportunities afforded.
We encourage you to consult with an attorney or financial advisor about your estate planning intentions. You also may contact the Bolsa Chica Land Trust office (714) 846-1001 or info@BCLandTrust.org to discuss opportunities for planned giving.