Leaving a Legacy to the Bahá’í Faith Through Planned Giving
When believers choose to make arrangements for leaving a material legacy to the Faith at their demise, that legacy is used to continue to advance the Cause of God and share the message of Bahá’u’lláh with the world. In addition, the act of leaving a material legacy to the Faith has a profound impact on the soul of the individual believer.
“If a wealthy man at the time of his death bequeaths a gift to the poor and miserable, and gives a part of his wealth to be spent for them, perhaps this action may be the cause of his pardon and forgiveness, and of his progress in the Divine Kingdom.”
~ ‘Abdu’l-Bahá, Bahá’í World Faith - ‘Abdu’l-Bahá Section, p. 329
There are ways one can give to the Bahá’í Fund, both in this realm of existence and in the next. On this page you will find links to information on the most popular ways we can give to the Fund through Planned Giving.
Planned Giving Overview
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Gifts of appreciated real estate have benefits similar to gifts of appreciated securities.
• You receive a tax deduction for the appraised value of the property. An appraisal by an independent and qualified appraiser must be arranged by and paid for by you, the donor.
• On highly appreciated properties, you avoid tax on the capital gain that you might owe if you sold the property outright.
The life estate is another option for gifting real estate when the property is either a residence or a farm. The life estate involves gifting the property with the donor retaining use of the property for his or her lifetime. Benefits include:
• An immediate tax deduction for the donor based on the donor’s age, and the appraised value of the property
• Future estate tax exclusion
• Use of the property for the rest of the donor’s lifetime
• A generous gift to the Bahá’í Fund
If a home or farm is gifted to the Bahá’í Faith as a life estate to the National Spiritual Assembly, the Assembly cannot be responsible for all of the routine expenses of maintenance, insurance, property taxes and repairs associated with the property. In addition, the National Spiritual Assembly cannot accept gifted property that is encumbered by a mortgage or property that is considered unsound, unmarketable, or properties that are determined to have environmental problems.
Please Note: At this time the National Spiritual Assembly is not accepting real estate that is earmarked for a specific purpose.
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The charitable gift annuity is a contract between you, as the donor, and the National Spiritual Assembly, providing advantages for both. Under a gift annuity arrangement:
• Donor transfers funds to the National Spiritual Assembly in the form of a check, securities, wire transfer, etc.
• Your funds are invested with other annuity funds that are held separately from the National Bahá’í Fund
• Lifetime quarterly annuity payments are made to the annuitant
• Remainder of the annuity funds are transferred to the National Bahá’í Fund after the passing of the annuitant
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A gift of appreciated stock/securities involves the direct transfer of the ownership of securities that have been held for at least one year and a day to the National Spiritual Assembly. Next to gifts of cash, this option is one of the simplest ways to make a contribution to the National Bahá’í Fund. Securities acceptable as contributions are publicly traded stock, mutual funds, Treasury bills and bonds, etc. The National Spiritual Assembly will receive the Fair Market Value (FMV) of the stock/securities; the donor will be eligible for a tax deduction of the FMV, and the donor will avoid capital gains taxes on the appreciated value of the securities. Immediately following the transfer of ownership to the National Spiritual Assembly, the securities are sold and the proceeds transferred to the National Bahá’í Fund unless designated otherwise.
For additional instructions and to ensure proper credit, please contact Amin Vargha, Planned Giving Coordinator at (847) 733-3569 or email plannedgiving@usbnc.org.
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A Donor Advised Fund is a charitable giving investment account, administered by a financial institution or qualified Community Foundation that sponsors charitable organizations, which allows believers to make a direct contribution to the National Spiritual Assembly in a tax effective and convenient manner.
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The IRA charitable rollover legislation passed by Congress was signed by the President on December 18, 2015. This law extended the IRA charitable rollover, and made it permanent with no expiration date for future years. What this means for believers who are 70 ½ and older is that moving forward you may make a direct transfer from your IRA to the National Spiritual Assembly, of up to $100,000 per year as a non-taxable event. There is, of course, no additional deduction allowed for this transfer.
Now that the IRA charitable rollover has no expiration date, donors age 70 ½ and older will have the ability to plan their IRA required minimum distributions with the knowledge that the charitable IRA rollover is available as a benefit to the National Bahá’í’ Fund, and is also a tax savings that benefits the donor.
In order to participate in the IRA Charitable Rollover the following criterion must be met:
• The donor must be at least 70 ½ years of age when the gift is made.
• The transfer must be made directly from the IRA plan administrator to the National Spiritual Assembly.
• The contribution from the IRA cannot exceed $100,000 per person ($200,000 total for a couple, each
owning an IRA) in a given year.
• The direct transfer must be an outright contribution (establishing a charitable gift annuity with these funds is not permitted).
Please Note: This legislation only applies to Individual Retirement Accounts, it DOES NOT apply to funds in a 401k.
• Download: Information to Make a Direct Transfer of IRA Charitable Rollover (Age 70 ½ and older)
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Planned giving, sometimes referred to as gift planning, is the process of establishing the means and methods to make a gift, usually to charity, in this case the Faith, and usually after death. Planned giving is often part of an estate plan, particularly when the gift is made as a bequest or when a charitable gift annuity is established with the National Spiritual Assembly. Planned giving can be as simple as naming the Bahá’í Faith in one’s will. It can involve establishing a charitable gift annuity with the National Spiritual Assembly.
Planned giving can also be more complex, including a variety of trust arrangements. The more complex vehicles usually require the expertise of professional estate planners or attorneys. Making gifts of appreciated securities (stocks) is also a type of planned giving. The benefits to the believer often range from considerable current and/or future tax savings on an estate, to avoiding probate entirely. (Probate is the legal process— often a lengthy one—of settling the affairs of the deceased.)
Lifetime
Beneficiary Designations
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A bequest is a gift made through the believer’s Will to the Bahá’í Faith. Every Bahá’í has the opportunity to make a bequest. Throughout the years, the Institutions of the Bahá’í Faith have benefited from the generosity of a great many believers who, in meeting their obligation to have a Will and Testament, have also chosen to leave a portion of their material resources to the Bahá’í Faith. For more details on Bequests/Wills
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Many individuals choose to designate the National Spiritual Assembly, as the sole primary beneficiary for the entire value of a life insurance policy; as a partial primary beneficiary for a stated percentage of a policy; or as contingent beneficiary in the event the primary beneficiary of the policy is deceased.
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Naming the National Spiritual Assembly as a beneficiary of savings, mutual funds, certificates of deposit, etc., is an option.
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Naming an individual as beneficiary of a 401k and/ or IRA will qualify as a taxable event with the proceeds being taxable upon distribution to the beneficiary. However, naming the National Spiritual Assembly as beneficiary of an IRA and/or 401k will qualify as a non-taxable event resulting in the entire balance of the proceeds being distributed to the NSA.
Contact us
For questions or additional information, please contact
Amin Vargha, Planned Giving Coordinator
Tel: (847) 733-3569
Fax: (847)-733-3571
E-mail: plannedgiving@usbnc.org