Gift Descriptions

Bequests

Donors are encouraged to name the PSO beneficiary of bequests and to advise the PSO of their decision to do so. Although formal notice allows the intention to be noted, in most cases, bequests will not be counted as gifts until the distribution is received.

Charitable Gift Annuity

In a charitable gift annuity, assets are irrevocably transferred to an annuity account in exchange for specified payments to selected beneficiaries for life; remainder amount is assigned to the PSO. The charitable gift annuity is the most popular and affordable of the life income gifts.

Charitable Remainder Trust

Through a charitable remainder trust, assets are irrevocably transferred to a trust which pays the donor or specified beneficiaries an income for life; the remainder interest is assigned to the PSO. Income may be a fixed amount or percentage.

Charitable Lead Trust

With a charitable lead trust, assets are also irrevocabley transferred to a trust. Income for a specified period (usually 20 years) is assigned to the PSO and the remaining trust assets are then distributed to the donor or the donor's beneficiaries.

Life Insurance / Beneficiary Designation

The PSO encourages donors to name the PSO beneficiary or contingent beneficiary of their life insurance policies. Gifts from life insurance policies are recorded when they become irrevocable.

Life Insurance / Gifts of Policies

The PSO accepts gifts of fully or partially paid life insurance policies when the PSO is named the policy's owner and beneficiary. If the policy is not fully paid when assigned and the donor does not elect to continue making premium payments, the PSO reserves the right to continue paying the premiums; convert the policy to paid in full insurance; or surrender the policy for its current value.

Retirement Plans / Beneficiary Designations

Donors may name the PSO beneficiary or contingent beneficiary of retirement plans. Gifts are recorded when the directive becomes irrevocable.

Retirement Plans / IRA Rollover

This may be the final year to take advantage of the popular IRA Charitable Rollover, first enacted in 2006 and set to expire at the end of the 2011.  The provision permits taxpayers 70 ½ and older to donate up to $100,000 directly from their IRAs to public charities (not through a foundation or donor-advised fund) without having to account for the distributions as taxable income. Donors must make gifts before the current provision expires December 31, 2011.

Remainder Interests in Property

Subject to certain restrictions, the PSO may accept a remainder interest in personal residence, farm, or vacation property. During the stated life term, the donor or donor designated occupants may continue to occupy the real estate. Upon the donor's demise, the PSO reserves the right to make use of the property or convert it to cash. During their lifetime, donor or primary beneficiary is responsible for maintenance, real estate taxes and property indebtedness.