Bequests: Your Enduring Legacy at Kids On The Move
A bequest is a charitable gift made to a nonprofit that you believe in and hope will continue in perpetuity. It is a thoughtful and enduring way of showing others what you value most. A bequest is a meaningful way to ensure that KOTM continues to make a difference in the lives of our children who are disabled, developmentally delayed, or disadvantaged in society.
Why Should I Make a Bequest to KOTM?
KOTM empowers parents to better meet the special needs of their child from an early age and throughout their lives. Families in our community, our neighbors and friends, are suffering under the weight of heavy burdens that cross social, economic, race, religious, and other boundaries. It’s not possible to ignore the complex challenges that a special needs parent faces when they walk through the doors at KOTM feeling desperate, discouraged, and hopeless. KOTM is a household name in the Utah community that has always been known for instilling hope, peace, and confidence. Families need to be nourished, cherished, and placed on a trajectory that will uplift and encourage them to become their very best.
Making a bequest today for KOTM ensures that the good work that has gone on since 1984 will continue well into the future.
The Most Common Gift Bequests are Stated in One of the Following Ways:
1. Specific Bequest—a certain amount of cash, securities, or property.
2. Percentage Bequest—a stated percentage of your estate.
3. Residual (“Remainder”) Bequest—all or a portion of what remains of your estate after specific and general bequests are distributed.
The vast majority of bequests are in the first category—a specified amount of money that is transferred to a charity or nonprofit by means of your will, trust or estate plan. This type of bequest includes life insurance policies, retirement funds, bank and savings accounts, and mutual funds.
You can make a bequest by including language in your will that names KOTM as the beneficiary of your entire estate, or you can designate that a specific dollar amount, a particular asset, or a fixed percentage of your estate goes to KOTM. Here is a typical example of bequest language:
Sample Testamentary (or Bequest) Language “I give (_____dollars) (or a specific asset) (or ____percent of the residue of my estate) to Kids On The Move, Inc., (for its general purposes) or (for a specific program).”
Getting Started — 4 Easy Steps
1 Decide what type of bequest you would like to make to KOTM.
2 Complete a Declaration of Intent form (page 6 of this document) and mail to KOTM. The Declaration of Intent is not a legal or binding document, but it lets KOTM know of your intentions to make a future gift.
3 Make an appointment with your attorney or estate planner to discuss your options. When you draft your will, or the next time you update it, address your plans to make a bequest to KOTM.
4 Contact KOTM at email@example.com to discuss your gift to KOTM, and provide Development staff with a copy of the relevant provision from your will or trust benefiting KOTM.
Our Pledge to You
KOTM wouldn’t exist and thrive without people like you. We hope you will let us recognize and celebrate your generosity. We make the following pledges to you:
• To acknowledge all bequests made to KOTM.
• To document and recognize future donations.
• To use all bequests for the purposes for which they were given.
• To keep the details of the gift confidential.
• To honor you with tributes, donor stories, and special events throughout the year.
Frequently Asked Questions
1. What is an estate?
Your estate is the sum of your assets, including property you own, insurance policies, retirement accounts, and cash on hand. Unfortunately, many people believe that estate planning is only for wealthy people. No matter what your economic level, you can benefit from an estate plan, as it legally protects and distributes your property based on your wishes and the needs of your family and other survivors, with as little taxation as possible.
2. Isn’t a bequest something I should consider doing later in life?
It is never too early to establish a will. Most people begin to think of estate planning at momentous life events—deaths, births, marriage, travel, health concerns, retirement, etc. Although many people begin to consider their wills as they near retirement, more and more Americans are establishing their wills much earlier to ensure their assets are distributed according to their values.
3. What if my circumstances change?
Your bequest can be revoked at any time if your circumstances change. We ask that you simply keep us informed of any changes specifically related to your bequest to KOTM.
4. How does KOTM use bequests?
KOTM uses gifts from estates as you direct. Bequests can be “restricted,” meaning the donor specifies that the gift be used for a specific program or purpose. Bequests also can be designated for current use, which makes the entire gift available for use immediately. An “unrestricted” gift allows KOTM to support needs of the highest priority.
5. I would like to give to an endowment. Does KOTM offer this option?
Yes! KOTM’s endowment is a fund that is set up to provide support in perpetuity, which means the money is never depleted. The interest from the fund is used annually, while the principal remains intact. This is different from a restricted gift, which is a one-time gift with no expectation that the funds will be invested from year to year.
6. Are there any tax benefits from making a bequest to KOTM?
Unlike charitable gifts made during your lifetime, you do not receive a charitable income tax deduction when you make a bequest. However, if your estate is subject to estate tax, a bequest to KOTM entitles your estate to an estate tax charitable deduction for the amount donated and reduces the amount of tax your estate must pay. Also, if you make a gift by naming KOTM as a beneficiary of your retirement plan or IRA, there are income tax benefits. Please consult with your financial planner on these various options.
7. What types of Planned Giving options are available to me?
Bequest: A provision in a will or estate plan that allocates all or part of the individual’s estate to a designated charity or nonprofit.
Charitable Gift Annuity: An irrevocable transfer of property (e.g., securities) in exchange for a contract to pay the donor an annuity for life. Because the value of the property exceeds the value of the annuity, it is partially a gift to the recipient of the property.
Life Insurance: An arrangement in which a donor gives a life insurance policy to the charity or nonprofit. The cash value of that gift is tax deductible, as are any future premiums the donor may opt to pay on that policy. Note that only life insurance policies that are paid in full qualify as planned gifts.
Life Estate: An arrangement in which a donor gives her home to the nonprofit while retaining the right to live there for the remainder of her life. The donor receives an immediate income tax deduction. The charity may sell the property upon the donor’s death.