An Investment for the Future

Charitable giving is a deeply personal choice and often, it is a decision based on life experiences and on a desire to truly make a difference through personal involvement with charities you care about. Simply put, Planned Giving is the only way to ensure that your personal wishes are carried out when you are gone. Our Program enables you to help yourself and your loved ones while helping to fulfill the mission of the National Kidney Foundation of Hawaii.

This is because the government provides some significant tax savings in return for your charitable donation and many prefer to support a favorite charity rather than pay higher taxes to the government. Besides ensuring that the people and causes you care about benefit from your estate, there are other potential advantages such as:

Reducing estate taxes
Providing a life income stream
Providing a current income tax deduction
Helping to reduce or avoid capital gains tax
Making a difference in the lives of those patients and families affected by chronic kidney disease or in need of a transplant

Besides Outright Gifts which put your donation to work immediately, one or more of the following planned giving methods may be appropriate.

The below information offers a brief summary of some estate planning techniques and is intended to be of a general character only. The services of a qualified attorney and/or a financial planner should be sought for specific advice pertaining to your estate plan.

Charitable Gift Annuity - A charitable gift annuity enables you to transfer cash or marketable securities to the National Kidney Foundation of Hawaii in exchange for a current income tax deduction and a fixed annual payment to you for life. Annuity payments can begin immediately or can be deferred to some future date.
Charitable Remainder Trust - A special irrevocable trust with current tax, investment management and income benefits. Income from the trust is paid to the donor or other beneficiaries for life or a term of years. At the end of that time, the NKFH receives the remaining trust assets.
Other Charitable Trust - There are numerous additional trusts and each of them has important tax savings. Which one will work best for you and your family requires consultation with a qualified estate planning attorney and tax advisor. All of them can be designed to help you save taxes while fulfilling your charitable desires.
Life Insurance - Life insurance can b a valuable gift planning tool. By naming The National Kidney Foundation of Hawaii (NKFH) as beneficiary on insurance policies, proceeds can be paid directly to NKFH while avoiding the probate process. When coupled with certain estate planning strategies, life insurance can be a tool that enables you to make substantial tax-advantaged charitable donations while still leaving significant funds to your loved ones or other beneficiaries.
Retirement Plan Assets - While most people think of retirement plans as a major part of their livelihood during the latter part of their lives, creative use of these plans my enable you to accomplish efficient charitable planning as well as providing for your retirement income. Retirement plans such as 401(k) and IRA accounts can be heavily taxed if beneficiary planning is not done carefully. A financial advisor should be able to assist you to make the right choices for you and your family and enable you to make a tax-advantaged donation to the National Kidney Foundation of Hawaii.
Wills and Revocable Living Trusts - Part of a sound estate plan often includes a well-drafted will or revocable living trust. In addition to caring for your personal and family concerns, these legal documents can be used to provide charitable gifts to the National Kidney Foundation of Hawaii, with important tax savings for your estate. It is important to consult with a qualified attorney and tax advisor when drafting wills and trusts.
Gifts of Securities - While a gift of securities is not strictly an estate planning tool, there are advantages to this type of donation that have allowed many donors to make gifts that will live on after they are gone.

If you have owned stock for at least one year that has increased in value, you can donate that stock to a charitable organization without having to pay capital gains tax on the increase. Additionally there is an income tax deduction equal to the full current market value of the securities (up to 30 percent of the donor's adjusted gross income). Using appreciated stock to fund a gift annuity offers added tax benefits to that gift.
NOTE: In order to receive the most favorable tax treatment, securities must be donated to the NKFH - you cannot sell the stock and donate the proceeds.
TRANSFER ON DEATH ACCOUNTS
This estate planning tool can be an effective way to quickly transfer assets, such as bank accounts, to a beneficiary because it avoids that asset going through the probate process. It also allows you to change the beneficiary at any time.

When establishing the account, tell your banking representative that you wish it to be a Pay on Death account (some banks may call these Transfer on Death accounts). They will ask you for the name of the person or charitable organization you wish to receive the property upon one's passing.

If you have questions or would like more information, please contact us at the National Kidney Foundation of Hawaii development department at (808) 589-5927 or (808) 589-5931.