Consult your tax or estate planning attorney or financial advisor for more details on how you can take advantage of these opportunities to support the Foundation and its work at Andalusia.
Wills & Bequests
A bequest offers an easy way to make a gift. A gift in your will is one of the most popular ways to give. It is simple and flexible: you can designate a fixed amount or percentage of your estate and, if you need to, you can change your mind at any time.
Here is the official bequest language for Andalusia:
“I (name), of (city, state, ZIP), give, devise, and bequeath to the Flannery O’Connor-Andalusia Foundation, Inc. (written amount or percentage of estate) for its use.”
Most retirement plans, including 401(k) plans and IRAs, are income tax-deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones. Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt charitable organizations, such as the Flannery O’Connor – Andalusia Foundation, which is eligible to receive the full amount of your gift and bypass any income taxes.
Life Insurance Policy Beneficiaries
Life insurance offers a low-cost way to make a gift. The beneficiary designation in your life insurance policy—not in your will—determines where the proceeds will be distributed. Life insurance can be distributed to a charitable organization, such as the Flannery O’Connor – Andalusia Foundation, if it is named as a beneficiary of the policy at the time of your death.
If naming the Foundation as your beneciary is a gift option that interests you, please contact your insurance company for its “change of beneficiary” form for your life insurance policy. Simply decide what percentage of the policy’s value you would like the Foundation to receive and name the Foundation, along with the stated percentage, on the beneficiary form. Then return the form to your insurance company.
Insurance Annuity Beneficiaries
Insurance annuities, unlike life insurance policies, carry an income tax burden. Your named beneficiary is responsible for paying the income tax due on the growth of the annuity while you owned it. The tax burden makes these assets a popular choice to leave to a charitable organization, such as the Flannery O’Connor – Andalusia Foundation because the Foundation, as the recipient, can eliminate the tax bill.
If naming the Foundation as your beneciary is a gift option that interests you, please contact your insurance company for its “change of beneficiary” form for your insurance annuity policy. Simply decide what percentage of the policy’s value you would like the Foundation to receive and name the Foundation, along with the stated percentage, on the beneficiary form. Then return the form to your insurance company.
Gifts of Stock
A stock portfolio can carry substantial capital gains or appreciation in value. With careful planning, you can reduce or even eliminate federal capital-gains tax while supporting the work of the Flannery O’Connor – Andalusia Foundation. In fact, in some cases donating stock can offer even more tax benefits than writing a check.
As stock prices increase, so do the taxes you owe on the long-term capital gains. However, when you donate publicly-traded stock that you have owned for more than a year to a qualified charitable organization such as the Foundation, you enjoy two major tax benefits:
- You will be exempt from paying capital-gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
- You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.
Please note that if you decide to donate stock, the Foundation will sell the securities for cash.