Planned Giving

Make Goodwill a part of your legacy. The following are ways that you can take larger part in shaping Goodwill’s future through your gifts.

Wills and Bequests
A bequest is a gift of property or assets to a beneficiary as defined in a will.

An example of a gift made through a bequest:
For years, the Rodrigues family, long time supporters of Goodwill, saved 10 percent of their income in certificates of deposit (CDs) with the intent of passing the CDs on to their children. As their children began successful careers and started families of their own, they felt their children might not need their savings, and decided their money would be more impactful if left to charity. Through their will, the Rodrigues gifted their CDs to Goodwill Industries of Hawaii.

Gifts of Life Insurance
Life insurance can become a charitable gift in several ways;

Making Goodwill a Beneficiary for your Life Insurance Policy
You may wish to make Goodwill the beneficiary of a life insurance policy as a way to give a larger gift. Through this method of giving, you retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary. This type of gift is treated similarly to a bequest made through your will. Because you retain ownership, you will not receive an income tax charitable deduction for this future gift, or for premium payments made during your lifetime. The proceeds from the policy will be included in your gross estate, and your estate can take an estate tax charitable deduction.

Gifting Your Policy
You may also consider the transfer of ownership of a life insurance policy to Goodwill, or purchasing a new insurance policy naming Goodwill as the owner and beneficiary. If you make a charity such as Goodwill the owner and beneficiary of a policy, you are entitled to certain tax advantages.

An example of using life insurance as a means of charitable giving:
With their children grown up and living on their own, the Ching family started evaluating their finances to make any necessary adjustments for the future. They realized that some of the insurance policies they had while their children were dependent were no longer needed. With this in mind, they decided to donate a fully paid life insurance policy to Goodwill. Because the policy was paid in entirety, they were entitled to a charitable deduction equal to the lesser of the premiums they paid over the life of the policy, or the cost of a comparable replacement policy if purchased today. As a result, the premiums that are paid are considered a charitable deduction. One of their children was so supportive of the idea that he also purchased a life insurance policy and designated Goodwill as the owner and irrevocable beneficiary!

Individual circumstances will vary, and as with all tax and estate planning, we request that you consult your attorney or financial advisor.

We will be more than happy to answer questions or offer suggestions confidentially based on your personal circumstance. Please contact Laura Kay Rand, Vice President of Corporate Services Direct line: (808) 792-8562 Cellular: (808) 551-6612 Fax: (808) 833-4943 Email: .(JavaScript must be enabled to view this email address).

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