How to include the American Red Cross in my will...
Many of our supporters make charitable gifts by naming the Red Cross as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.

How to contact the American Red Cross regarding estate information...
If you are administering an estate or trust and need more information, please contact:
American Red Cross Office of General Counsel
2025 E Street NW, 9th Floor
Washington, DC 20006
800.797.8022 ext 5.

To make a bequest to the Red Cross, the following language will be helpful to your lawyer:
I give, devise, and bequeath to the American Red Cross for the benefit of the Pikes Peak Chapter the sum of XXXXX (or otherwise describe the gift or specify a percentage of the estate).

There are three ways you can make a bequest:

Specific Bequest
You designate a specific dollar amount, specific percentage, or specific property to the American Red Cross.

Residual Bequest
Your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount--the residue--will be transferred to the American Red Cross.

Contingent Bequest
You can ask that the American Red Cross receive all or a portion of your estate only under certain circumstances. For example, you can name the Red Cross as a beneficiary of your estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to the Red Cross.

When you are a planned gift donor, the Red Cross will honor you with membership in the Legacy Society. If you have already made a plan to give to the Red Cross in your will or estate plan, please contact your local chapter or one of the Planned Giving Officers at National Headquarters. We realize that with your special gift, you consider us to be part of your family, and we want to do our best to keep you informed as to how your gift will be used and to give you the opportunity to tell us of your wishes.

Life Income Gift
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to the Red Cross now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out our mission.

How do I establish a life income gift?
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to the Red Cross now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out our mission.

By making a life income gift to the Red Cross, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do. The benefits include:

- A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
- Substantial income tax savings increases your effective yield.
- Income can be taxed more favorably in some plans.
- Your probate and estate administration costs may be reduced.

What are examples of life income plans?

Charitable Gift Annuity
In exchange for your gift of cash or marketable securities to the American Red Cross, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.

The Red Cross uses the charitable gift annuity rates recommended by the American Council on Gift Annuities.

The following are rates for a single-life charitable gift annuity:

Charitable Remainder Trust
This life income plan is created by transferring assets to a trust that pays you (and another beneficiary, if you wish) income for life. At the end of the trust, the remaining trust assets are transferred to the Red Cross. A bank or trusted advisor can serve as trustee.

The type of charitable remainder trust you choose determines your annual payments

Charitable Remainder Annuity Trust
The charitable remainder annuity trust pays you a fixed dollar amount annually for life. The fixed payments are determined by the payout percentage selected at the beginning of the trust. You can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.

Charitable Remainder Unitrust
The charitable remainder unitrust pays you a fixed percentage of the fair market value of the trust assets, as revalued each year. Like the annuity trust, you can claim a charitable deduction on your income tax form the year that you create the trust. The payments you receive are taxed as ordinary income, and in some cases as capital gain or tax-free return of principal.

Gift of Life Insurance
Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to the American Red Cross. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.

Pooled Income Fund
Your gift of donations, marketable securities, or both to the American Red Cross's pooled income fund is invested together with similar gifts from other supporters. Each year, you receive your share, which is taxable as ordinary income, of the fund's earning.

For example, Mr. Simon's $10,000 life income gift is invested in our pooled income fund. The fund's net income is 6 percent this year, so he receives $600--his share of the annual earnings. Each year, Mr. Simon's payment will reflect any increase or decrease in the fund's net income.

Gift of Retirement Plans
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to the American Red Cross.

One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to the Red Cross. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of the Red Cross's right to eventually receive the trust assets.