The Legacy Society

You know the value of America’s forests. And what better way to preserve your legacy and the legacy of America’s forests by joining our Legacy Society today. Our planned giving program can provide you with valuable tax benefits and help you preserve the legacy you’ve built. In addition, your charitable gift can help sustain the American Tree Farm System’s ® work of promoting sustainable management of America’s private forests.

If you’d like more information on becoming a part of the Legacy Society, contact Laura Tuel, Vice President of Development at 202-463-2585

Our latest edition of our Legacy newsletter. [PDF]

Did you know that the federal tax laws have changed on estate & gift tax?

Cash Gifts

Cash gifts are deductible up to 50% of a donor’s adjusted gross income (AGI) All charitable gifts can result in state income tax savings and reduce the size of the donor’s taxable estate as well. 

Gifts of Securities

Gifts of securities such as stocks and bonds can be more advantageous than gifts of cash in situations where the securities have appreciated in value, because the donor avoids paying capital gains taxes.  A gift of appreciated securities can provide up to 15% more spending power to a charity than selling the asset and contributing the proceeds. However, deductions for gifts of appreciated securities such as stocks are usually limited to only 30% of AGI, with a five-year carry forward of any excess.

Gift of Outright Real Estate

An outright gift of real estate could provide you with current income tax deduction (subject to the same AGI limitations applicable to gifts of securities) and enable you to avoid any capital gains taxes that might have been due upon the sale of the property. You can do this by donating a portion of the proceeds from the sale of the real estate whereas American Forest Foundation would be named as a line item on the Settlement Statement.

If you donate a Tree Farm through the American Forest Foundation, the American Forest Foundation will usually sell it to an active Tree Farmer or other conservation-minded buyer. If it is not already restricted with a perpetual conservation easement (see below), the American Forest Foundation could work with a local land trust to craft a set of permanent restrictions that will ensure that the property will never be developed if that is your wish. Proceeds from the sale will be used to help support the American Tree Farm System's ® efforts to protect more Tree Farms.

Gift of Conservation Easement

You can restrict the future use and development of your real estate by donating a permanent conservation easement to a local land trust. The donor of a qualified conservation easement is entitled to a tax deduction for the diminution in the value of his or her land resulting from the donation, as substantiated by an appraisal. The first step is to find a land trust that will “hold” the easement. If you wish, we could assist you in this process. The easement holder is responsible for enforcing the easement by making periodic inspections of the property to ensure that the dictates of the easement agreement are being followed.

At the federal level, you may deduct up to 50% of your AGI in the year you contribute the conservation easement. Any amount left over may be carried forward and deducted over the next 15 years. Additionally, if you are a qualified farmer or rancher in the year in which the easement is donated, the conservation easement deduction is allowed up to 100% of your AGI.

Gift of Residence or Farm with a Reserved Life Estate

You may donate your Tree Farm or personal residence to the American Forest Foundation in support of the American Tree Farm System's ®  and reserve the right to live on the Tree Farm or residence and continue to operate it and pay the expenses for the rest of your lifetime. You would even be permitted to lease the property and make improvements in consultation with the American Forest Foundation. This would result in a current income tax deduction (discounted to present value based on your age) and remove the property from your estate. You would also avoid any capital gains taxes that would have been due upon a sale. Although you will be responsible for maintenance, taxes, and insurance, the charitable deduction may be particularly helpful during years of high income.

Life Income Arrangements: Charitable Gift Annuity

Life income arrangements through planned giving can increase your income, save on taxes, and provide future support for the American Tree Farm System®. Life income gifts are particularly attractive when you want to offer a large contribution but the uncertainty of your future needs precludes an outright gift. In addition, the use of appreciated stocks, bonds, or real estate to make a life income gift will avoid all or a part of the capital gains that would otherwise be due upon sale.

Life income arrangements provide payments for the life of one or more beneficiaries, a charitable deduction for the donor, and the remainder upon the termination of the plan left to the American Forest Foundation in support of the American Tree Farm System®. Planned gifts provide four possible benefits: increased income, an income tax deduction, deferral of capital gains tax when appreciated property is used to fund the gift, and removal of the funding assets from your estate.

The charitable gift annuity is the simplest, and often the most beneficial, life income gift. An annuity is a contract that provides for you to receive regular payments of a fixed amount for the rest of your life. In exchange for a transfer of cash, stock, or real estate, the American Forest Foundation will guarantee payments for life. The payments under the annuity contract are calculated based on the age of the beneficiaries, the value of the property donated, and current interest rates. Annuities are limited to one or two beneficiary lifetimes. The remainder of the annuity passes to charity upon termination.

You would be entitled to a current income tax deduction based on the difference between the property's fair market value and the value of the annuity, and capital gains taxes would be deferred. Deferred gift annuities can even supplement retirement income.

Bequests

Finally, you could leave a gift of cash or land to the American Forest Foundation in support of the American Tree Farm System® through your will. The American Forest Foundation would sell the property as described above and protect it with a conservation easement if appropriate. Depending on the size of your estate, this arrangement may provide estate tax savings.

Sample Bequest Language

I give $________ or ________ % of my disposable estate to American Tree Farm System® , a program of the American Forest Foundation, EIN 52-1235124, a nonprofit organization, to be used without restrictions or to be used for [specify purpose here].

Preserving Your Legacy

The complexity of many giving techniques requires that you consult with your legal or financial advisor. However, described here are some of the ways your charitable donations can accomplish your philanthropic and financial objectives. If you would like to explore any of the charitable giving alternatives in greater detail, we would be happy to put in you in touch with our advisors. Thank you for considering a gift to the American Tree Farm System®.

We understand that every situation is unique, if you have questions please contact us and we are happy to discuss what gift works best for you.

Laura Tuel
Vice President of Development
(202) 463-2585 begin_of_the_skype_highlighting              
(202) 463-2461 FAX
ltuel@forestfoundation.org

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. Please report any problems to section webmaster.