Legacy News, 2013 Issue #1
Lifelong Friends Share a Bond for GDB
When GDB supporter and Legacy member Dee O’Hara introduced her longtime friend, Ron Winterlin, to
Guide Dogs for the Blind, neither could have predicted that together they would create a Legacy gift that
would inspire others to give and further connect them with the charity they love. This fall they created
the Ronald C. Winterlin and Dee O’Hara Memorial Endowment Fund, which will support two important
GDB programs: the veterinary clinics and our breeding program. The gift will be funded by charitable
bequests from their respective estate plans.
Dee’s history with GDB goes back to the early 80s when a veterinarian with whom she worked was
attending a graduation and invited her to come along. She did and was hooked. She started attending
the Festive Holiday Luncheons, Legacy Luncheons and even more graduations. Eventually, she started to
bring her friend Ron to these same events; attending them together has now become a tradition.
Both of them have different reasons for making such a significant commitment to Guide Dogs for the
Blind. For Ron, who lives in San Mateo, Calif., he felt a personal connection to GDB immediately. As a
young boy and throughout his life, he has had significant vision difficulties and without his contacts, he
is legally blind. “I was very inspired to see men and women with severe vision problems filled with hope
and joy as they embarked on journeys with their new guide dogs by their sides, literally beginning a new
life," he said. “For me, having struggled with vision challenges that are getting worse as I age, it is very
emotional and inspiring.”
For Dee, of San Jose, she has always loved our mission and known a little bit about our program even
before visiting campus. But to see a graduation, she said, “was a very tearful, yet joyous occasion. After
that I knew I wanted to support the organization.”
Dee and Ron first met when both worked at the NASA Ames Research Center supporting the space
program. Dee was the original nurse who cared for all of the astronauts, starting with the Mercury
Project and up through the Apollo Programs. Dee has wonderful memories of being in the limelight,
meeting many celebrities from all walks of life. She was honored to join the now-famous “Goodwill
Tour” that traveled the world after NASA successfully landed on the moon. She was even invited to
Kennedy’s White House for a personal meeting. “That was the heyday of the space program and we
were right there,” Dee recalls fondly.
Ron started his career with NASA at Ames working in procurement and quickly moved up to be the
resources executive to the director of administration. From there, he wanted to work directly on the
technical side of things, so moved to the life sciences division where he met Dee and they instantly
bonded and became friends. Ron ended his career in project management being both a deputy project
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manager and systems manager to the agency’s largest and most successful aeronautical program to
date.
Guide Dogs for the Blind is very fortunate that these two good friends met, found out about our
organization, and chose to support it in such a generous way.
Letter from the Planned Giving Director
Dear Friends,
Guide Dogs for the Blind recognizes the special commitment and generosity of supporters and friends
who have informed us of their intent to benefit GDB in their estate plans. As you can see from the charts
here, such gifts are vital to our financial wellbeing and allow us to remain a world leader in our field. I
wish to thank all of Guide Dogs for the Blind's current and past Legacy members for their commitment
to our prosperity and success. At the inaugural Legacy Society event in 1998, 75 members were
recognized. Today, the Legacy Society is comprised of more than 1,300 members in 43 states, four
Canadian provinces and three foreign countries. Again, a huge thank you to all Legacy Society members
for your longtime and continued support!
Sincerely,
Thomas Horton, Director of Planned Giving
FINANCIALS
Fiscal year July 1, 2011 – June 30, 2012
WHERE OUR FUNDING COMES FROM
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Planned Gifts - 54%
Contributions - 20%
Investment Incomes - 16%
Other Revenue - 2%
HOW IT IS USED
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Programs & Services - 82%
Development - 12%
Administration - 6%
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SAVE THE DATE
We are pleased to announce the following Legacy Recognition Events
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Bay Area Legacy Society Luncheon: Tuesday April 30, 2012; The City Club of San Francisco
Portland Legacy Society Luncheon: Wednesday June 12, 2013; Hotel Monaco
How will the American Taxpayer Relief Act of 2012 affect you and your support of GDB?
The good news is that the American Taxpayer Relief Act (ATRA) passed by Congress on January 1, has
implemented changes to the federal tax law that will be beneficial to donors making charitable gifts,
including planned gifts.
A few noteworthy points:
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The Charitable IRA Rollover is back (see sidebar)
There are no new limits on charitable deductions; a total dollar limit on itemized deductions and
a 28% charitable deduction limit did not make it into the final legislation.
There’s less uncertainty about the future of estate and gift tax rates making some donors more
comfortable with making estate plans that include charity.
Some taxpayers in larger tax brackets may save more in taxes by making charitable gifts and
receiving charitable deductions.
Here a snapshot of some of the more important provisions:
Estate and gift taxes: The 2013 tax law permanently preserves the current individual gift and estate tax
to a unified $5 million exemption. This amount is indexed for inflation each year, with the exemption for
2013 being $5.25 million. The top estate and gift tax rates will rise from 35 percent to 40 percent. The
annual gift tax exclusion—the amount you can give to anyone gift tax-free each year—is now $14,000
($28,000 for married couples).
Portability: In 2012, if one spouse died without using up his or her federal estate tax exemption, the
unused portion could be transferred to the surviving spouse. This was called a portability provision. In
2013, this portability provision was made permanent. This year's combined exemption for married
couples is $10.5 million
Income taxes: Individual taxpayers earning more than $400,000 a year and married couples earning
more than $450,000 will see a tax rate increase. The top income tax rate has been raised to 39.6 percent
in 2013. The 2013 ordinary income tax rates are now 10 percent, 15 percent, 25 percent, 28 percent, 33
percent, 35 percent and 39.6 percent.
Dividend income: Qualified dividend income will be taxed at a maximum rate of 20 percent.
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Long-term capital gains: The capital gains tax rate—the tax you pay on the amount an asset has
increased in value over time—will depend on a taxpayer’s ordinary income tax rate. The capital gains tax
will be waived for taxpayers below the 25 percent ordinary income tax rate. For those taxpayers who fall
at or above the 25 percent income tax rate but below the 39.6 percent tax rate, the capital gains tax will
be 15 percent. For those at the 39.6 percent ordinary income tax rate, the capital gains tax will be 20
percent.
If you are contemplating a charitable gift under the new laws or wish to receive more information,
please feel free to contact Tom Horton at (800) 295-4050 or thorton@guidedogs.com.
Why Gifts of Retirement Assets to Charity Are Tax-Favored
Retirement plans such as Individual Retirement Accounts (IRA), 401(k) plans, 403(b) plans, and Keogh
plans have become an increasingly popular way to save money for retirement. Typically, these plans
offer tax savings at the time the funds are contributed, and the funds build tax-deferred income until
they are withdrawn. Many people choose to designate their loved ones as beneficiaries. However, by
doing so, your loved ones may see only a small fraction of the gift. This is because your retirement assets
may be subject to several types of taxes, including federal and state estate taxes, as well as income
taxes, which could conceivably consume 70 percent or more of their value.
You can avoid this heavy taxation by making GDB a beneficiary and using other less-taxed assets to
provide for your loved ones. As a beneficiary, GDB will receive 100 percent of your retirement plan
proceeds free of all taxes. And, although the proceeds will be included in your gross estate, they will be
completely deductible as a charitable gift.
Note: For gifts of assets from a qualified retirement plan, a donor's spouse must sign a waiver
consenting to the gift to the charity. This is not the case for gifts of assets from an IRA.
The procedure for naming Guide Dogs as a beneficiary of your retirement plan is quite simple. The
administrator of your plan can provide you with a beneficiary change form, which typically requests the
following information—
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GDB's full legal name: Guide Dogs for the Blind. Inc.
GDB's permanent mailing address: 350 Los Ranchitos Road, San Rafael, CA 94903
GDB's federal tax identification number: 94-1196195
Relationship to beneficiary: “Charity”
IRA Charitable Rollover Extension:
In January, Congress extended the IRA Charitable Rollover legislation through the end of 2013. The law
enables donors to make a gift to GDB from their IRA and the amount distributed is not included in
taxable income. Also, these gifts count as a distribution for purposes of the required minimum
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distribution rules. You can arrange to donate all or part of your 2013 required minimum distribution
amount (up to the $100,000 limit) that you would otherwise be forced to receive and pay taxes on.
Guidelines: In order to qualify for these gifts:
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Donor must be at least 70 years of age when the gift is made
Transfer must be made directly from the IRA administrator to GDB.
The gifts from the IRA cannot exceed $100,000 per person ($200,000 for a couple) in a given
year.
Time to Renew your CD?
Consider a Charitable Gift Annuity instead
If you have a CD coming due, talk with us about a charitable gift annuity (CGA)—learn how you can
support Guide Dogs for the Blind and increase your cash flow at the same time!
Benefits include:
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Guaranteed fixed payment for life
A portion of the payment tax-free
Charitable deduction in the year of the gift
Satisfaction in making a significant gift to support and enhance the work of Guide Dogs for the
Blind
Sample Rates for One Life (Call for two life rates)
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65: 4.7%
70: 5.1%
75: 5.8%
80: 6.8%
85: 7.8%
To find out how a CGA will work for you, contact our Planned Giving office at (800) 295-4050 extension
4073, or jscott@guidedogs.com.