Planned Gifts:
Bequests
Donors can provide for a specific charitable organization or purpose
in their will through a bequest to the Community Foundation.
First
steps to take...
Charitable Lead
Trust
A Charitable Lead Trust permits your named fund at the Community Foundation
to receive an income interest for a specified period of time. Subsequently
the Foundation's interest terminates, but the trust continues for
the benefit or terminates in favor of one or more individuals, children,
grandchildren, relatives or others.
First
steps to take...
Charitable Gift
Annuity
A charitable gift annuity is a contract between the donor and the
Community Foundation. The donor transfers property (cash, securities,
etc.) in exchange for a fixed dollar payment during his or her lifetime.
The payment can begin currently or can be deferred for a period of
time determined by the donor.
First steps
to take...
Pension Plan Beneficiary
If a donor is going to make a charitable bequest, the best assets
to transfer to a charity will normally be assets in a retirement plan
because they produce taxable income. Most assets that an heir inherits
are free from income tax. However, an heir will pay income tax on
amounts received from a decedents' retirement plan (profit sharing
plan, Section 401(k) plan, IRA, etc.) because the distributions are
considered "income in respect of a decedent."
Find out about the Pension
Protection Act of 2006 and transferring your IRA...
First
steps to take...
Life Insurance Beneficiary
If the donor is not ready to give up ownership of a life insurance
policy, the donor can still help the community through the Community
Foundation by naming the Community Foundation as beneficiary. The
donor retains ownership of the policy and has access to the cash value
as well as the right to change the beneficiary. Since the donor retains
ownership of the policy, there is no charitable deduction for the
value of the policy upon designation of the charitable organization
as beneficiary or for subsequent insurance premiums. Any proceeds
payable to The Community Foundation at the donor's death, however,
will not be subject to federal estate tax.
First
steps to take...
Charitable Remainder
Trusts
The Community Foundation can administer both charitable remainder
unitrusts and annuity trusts which pay lifetime income to donors and/or
other named beneficiaries. Cash or property is transferred to the
trust which distributes to the income beneficiary(ies) an amount equal
to a fixed percentage of the trust's fair market value (unitrust)
or a fixed dollar amount (annuity trust). Upon termination of the
trust, its assets will be transferred to a component fund of the Community
Foundation to support the charitable goals of the donor.
First
steps to take...
Download the brochure about our new Centennial Society!
Note: As with all financial matters, donors should contact their professional advisor for tax deduction advice and referral.