When you include a gift in your will, trust, retirement account, or life insurance policy, you are planning to give from your assets rather than your income. As a result, you have much more to give. And contrary to popular belief, you don’t have to be wealthy to plan a legacy gift.

You can make a legacy gift from:

• Your will or trust: Include a charitable gift of a specific amount, a percentage, or the remainder of your estate. Contact us for sample language to give your estate planning attorney.
• Your retirement account: Submit a new beneficiary designation form and include a charity such as the Federation as a primary beneficiary. Whereas after-lifetime distributions to children from pre-tax IRA and 401(k) accounts are heavily taxed, legacy gifts to charities are made tax free.
• Your life insurance policy: Modify the beneficiary so it includes a charity such as the Federation. Or, if you have a paid up policy you no longer need, donate it to the Federation directly.
• Your donor advised fund: Arrange for your donor advised fund to make a grant upon your passing of a percentage of its value or the remainder to a charity such as the Federation. Plan to maintain the assets in the fund to make the grant possible.
• Other types of legacy gifts include charitable gift annuities, charitable remainder trusts and more. Contact us for more information.

If you are aged 70 ½ or older, donate up to $100,000 directly from your IRA. Qualified charitable distributions are tax-free and count toward your required minimum distribution (RMD).

Though qualified charitable distributions cannot be made to donor advised funds, supporting foundations, or private foundations, they can fund your gift to the Federation’s Annual Campaign or an endowment at the Federation as your Centennial Campaign gift.

You now also have the ability to use up to $50,000 once during your lifetime to establish a charitable gift annuity.

Charitable Gift Annuities: Give cash or stock to the Federation to start a charitable gift annuity, and enjoy fixed income for life, at attractive rates based on your age.

The gift is eligible for a charitable deduction, and after your lifetime, the remainder of the annuity becomes a meaningful Centennial Campaign legacy gift to the community.

Charitable Remainder Trusts: Using assets such as stock, cash, real estate, or business interests, create a source of significant income for yourself or loved ones. At the end of the term, the remaining assets are distributed to the charity or charities you chose, becoming part of your charitable legacy. You can benefit from tax savings, remove assets from your estate, and ultimately make a real difference to the charities you care about most.

At the end of the term, the remaining assets are distributed to the charity or charities you chose, becoming part of your charitable legacy.

You can benefit from tax savings, remove assets from your estate, and ultimately make a real difference to the charities you care about most.

Charitable Lead Trusts: Using income-producing property such as real estate, establish a trust that distributes income to charity, then transfers the property to heirs. Distributions from the trust can add to your donor advised fund, or to an endowment as your Centennial gift.

Charitable lead trusts remove assets from your estate, create a source of dollars for giving or grantmaking, and reduce gift tax on property given to your children.

When you give appreciated assets other than cash, you can enjoy significant tax benefits and create charitable assets for grantmaking or legacy giving.

If you have assets either producing little income, or income you would rather use for charitable giving, they may be eligible to be transferred as a charitable gift to the Federation.

Once the Federation sells the asset, the proceeds are available for your philanthropy.

Gifts of property are generally deductible for their fair market value, up to 30% of adjusted gross income, and you can carry over any excess forward for five years.

Property gifts are given free of the capital gains taxes you might otherwise be eventually burdened with.

Please note that all gifts of property, other than publicly traded securities, are subject to review and due diligence for restrictions, potential liabilities, marketability, and other factors prior to acceptance. Always consult with your financial or legal professional to understand the consequences of any planned gift.

• Publicly traded securities: Give appreciated stock, bonds, or mutual funds. Giving securities which you have held over one year and are highly appreciated can maximize income tax deductions and realized gains tax savings.
• Real estate: All real estate gifts are subject to due diligence, but can create a significant source of tax savings if accepted, and charitable dollars upon distributions and/or liquidation. Additional options include:
  • Partnership or LLC interests: You transfer your interest or an undivided portion.
  • Retained life estates: Give your house and retain the right to live in it.
  • Part gift/part sale: Part of the sale proceeds go to your fund at the Federation, and the other part goes to you.
• Closely-held stock: When you give stock that may be bought back and retired by a corporation, so long as there is no prearranged sale, you can avoid capital gains and create dollars for giving. The greater the accumulated corporate profits, the greater the tax advantages.
• Life insurance: Donate a policy that you no longer need, or a new one. If premiums are due, you make tax-deductible gifts to the Federation to cover them. You will be eligible for an income tax deduction for the value of the gift. The Federation can hold the policy until your passing, at which time the death benefit becomes a legacy gift, or liquidate the policy if it has cash surrender value.