We Can Help you Create Your Legacy
The Foundation helps create charitable legacies on behalf of donors for many reasons. For example, you may have no heirs and want to ensure causes are supported beyond your life, you may haveheirs but want philanthropy to remain a family value, or it is a way for you to give a significant gift that cost’s nothing during your life. Whatever your reason, we can help you participate in legacy giving (also called planned giving or deferred giving).
You can use these gifts to start or build a charitable fund called an endowment. Endowments are meaningful as they offer a dependable, perpetual source of funding. Imagine making a contribution that leaves a mark for generations to come. With these types of funds, the principal is kept intact; the invested return is granted yearly based on a spending calculation. During your lifetime, you can create an agreement that defines your intentions on how that yearly spendable amount will be granted.
There are several types of planned gifts, below are the most common:
Bequest by Will
Bequests are statements in your Last Will and Testament directing portions of your assets to loved ones and charitable organizations, such as the Community Foundation. The bequest can be for a specific dollar amount or a percentage of your estate that can be used to create a fund or add to an existing fund. The Foundation can provide you and your attorney with Suggested Bequest Language to include in your will.
Retirement Plan
Naming the Community Foundation as a beneficiary of your retirement plan such as an IRA, is an opportunity to avoid income and estate tax penalties while fulfilling your charitable goals. These assets are typically the most heavily taxed; therefore, it may be most tax effective way to create your legacy.
Life Insurance
Want to provide a significant gift to support your favorite causes, but don’t know how? A life insurance gift could be that option. The most tax-effective way to donate life insurance is to transfer the policy so that the charity, such as the Community Foundation, becomes the owner and beneficiary. You are entitled to an immediate charitable deduction for income tax purposes. If you continue to pay the premiums, each payment is also a deductible charitable donation. See our Life Insurance Gift Acceptance Policy for additional information and conditions.
There are additional ways to make a planned gift than just these options. Talk to your professional advisors about what giving method is best for you. Contact us to learn more about how the Foundation can help you support your charitable objectives with a legacy gift.
