Donors often make their most substantial and effective gifts as part of their estate plan. Tools for testamentary gifts are included in the Tax Code and work with many of the assets below.
Types of Gifts
One of the simplest estate giving options is a bequest. First, donors designate a gift to a specific fund at the Foundation. A fund agreement then details their charitable intentions and the role the Foundation plays in stewarding the request. This option is a great way to transform a donor advised fund used for lifetime giving into a charitable legacy that continues into perpetuity.
- Retirement or Qualified Plan Assets
Many IRAs or other qualified retirement plans allow donors to leave unused portions of these assets to charity. Current law allows some individuals to make lifetime charitable distributions of these plans. These are among the best assets for charitable giving due to the significant estate tax burden likely paid by heirs.
- Charitable Gift Annuities
Charitable gift annuities offer two key benefits: simplicity and a reliable income. Donors receive life income, determined by their age, in exchange for a charitable gift established with a simple annuity contract. The portion of the gift not used to pay the income stream goes to advance the donor’s goals through a fund at the Foundation. The asset contributed reduces the size of a donor’s estate and may decrease or eliminate overall estate taxes.
- Charitable Trusts
Similar to charitable gift annuities, charitable remainder trusts provide donors with life income that is determined by factors such as age and the terms of the trust. The trust’s remainder will establish or increase an existing fund at the Foundation. Unlike gift annuities, the terms of these trusts are flexible and enable donors to contribute other assets beyond cash or appreciated securities.A charitable lead trust works like a remainder trust but in reverse. The income benefits the charity during the donor’s life and, at the trust’s termination, the remainder reverts back to the donor’s family.
Please contact Katie Knapp at 314-880-4590 or firstname.lastname@example.org for additional information on ways to give.