Planned Giving Opportunities – What You Should Know
Predetermined philanthropic plans benefit charitable organizations whose mission you care about. In coordination with the Greater Kansas City Community Foundation, the Vasculitis Foundation can assist you with your planned giving needs and tailor a giving method that specifically meets your desired giving outcomes.
The following are a variety of deferred giving plans that you may be interested in learning more about:
Bequest by Will
Including a charitable bequest in your will is a simple way to make a lasting gift to the Vasculitis Foundation. You can decide to do it at any age by adding to an existing will or drafting a new one. In doing so you leave a legacy to the VF, while enjoying the assets you need to maintain your current lifestyle. You are also able to distribute some or all of your assets, tax free.
You can give cash, appreciated stocks, or other assets. Some of the most tax-efficient asset types to give through will come from retirement plan accounts, since heirs would be taxed on the income in respect of the descendent (IRD). You can choose to give a stated dollar amount, a percentage of your estate, or the remainder after distributions to other beneficiaries.
Charitable Gift Annuity
Giving through a Charitable Gift Annuity allows you to arrange a generous gift to the VF, while providing yourself a new income source that you can count on for the rest of your life.
You may establish your Charitable Gift Annuity with cash or securities. As is the case in outright charitable gifts, donated appreciated stocks and bonds bypasses the capital gains tax. A contract will be set up with you that combine immediate annuity payments with a deferred charitable gift. You receive a stream of income that is fixed, regardless of market conditions. Upon your death, a charitable fund would be set up on your behalf.
Income from your Charitable Gift Annuity may add up to more than the interest and dividends you earned from holding the assets. You can use the income to supplement your own lifestyle, or that of someone else. You or a loved one can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council of Gift Annuities).
A charitable gift annuity may be established for as little as $10,000. Income beneficiaries must be at least 65 years of age.
Charitable Remainder Trust
Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that whatever remains will benefit the VF.
You transfer assets into a trust, and the trust pays you, or a beneficiary, regular income payments. Upon the beneficiary’s death, or after a defined period of years, the remaining assets in the trust transfer to the VF.
You may choose to receive a fixed income or one that changes with market conditions. Income from the Charitable Remainder Trust may add up to more than interest and dividends you earned from holding the assets. You can use it to supplement you own lifestyle, or that of a loved one. You can start earning annuity payments immediately, or defer them to increase your charitable income tax deduction.
A portion of the income may be tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the Internal Revenue Service).
Charitable Lead Trust
A Charitable Lead Trust helps you remove assets from your estate and build a charitable fund during the trust’s term. When the trust terminates, the remaining assets are transferred to you or your heirs, often with significant transfer-tax savings.
A Charitable Lead Trust entitles you to a number of financial benefits. It shelters investment earnings from tax, and it offers gift, estate, and generation-skipping tax benefits.
You have several options when establishing your trust. You can create a Charitable Lead Trust during your life or through your will. A Charitable Lead Unitrust makes annual distributions of a fixed percentage of the trust to the VF; a Charitable Lead Annuity Trust, makes annual distributions of a fixed dollar amount to the VF.
Giving through life insurance is one of the simplest ways to make a significant contribution to the VF. You can make a gift of life insurance when it is no longer needed for personal financial wealth replacement. You may receive a number of tax benefits, including reduced income taxes and estate taxes.
For more information, or for assistance with your personal deferred giving plan, contact the Vasculitis Foundation:
P.O. Box 28660
Kansas City, MO 64188