Planned Giving is a partnership option allowing donors to leave money or assets to Families First at his/her death; or a way to invest money so that the donor receives benefits during his/her life and then bequeaths the remaining funds to Families First. Planned gifts also enable donors to pass assets on to their heirs while supporting Families First and minimizing, or eliminating, taxes on those assets. In addition to planned gifts, bequests enable donors to make substantial gifts to Families First through their estates. Through a planned gift, donors can leave a charitable legacy for their family and community using the following types of planned gifts:
Bequest: A bequest can be made by naming Families First as a charitable beneficiary in a new will, or adding a codicil to an existing will. The bequest can be in the form of a stated dollar amount or specific property, a percentage of the estate, or a portion of or the entire residue.
Life Insurance: Donors may give a life insurance policy no longer needed, take out a new policy or name Families First as a beneficiary of an existing policy. A gift of life insurance may provide valuable income and estate tax savings. Donors may make Families First the owner or beneficiary of a whole or universal life policy. The premium payments may then be a gift to the Foundation and taken as a charitable deed. There may also be an upfront charitable deduction available.
Charitable Remainder Trust: A Charitable Remainder Trust (CRT) allows a donor to establish a trust for the ultimate benefit of his or her fund at a Foundation, retain a lifetime income generated by the contributed assets, receive a current income tax deduction and defer the capital gain recognized on the sale of the contributed asset. A CRT may help you eliminate capital gains taxes, reduce or eliminate gift and estate taxes, improve lifetime cash flow and when coupled with an asset replacement trust, provide for heirs as well.
Charitable Gift Annuity: A Charitable Gift Annuity allows donors to contribute assets to a designated, qualified foundation and receive an income tax charitable deduction and a guaranteed income for life. This vehicle can ease the worries of outliving financial resources by providing a high income coupled with numerous tax advantages.
Retirement Accounts: Retirement plan accounts and IRAs may be subjected to layers of taxation – both estate and income tax. A charitable gift of these funds at death, however, can provide a donor’s fund at a designated, qualified foundation with the full 100 cents on the dollar.
Families First recommends contacting the Community Foundation for Greater Atlanta for more resources and information about trusts, annuity’s and retirement accounts.
If you’re interested in becoming a member, fill out this form today and we’ll contact you to start the conversation about planned giving.