Charitable Trust, Bequest, Gifts and MoreThe Foundation offers the full range of philanthropic vehicles allowed by law, including cash gifts, readily marketable securities, insurance policies and real estate.
These donations may consist of cash, stock, real estate, or virtually any other asset. A gift of appreciated securities is an attractive option because the donor’s income tax deduction is based on the full fair market value of the asset with no capital gains tax obligation. A fund can be established with a minimum of $10,000. Some donors start with even less, building up to that amount with annual contributions. Donors receive a tax deduction for the current year. You can contribute to your fund whenever it is convenient and the income generated by the principal each year is available to support your charitable goals.
A gift in the donor’s will or trust, effective at the donor’s death is an option for establishing a fund or adding to an existing fund. Frequently, the asset selected for this gift is from the donor’s IRA or other qualified retirement plan. Because these assets have a maximum income tax obligation, they are a good source for funding charitable gifts.
Some sample bequest language for your clients to include in their will or trust is:
I hereby give and bequeath to the Arlington Community Foundation, a qualified charitable organization, or its successor organization, also a qualified charitable organization, 4601 N Fairfax Drive, Suite 1050, Arlington, VA 22203, Federal Tax ID# 54-1602838, a bequest of _____________________________________________________ (describe a percentage of your estate, a fixed amount of money or designated real or personal property, or the residue of your estate).
Make a donation now that offers lifetime income benefits to the donor or other beneficiary, with the remainder value going to establish a new fund or add to an existing fund. These gift vehicles can address a wide variety of financial and personal estate planning objectives. A common example is a donor wanting to convert a low basis, low income-producing asset into a significantly higher income stream by putting the asset into a charitable remainder trust. Typical vehicles for this are charitable gift annuities and charitable remainder trusts.
You can place cash or property into a trust that pays a fixed amount to the Foundation for the number of years you select. Once this period ends, the assets held by the trust are transferred to the beneficiaries you name. In some cases, you receive a substantial reduction in federal gift and estate taxes.
A life insurance policy can be used to make a future gift to the Foundation. By assigning ownership of life insurance policies to the Foundation, you may receive a federal income tax deduction in the amount of the policy’s present value. The proceeds are not taxable as part of your estate. You can also name the Arlington Community Foundation as the beneficiary of an existing policy.
Excess pension benefits, IRAs, and other deferred arrangements provide special opportunities for charitable giving.