Non-Cash Gifts and Planned Giving Vehicles

Planned giving allows donors many choices when deciding how to make a gift:

• Do you want to make a gift during your lifetime or after?
• Do you want to use cash or another asset?
• Do you want to make a life-income gift?which allows you to give now, but receive an income stream for the rest of your life?
• Do you want to receive an immediate income stream or defer that income until some point in the future, such as a 75 birthday or retirement?
• Or do you want to combine several of these options into a plan that fits your needs?

Below are samples of the many different gift options available. If you decide to make a planned gift you will also be enrolled into the Foundation’s Legacy Society, which offers members special benefits.

For more information on any of the following vehicles, or to discuss a giving option that will meet your personal goals, contact our Planned Giving Department at (800) 336-3600, Ext. 3303. Or you can email or mail us. We also encourage you to speak with your own professional advisor regarding your estate plans.

Gifts During Your Lifetime

Stock and Securities

Giving appreciated stocks or securities allows you to avoid long-term capital gains taxes and still remain eligible for a charitable income tax deduction. Gifts of stock for immediate use (not used to fund another planned giving vehicle) are considered current gifts and not eligible for Legacy Society membership.

Contact Ginny Smith at (800) 336-3600 Ext. 3303 for more information, or to inform us if you intend to electronically transfer stock today.

Reed Larson Endowment Fund

You can make an immediate donation of cash, stocks, or other assets and direct that the gift should be assigned to the Foundation’s endowment. The endowment fund was named in honor of Foundation founder and long-time president, Reed Larson, who has been the leader of the Right to Work movement for decades. A gift you consider to the endowment fund will be converted into income-producing assets, and the income generated each year will go to the Foundation’s general fund and strategic programs. The endowment fund allows you to make a perpetual gift and ensure that the Foundation’s important work will continue long into the future.

Charitable Lead Trust

A charitable lead trust can be set up during your lifetime or afterward through a will. An irrevocable gift is made to the trust. The trust then makes gifts to charity for a designated number of years (up to 20) before returning the assets to you or your heirs. The charitable provisions allow this vehicle to transfer assets while minimizing or eliminating gift and estate taxes. If set up during your life, it also allows you to see the benefits of your charitable gift.

Real Estate

A gift of appreciated real estate generally allows you to take a tax deduction for the fair market value of the property and avoid long-term capital gains taxes.

Life Insurance

Many people are holding on to life insurance policies they no longer need for their original purposes. You can give a fully paid-up policy and deduct its replacement cost or cash-surrender value on your tax return, depending on whether the Foundation plans to hold the policy or cash it in. You can also give policy dividends by notifying the insurance company, and then deduct the amount of dividends each year on your tax return. Of course, you can simply name the Foundation as the beneficiary of the policy.

Life insurance can be used as a form of "wealth replacement" when combined with some of the planned giving tools listed below. By combining life insurance with trusts or annuities, it may be possible to leave a substantial gift for charity without affecting estate plans for your children or heirs.

Gifts Made After Your Lifetime

Bequest through a Will or Living Trust

Bequests are a very popular giving vehicle because they allow you to control your assets for as long as you need them. They also allow you to be very specific, so you can make sure that your heirs are provided for first, and what is leftover goes to charity.

Click here for sample bequest language.

Keep in mind that your will can also be combined with almost any other planned giving vehicle. Some assets in your estate may be subject to substantially higher taxes than others (a good example of highly-taxed assets are IRAs and retirement plans). You can designate those assets to charity to avoid these taxes altogether, and provide for your heirs with other assets that will give them a greater financial benefit.

You can also arrange for a trust, annuity, or other vehicle to be completed through your will " which will provide heirs with an income stream rather than a large lump sum.

A living trust allows you to organize your financial affairs and assets in a trust which you control during your lifetime. Upon your death, your designated successor trustees take over and carry out your specified charitable and noncharitable desires. A living trust can help avoid probate proceedings and their related costs.

Life-Income Gifts

Annuities

Foundation gift annuities are the simplest life-income vehicle. After transferring the assets you wish to give to the Foundation, you will receive a guaranteed income stream for the rest of your life. At the end of your life, the remainder is available to fund the Foundation’s programs. This income stream can start immediately or be deferred for a future start date (which will yield a higher rate). You may also be eligible for an immediate income tax deduction. Not available in all states. Please call for current availability.

Charitable Remainder Trusts

A charitable remainder trust is similar to an annuity, in that you make an irrevocable gift and receive a life-time income stream. At the end of your life (or a designated term of years) the trust terminates and distributes the remainder to the charities of your choice. A trust requires a lawyer or trust specialist to draw up the necessary documents and a trustee to administer the assets. However, it provides you with a substantial amount of flexibility that may not be available with a simple annuity, and such trusts are available in all 50 states.

There are different types of charitable remainder trusts. Click here for a basic overview.

Pooled Income Funds

With this program, you make an irrevocable gift to the fund where your assets are "pooled" with those of other donors. All donors then receive monthly distributions of the net income earned by the fund. Basing the payments only on the income the fund earns helps preserve the original gift for charity. If the fund nets income of 6%, then your payment would be 6% of your "principal" (your original gift plus any capital gains). This means that payments vary with the performance of the fund.

There are three fund options that provide different income and tax benefits. The funds are owned and operated by a third party and are not available in Puerto Rico.

For more information on any of the above mentioned vehicles, or to discuss a giving option that will meet your personal goals, contact our Planned Giving Department at (800) 336-3600, Ext. 3303 Or you can email or mail us. We also encourage you to speak with your own professional advisor.