Using the Community Foundation as a partner in charitable giving offers donors a full range of philanthropic opportunities to improve their community. We would be happy to suggest ways in which the Community Foundation can help you serve your clients.
Life Income Gift: Charitable Gift Annuity
The client makes a gift to the Community Foundation and receives fixed payouts for life regardless of market fluctuations with the knowledge that the full assets of the foundation stand behind the gift. They can help fund the causes they care about most, while turning a low-performing asset into a reliable life-income stream:
CGA Rates (effective January 1, 2012)
- Age 70, 5.1%
- Age 75, 5.8%
- Age 80, 6.8%
This is a simple way for your client to make a lasting gift through their will or trust. It is revocable and doesn’t take any current assets from their net worth. A bequest can be:
- Specific dollar amount
- Percentage bequest
- Residuary bequest
These are assets in retirement plans or life insurance policies. With these, the client doesn’t have to amend her/his trust or write a codicil to the will. It is easy to change the beneficiary of an IRA or other retirement plan. They just contact the plan administrator and ask to change the beneficiary designation form. These retirement assets are the single most highly taxed asset and good for charitable gifting.
With life insurance policies, the client can
1. name the Community Foundation as a full or partial beneficiary (can be revoked), or
2. name the Community Foundation as the owner (irrevocable gift and also tax deductible).
Life Income Gift: Charitable Remainder Trust
The client can place assets in a trust that pays annual income to them (or another named beneficiary) for life. After their lifetime or a term of years, the remainder of the trust can be transferred to a Community Foundation charitable fund.