Planned Giving

Planned Giving Options

Charitable giving shouldn't happen by accident. Every charitable gift you make should be planned. Each gift should fit your needs and support the causes you care about. Peace of mind comes from knowing that your family is taken care of, your affairs are in order and your wishes will be carried out exactly as you wanted. Careful estate planning is key.

The term "planned giving" describes the many ways in which individuals make charitable gifts beyond what they can give on an outright basis. And while most people give to charity throughout their lifetime, only 6% include a gift for charity in their estate plans. By proactively planning, you may be able to make a much more substantial gift than previously imagined and leave a legacy that stretches long into the future. Whether it’s supporting safe places to play for kids, preserving our streams and wildlife, or encouraging artists to create beauty in our world, the gift you plan today will ensure the exceptional quality of life in our region continues for generations to come.

Through a single fund that you establish with a planned gift, you can provide grants to your favorite charities and causes long after your lifetime. You specify the names and amounts and the Community Foundation will act as stewards of your gift, ensuring your gift is carried out exactly as you planned. Alternatively, you can request that the community foundation board use their discretion in granting money for future needs of our regions. There are a number of different planned gift options, each of which is useful in certain circumstances. The goal is to find the planned gift that is most advantageous to you, to all those who are significant to you, and to the causes you support.

You should always consult with your legal, tax and financial advisors when making a significant gift of any kind – and particularly when you are considering a planned gift. Your advisors can help you find the right gift for you. The Community Foundation can also help you and your advisors identify these opportunities.

Bequest

One of the simplest ways to provide for your community is to establish or add to a fund at the Community Foundation through a bequest in your will or by providing for a distribution from your trust. This simple option allows you to enjoy all of your assets while you are alive, yet support your favorite causes at death.

Life Insurance

Life insurance makes it possible for virtually everyone to make a meaningful gift. Policies that are no longer needed for their original purpose can make excellent gifts when given to the Community Foundation. You can either designate the Community Foundation as the beneficiary, or you can gift the policy during your life and likely receive an immediate income tax deduction.

Retirement Accounts

Like life insurance, retirement assets can be easily gifted to the Community Foundation at death. Individual Retirement Accounts (IRAs) left to heirs may be subject to taxes that could total over half of the IRA’s value. Designating the Community Foundation as the beneficiary of an IRA is an excellent way for you to make a gift to charity, using an asset that might be otherwise heavily taxed. Also, a Charitable Family IRA allows you to put your IRA into the trust that produces income for your heirs and ultimately benefits charity. You can reduce income taxes payable by your family – in addition to saving estate taxes - by giving retirement assets to the Community Foundation. This income tax benefit can be important when planning the distribution of your pension, profit sharing, Section 401(k) and Section 403(b) plans and IRAs. Special rules apply to making charitable gifts of these assets during life. Please consult with your tax advisor and the Community Foundation about these rules.

U.S. Savings Bonds

Because of tax deferred income accrual, a testamentary gift to the Community Foundation of U.S Saving Bonds affords income and estate tax benefits similar to testamentary gifts of retirement accounts (see above).

Charitable Remainder Trust (CRT)


You make a gift of assets to establish a trust naming the Community Foundation as ultimate beneficiary. You get valuable tax benefits and retain for life the income generated from the assets given to the trust. (Typically for gifts of more than $200,000.)

Charitable Lead Trust (CLT)


When you don’t need income now but want to provide for your heirs, you may set up a Charitable Lead Trust and name the Community Foundation as the charitable beneficiary. You can use the income from the trust to make grants to nonprofit organizations during your lifetime and after your lifetime, have the trust assets, even if they have increased greatly in value, pass without further tax to your heirs.

Life Estate

Like many people in our area, your major asset may be your home. You may irrevocably transfer the ownership of a home or farm to the Community Foundation and retain the right to occupy the premises for the rest of your life. Life estate gifts trigger an immediate charitable income tax deduction and pass free of estate tax to the Community Foundation. As with all gifts of real estate, the Community Foundation considers potential life estate gifts on a case-by-case basis.

Your Final Wishes

If you decide to leave a planned gift to the Community Foundation, please let us know. We want to make sure we have your wishes on record to properly carry them out after your lifetime. In most cases, we will set up a fund agreement that documents exactly how your fund should be used and which organizations or causes should benefit.

Free Calculations and Illustrations of charitable remainder trusts, charitable lead trusts, life estate reserves, and other planned giving options are available. Please call the Fayetteville Community Foundation at 479.444.6880 to take advantage of the many opportunities a planned gift can provide you and your family.

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