Going forward, and with the help of the Community Foundation for Greater Buffalo, the Library Foundation will be focusing its fundraising efforts on planned giving and bequests. We are excited about being able to utilize the CFGB’s professional staff and valuable tools and resources to assist you with your charitable estate planning needs. We invite you to learn about the innovative gift opportunities that may satisfy your personal financial needs and provide valuable support for the Library Foundation by contacting the office at 716-882-1483 or via email at firstname.lastname@example.org.
Planned gifts are commitments made by you today but are not actually realized by the University of Arizona Foundation until some future date. They range from simple agreements to complex trust arrangements. Some offer an income for life, while they all provide income tax and estate tax benefits.
What Is Planned Giving?
Planned giving can allow you to meet a number of goals simultaneously through a variety of deferred giving arrangements. You can meet your own needs and make provisions for your family members, while also minimizing your estate’s tax burden. You can also make a future commitment to the Library Foundation, without losing access to your assets in the present. Ultimately, planned giving can provide you with opportunities to make the most of your assets, both now and in the future.
The most common form of estate gift is a bequest from a donor’s will. A bequest can be simple to implement and offers you flexibility in your planning. Bequests can take several forms, usually designating a specific amount of money or property you want the Library Foundation to receive. The bequest may be restricted for a particular use or left unrestricted for use in funding the general purposes of the Library Foundation. You may also choose whether the gift is to be used for immediate expenditures or should be invested in the endowment fund. Charitable gifts made through a will are fully tax deductible; no federal estate tax or state inheritance tax applies to such gifts.
Charitable Remainder Trusts
Charitable remainder trusts are designed to enable a person to continue receiving the earnings from his or her assets for life, without management worries, and then to make a significant gift. There are two types of tax-favored charitable remainder trusts: the unitrust and the annuity trust.
- Unitrusts require that you irrevocably transfer cash, securities or other property to the Library Foundation to establish the trust. The trust agreement provides that the Foundation will pay you (or another beneficiary) an annual payment, based on a fixed percentage of the trust assets, as re-valued each year. The payment from a unitrust fluctuates as the value of the trust assets changes over time, but the percentage remains the same. You may add to the trust in future years. When you or your designated beneficiary die, the trust assets pass to the Foundation.
- Annuity Trusts are very similar to unitrusts. The main difference is that payments from an annuity trust remain at a fixed dollar amount; no additions may be made to an annuity trust.
Charitable Lead Trusts
Charitable Lead Trusts are basically the opposite of charitable remainder trusts. Instead of providing annual payments to you and eventually transferring the “remainder” assets to the Foundation, a lead trust provides for payments to the Foundation for a stated term of years. The principal in the trust is then returned to you or transferred to a beneficiary. Lead trusts are of most benefit if you have sufficient income to provide for current needs. They provide a good opportunity to fulfill charitable desires, reduce current tax liabilities and potentially transfer substantial assets to family members with minimum gift or estate tax consequences.
Satisfaction of Giving
Satisfaction comes from knowing that your contributions have been effective and have created positive change. We know you consider your charitable gifts to be an investment in this community. By being able to tap into the expertise of the CFGB’s staff members, the Library Foundation can research the giving option that’s best for you. We care a great deal about the effectiveness of your gifts and want to ensure that your giving experience rewards you with the gratification and fulfillment that you deserve.