A planned gift is one legally made during the donor’s lifetime, but whose principal benefits do not accrue to The Rotary Foundation until sometime in the future, usually at the death of the donor and / or income beneficiaries designated by the donor. With some types of these gifts, the donor retains some present interest (usually an income interest) in the assets, and directs the remainder for the ultimate benefit of The Rotary Foundation. In addition, the donor of the gift often achieves significant reductions of taxes on income, capital gains, and his/her estate. The Foundation’s Trustees have directed that, unless otherwise indicated, proceeds from planned gifts will be placed in the Permanent Fund and earnings credited to the World Fund. Donors may designate that the spending or earning’s portion from their gift be directed through SHARE.
Life Income Gifts - Charitable Gift Annuity In exchange for an irrevocable transfer of $10,000 or more, the Foundation will guarantee an annual income to one or two people designated by the donor. In the United States, there can be an immediate income tax deduction for a charitable gift, and a portion of the annual income return can be free from tax.
A variant is the deferred charitable gift annuity. In this case, the date for the start of annuity payments is deferred from the contract date by at least one year. This provision offers a younger donor an opportunity to take advantage of the tax benefits of such a gift and plan for retirement.
Life Income Gifts - Pooled Income Fund. Gifts of cash, securities, or both are pooled in The Rotary Foundation’s Pooled Income Fund for investment with those of many other persons, similar to a mutual fund. The donor (and/or income beneficiary) receives a proportionate share of the earnings for life. The donor receives a charitable tax deduction, can avoid capital gains tax, and can reduce his / her estate taxes. Minimum: US$5,000.
Life Income Gifts - Charitable Remainder Trusts. The donor transfers money, property, or both to TRF, which invests the assets as a separate fund. The donor receives either a variable income (the unitrust) or a fixed dollar amount (the annuity trust). This type of gift may reduce or eliminate capital gains on appreciated assets and can provide an immediate income tax deduction. Minimum: US$100,000.
Other Planned Gifts - Retained Life Estate in a Residence or Farm. The owner of a residence or farm may give the property to TRF, claim an income tax deduction for the charitable remainder, and retain use of the property for oneself and / or another. A portion of the residence or farm value may be excluded from estate tax.
print this page