Types of Deferred Giving
Simple Bequests – Leaving Money Through Your Will or Trust
A bequest is made through your will or living trust. It is simple to establish and revocable. Donors who leave a bequest to a charity can take an estate tax deduction of 100 percent of the gift value. Your bequest can be stated as a set amount either of cash, securities, or other assets, or the "residue" or a "percentage of the residue" of your estate. The bequest can also be contingent. Sample bequest language can be found here.
Charitable Remainder Trusts
A donor may transfer assets to charitable remainder trust ("CRT") that provides a specified percent distribution to
one or more (income) beneficiaries for life or a term of years with remainder interest paid to charity. Basically, a CRT allows you to set aside a large amount of money now and be assured that (A) you'll be paid a certain amount of money for the rest of your life and (B) the nonprofit you designate will be given all the money that is left when you pass away.
Two kinds of CRTs are:
CRUT: A charitable remainder unitrust requires that the trust assets be revalued annually, typically changing the value of the unitrust payment, and allows for donors to make additional gifts to the trust.
CRAT: A charitable remainder annuity trust does not provide for donors to make additional gifts to the trust and CRAT assets are not revalued annually, and income beneficiaries receive the original cash amount.
Charitable Lead Trusts
A donor may transfer assets to a charitable lead trust for a lifetime or term of years after which the remaining assets are distributed to the donor or other persons.
Life Insurance/IRA Beneficiaries
In larger estates, the retirement fund assets distributed to family members may be "double taxed" — first subject to the donor's estate tax, then to income tax on the beneficiaries. IRA accounts listing the Community Foundation or your "fund" at the Community Foundation as the beneficiary are free of estate and income taxes.
What are "deferred giving options"? They are simply tools you can use as part of your estate planning to give money to charity when you pass away. We are happy to assist you and your professional advisors (attorneys, financial advisors, CPAs) in planning the best deferred giving options for you.
At the time you set up the deferred gift, we will help you establish a "charitable fund" at the Foundation that will accept and hold your future gift. Learn about the different types of "funds" that you can set up the at the Community Foundation. You can set up a "fund" now and then put money into it through your deferred gift.