- Some donors are interested in setting up funds right away while others are interested in including us in their estate planning.
Direct Current Gifts
—Donors may establish (and later add to) any of The Community Foundation’s various fund types by contributing a variety of types of assets during their lifetime. Current gifts generate the most beneficial charitable income tax deduction available under the law, while at the same time removing the contributed assets from the donor’s estate for estate tax purposes.
Deferred Planned Gifts—In addition to current gifts, donors may also establish or add to a fund at The Community Foundation through a planned gift. A donor can leave a charitable legacy for their family and their community using the following types of planned gifts:
Bequest: A bequest can be made by naming The Community Foundation as a charitable beneficiary in a new will, or adding a codicil to an existing will. The bequest can be in the form of a stated dollar amount or specific property, a percentage of the estate, or a portion of or the entire residue.
The following language would be appropriate for a bequest:
(a) I give and bequeath ______ percent of my adjusted gross estate (as that term is defined in the federal estate tax laws) to establish the “_________ Fund” of The Community Foundation for Greater Atlanta, Inc., subject to its governing instruments, policies and procedures, as amended from time to time.
(b) I bequeath _______ percent of my adjusted gross estate (as that term is defined in the federal estate tax laws) to The Community Foundation for Greater Atlanta, Inc. This gift shall be devoted to the general charitable purposes of The Community Foundation as set forth in its governing instruments, as amended from time to time.
Life Insurance: Donors may give a life insurance policy no longer needed, take out a new policy or name The Community Foundation as a beneficiary of an existing policy. A gift of life insurance may provide valuable income and estate tax savings.
Charitable Remainder Trust: A Charitable Remainder Trust (CRT) allows a donor to establish a trust for the ultimate benefit of his or her fund at the Foundation, retain a lifetime income generated by the contributed assets, receive a current income tax deduction and defer the capital gain recognized on the sale of the contributed asset. A CRT may help you eliminate capital gains taxes, reduce or eliminate gift and estate taxes, improve lifetime cash flow and when coupled with an asset replacement trust, provide for heirs as well.
Charitable Gift Annuity: A Charitable Gift Annuity allows donors to contribute assets to The Community Foundation and receive an income tax charitable deduction and a guaranteed income for life. This vehicle can ease the worries of outliving financial resources by providing a high income coupled with numerous tax advantages.
Retirement Accounts: Retirement plan accounts and IRAs may be subjected to layers of taxation – both estate and income tax. A charitable gift of these funds at death, however, can provide a donor’s fund with the full 100 cents on the dollar.
Charitable Lead Trust: This allows donors to provide income to their fund at the Foundation for a specified number of years. The remainder is then returned to the donor or his or her named beneficiary. Benefits may include the transfer of assets to others free of estate, gift and income taxes.
Life Estate: If a donor owns valuable property and is interested in using it during his or her lifetime but makes arrangements to give it to The Community Foundation upon death, he or she may receive a current income tax deduction and future estate tax deduction.
For access to detailed explanations and planning research on the various planned giving options please register on our Planned Giving Design Center. If you are interested in further information on either current or planned giving options, please contact Christy Eckoff, director of gift planning, at 404-588-3183.