FMG works with clients to create long-term, sustainable funding opportunities. By doing so, we’re helping preserve the existence of organizations and providing the foundation to provide greater resources to undergraduate members.
Planned gifts are primarily eligible to clients featuring 501c3 organizations, such as scholarship funds and educational foundations. It involves providing for a future gift to charities through your financial and estate plans. The eligible chapter entity would welcome gifts made through different planned giving arrangements. These arrangements can:
- Provide for you or your loved ones
- Entitle you to charitable income and/or gift or estate tax deductions
- Enable you to leave a legacy for the chapter
There are multiple types of planning giving solutions. Choosing the right planned gift depends on your personal circumstances and financial goals. We’ve boiled them down to two groups: Life Income Gifts and Other types of planned gifts. You’re invited to read about each.
Life Income Gifts
A life income gift allows you to give assets to the chapter while providing yourself or others with income for a period of time before the chapter is permitted to use your gift. You may make a life income gift by transferring securities, cash, or other property to the chapter or a trustee. The chapter or trustee then manages the investment of the assets and pays an income to you, your designated beneficiaries, or both. Income payments continue for the beneficiaries’ lives or, in some cases, for a term of up to 20 years. There are several kinds of life income gifts available:
- Charitable Gift Annuities – In exchange for an outright gift, the chapter agrees by contract to pay a fixed amount each year to you and/or another beneficiary for life.
- Charitable Remainder Unitrusts – You establish a trust from which you and/or other beneficiaries receive variable annual payments for life and/or a term of years. At the end of the term, the remainder of the trust assets go to the chapter for the purposes you designate.
- Charitable Remainder Annuity Trusts – You establish a trust from which you and/or other beneficiaries receive annual payments of a fixed dollar amount for life and/or a term of years, after which the remainder of the trust assets pass to the chapter for the purposes you designate.
- Pooled Income Funds – Your gift goes into an investment pool that functions like a mutual fund. Investment returns are paid to you and/or other beneficiaries for life, after which your gift is withdrawn and used to support your designated purpose at the chapter.
Other Types of Gifts
Charitable Lead Trusts – A charitable lead trust makes an annual payment to the chapter for a period of years, and at the end of the term, the remaining assets go to your children or other beneficiary.
Bequests and Estate Plans – You may make a bequest or gift through your estate by including a provision in your will or living trust, or by naming the chapter as a beneficiary of a retirement plan or life insurance policy. The amount left to the chapter (or any charity) can be expressed as a dollar amount or as a percentage of the assets to be given.
IRA Rollovers and other Retirement Gifts – A pooled income fund is a type of charitable trust established and maintained by the chapter. The fund receives irrevocable contributions from one or more individuals, a family or a charity. Donors may qualify for an immediate partial tax deduction, based on their life expectancy and anticipated income stream, but they must pay income tax on the income stream from the fund each year.
Gifts of Real Estate – Thinking of selling your home, commercial building, or investment property? Enjoy tax benefits, generate income, and help the chapter with a gift of real estate.
You’re encouraged to click through the links to learn if how each opportunity can apply to your chapter or, if your an interested donor, how each applies to your situation and giving wishes. You’re invited to contact us to learn more.