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BENEFITS OF PLANNED GIVING
As a charitable donor, you may wish to create a vehicle that allows you to maintain long-term involvement with your charitable assets. Establishing a fund at the Fairfield County Foundation has many benefits to the donor.
Leave A Legacy
Fulfill his/her wish to make a significant contribution to the Fairfield County Foundation or to the good work of one or more charitable organizations.Income and Capital Gains Tax Savings
Reduced income tax due to the charitable income tax deduction. Avoidance of tax on long-term capital gain due to contributions of appreciated assets. Reduced income tax owed by the survivor beneficiary (person or estate) of qualified pension plans, IRA's deferred compensation plans, etc., by using these assets to make testamentary charitable gifts.
Gift and Estate Tax Savings
Reduced estate tax through lifetime charitable gifts and including charitable gifts in testamentary provisions. Reduced gift tax for gifts to children where they are the beneficiaries of a lifetime charitable lead trust.
Increased Lifetime Income
By funding charitable gift annuities and charitable trusts with appreciated assets, which are producing a low level of annual income, these contributions in effect convert the asset to a higher income yield without causing the realization of capital gain.
Tax Sheltered Lifetime Income
A portion of the income received from charitable gift annuities will be tax-exempt income for the life expectancy of the beneficiary. It is possible to receive tax-exempt income from charitable remainder trusts, depending on the investment experience of the trust.
Financial Support of Family Members or Friends
Contributions can be made to all the lifetime plans with someone other than the donor named the income beneficiary.
Supplemental Retirement Income
Deferred payment gift annuities can provide supplemental retirement income. A version of the Charitable Remainder Unitrust can also be invested to pay a larger amount of income to the beneficiary at some point in the future, with nominal annual income until that time.
Asset Management
Many of the lifetime income plans offer the benefit of alleviating the donor of the worries of managing their assets or in providing income to individuals who might be unable to manage a lump sum.
The Foundation may not give legal or tax advice and urges prospective donors to consult with their attorneys and tax advisors when planning to make gifts or bequests to the Fairfield County Foundation. |
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