Donor Opportunities | Creating and Growing a Fund
Creating a Fund
Funds can be established to support favorite organizations or to provide funding in a specific area of interest.
Many people write a check for operating dollars to their church or other organization weekly or monthly. A designated fund supporting the church or nonprofit group can go on writing those checks when the individual is no longer able.
Growing a Fund
But, there are a wide variety of ways of giving. A foundation representative can provide tips on using an IRA, appreciated stock, life insurance or farmland to increase a fund.
A gift or a portion of an estate may be given to the foundation in a will. In some cases this can result in a substantial reduction in federal gift and estate taxes.
A charitable gift annuity allows a person to make a gift of cash or property with immediate tax benefits while ensuring that the individual or a loved one receives fixed quarterly or annual income payments for life.
A charitable remainder trust allows someone to place cash or property in a trust that pays annual income to the individual or a named beneficiary for life. After death, the remainder of the trust transfers to the foundation into a fund the donor has selected. Income tax benefits are received the year the trust is established.
With a charitable lead trust cash or property is placed in a trust which pays a fixed amount to the foundation for the number of years chosen. When the time period ends the assets held by the trust are transferred to the beneficiaries selected by the donor. In some cases this results in a substantial reduction in federal gift and estate taxes.