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It has been said that there will be only one kind of charity that will remain - those that are endowed. The Washington AgForestry Leadership Program’s Endowment Fund is in place to continue the training of leaders far into the future. We are building our Endowment Fund to ensure our heritage of providing high-quality, effective leadership training to the next generation of talented leaders.
For more information or to discuss your endowment fund options, contact Dave Roseleip at 509-926-9113 or leaders@agforestry.org.
The following information should be used to give you an overview of some of the vehicles available to contribute to the Foundation’s Endowment Fund. This information is intended to help you begin or further your discussion with a financial planning expert and/or attorney. It is not intended as legal advice.
I would like to know more about:
Gifts of Cash
Gifts of cash represent the most fundamental and important source of support for the Foundation. It is the easiest form of gift and offers the donor a tax deduction equal to the full value of the gift. Donate now!
Gifts of Appreciated Securities (stocks)
In many cases, a gift of stocks or bonds may provide even greater tax benefits than a gift of equal value in cash. This is especially true for securities that have appreciated in value and could generate capital gains tax if they were cashed in.
Many donors choose to make gifts of appreciated securities because they can avoid paying capital gains tax on them. They can take a charitable deduction for the full market value of the securities (if owned for at least one year) and, through the deduction, save tax dollars which can be reinvested.
Gifts of Property: Land, Homes, Farms and Outright Gifts
With the continuing increase in property values, many people find that the real estate they own is their greatest asset. They may also find that is an asset with a costly price: property tax and maintenance costs if held; capital gains tax if sold. A gift of property — residential, rental, vacation home, farm, commercial, undeveloped or even land rights such as water and mineral rights — may offer significant benefits.
Generally, outright gifts of real property entitle you to:
- Avoid the capital gains tax on any appreciation in value, and
- A charitable income tax deduction based on the fair market value of the property.
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A Bequest in My Will
The charitable bequest is the most familiar and widely used way to benefit the Foundation at some future time. It is how many donors choose to establish a legacy after their lifetime, but in a way that remains revocable at any time during their life.
Those who include the Foundation in their wills often benefit their heirs at the same time. A charitable bequest is completely deductible from the estate and may even shift the remaining assets for family into a lower tax bracket.
Charitable Life Insurance
Life insurance plays an important role in the estate plans of many people. Though most people have some form of insurance, it is common to have a policy that may no longer be needed for its original purpose. For example do you have a policy:
- to provide money for a spouse or children who no longer need it?
- to cover a mortgage on a home or other property that is now paid?
- to cover educational expenses you have already paid from other funds or to protect a business that no longer exists or needs help?
You may find it beneficial to donate such policies to the Foundation.
Many donors also buy new policies for the sole purpose of charitable giving. In general, if you choose to donate a new or existing policy to the Foundation, you can deduct from your income taxes an amount roughly equal to the policy’s cash surrender value, as well as any annual amounts you pay to help keep the policy in effect.
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Personal Property Gifts
Whether through inheritance, collecting or investment, we accumulate a lot of personal property. Sometimes these items are valuable; sometimes the value is purely sentimental. But often, these items may be costly to insure or difficult to sell.
A gift of artwork, collections (such as stamps or coins), antiques, boats or cars, or other items of personal property may be an effective alternative for giving. Personal property gifts or items that are worth less than what you paid for them will be deductible at their current fair market value. Other personal property gifts may be deductible only at their cost basis, so you should discuss these options with your own tax advisor.
Charitable Trusts
Perhaps the most flexible of all the ways to make a major gift to the Foundation is the charitable remainder trust. Your gift is placed in a trust, the trust sells and reinvests the assets and makes regular income payments to you and / or other named beneficiaries. Payments may last either for a specific number of years or for one or two lifetimes. Trusts may be funded with cash, stocks, bonds, land, and even other assets.
The payout rate is variable and based on the fair market value of the gift placed into the trust. Payments can either be a specific amount per year (annuity trust) or a fixed percentage (unitrust). Trusts with percentage payouts are revalued each year; as the principal grows in value, the annual income will also grow. After the trust ends, the principal passes to the Foundation.
The rates of payment, investment philosophy, type of income and other details can be tailored to provide a financial planning tool that is creative, fiscally sound, and responsive to your needs. It provides a significant gift to the Foundation, so you also receive an income tax deduction when you create your trust. It is also a great opportunity to fund the trust with low-yielding, highly appreciated assets, avoid capital gains tax and increase your income stream.
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Life Estate Gifts
Some people anticipate a gift of a home, vacation home or farm sometime in the future, but may not want to give up the use of their property yet. It is possible to do both with a life estate gift. It is simply a contract arrangement where you give the rights to your property after your lifetime, but you keep the right to use and enjoy it for the rest of your life (or the life of another). If the property is income producing (e.g. from rent, crops, timber, etc.), you are also entitled to keep any income it produces during your lifetime.
Though the Foundation has no right to use or possess the property until after your lifetime, you receive an immediate income tax deduction for part of the property’s value. Also, the property won’t be in your estate at death, so your estate may save taxes and probate costs as well.
For more information regarding the AgForestry Endowment Fund, please contact:
Dave Roseleip
9211 East Mission, Suite J
Spokane, WA 99206
Phone: 509-926-9113
leaders@agforestry.org
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