Deferred Gifts

Bequests

You can establish or add to your named fund in your will or trust through a bequest. Your gift can be used to accomplish almost any charitable goal including:

  • Creating an endowment for a particular charity,
  • Leaving a family legacy, which allows children to continue their involvement in grantmaking, or
  • Establishing a scholarship fund.

Retirement Plans

A retirement plan is one of the best types of assets to transfer to a charity because it produces taxable income. Most assets an heir inherits are free from income tax. However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit-sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer the taxable assets subject to income tax to a tax-exempt charity — such as a community foundation — and to transfer the assets not subject to income tax to heirs.

Life Insurance Beneficiaries

Perhaps you would like to contribute the proceeds of a life insurance policy to help the community, but you are not yet ready to give up ownership of the policy. By naming a community foundation only as beneficiary, you retain ownership of the policy and have access to the cash value, as well as the right to change the beneficiary.

If you don’t have liquid assets right now but want to support a favorite charity, a gift of life insurance may be a good option.  While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate a community foundation as the beneficiary or for subsequent insurance premiums. However, proceeds payable to the community foundation at your death will not be subject to federal estate taxes.

We encourage you to work with your lawyer or financial advisor as you consider these options.  Our staff is experienced in the use of these giving vehicles and is eager to work with you and your advisor in this process.  If you have questions about deferred gifts, please contact Teri Lovelace at (804) 330-7400.