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The term "planned giving" describes the many ways in which individuals make charitable gifts perhaps much larger than they thought possible. A variety of planned giving vehicles are available to those who wish to provide for the future benefit of our community and create a lasting legacy. Through The Public Education Foundation, you can make a lasting gift to education while creating your personal philanthropic legacy. In addition, you become eligible to become a member of our Legacy Funds Club.
Determining what gift is right for you is just as important as making the gift. Charitable funds, referred to at The Public Education Foundation as Legacy Funds, may be established during your lifetime or by bequest and can be tailored to your specific requirements and interests. The correct plan for you balances what you wish to accomplish for yourself, your family and your charitable interests in your overall estate and financial plans.
Tax Benefits
Tax benefits derived from establishing a Legacy Fund provide a winning situation for donors and the Public Education Foundation. The Public Education Foundation and their professional partners provide straightforward explanations of tax strategies based on the type of gift you are considering.
The Internal Revenue Service supports your philanthropy in several ways, including the options to:
- Take current federal tax deductions
- Avoid capital gains tax
- Reduce or eliminate estate taxes
Methods of Investing in the Future
You may consider several planned giving "vehicles" that name The Public Education Foundation as beneficiary. These include:
- Gifts of Stocks or Bonds
- Bequest (specified in your will or living trust)
- Charitable Remainder Trust(CRT)
- Charitable Lead Trust (CLT)
- Qualified Retirement Plan
- Life Insurance
- Life Estate
The Public Education Foundation can assist you in determining an appropriate vehicle for your planned giving. However, we encourage you to seek the advice of your financial advisor or estate planner before making a final decision. Should you not currently have such counsel, we would be happy to recommend several reputable professionals to assist you. Please contact David Vorce at (702) 799-1042 or via email at dvorce@ccpef.org.
Gifts of Stocks or Bonds
A charitable gift of stocks or bonds provides an opportunity for tax savings while generously sharing with others. A gift of stock owned for more than one year entitles you to a charitable deduction for the full market value at the time the gift is made. If the stock has appreciated, you also avoid a capital gains tax on the appreciation. In addition to helping the Foundation, you may diversify away from low-basis, long-term holdings into other assets that will better suit your current needs.
Bequest
One of the simplest ways to provide for your community is to establish or add to a fund through a bequest in your will or living trust. To help you accomplish this, The Public Education Foundation can provide your attorney with sample language.
Charitable Remainder Trust (CRT)
Through a gift of assets, you can establish a trust naming The Public Education Foundation as the ultimate beneficiary while providing an income stream for you or a named beneficiary for life. Upon the death of the named beneficiary, the principal of the trust is distributed to a charitable fund at The Public Education Foundation. By establishing a CRT, you will gain an immediate income tax deduction, reduce estate taxes, possibly increase income from your assets, provide for a spouse and/or heirs, and deter or eliminate capital gains taxes – all the while making a gift that will continue in perpetuity.
Charitable Lead Trust (CLT)
With a CLT, a part of your estate is donated to the trust immediately, and the income goes to a charitable fund at The Public Education Foundation for a designated number of years. The trust can be created during your lifetime or at death and will reduce estate or gift taxes. When the period of the trust concludes (such as when children or grandchildren reach a certain age), the trust is terminated and the assets return to their benefit.
Retirement Accounts
Individual Retirement Accounts (IRAs) left to heirs may be subject to taxes that could total over half of the IRA's value. Designating The Public Education Foundation as the beneficiary of an IRA is an excellent way for you to make a charitable gift while reducing the impact of income, estate and generation-skipping taxes on a family's inheritance, by removing the asset from the donor's estate.
Life Insurance
A paid-up, existing life insurance policy may be donated by designating The Public Education Foundation as owner and beneficiary. You also may donate a life insurance policy that is not fully paid up, by designating The Public Education Foundation as owner and beneficiary and by continuing to pay the annual premiums. These gifts provide you with a current charitable income tax deduction and also may reduce your estate tax. When the policy is redeemed, a permanent fund is created to support the charitable goals described by the donor.
Life Estate
Like many people, your major asset may be your home. You may irrevocably transfer the ownership of your residence to The Public Education Foundation and retain the right to occupy the premises throughout your lifetime while receiving a tax deduction based on the property's value. This gift also would lower estate taxes since the property is no longer a part of your estate.
If you have not yet included The Public Education Foundation in your estate plans or you are not sure how planned giving can meet your financial goals, please contact David Vorce at (702) 799-1042 or via email at dvorce@ccpef.org. He will be happy to assist you in constructing a personalized plan that will create a lasting legacy with potentially substantial tax benefits.
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