If your client is interested in deferred giving, one of our charitable gift planners can help you and your client plan and establish a standard fund agreement. This agreement establishes the best type of fund for the causes your client wishes to support.
Deferred Giving Options
Donors who leave a bequest to charity can take an estate tax deduction of 100 percent of the gift's value. Your client’s bequest can be stated as a set amount of cash, securities, or other assets; or as the “residue” or a “percentage of the residue” of the estate. The bequest can also be contingent.
Charitable Remainder Trusts (CRT)
Your client may transfer assets to a charitable remainder trust that provides a specified distribution percentage to one or more (income) beneficiaries for life, or a term of years, with the remainder interest paid to charity. There are two kinds of CRTs:
Charitable remainder unitrust. A CRUT requires annual revaluation of the trust assets — which typically changes the value of the unitrust payment — and allows donors to make additional gifts to the trust.
Charitable remainder annuity trust. The income beneficiary of a CRAT receives a fixed amount that is determined when the trust is established. A CRAT does not allow donors to make additional gifts to the trust.
Charitable Lead Trusts
A donor may transfer assets to a charitable lead trust. A charity is the income or “lead” beneficiary for a lifetime or term of years, after which the remaining assets are distributed to the donor or other beneficiaries.
In return for a donation of cash or other assets, the charity agrees to pay the donor — and/or someone designated by the donor — a fixed payment for life. The donor can claim an immediate charitable tax deduction for the amount of transfer above the value of the annuity purchase.
If a donor funds a gift annuity with long-term capital gain property — e.g., with appreciated stock — the donor will report only some of the gain, and may be able to report it in installments over many years. Donors may establish a deferred charitable gift annuity and defer receiving income from the gift annuity for a period of years.
SCCF will consider issuing gift annuity contracts for annuities originating in Oregon that meet these guidelines:
Minimum age of the annuitant is 60 (55 for deferred gift annuities.
Annuity rate does not exceed the rate published by the American Council on Gift Annuities.
Minimum gift amount is $25,000.
Life Insurance/IRA Beneficiaries
IRA accounts listing the Sandusky County Community Foundation as the beneficiary are free of estate and income taxes. Not only can SCCF be named as the beneficiary of a life insurance policy, but a donor can also transfer the policy irrevocably to the Foundation and claim an income tax deduction for the policy’s cost basis or cash surrender value (whichever is less). Any subsequent premium payments will be deductible.