Ways Your Clients Can Give

A charitable bequest to the Foundation enables your clients to retain control over their assets during their lifetimes and support the community later. A charitable bequest can be a specific dollar amount, a percentage of the estate, or what remains after other bequests are made.

The Foundation for MetroWest can be named the owner and beneficiary of an existing or new life insurance policy. Your client receives an immediate tax deduction that usually approximates the cash surrender value of the policy. All premium payments made thereafter are deductible as a charitable contribution.

Individual Retirement Accounts (IRAs) or other qualified retirement plans are one of the best types of assets to leave to charitable organizations as they are taxed heavily when left to heirs. When your client donates retirement plan assets, 100% of the gift will be available to support their charitable interests.

Charitable Gift Annuity

By establishing a Charitable Gift Annuity, your client will receive guaranteed income for life, benefit from an immediate income tax deduction, and leave a legacy that will support the causes important to them. Payments are based on age. Your client can receive an income tax deduction now and defer receiving the annuity payments until a future date. Later, the remainder interest can be used to establish a charitable fund or be added to an existing fund. The tax advantages of both a current and deferred annuity are two-fold. First, your client receives an immediate charitable income tax deduction when creating the annuity. Second, a portion of the payments received may be treated either as tax-free return of principal or long-term capital gains.

Charitable Remainder Trust

This flexible option allows payments to be made to your client or another beneficiary for life or for a specified number of years. Income beneficiaries annually receive an amount equal to either a fixed percentage or dollar amount of the trust’s fair market value. A charitable remainder trust may be set up during your client’s lifetime or through their will. The eventual distribution to the Foundation will only take effect upon the death of the trust’s income beneficiaries, or at the end of the specified number of years. At this time, the remainder of the trust transfers to the Foundation to support your client’s charitable giving goals.

A Charitable Lead Trust enables your client to make significant charitable gifts now while transferring substantial assets to beneficiaries later. A trust is set up from which the Foundation receives annual payments during the life of your client or for a specific number of years. These funds may be used to support the Foundation’s work in the community or be added to a Donor Advised Fund. When the trust terminates, the principal is returned to your client or distributed to other designees. The trust assets pass to the recipients at reduced tax cost, sometimes even tax-free.

A cash gift is the simplest way to establish a fund or give to an existing fund.

Gifts of appreciated securities (stock, bonds, and most mutual funds) provide tax advantages.

Real estate and closely-held stock are both suitable gifts and may be deductible as charitable contributions.

Capital gains taxes can be avoided in most cases, and deductions can be taken immediately and carried forward for up to five years.

Donations to the Foundation through a private foundation can be made in one of two ways. A Donor Advised Fund can be used to complement an existing private foundation. Distributions from a private foundation may be made by establishing a Donor Advised Fund. Alternatively, a private foundation can be converted into a Donor Advised Fund. This will allow your client the flexibility of a private foundation without the legal and administrative responsibilities. Below are some of the benefits of converting a private foundation into a Donor Advised Fund at the Foundation.

• Anonymity – Information about private foundations is readily available for public inspection. Distributions from donor-advised funds may be made anonymously.
• Greater Tax Benefits – Receive greater tax incentives on future gifts, such as fair market value deduction of closely held stock contributions and higher AGI deductibility thresholds for cash and publicly traded security gift.
• No Required Annual Distribution – Unlike private foundations, Donor Advised Funds do not require an annual distribution. You can even give a gift from your private foundation to your Donor Advised Fund.
• Grantmaking Expertise – As the only community foundation for the MetroWest region, the Foundation has in-depth knowledge of the nonprofit organizations that support and enhance our communities. Full-time professional staff is available to assist fundholders with grant administration, research, and program evaluation to ensure maximum community impact.