Ways to Give
There are many ways to make a valuable contribution through planned giving.
Let us help you navigate the options and attain your philanthropic goals by working with your financial advisor to answer common questions, such as:
- How can I be sure my charitable contribution will be used effectively?
- How can I be philanthropic while ensuring my financial stability and that of my family?
- Can I really build a meaningful legacy to benefit future generations?
- When is the appropriate time to think about planned giving?
Your planned giving experience can be tailored so that the end result is unique to you. We are pleased to offer the following gift options:
Gifts of Appreciated Assets
Gifts of Stock and Estate
Gifts of long-term appreciated stock, mutual funds or real estate offer an easy and tax-efficient way to make a lasting contribution while avoiding capital gain tax and reducing federal income tax. To ensure you are entitled to receive the most beneficial tax treatment, please contact us before making your decision.
Gifts of Tangible Personal Property
As with gifts of stock and real estate, a donor will be entitled to a deduction as a result of a contribution of personal property to the Friendship Circle. If the gift made is relevant to our mission, you will receive a charitable deduction for income tax purposes for the donation’s full fair market value.
Charitable Bequests Provided in Your Will
A bequest is one of the simplest ways to support the Friendship Circle. By including our organization in your Last Will and Testament, you can specify that some or all of your assets come to us after your lifetime. At that time, the asset(s) you specify will pass to us, and your estate can take a charitable deduction for the amount of your bequest, reducing the estate taxes payable. A Friendship Circle development professional can describe the bequest options available.
Beneficiary on a Life Insurance Policy, 401(k) Plan or IRA
The Friendship Circle accepts gifts of life insurance as the beneficiary of your policy. We also may be named as the beneficiary (primary or contingent) on your retirement accounts. In addition to providing you with numerous tax advantages, beneficiary designations are a quick, hassle-free way to make a gift. Changing your beneficiaries is as easy as simply contacting your insurance carrier or employer/plan administrator and request a beneficiary form. As with bequests, you have the freedom and flexibility to change your mind and your beneficiaries at any time.
Life Income Gifts
A Life Income Gift is a highly effective way to contribute assets to the Friendship Circle, while allowing you to keep a source of income for yourself and others for the remainder of your life, their lives or a fixed term of years. To create a Life Income Gift, you may make an irrevocable gift of cash, securities or real estate to the Friendship Circle, and in return receive an income (fixed or variable, depending on the option you choose). After your lifetime and/or the lifetime(s) of other designated beneficiaries, the remaining balance of your gift would be used to support the Friendship Circle.
Your age, assets and income objectives will help you determine the best type of Life Income Gift. A fixed income option would be a Charitable Remainder Annuity Trust (CRAT), while a variable income option is the Charitable Remainder Unitrust (CRUT).
Charitable Remainder Annuity Trust (CRAT)
A CRAT allow you to secure a steady stream of income and reduce your taxes while helping to support the Friendship Circle. To create a CRAT, place assets into an irrevocable trust and name the trustee (for example, the Friendship Circle or a bank trust department). The trustee invests the assets (which can grow tax-free) and pays a fixed dollar amount to the trust beneficiaries (yourself, your spouse, your children or whomever you designate) for life or for a set term of years. When the last income beneficiary passes or the trust’s term ends, the trust dissolves and the remaining assets are distributed to the charitable beneficiary.
This option may be right for you if you are concerned about meeting your current financial needs either now or in the future.
Charitable Gift Remainder Unitrust (CRUT)
A CRUT works the same way as the CRAT, with this main distinction: the income distributed is not a fixed amount. Instead, with a CRUT, you or your family receive a lifetime or term income that is a percentage (by law, a minimum of 5 percent) of your trust’s assets valued annually. Income payments increase or decrease with the changing value of the trust.
The unitrust provides a potential hedge against inflation, as income payments may rise over time. In addition, the unitrust can be structured to defer income and maximize growth (for retirement planning, for example) or to handle specific types of assets.
Another benefit to both the CRAT and CRUT is that no capital gain should be recognized by you upon contribution of appreciated property to the trust. Furthermore, you would be able to diversify your holdings within the trust without triggering capital gains.
Charitable Lead Trusts
A Charitable Lead Trust is an excellent way to give an immediate gift to the Friendship Circle while ultimately transferring assets to your loved ones- often with significantly reduced gift and estate taxes. Both Lifetime and Testamentary Charitable Lead Trusts are available depending on your preference. A Charitable Lead Trust may be the right planned gift for you if: You have a sizable estate, wish to avoid taxes and your heirs are generally taken care of for the foreseeable future, yet you wish to provide them with a substantial inheritance after your lifetime.
Lifetime Charitable Lead Trusts
You can establish a Charitable Lead Trust by transferring cash or appreciated assets (such as securities or real estate during your life) to a trust for the benefit of the Friendship Circle. The trustee may be a charity, a financial institution, you or an individual of your choice. Your trust then provides annual income based on fixed dollar amounts (annuity trust) or a fixed percentage on the value of the trust (unitrust) to the Friendship Circle for a fixed period, usually 10 to 20 years. In the year you establish the trust, you would be entitled to receive a charitable tax deduction for the present value of the income that will be distributed the Friendship Circle over the duration of the trust.
This is particularly tax-advantageous, because you are entitled to the deduction up-front, rather than being required to wait until distributions to the Friendship Circle are actually made.
Testamentary Charitable Lead Trust
You may also establish a Charitable Lead Trust under the terms of your Last Will and Testament. This is an effective way to make a sizable gift to charity while reducing your estate taxes. Your Last Will and Testament or Revocable Trust would provide that either a certain portion of your estate assets (or the amount that would create a non-taxable estate) should be transferred to a charitable lead trust upon your death. As with the lifetime lead trusts, there must be a fixed dollar amount (annuity trust) or a fixed percentage of the value of the trust (unitrust) that will be distributed to the Friendship Circle.
Contact us and we will provide personalized support throughout the process.
