Charitable Gifts, Like Donor Relationships, Evolve
Community Foundation relationships grow deep over time. As donors get to know us they realize the cost savings benefit of our low fees and expert gift planning. In time, donors can see the impact their gifts will bring to themselves, their heirs and to the community. [caption id="attachment_10286" align="alignleft" width="300"] Good Grows[/caption] The example below is a timeline of a decade-long donor relationship with one family that evolved to create a scholarship that will eventually make a difference in many people’s lives. In addition to the good in the world, their gift generates income for their children, now in their 50’s, and financially benefits themselves through increased tax deductions.
- 2007 – A Charitable Remainder Unitrust and Legacy Fund Agreements were drafted. Meetings with family were held and the plans were carefully reviewed by the donor’s advisors. At this point, the CRUT was a “just in case”, to be funded through the donor’s estate in case something happened. The Charitable Trust receives irrevocable gifts that are tax deductible, and the assets are invested with the income going to the Donor’s children. The Community Foundation charges no fees for the gift planning service.
- 2016 – The donor said, “Let’s get going now.” Over the years, they attended Community Foundation events, met other satisfied fundholders, and discussed gift possibilities with me several times. An establishing gift was made and in 2017 their children started to receive income. The Community Foundation serves as Trustee without fee, and there is a small fee (1% or less) that covers the cost of tax filings and administration.
- 2017 – The Donor gained another tax deduction when he made an additional contribution to the Trust which increased the children’s income in 2018.
- 2018 – the Donor contributed a vacation home to the Trust. The family had decided to sell the home anyway and by contributing it to the Trust, they gained many tax advantages. The result will be a greatly increased income for the children.
- At some point in the future when the children pass away, the charitable trust will terminate, and the remaining assets will flow to a Legacy Fund at the Community Foundation. Our long-time Donor appreciates the flexibility that he can change this agreement at any time. In fact, has made two changes in past years. At the present time, he designates the remainder to fund a scholarship program at a specific University.