Gifts by Bequest
You can establish or add to your named fund by adding specific bequest language to your will. With your gift, you can:
- Allow your children to continue their involvement in grantmaking by guiding future gifts in your name;
- Create an endowment to support a specific organization or area of interest;
- Provide flexible funds to address the most pressing needs in Mathews.
Retirement Plan Assets
A retirement plan is one of the best types of assets to transfer to a charity because it produces taxable income. Most assets an heir inherits are free from income tax. However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit-sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer the taxable assets subject to income tax to a tax-exempt charity — such as a community foundation — and to transfer the assets not subject to income tax to heirs.
Life Insurance Beneficiaries
If you don’t have liquid assets right now but want to support a favorite charity, a gift of life insurance may be a good option. While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate a community foundation as the beneficiary or for subsequent insurance premiums. However, proceeds payable to the community foundation at your death will not be subject to federal estate taxes.
Life Income Plans
Certain planned gifts provide a simple way for you to support your favorite causes or charities, while generating income for life for you or other family members. MCF can work with you and your advisor on any of the following:
- Charitable Remainder Trust
- Charitable Lead Trust
- Charitable Gift Annuity
We encourage you to work with your lawyer, CPA or financial advisor as you consider these options. Our staff is experienced in the use of these giving vehicles and is eager to work with you and your advisor in this process.