Becoming A Donor

Donors who have a vision of what our East Tennessee region can be, who are willing to invest in its future, and who are willing to generously share the blessings that have been bestowed upon them have a wide array of philanthropic opportunities. Deciding to give is only the first of many choices that must be made.

Since 1986, East Tennessee Foundation has turned charitable dreams into realities for thousands of people across the East Tennessee region. While the tax and estate planning advantages are significant, our experience tells us that the satisfaction of being able to give back to or connect with your community is the driving force behind philanthropy. We work with you and with professional advisors to tailor a charitable giving program that fits your personal interests and financial situation.

What Are Your Dreams?

To create a scholarship in honor of a loved one?

To ensure cleaner water and air for your grandchildren, and for their grandchildren?

To build an income for a nonprofit organization?

We help individuals, families, businesses, foundations, and nonprofit organizations achieve their charitable and financial goals by providing tools that make giving easy, flexible, and effective.

• Donors can create a donor advised fund and recommend grants that support the groups or issues they care about, such as the arts, education, the environment, or healthcare. Or, they can rely on ETF to make grants that reflect their interests.
• Donors can establish a variety of funds. Some approaches focus on giving in the near term, while others enable donors to make giving a part of their estate planning strategy.
• We can accept a variety of assets and facilitate complex giving programs.
• We are an attractive alternative to starting a private foundation, since we can handle all recordkeeping, reporting to the IRS, accounting, and investment management.
• We pool the assets of individual funds, achieving economies of scale to hire top investment managers.
• Donors who establish a fund with us benefit from the highest available tax deduction for charitable contributions.
• Donors can create an individual or family legacy by establishing a named fund at ETF – which can help ensure that future generations learn the value of giving back.

Donors can choose to be anonymous in their giving.

Ways to Give

Which asset is the right gift? When should I give it? Gifting different assets yields different results in the areas of income, capital gain, or estate taxes. Gifting during life presents different choices than gifting through an estate. These are questions for donors and their professional advisors to discuss in detail. ETF staff can assist in making these decisions.

What assets can be given through the East Tennessee Foundation?

• Cash
• Appreciated Stock
• Unencumbered Real Property
• Shares in Mutual Funds
• Savings Bonds
• Life Estates in personal residence or farm
• Closely Held Stock (in some cases)
• Interests in Limited Liability Partnerships
• IRA's
• Life Insurance Policies
• Rights - Mineral, Royalties, etc.

Please call us if you have questions about gifting assets not listed. The ETF Board considers some gifts on a case by case basis.

Taxes

ETF offers the most generous tax savings allowed by law. Donors are allowed to deduct up to 50% of adjusted gross income (AGI) for gifts to ETF of cash, with a five-year carryover. Deductions of up to 30% of AGI are allowed for gifts of securities, property, etc. with the same five-year carryover. Gifts of appreciated assets avoid capital gains tax, allowing even more to go to charitable purposes. IRA gifts avoid income tax on the remainder and Estate gifts can eliminate estate taxes and leave more for family.

Building the Right Vehicle for Giving

What charitable planning methods work for you?

Bequests in a Will - Without a will, potential gifts to charity are lost, taxes are maximized, and friends or a disabled relative go without assistance. An up-to-date will places assets exactly where you wish them. Gifts to charity leave your assets in East Tennessee, where local needs are addressed and problems solved. Endowments established with bequests leave a legacy of your values. Bequests can be added to existing ETF funds or used to establish a new fund for causes dear to your heart.

Charitable Remainder Trust - You may transfer cash or other property to a trust, enjoy the income for life, and leave the remainder to ETF to establish a fund for your church, favorite charity, or cause. Some of the benefits to the creator of a Charitable Remainder Trust:

• generous income tax savings up-front
• turning an asset into a stream of income
• avoiding capital gains on appreciated property placed in the trust
• removing the value of trust assets from your estate
• bequeathing a generous gift that will make a difference to people and places you care about

Charitable Lead Trust - The Foundation receives the gift for a period of years and the remainder goes to children or grandchildren. No capital gains are due on appreciated assets transferred to the Lead Trust or at the time of distribution to family members. You may also avoid income tax on the trust income.

Life Estate - A life estate allows you or an elder loved one to remain at home for life, leaving the house to ETF at death. This gift offers an up-front charitable income tax deduction and removes the home from the donor's estate. Heirs don't have the burden of selling or renting the property. An ideal gift for those who desire to benefit charity, but whose home represents the bulk of their assets.

Insurance Policies and Individual Retirement Accounts - Gifting proceeds from IRAs and insurance is one of the easiest ways to benefit charitable causes. You simply contact your insurance company or mutual fund company to request a Change of Beneficiary Form. After naming the East Tennessee Foundation the secondary beneficiary after a spouse or other family member, mail the form back. That's all that is required.

Pre-tax IRAs make GREAT gifts to charity because children named as beneficiaries must pay tax on all that untaxed money within the IRA. IRA funds are also included in estates. It's possible to lose almost 90% of an IRA through estate and income taxes. The East Tennessee Foundation doesn't pay income taxes; therefore, a donation of an IRA creates a gift of the total amount remaining in the fund at death.

Comparing Community and Private Foundations

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