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.

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