When you seek a planned giving option, The Oregon Community Foundation will work with you and your professional advisors to set up the best type of fund to support the causes you care about.
Planned Giving Options
A bequest is made through a donor’s will or living trust. It is easy to establish and revocable. Donors who leave a bequest to charity can take an estate tax deduction of 100 percent of the gift's value. You can state your bequest as a set amount of cash, securities, or other assets; or as the “residue” or a “percentage of the residue” of the estate. (Please see our sample bequest language.)
Charitable Remainder Trusts
A donor may transfer assets to a charitable remainder trust that provides a specified distribution percentage to one or more (income) beneficiaries for life, or a term of years, with the remainder interest paid to charity. There are two kinds of CRTs:
- Charitable remainder unitrust. A CRUT requires annual revaluation of the trust assets — which typically changes the value of the unitrust payment — and allows donors to make additional gifts to the trust.
- Charitable remainder annuity trust. A CRAT does not allow donors to make additional gifts to the trust, and CRAT assets are not revalued annually, so the income beneficiary receives the original cash amount.
Charitable Lead Trusts
A donor may transfer assets to a charitable lead trust. A charity is the income or “lead” beneficiary for a lifetime or term of years, after which the remaining assets are distributed to the donor or other beneficiaries.
A charitable gift annuity is a contract between a charity and donor. In return for a donation of cash or other assets, the charity agrees to pay donor and/or someone designated by donor a fixed payment for life. The donor can claim an immediate charitable tax deduction for the amount of transfer above the value of the annuity purchase. If a donor funds a gift annuity with long-term capital gain property — e.g., with appreciated stock — the donor will report only some of the gain, and may be able to report it in installments over many years. Donors may establish a deferred charitable gift annuity and defer receiving income from the gift annuity for a period of years.
OCF will consider issuing gift annuity contracts for annuities originating in Oregon that meet these guidelines:
- Minimum age of the annuitant is 60 (55 for deferred gift annuities).
- Annuity rate does not exceed the rate published by the American Council on Gift Annuities.
- Minimum gift amount is $25,000.
Life Insurance/IRA Beneficiaries
In larger estates, retirement fund assets distributed to family members may be subject to double taxation, first through the donor’s estate tax, and then through the beneficiaries' income tax. IRA accounts listing OCF as the beneficiary are free of estate and income taxes. Not only can OCF be named as the beneficiary of a life insurance policy, but a donor can also transfer the policy irrevocably to the Foundation and claim an income tax deduction for the policy’s cost basis or cash surrender value (whichever is less). Any subsequent premium payments will be tax-deductible.
For more information about planned giving, please contact an OCF philanthropic advisor in your area.