The Internal Revenue Service has
authorized several ways that your clients can make gifts to
The Norfolk Foundation that will benefit our communities in
the future and provide benefits for your client. To learn
more about planned giving at The Norfolk Foundation contact
Nan Edgerton, vice president of development, at 757-622-7951
or
nedgerton@norfolkfoundation.org
Options for planned gifts include:
Designating The Norfolk Foundation as a
beneficiary of your will or living trust is a
straightforward way of creating a fund. You can designate a
specific amount, a percentage of your estate or the residue
and remainder of it. Through the type of fund you establish
you can support specific organizations, address general
charitable causes, help students with scholarships or
benefit an array of nonprofit needs.
Click here
for suggested language to share with your legal counsel.
A Norfolk Foundation Charitable Gift Annuity (CGA) can generate immediate or deferred
income for the life of one or two designated individuals.
It can provide a partially tax-free income and an income tax deduction for you and allow
remaining assets to be used to support your favorite charities and charitable causes.
The Norfolk Foundation offers CGAs to donors who are at least 60 years old. The minimum
contribution is $25,000.
Payments are based on your current age; rates are established by the American Council on Gift
Annuities.
Please note that on July 1, 2008 The Norfolk Foundation will lower its gift annuity rate
along with all other charities that follow the American Council on Gift Annuities’
recommended rates. Below is a comparison of current and new rates:
| Current Gift Annuity Rates* |
5.7% |
6.0% |
7.0% |
7.1% |
| Age Rate |
60 |
65 |
70 |
75 |
| New Rates (effective July 1, 2008) |
5.5% |
5.7% |
6.1% |
6.7% |
| Age Rate |
60 |
65 |
70 |
75 |
*Rates are for a single life and are subject to change.
Click hereto
download a flier about Charitable Gift Annuities.
More information is available from our staff . For general information on charitable
gift annuities and the most current rates visit
www.acga-web.org
IRA Rollovers
Many people are just now reaching the age where they can tap
into Individual Retirement Accounts and other retirement
funds. Often a portion of these assets will remain after
their lifetimes. If your clients plan to pass these assets on
to anyone but a spouse, they will be subject to significant
taxation – as much as 80 cents or more on the dollar. Making
The Norfolk Foundation the successor beneficiary to a spouse
for those remaining assets gives the full dollar value to
support your clients’ charitable goals while removing the
assets from their estate for tax purposes. In 2006 Congress
passed legislation that enables donors 70 1/2 and older to
donate up to $100,000 a year from IRAs to nonprofits without
tax implications.
This opportunity will
expire December 31, 2007 unless Congress extends legislation.
Whether your clients decide to support specific nonprofit
organizations or to create scholarship funds to help
students, the Foundation will provide ongoing stewardship to
ensure their wishes are fulfilled.
Charitable Remainder Trust
A charitable remainder trust (CRT) permits your clients to
make an irrevocable gift and receive an income in return.
Moreover, if appreciated assets are used to fund the trust,
your clients will not be subject to capital gains taxes. They
will also be entitled to an income tax charitable deduction.
This gift planning strategy is best suited for gifts over
$250,000 and can be established during your client’s lifetime
or by a will.
There are two types of CRTs: Unitrusts and Annuity Trusts. In
both cases, the term may be for life or a period of years up
to a maximum of 20 years. The minimum annual percentage
payout is 5%.
The Norfolk Foundation offers a great deal of flexibility as
the charitable remainder man of a CRT. The Foundation can
provide a list of financial organizations that can serve as
trustee. By using the Foundation, your client can use trust
assets to establish a fund that will support specific
organizations, general charitable causes or create
scholarship programs. As the recipient of the remainder
trust, the Foundation will receive the assets at the end of
the trust term and provide ongoing stewardship of your
client’s charitable wishes.
Charitable Lead Trust
Often described as the reverse of a CRT, a Charitable Lead
Trust distributes income to your client’s charitable fund for
a period of years or throughout the client’s lifetime. Then
the assets return to the client or, more typically, to
surviving family members. The result is gift and estate tax
savings. If planned correctly, a CLT will allow your client
to make a significant gift to charity and transfer assets to
family members with reduced or no gift and estate taxes.
