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Planned Giving / Major Gifts


contact: Chuck Kurtzman, Major Gifts Advisor, 817.870.9884 c.kurtzman@ourblooddrive.org

  

 

T he Rotary Foundation offers many ways for you to help further its mission. Here are some of the available planned giving options:



Life income agreements

Have you ever thought about making a contribution to The Rotary Foundation during your lifetime but were concerned about outliving your resources, meeting family obligations, or preparing for retirement? With careful planning, it's possible to enjoy the advantages of a life income gift and turn appreciated assets into an income for yourself or others. Life income agreements are one way to make a significant charitable contribution during your lifetime while furthering your financial plans and security.


Benefits

  • Annual payments for you or another beneficiary
  • Immediate federal income tax deduction
  • Potential estate tax savings
  • Increased income from low-yield assets
  • Avoidance or reduction of capital gains taxes on gifts of appreciated assets
  • Opportunity to be recognized as a Major Donor to The Rotary Foundation
  • Satisfaction in knowing that your contribution will make a difference in many lives


Types of life income agreements


Charitable gift annuities

In exchange for your gift of cash or marketable securities to the Foundation, you (and another beneficiary or a survivor) receive guaranteed fixed payments for life.

Under the terms of a charitable gift annuity agreement, you make a gift of cash or publicly traded securities and, in return, collect regular payments for life that never change in size or frequency, regardless of changes in the economy. Payments to you (and another beneficiary, if you wish) are backed by the Foundation's available assets. The number of annuitants and their ages determine the payout rate. See the gift annuity rates table for examples.


The Rotary Foundation's Permanent Fund receives the charitable portion of the gift upon the death of the last annuitant. Donors interested in the stability of fixed payments tend to favor this type of life income agreement.


Deferred charitable gift annuities

Like the charitable gift annuity, the deferred charitable gift annuity is a simple agreement with regular payments that never change in size or frequency, regardless of changes in the economy. However, with a deferred charitable gift annuity, these payments are postponed for a specified time (at least one year after the date of the gift).


The size of the payment you receive each year depends on the amount transferred, your age now, and your age when the payments begin. You receive a charitable income tax deduction in the year of the gift. Because you identify the date to begin payments, this life income agreement is a helpful retirement and tax planning tool.


Charitable remainder trusts

A charitable remainder trust is a trust into which you irrevocably place assets in exchange for an income, either for life or a certain number of years. These trusts allow you to reduce capital gains taxes on gifts of appreciated property and are a great strategy for incorporating charity into your estate plans.


A charitable remainder trust can be funded with cash, real estate, publicly traded stock, closely held stock, bonds (including tax-exempt bonds), and certain other assets. You'll receive income at a rate agreed upon by you and the Foundation, with a minimum of 5 percent of the initial trust principal. There are two types of charitable remainder trusts:

  • Unitrust - Income fluctuates annually with the trust's fair market value
  • Annuity trust - Income payments are fixed and determined when the gift is made


Pooled income fund

The contributions of many individuals are pooled and invested under professional management. Each contribution purchases "units" in the fund at their current value, and you or another beneficiary receive a proportional share of the fund's net income on a quarterly basis.


Participating in the pooled income fund is easy and requires a smaller investment than other life income agreements. The minimum initial gift is US$5,000 and involves the irrevocable transfer of property, such as cash or publicly traded securities, to the fund. Similar to a mutual fund, the income you receive is based on your gift's fair market value and the variable rate of return that the fund is producing. The fund's investment objective is to secure a reasonable current rate of return consistent with the preservation and long-term growth of principal. Pooled income fund gifts support the Permanent Fund.


Charitable bequests

Each year, thousands of Rotarians and friends designate a portion of their assets in their estate plans to benefit the Foundation. Bequests made through wills or living trusts play an important role in securing the future of Foundation programs by building the Permanent Fund. These commitments also enable individuals to make gifts that may not have been possible during their lifetimes.

Bequests can take several forms:

  • Specific bequest - Gives the Foundation a specific piece of property: "I give 500 shares of stock."
  • Residual bequest - Designates all or a portion of whatever remains after all debts, taxes, and expenses have been paid: "I give 50 percent of the next residue and remainder of my estate."
  • Contingent bequest - Takes effect only under certain conditions: "In the event that my spouse does not survive me, I give to The Rotary Foundation of Rotary International, an Illinois not-for-profit corporation, the sum of . . . "


The Foundation's tax identification number is 36-3245072. To request more information, submit an online inquiry form, or call 847-866-3100.


The Foundation cannot provide legal or financial advice. We urge you to meet with your legal representative or financial adviser to determine the appropriate way to give and the best language to use when making a bequest.


Please allow the Foundation to thank you by completing a Benefactor Commitment Card (PDF), once your gift is finalized.


Life insurance

By making a gift of life insurance to The Rotary Foundation, you help secure the future of Foundation programs. Canadian or U.S. donors who irrevocably assign ownership and beneficial interest to the Foundation in a policy may also qualify for a charitable tax deductions.


To discuss potential gifts to the Rotary Foundation

contact: Chuck Kurtzman, Major Gifts Advisor, 817.870.9884 c.kurtzman@ourblooddrive.org


Standard gift annuity payment rates (single life)

 

The American Council on Gift Annuities recommends the following rates, which are current as of 1 February 2009. To request more information on charitable gift annuities, including current benefits, rates for two people, or rates for deferred payments, submit an online inquiry form, or contact Jenna Steiner, Planned Giving Officer, at 847-866-3100 or plannedgiving@rotary.org.


Age

Rate

Age

Rate

50

4.4%

71

5.8%

51

4.5

72

5.9

52

4.6

73

6.0

53

4.7

74

6.1

54

4.8

75

6.3

55

4.8

76

6.4

56

4.9

77

6.6

57

4.9

78

6.7

58

4.9

79

6.9

59

5.0

80

7.1

60

5.0

81

7.3

61

5.1

82

7.5

62

5.1

83

7.7

63

5.2

84

7.9

64

5.2

85

8.1

65

5.3

86

8.3

66

5.4

87

8.6

67

5.4

88

8.9

68

5.5

89

9.2

69

5.6

90+

9.5

70

5.7