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GIFTS THAT PAY YOU BACK

Strategies to Reach Your Financial Goals Now

About Donor-Advised Funds

A Donor-Advised Fund (DAF) allows individuals to make charitable contributions and receive an immediate tax deduction. The funds are managed by a DAF custodian, and the donor can recommend grants to their preferred nonprofit organizations.

Donors can contribute to the fund over time and recommend grants to charities at their discretion, providing flexibility in their giving strategy.

Benefits

Retain the flexibility to make grant recommendations over time.

Receive an immediate tax deduction when contributing to your fund.

Make an immediate impact on our mission.

About Charitable Gift Annuities

If you’re looking for a way to maintain your current lifestyle, increase your financial security, and lower your taxes, consider creating a charitable gift annuity. You will receive fixed annual payments for as long as you live.

If you are under 65, you may want to consider a Deferred Charitable Gift Annuity, where payouts start after you hit a certain age.

Benefits

Receive an immediate income tax deduction for a portion of your gift

Annuity payments are guaranteed for life, backed by a reserve and the assets of our organization

Annuity payments are partially tax free, making them more valuable than fully taxable income of the same size

About Pooled Income Funds

A Pooled Income Fund (PIF) is a type of trust that combines donors’ contributions into a single fund managed by a charitable organization. Each donor has a separate account and receives a pro-rated share of income.

Pooled Income Funds offer reliable income while leveraging pooled assets for potentially higher investment returns, appealing to those seeking income generation and enhanced performance.

Benefits

Retain an income stream from donated assets

Receive an immediate income tax deduction for a portion of your gift

Create a lasting legacy that supports our mission

How it Works

  1. Make a gift of cash or securities to the fund, which is managed by us.
  2. Receive an immediate income tax deduction for a portion of your gift based on your age and the fund’s expected investment return.
  3. The fund invests the assets and distributes income to you for life.
  4. When you pass away, the remaining account balance is distributed to our organization, as designated by you.

 

Income payments from a Pooled Income Fund can fluctuate over time based on the performance of the fund’s investments. Also, you will not have control over the investments or the timing of income distributions.

About Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) is a planned giving tool that allows donors to make a significant charitable impact while also providing financial benefits to themselves or their beneficiaries.

This type of trust is an irrevocable arrangement in which a donor transfers assets into a trust that is managed and invested by a trustee. The trust pays income to designated beneficiaries for a set number of years or for their lifetime, after which the remaining assets are distributed to charity.

Benefits

Reduce or eliminate capital gains taxes

Retain an income stream for yourself or beneficiaries

Create a lasting legacy that supports our mission

Types of Charitable Remainder Trusts

Charitable Remainder Annuity Trust (CRAT):
  • Fixed income stream based on a percentage of the initial asset value
  • Income stream does not change over time
Charitable Remainder Unitrust (CRUT):
  • Variable income stream based on a percentage of the trust’s value, revalued annually
  • If assets appreciate over time, the income stream will also increase

How it Works

  1. Transfer assets (such as cash, securities, or real estate) into a trust, which is managed by a trustee.
  2. The trust pays income to designated beneficiaries (such as you, your spouse, or other individuals) for a set number of years or for their lifetime.
  3. At the end of the trust term, the remaining assets are distributed to one or more charitable organizations.
  4. Receive an income tax deduction for the present value of the charitable remainder interest in the trust.
  5. You may also be able to avoid or reduce capital gains taxes on appreciated assets that are transferred into the trust.

About Charitable Lead Trusts

A Charitable Lead Trust is a type of trust that allows you to make a charitable gift while retaining some control over the assets during your lifetime.

This type of trust makes annual payments to a charity for a set number of years, after which the remaining assets are distributed to non-charitable beneficiaries that you choose (many people choose their family members).

Benefits

Receive an immediate income tax deduction for the value of your contributions

Provide for your family’s financial security

Retain some control over the assets donated

Create a lasting legacy that supports our mission

How it Works

  1. Create a trust and fund it with assets, such as cash, securities, or real estate.
  2. The trust makes annual payments to us for a set number of years, based on a predetermined formula or percentage of the trust assets.
  3. At the end of the charitable period, the remaining assets are distributed to non-charitable beneficiaries, chosen by you, such as your family members.
  4. Receive an immediate tax deduction for the present value of the charitable payments made by the trust.
Take the Next Step

FAQ

Yes! FreeWill will never share your personal information without your permission.

Yes. You are always free to revise or update your estate plans.

We’ve partnered with FreeWill to help you make a will or trust at no cost to you. You can use this to complete your plans, or you may choose to use the same tools to get your affairs in order before visiting an attorney (who is likely to have a fee associated with finalizing your plans).

Yes! Knowing in advance about your intentions is quite helpful to our staff, but you are always welcome to not share your gift.

Yes! Gifts of any size are deeply appreciated. Many people choose to leave a percentage of their estate, which scales up or down with your estate size.

Yes! Even if you have a will in place you still need to designate beneficiaries for your non-probate assets.

The most commonly gifted non-probate asset is an IRA or 401(k). This is because these accounts are always taxed (even for people below the estate tax threshold). Giving these accounts to charity keeps your heirs from having to pay unexpected taxes.

A non-probate asset is an account or other asset that won’t be governed by the decisions you make in a will. Instead, these accounts commonly have an assigned beneficiary that you choose. Types of non-probate assets include many retirement accounts, life insurance, some bank accounts and some assets (like a house or vehicle) that you jointly own with another person.

LET'S TALK

Questions about Gift Planning? Reach out to the Brightmoor Legacy Foundation today.

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