Reduce the impact of capital gain taxes and benefit from your charitable contribution. Transferring appreciated stock or mutual funds is a tax-wise way to fund your gift to Downtown Streets Team.
One of your goals may be to leave assets to a charity or non-profit organization. This form of donation is known as an endowment, legacy gift, or planned giving.
Setting up an endowment in your Last Will is a good way for you to leave a personal legacy and support a cause that has meaning to you. An endowment is a fund that is restricted. Only the interest from the fund can be spent, not the principal that anchors the endowment.
Some may think endowments are just for large nonprofits such as universities and hospitals, but nonprofits of any size can start an endowment fund. With an endowment, facing the ups and downs of the economy and fundraising could become a lot easier for us.
Usually, only a portion of the interest or earnings from the endowment (typically five percent) can be spent annually to make sure that the original funds grow over time. Professional money managers often oversee endowment funds, investing the money in stocks, bonds, and other investments.
There are many options for planned giving, so it’s useful to know what assets you can leave to charity and what type of donation will suit your financial position.
What are the benefits of making a bequest?
- You leave a lasting legacy to be remembered
- You lessen the burden of taxes on your family
- You may receive estate tax savings
What are my options?
A bequest can be made in several ways:
- You can gift a specific dollar amount or asset
- You can gift a percentage of your estate
- You can gift from the balance or residue of your estate
- You can make a beneficiary designation of certain assets
More questions about wills?
NOLO - Wills: The Basics
Video on "Why It's Important To Write An Estate Plan"
For more information on how to give an endowment, or leave a legacy gift, please contact Logan@streetsteam.org