- What assets can I use to make a gift to the REF?
Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).- Through your will or with a distribution from a retirement plan or life insurance policy, your gift can be designated to the REF in accordance with your wishes.
- What sort of gift plans also return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity, or charitable remainder unitrust or annuity trust. - What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:- Outright gifts to the REF generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains—a great tax benefit!
- Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission. We can you on this point.
- Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
- Similarly, life insurance distributions to the REF are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 4 below).
- The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
- I want to set up a life insurance policy, name the REF as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift"—they'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible. - I’ve heard that transferring gifts of IRA assets to charity are advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75 percent or even higher on large taxable estates. The tax will be paid at some point—by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support the REF! - I'd like to donate a painting. Will you determine its value for my income tax deduction?
The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too—an insurance appraisal won't suffice. We can you on this point. - I'm interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse?
Your charitable gift annuity will be treated as a general obligation of the REF, backed by all of our assets. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our financial policies. - If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts and we greatly appreciate and encourage any annual support you may want to consider. - What annuity rate would I receive?
That depends on the age(s) of the income beneficiary(ies) and the type of gift created. The rate will be calculated on key variables that you supply—your age, the age of any other beneficiary(ies), and the type of gift you want to create. - How do your gift annuity rates compare with those of other charities?
Our rates are generally competitive with those of other charities. - What is the difference between a "tax deduction" and "tax-free income" as they relate to my taxable income?
A tax deduction reduces your taxable income and, therefore, your total tax liability. Tax-free income, such as a portion of charitable gift annuity payments or the income from tax-exempt bonds, is not included in taxable income. - How do you calculate the tax deduction? For example, if I give the REF something worth $10,000, why don't I get a deduction for $10,000?
The IRS sets out a series of actuarial factors and calculations that we follow to determine your income tax charitable deduction. Where an individual has retained the right to receive income from a charitable gift, the amount of the deduction is reduced by the actuarial value of that income stream. - How can I benefit my children and grandchildren?
Children and grandchildren may sometimes be included as beneficiaries of a life-income gift or a charitable lead trust, although doing so may result in gift-tax consequences. They may also be named as beneficiaries of the insurance policies as part of a wealth-replacement strategy. - Why is a charitable planned gift better than other investments?
Each gift plan must be individually evaluated to determine its appropriateness for your circumstances, goals and objectives, but if caring for our community is among them, you may indeed benefit by creating a planned gift to the ACR Research and Education Foundation. - What is the Federal tax identification number for the ACR Research and Education Foundation?
The federal tax identification number is 58-1654301.
To speak to a planned giving specialist, please contact Paula Reed at (404) 633-3777 or .
