With a legacy donation you can make a much larger donation than you could afford to give during your lifetime with the satisfaction of knowing that the work of Food First will continue.
Planning now for the distribution of your assets has many benefits for you and your family:
- You feel good knowing you are supporting Food First’s mission to end the injustices that cause hunger
- You leave a living legacy for future generations, and
- You and/or your heirs receive tax benefits
Here are some legacy giving options:
- Naming Food First in Your Will. Simply say “I give to the Institute for Food and Development Policy located in Oakland, California the following…” Click here for suggested wording for your will.
- Giving Appreciated Assets. Stocks and bonds, real estate (including your home, vacation home, farm or commercial real estate) plus valuables such as art and jewelry. The fair market value of these assets is deductible from income tax with certain limitations depending on your situation. And donating assets has the added benefit of avoiding capital gains tax.
- Giving Life Insurance. You can make Food First the beneficiary of an existing policy that you no longer need or purchase a new policy that names Food First/Institute for Food and Development Policy as the owner and/or beneficiary.
- Pooled Income Fund. Your contributed assets are pooled into an investment trust that operates akin to a small mutual fund. Investment income from the Pooled Income Fund is distributed to donors in proportion to the amount of your original donation. Your age at the time of your donation determines the income tax deduction you can take in the year that you donate. First the donation provides proportional interest payments to you during your lifetime. Then your original donation passes to Food First at the time of your death, creating a living legacy.
- Charitable Remainder Trust. Creating a charitable remainder trust allows you to sell appreciated assets without any capital gains tax. You can continue as trustee, add assets to the trust, and invest for tax-free income from these assets. This trust provides a current income tax deduction and finally reduces your estate taxes. One big advantage of creating a trust is the opportunity to both leave money to your heirs and make a substantial contribution to charity. You can also choose to replace the assets given to charity by purchasing a life insurance policy that is equal to the value of the donated assets to benefit your heirs. This insurance can be held in the trust so that it passes to your heirs free from estate tax. It is even possible to use income from the charitable trust or the income tax savings to pay for this insurance. Consult your attorney for assistance in setting up a charitable remainder trust.
- Donating Part of Your IRA or Qualified Retirement Plan. Because no tax is paid on this money at the time it is earned, the combined income and estate tax may total more than 75 percent at the time of death. A tax attorney can assist you in substantially reducing these taxes by setting up a trust. Click here for more information about 2012 and 2013 IRA provisions.
For more information contact Director of Development Alyshia Silva at (510) 654-4400, ext. 221 or email@example.com.