Legacy Giving Options

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Click on the bars below for more information about each giving option.

Charitable Bequests

You can create a permanent legacy by leaving a bequest of a specific ‎amount, a ‎percentage of ‎your estate, or the remainder of your estate. ‎There’s no limit on the amount you ‎may set aside ‎from your estate, and you can make a gift as large or small as you’d like. ‎

You may choose to make a gift of cash, securities, or other property; and your ‎estate will receive ‎a ‎tax deduction in the amount of your charitable bequest. ‎A charitable bequest allows you to ‎retain ‎use and control over your as assets ‎during your lifetime.‎

A bequest is a legacy gift, distributed from the donor’s estate after the end of his ‎or her life. If not ‎‎designated, it can be spent in the year that it matures. An ‎endowment is a fund that is held in ‎‎perpetuity, distributing specified ‎percentage annually to the designated purpose.‎
Outright Gifts of Appreciated Assets or Cash

When you create a legacy with a current gift of cash or other property, your ‎fund may be used to ‎‎pay an annual gift to the charity of your choice. If you ‎donate appreciated securities held for more ‎‎than one year, you can avoid capital ‎gains taxes and receipt a tax receipt for the full value of your ‎‎gift in the current ‎year.‎
IRA or Pension Plan

If you have accumulated a substantial amount in your retirement account and ‎yon are in the ‎‎highest brackets for paying income and estate taxes, those taxes ‎can exceed 70% of the amount ‎‎in the plan. These are not ideal assets to ‎bequeath to TBA. Naming one or more charities as ‎the after-death beneficiaries of your IRA pension fund (by designating specific portion of your fund as a restricted (program-specific) or unrestricted.
Retirement Plan/IRA

One of the costliest assets to leave to your family can be an Individual Retirement Account (IRA) or qualified retirement plan (such as a 401(k) or 403(b) plan). Your estate will have to pay income taxes (called IRD, or income in respect of a decedent, in an estate) on retirement plan assets that you leave to family members. If you are subject to estate tax, the combination of estate taxes and income taxes payable at your death can deplete the value of the account by as much as 65%. Leaving retirement plan assets to Temple Beth Ami and cash or other non-IRD assets to family members can save your estate large tax bills, making your family legacy and your charitable legacy larger.

Through your estate plan you can designate TBA as a full, partial, or contingent beneficiary of a retirement account. Your estate may get an estate tax charitable deduction for the gift to TBA. More importantly, the IRD tax that your family would have paid on retirement account funds is eliminated completely. Check with your advisors about any potential impact your beneficiary designations may have on your required minimum distributions.
Remainder Trusts

A Charitable Remainder Annuity Trust (CRAT) avoids market and interest rate fluctuations and ensures that you or someone you designate receives a fixed income payment for life or a term of years.

A Charitable Remainder Unitrust (CRUT) provides income based on a percent of the trust’s annual value. If trust assets grow, the increasing value of the trust portfolio will result in larger annual payments.

You may give cash, appreciated securities or real estate to set up the trust, either during your lifetime or through your estate plan. Donors often use appreciated property for the greatest tax benefits. Your current income tax deduction is based on the expected value that the charity will receive when the trust terminates. Donors selling a closely held business sometimes create a charitable remainder trust (CRAT or CRUT) to minimize taxes while achieving philanthropic goals.

TBA receives the balance in the trust at the end of the trust term. If you decide to use appreciated assets to fund a CRAT or CRUT, no capital gains taxes are due when the securities are contributed. Instead, a portion of your annual trust income will be subject to capital gains tax. Note: in periods of investment loss, the value of the trust may be reduced and the payments to the beneficiary may be lower.
Charitable Gift Annuity

A Charitable Gift Annuity (CGA) serves as a charitable alternative offering both financial and philanthropic benefits. You are guaranteed to receive a specific payment, a portion of which may be free of income tax. Additionally, you may receive a current charitable income tax deduction or a reduction in your taxable estate.

If you choose to use appreciated assets to fund a gift annuity, no capital gains taxes are due when the securities are contributed. Instead, a portion of your income from the annuity will be subject to capital gains tax, which will be paid over your life expectancy. And, when the annuity concludes, the balance of your gift can create a permanent fund with enduring benefits to Temple Beth Ami. You can establish a CGA with a contribution of $10,000 or more. A gift can be in cash, securities, and certain other property subject to approval.
Designated Fund

You can create a permanent fund in your name or in the name of someone you wish to honor or remember. The fund will be invested in a professionally managed portfolio.

Each year, distributions from the fund will support the general area of interest (like education, youth leadership, democracy, or senior care) or designated Jewish charity you choose. You may establish a fund either during your lifetime or through your estate plan with a gift of at least $25,000.

You may use the fund to honor or remember a loved one, and the fund will perpetuate that name forever. If you give during your lifetime, you may receive a charitable income tax deduction; if you make the gift through your will or estate plan, your estate may receive a deduction. Perhaps most important, however, is the enduring nature of a gift of the fund.

The permanent legacy you create will provide a vital source of support to help meet the current and future critical needs of the organizations or issues you care about.