Giving with TFEC

The simplest planned gift is a bequest that directs specific amounts or assets, or a percentage of your estate, to create a fund or add to an existing fund. A simple designation in your will is all that is needed. Click here for sample language that your attorney can incorporate into your estate plan.

With this type of trust, you transfer assets that pay you or other beneficiaries an income for life or for a fixed term. When the trust matures, the remainder is used to establish a permanent fund in your name, with charitable distributions directed as you have chosen.

With this type of trust, you create an endowment fund at TFEC to receive the trust income for a fixed term. When the trust expires, the income or assets may be distributed to other named non-charitable beneficiaries, and your fund will remain at TFEC and continue to benefit the community as you have directed.

Many donors make a gift by assigning a life insurance policy to TFEC. Simply secure or transfer a policy and name TFEC as owner and beneficiary. Any ongoing premiums that you make may be tax deductible. When the policy matures, a permanent named fund is established to support your charitable causes.

Large Individual Retirement Plan Asset (IRA) accounts at death may pay up to 70% in income and estate taxes. A good way to reduce taxes is to include charity as an IRA designated beneficiary. This can be done through an outright gift or by using a Charitable Remainder Trust that makes payments to your family members. Through TFEC, you can distribute your IRA after death in a tax-wise way and create a fund to benefit the community.

• Individuals make a qualified charitable distribution of up to $100,000 by transferring either Roth or traditional IRA assets to TFEC.
• Individuals must be 70 ½ years old. If married, each spouse can transfer up to $100,000 from his or her IRA annually.
• Individuals may also use other retirement assets, such as 401k’s, 403bs, etc., but must first roll those assets into an IRA to be able to participate in the benefits of an IRA charitable rollover without tax implications.
• The distribution is not included in the income of the donor for federal income tax purposes, preserving the full amount of the donor’s charitable deductions for other charitable gifts. IRA charitable rollovers count against minimum required distributions from an IRA, allowing retirement funds to last longer.
• This provision makes it possible for donors to establish funds now during their lifetime, rather than through their estate plan, allowing them to see the positive effect on the community now. The gift can be placed into a charitable fund in the individual’s name, the name of their family, or in honor or memory of someone. It can be endowed and will grow over time, into perpetuity—supporting the nonprofit organizations and causes you care about.
• Individuals can choose the type of new or established fund at TFEC to which to make a distribution:
  • Unrestricted: Addresses a broad range of current and future community needs locally.
  • Area of Interest: Targets your gift to areas that you are interested in (e.g. performing arts, early education)
  • Restricted: Supports the work of specific IRC section 501©(3) nonprofit organizations that the individual chooses
  • Scholarship: Supports higher education for students based on the criteria an individual chooses

• Anyone who is already making charitable contributions at the deduction limit, but wants to do more
• Anyone whose income level causes them to phase out of their exemptions or itemized deductions (limitations re-instated January 2013)
• Anyone who does not itemize
• Anyone whose additional income from their required IRA withdrawals will cause more of their Social Security income to be taxed
• Anyone who wants to remove up to $100,000 from their taxable estate
• Anyone who would like to avoid the possibility that the government will impose taxes of up to 60% on IRA funds not distributed during their lifetime