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Planned Giving Options

There are many planned giving options to aid your clients in remembering the communities and causes that are important to them. Some options offer ways to remember worthy causes while offering a range of benefits such as providing for loved ones, creating current income, or possibly reducing taxes. Any may be used to create or add to a fund at the Community Foundation.The chart below offers a summary of planned giving options (also available for download in our Planned Giving Options brochure).

We are eager to answer your questions or set up a meeting to discuss a gift.
Please email the Philanthropic Engagement Department or call 585.271.4100..

Giving Options that Benefit Specific Charities

TYPE of Gift DESCRIPTION BENEFITS to DONORS MINIMUM
Bequest A gift made through a will. Simple to establish and typically requires an attorney to create. Sample language is at www.racf.org/bequest. Any amount1
Charitable Lead Trust Annuity (CLAT) fixed amount or Unitrust (CLUT) fixed percent A trust that pays annual income to the Foundation and leaves the heirs a “remainder” after death. Provides a partial tax deduction as well as current income to a charity. Remainder passes to named beneficiaries after the donor’s death. Established with trustee of choice.2 $100,000
Insurance A gift of a new or existing insurance policy (subject to the Community Foundation's life insurance acceptance policy). The Foundation becomes the owner and beneficiary. May provide an immediate tax deduction if there is cash value. Allows a larger gift with smaller cost. Any amount1
Individual Retirement Account3 A gift of IRA proceeds after death. May provide a charitable deduction for the estate. Any amount1
Life Estate A gift of a house or farm to the Foundation that allows donors to continue living there for the rest of their lives. May provide an immediate partial tax deduction and removes a high-value asset from the estate. $200,0004

Giving Options that Create Current Income and Benefit Charities, Interests, or Community

TYPE of Gift DESCRIPTION BENEFITS to DONORS MINIMUM
Charitable Gift Annuity An annuity contract that pays one or two people (who must be 55 or older) a fixed annual income for the rest of their lives. After death, the remainder value is a charitable gift to the Foundation. Provides current income and a possible partial tax deduction. Payments are made quarterly and are a fixed percentage based on the donor’s age when established. Income is partially tax free. $10,0001
Pooled Income Fund A pool of funds that donors may invest in. Each donor receives a variable annual income based on their relative share of the pool. After death, the remainder value creates a charitable gift to the Foundation. Provides current income and a possible partial tax deduction. Payments are made quarterly and are a varying percentage based on the market performance of the pool’s investments. Income is taxable. $10,0001
(may be added to later in increments of $1,000 or more)
Charitable Remainder Trust Annuity (CRAT) fixed amount or Unitrust (CRUT) fixed percent A trust that pays annual income to the donor and leaves a charitable “remainder” to the Foundation after death. May provide a partial tax deduction. Removes an asset from the estate, and provides current income. Established with trustee of choice.2 Income is tax-advantaged. $100,0001

All invested funds may gain or lose value.

  1. A minimum of $25,000 is required to create a separate, named fund.
  2. The Community Foundation cannot act as trustee, but can be the recipient of a trust.
  3. Donors 70½ or older may also direct up to $100,000 from their IRAs to the Foundation each year. Satisfies minimum withdrawal requirements.
  4. Real estate must have a minimum value of $50,000, and the gift must be reviewed and approved by our board of directors.

If your clients leave a bequest to the Community Foundation, we suggest they keep the language in their will as general as possible and indicate that additional details as to the charitable purpose in a letter of understanding on file with Rochester Area Community Foundation. That way, your clients can update the letter of understanding at any time and not have to incur the expense of rewriting their will.

Here are three samples of bequest language. Your clients may choose the one that best fits their charitable intentions:

Bequest for General Endowment

“I give and bequeath (describe gift — amount, asset or percentage) to Rochester Area Community Foundation, Rochester, New York, to the General Endowment Fund. I direct that the income from this fund be used for community benefit at the discretion of the board of Rochester Area Community Foundation."

Bequest to Create a New Fund ($25,000 minimum)

“I give and bequeath (describe gift — dollar amount, percentage, or item) to Rochester Area Community Foundation, Rochester, New York, to establish a permanent endowment fund known as the ______________ Fund. I direct that the income from this fund be used for (specify charitable purpose or indicate 'for community benefit at the discretion of Rochester Area Community Foundation')."

Bequest to an Existing Fund

“I give and bequeath (describe gift — dollar amount, percentage, or item) to Rochester Area Community Foundation, Rochester, New York, to add to a permanent endowment fund known as the ______________ Fund. I direct that the income from this fund be used for charitable purposes as defined in the fund agreement."

PHONE 585.271.4100 | FAX 585.271.4292 | racf@racf.org
500 East Avenue, Rochester, NY 14607

PHONE 585.271.4100 | FAX 585.271.4292 | info@racf.org
500 East Avenue, Rochester, NY 14607

NEWS SIGNUP

An initiative of the Community Foundation, ACT Rochester uses data to assess our region on key indicators of well-being.