Intro Image - Planned Giving

Planned Giving

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
TYPE OF GIFT
Bequest
DESCRIPTION
A gift made through a will.
BENEFITS TO DONORS
Simple to establish and typically requires an attorney to create. Sample language is at www.racf.org/bequest.
MINIMUM
Any amount1
TYPE OF GIFT
Charitable Lead Trust Annuity (CLAT) fixed amount or Unitrust (CLUT) fixed percent
DESCRIPTION
A trust that pays annual income to the Foundation and leaves the heirs a “remainder” after death.
BENEFITS TO DONORS
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
MINIMUM
$100,000
TYPE OF GIFT
Insurance
DESCRIPTION
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.
BENEFITS TO DONORS
May provide an immediate tax deduction if there is cash value. Allows a larger gift with smaller cost.
MINIMUM
Any amount1
TYPE OF GIFT
Individual Retirement Account3
DESCRIPTION
A gift of IRA proceeds after death.
BENEFITS TO DONORS
May provide a charitable deduction for the estate.
MINIMUM
Any amount1
TYPE OF GIFT
Life Estate
DESCRIPTION
A gift of a house or farm to the Foundation that allows donors to continue living there for the rest of their lives.
BENEFITS TO DONORS
May provide an immediate partial tax deduction and removes a high-value asset from the estate.
MINIMUM
$200,0004

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

TYPE OF GIFT
DESCRIPTION
BENEFITS TO DONORS
MINIMUM
TYPE OF GIFT
Charitable Gift Annuity
DESCRIPTION
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.
BENEFITS TO DONORS
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.
MINIMUM
$10,0001
TYPE OF GIFT
Pooled Income Fund
DESCRIPTION
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.
BENEFITS TO DONORS
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.
MINIMUM
$10,0001
(may be added to later in increments of $1,000 or more)
TYPE OF GIFT
Charitable Remainder Trust Annuity (CRAT) fixed amount or Unitrust (CRUT) fixed percent
DESCRIPTION
A trust that pays annual income to the donor and leaves a charitable “remainder” to the Foundation after death.
BENEFITS TO DONORS
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.
MINIMUM
$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.

When leaving a bequest to the Community Foundation, we suggest that donors keep the language in their wills 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, donors can update the letter of understanding at any time without having to incur the expense of rewriting their will.

Here are three samples of bequest language. Choose the one that best fits your 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.”