By making a planned gift to The Fund for American Studies, you can help future generations of students learn the values of freedom, democracy and free-market economies, thereby ensuring informed and principled leadership in the years to come.
There are many different types of planned gifts, including charitable gift annuities, beneficiary designations, and bequests. These gifts can provide significant tax and/or income benefits to you and your family while ensuring the future success of The Fund for American Studies.
Please call Ed Turner at 202-986-0384, or email him at eturner@TFAS.org if you have decided to make an estate or other planned gift to TFAS, or if you would like more information on any of the planned giving methods listed below.
A charitable gift annuity is a combination of a gift and an investment. In exchange for a contribution of $5,000 or more (either in the form of cash or publicly traded securities), up to two beneficiaries can receive an immediate or deferred lifetime income stream (a portion of which is tax-free) along with current tax savings.
You you may wish to name The Fund for American Studies as the beneficiary of your retirement account or life insurance policy.
- Retirement Accounts
Unlike gifts of cash or property, a gift of retirement assets (IRA, 401(k), SEP, or 403(b)) to family members is subject to double taxation in the form of estate tax to the donor and income tax to the family members.
As a result, these assets are particularly good candidates for testamentary (at death) charitable giving. If you name The Fund for American Studies as the beneficiary of this account, your estate will receive an estate tax deduction upon your passing for the value of the retirement assets donated to The Fund for American Studies, and your family will avoid income taxation on the lump-sum distribution of these assets to them.
- Life Insurance
A gift of life insurance typically involves naming The Fund for American Studies as the irrevocable owner and beneficiary of an insurance policy. Your charitable tax deduction in the year of transfer would equal the value of the policy. For each year that the policy is not fully paid up, you will be entitled to a charitable contribution deduction. Naming The Fund for American Studies as the revocable primary, alternate, or co-beneficiary of a policy (not the owner) will not provide a tax deduction.
To ensure that the proceeds of your life insurance policy are available to support your surviving spouse before going to The Fund for American Studies, a variety of tax-saving trust arrangements may be considered.
Tax Free IRA Rollover
Congress has re-authorized legislation that allows donors to make charitable gifts from their IRA accounts during the 2013 tax year. This provision was included in the recent "fiscal cliff" legislation. It allows both traditional and Roth IRA owners, age 70 1/2 and older, to make tax-free transfers up to $100,000 directly from their IRAs to qualified charitable organizations such as TFAS.
While you would not receive an income tax deduction for this gift, the distribution would be excluded from your taxable income, creating a "wash" for tax purposes. A transfer to The Fund for American Studies would also fulfill some or all of any required minimum distribution without increasing your taxable income.
Qualified distributions of up to $100,000 must be made before Dec. 31, 2013 to count for the 2013 tax year.
Including The Fund for American Studies in your will or estate plans is the ultimate gift. This revocable gift can provide important estate tax savings to you and your family upon your passing. There are several different types of bequests:
- General Bequest is a gift that is payable from the general assets of your estate. The usual general bequest directs that a certain sum of money be paid to The Fund for American Studies.
- Specific Bequest gives a particular item of real or personal property to The Fund for American Studies.
- Residuary Bequest provides The Fund for American Studies with the remainder of your estate after all of your debts, expenses and taxes have been paid, and all general and specific bequests satisfied.
- Contingent Bequest makes The Fund for American Studies a beneficiary of your estate only when designated beneficiaries fail to survive you.
- Bequest by Codicil If you already have a will and you wish to make a bequest to The Fund for American Studies without rewriting the entire document, a codicil can be prepared by your attorney to accomplish this goal.
How to Name TFAS in Your Will or Estate Plan
Please share the following suggested language with your attorney:
"I give, devise and bequeath to The Fund for American Studies, tax identification number 13-6223604, 1706 New Hampshire Avenue NW, Washington, D.C. 20009 [insert amount percentage, amount, nature of gift, or remainder of estate] to be used at the discretion of the Board of Trustees (or for the donor-designated purposes)."
Many TFAS supporters have already joined the Legacy Society by making an estate or other planned gift! Visit our TFAS Legacy Society page to read their stories.