A permanent fund can be established through a will or a trust agreement. Such charitable gifts are deductible for estate tax purposes. Options include:
- Residuary Bequest
In their will, your client leaves the remainder of his/her estate after payment of all debts, taxes, expenses, and other bequests
- Percentage Bequest
The Foundation receives a percentage of the residuary estate
- Pecuniary Bequest
Your client designates a specific dollar amount or item of property
- Contingent Bequest
Your client makes a bequest to the Foundation upon a certain condition, such as when a named beneficiary does not survive him/her
Bequests to create named funds must be at least $10,000. Read sample trust or bequest language.
To see sample language:
For Trust or Will to Establish an Unrestricted Fund For Trust or Will to Establish a Field of Interest or Designated Fund For Trust or Will to Establish a Donor Advised Fund
Your client can name The Rhode Island Foundation as the designated beneficiary of a retirement plan [IRA, 401(k), 403 (b), etc.] to add to or establish a fund. This is an extremely tax effective way to make a charitable gift, as the gift is not subject to either estate or income taxes as it would be if left to your client's heirs. Read more about
gifts of retirement plan assets.
Your client can make a gift of life insurance to the Foundation in two primary ways: by irrevocably designating the Foundation as the owner and beneficiary of a policy or by naming the Foundation as a beneficiary of a policy.
Each of these methods involves both financial and tax considerations.
Your client can deed real estate - whether personal residence, vacation property, etc. - to the Foundation and continue to live in the property for the rest of his/her life. Deeding real estate during your client's lifetime involves both financial and tax considerations.