Deciding What to Give

Bequest

Gift you make by including FINCA in your will.

Benefits to you:

  • Defer gift until after your lifetime.
  • Exempt from estate taxes.

How it works: Gift of any amount through a will, trust, life insurance policy or IRA.

Charitable IRA Rollover

A gift of retirement account assets.

Benefits to you:

  • Charitable Rollover permits taxpayers at the age of 70½ and older to make tax-free charitable gifts totaling up to $100,000 per year from traditional Individual Retirement Accounts (IRA).

How it works: Taxpayers at the age of 70½ and older are required to make annual distributions from their retirement accounts. The distributions are included in the taxpayers’ adjusted gross income (AGI), and taxpayers pay taxes on them. The Charitable IRA Rollover permits taxpayers to make donations directly to charitable organizations from their IRAs without counting them as part of their AGI and, consequently, without paying taxes on them.

Charitable Remainder Trust

Trust that provides income for life to donor or designee, with the remainder to FINCA.

Benefits to you:

  • Converts a highly appreciated asset into lifetime income.
  • Immediate income tax deduction.
  • No capital gains tax liability.
  • Possible estate tax savings.

How it works: You transfer an appreciated asset into an irrevocable trust. The trustee then sells the asset at full market value, paying no capital gains tax, and re-invests the proceeds in income-producing assets. For the rest of your life, the trust pays you or your beneficiary an income. At the end of the trust term, the remaining trust assets go to FINCA.

Retained Life Estate

A gift of primary residence, vacation home or other property.

Benefits to you:

  • You can continue to live in or use property.
  • Income tax charitable deduction in year of gift.

How it works: You transfer the ownership of your real estate property that is the subject of the deed to FINCA while retaining possession of it during your lifetime.

Pooled Income Fund

A type of charitable trust where contributors’ resources are pooled for investing purposes.

Benefits to you:

  • Income, gift, and estate tax deductions.
  • Avoid recognition of capital gain on the transfer of appreciated property to the fund.

How it works: The pooled income fund receives contributions from individual donors that are commingled for investment purposes within the fund. The fund invests the contributions to provide dividends for the fund contributors or their designated beneficiaries. Contributors receive income distributions during their lifetimes. The amount of income to receive varies and depends on the performance of the investments held by the trust. At the end of the term, the fund distributes the remaining assets to FINCA.

Donor Advised Fund

A donor-advised fund is like a charitable investment account sponsored by a charity.

Benefits to you:

  • Immediate tax deduction.
  • Your donation can grow tax-free and be granted to FINCA and other charitable organizations at any time.
  • No capital gains taxes on long-term appreciated securities.
  • All contributions are in one place (no sorting receipts).

How it works: It works like a personal fund dedicated to your charitable giving. Instead of writing multiple checks to individual charities, you contribute everything into one simple Giving Fund. Decide now or later which charities you want to recommend that your Giving Fund support. While you decide, your contributions are invested with the potential to
grow tax-free and make a bigger impact.