Typically called legacy or planned giving, a planned gift is a contribution that is arranged in the present and allocated at a future date. The Foundation is here to help create a plan that will fulfill your philanthropic goals, while reducing your income taxes, avoiding capital gains or estate taxes, and retaining lifetime income if desired, all while helping to guarantee future financial support for Arkansas Methodist ministries.
Bequest
An excellent way for you to support Methodist Foundation for Arkansas's mission is to leave a bequest in your will or living trust. It is reported that seven out of ten Americans do not have a written will. However, a bequest is one of the easiest ways to make a planned gift and benefit your favorite Methodist-related charity upon your death.
One significant benefit of making a gift by bequest is that it allows you to continue to use the property you will leave to charity during your life. Another benefit is that you are able to leave a lasting legacy.
Types of Bequests
There are a number of ways you can make a bequest to Methodist Foundation for Arkansas.
Specific Bequest
A specific bequest involves making a gift of a specific asset such as real estate, a car, other property or a gift for a specific dollar amount. For example, you may wish to leave your home or $10,000 to Methodist Foundation for Arkansas.
Percentage Bequest
Another kind of specific bequest involves leaving a specific percentage of your overall estate to charity. For example, you may wish to leave 10% of your estate to Methodist Foundation for Arkansas.
Residual Bequest
A residual bequest is made from the balance of an estate after the will or trust has given away each of the specific bequests. A common residual bequest involves leaving a percentage of the residue of the estate to charity. For example, you may wish to leave 30% of the residue of your estate to Methodist Foundation for Arkansas.
Contingent Bequest
A contingent bequest is made to charity only if the purpose of the primary bequest cannot be met. For example, you could leave specific property, such as a vacation home, to a relative, but the bequest language could provide that if the relative is not alive at the time of your death, the vacation home will go to Methodist Foundation for Arkansas.
Bequest Benefits
A bequest is generally a revocable gift, which means it can be changed or modified at any time. You can choose to designate that a bequest be used for a general or specific purpose so you have the peace of mind in knowing that your gift will be used as intended. Bequests are exempt from federal estate taxes. If you have a taxable estate, the estate tax charitable deduction may offset or eliminate estate taxes, resulting in a larger inheritance for your heirs.
Bequest Language
In order to make a bequest, you should speak with your attorney. Your attorney can help you include a bequest to Methodist Foundation for Arkansas in your estate plan. We have provided some basic bequest language to assist you and your attorney.
Specific Bequest
If you are considering making an outright bequest to Methodist Foundation for Arkansas, we recommend the following language:
- Bequest of a Specific Dollar Amount
I hereby give, devise and bequeath _____ and No/100 dollars ($DOLLARS) to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID #____, for Methodist Foundation for Arkansas's general use and purposes. - Bequest of Specific Personal Property
I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID #___, for Methodist Foundation for Arkansas's general use and purpose. - Bequest of Specific Real Estate
I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID #___, for Methodist Foundation for Arkansas's general use and purpose.
Percentage Bequest
If you are considering making a bequest of a percentage of your estate to Methodist Foundation for Arkansas, we recommend the following language:
I hereby give, devise and bequeath _ percent (%) of my total estate, determined as of the date of my death, to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID #__, for Methodist Foundation for Arkansas's general use and purpose.
Residual Bequest
I hereby give, devise and bequeath to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID # _____, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for Methodist Foundation for Arkansas's general use and purpose.
Contingent Bequest
If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to Methodist Foundation for Arkansas, a nonprofit organization located at 601 Wellington Village Road, Little Rock, AR, 72211, Federal Tax ID # _____, DESCRIPTION OF PROPERTY to be used for Methodist Foundation for Arkansas's general use and purpose.
Restricted Bequests
If you are considering a bequest but would like to ensure that your bequest will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give and meet your charitable objectives. We will also work with you and your attorney to craft language to accomplish your goals.
If you are making a restricted bequest, we recommend that your attorney include the following provision to give Methodist Foundation for Arkansas flexibility should it no longer be possible for our Methodist Foundation for Arkansas to use your gift as you originally intended:
If, in the judgment of the Board of Directors of Methodist Foundation for Arkansas, it shall become impossible for Methodist Foundation for Arkansas to use this bequest to accomplish the specific purposes of this bequest, Methodist Foundation for Arkansas may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my bequest.
If you have included a bequest for Methodist Foundation for Arkansas in your estate plan, please contact us to let us know. We would like to thank you and recognize you for your gift.
Gift Annuity
A Charitable Gift Annuity (CGA) is a contract between you and the Foundation. With a gift of cash or stock, MFA agrees to pay you guaranteed, fixed payments for the rest of your life. At your death, the Methodist organization you have named as the beneficiary receives the remaining funds in the annuity. Besides receiving fixed payments for life, a portion of each payment may be tax-free. The payout rates are based on your age, and you will receive a federal income tax deduction for a portion of your gift. A CGA can be for one-life or two.
Charitable Remainder Trust
A charitable remainder trust (CRT) is an irrevocable trust that generates income to trust beneficiaries for a specific time. Upon your death, the remainder in the account goes to the Methodist-related charity you named as beneficiary. There are two main types of charitable remainder trusts:
- Charitable remainder annuity trusts (CRATs) distribute a fixed annuity amount each year, and additional contributions are not allowed.
- Charitable remainder unitrusts (CRUTs) distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions can be made.
Contributions to CRATs and CRUTs are an irrevocable transfer of cash or property, and both are required to distribute a portion of income or principal, to either the donor or another beneficiary. At the end of the specified lifetime or term for the income interest, the remaining trust assets are distributed to one or more charitable remainder beneficiaries.
Donor-Advised Fund
A Donor-Advised Fund (DAF), is another popular giving tool. You create a DAF managed by MFA in which you make a charitable contribution as often as you like. You will receive an immediate tax deduction for your contribution, and recommend where and when grants from your DAF should be disbursed. DAF funds are spent down during the lifetime of the fund.
You have the authority to direct contributions of 100% of the fund balance. At least 51% must go to Methodist-related charities in the United States. Up to 49% of the annual earnings can be sent to any qualified 501(c)(3) charity in the United States. Donors retain advisory privileges with respect to the distribution of funds. The minimum to open a Donor-Advised Fund is $2,500.
Family Fund
A Family Fund allows individuals and/or family members to provide a source of perpetual support through a permanently endowed fund. You and your family members have the authority to direct earnings on behalf of the fund. Donors make a charitable contribution and receive an immediate income tax deduction. Additional gifts may be made to the fund at any time. All the earnings can be spent, but the corpus becomes part of the permanent endowment, allowing the fund to grow indefinitely.
You have the authority to direct contributions of 100% of the annual earnings. At least 51% must go to Methodist-related charities in the United States. Up to 49% of the annual earnings can be sent to any qualified 501(c)(3) charity in the United States. Donors retain advisory privileges with respect to the distribution of funds. The minimum amount to establish this type of fund is $50,000.
Contact Us
Please contact us if you have any questions about planned giving with the Methodist Foundation for Arkansas or to request any additional information that might be helpful to you and your attorney as you consider making a gift.
