There are many ways to donate money to The Tamworth Foundation using financial-planning instruments.
The only thing you take with you when you’re gone is what you leave behind. ~ John Allston
Donor-Advised Fund If you have established a donor-advised fund at a mutual fund company, you can direct a gift to the Tamworth Foundation. For more information on the many benefits of donor advised funds see: Fidelity Charitable Gift Fund, Schwab Fund for Charitable Giving, T. Rowe Price Program for Charitable Giving, and Vanguard Charitable Endowment Program.
Securities Gifts of appreciated securities offer important tax advantages. You do not have to pay federal or state capital gains taxes on the appreciated portion of the gift. The full fair market value can be deducted as a charitable contribution up to 30% of your adjusted gross income each year when you itemize deductions. Deduction amounts that exceed the limit can be carried forward for up to five additional years. By donating appreciated stock to the Tamworth Foundation, you can avoid capital gains taxes that would otherwise occur at the sale of the stock.
Publicly traded stocks owned for more than one year may be donated as a charitable gift. After the Foundation liquidates the securities, the value of the gift is used to support your charitable goals. If you wish to make a donation of securities, please contact us for security transfer instructions. We will work with your broker to complete the transaction. We can also provide a sample letter to your financial adviser which you could use to initiate the gift.
Planned Giving Planned giving refers to gifts that are made in the present and received in the future. They provide methods of supporting non-profits and charities that enable philanthropic individuals or donors to make larger gifts than they could make from their income. While some planned gifts provide a life-long income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate. Every situation is unique. The Tamworth Foundation would be pleased to work with you and your advisors to devise a strategy that meets your philanthropic needs.
Bequests A bequest is the most common form of planned giving. By including a charitable contribution in your will, you are able to make a gift that is simple, and in many cases larger than you could make during your lifetime. A bequest can take the form of a specific item (such as a home) or a specific amount of money, or a percentage of your estate, or may serve as a “residual bequest,” where the remainder of your assets become a gift after all other specific bequests have been paid out. Gifts made to charity by bequest are deducted from the donor’s federal estate tax. You can make an unrestricted gift, add to one of the existing endowments, or create a new endowment fund to be administered by the Tamworth Foundation.
Individual Retirement Accounts & Other Retirement Plans You can use assets held in an individual retirement account (IRA), 401(k), 403(b) or similar account to make a donation to The Tamworth Foundation at the time of your death. Retirement accounts, while very attractive from a tax standpoint during lifetime, are the most heavily taxed assets in an estate at death. To make a gift using retirement assets, you need to fill out a form with your retirement plan administrator designating the Tamworth Foundation as the new beneficiary. There is no cost, and the beneficiary can be changed at any time.
Life Insurance When your need for life insurance has decreased, making a gift of an unneeded policy can be a convenient and effective way of meeting your charitable goals. When you transfer ownership of a cash value policy to The Tamworth Foundation, you become eligible for a charitable tax deduction based on its current value. A gift of life insurance can also be a part of your estate planning.
Charitable Remainder Trusts A charitable remainder trust can accept a variety of assets, such as appreciated securities, real estate or hard-to-value assets. The trust will provide you and/or other beneficiaries with income for your lifetime or for a period of time not to exceed 20 years. After your death, the trust goes to the Foundation as a charitable gift for the purpose you have previously established.
Charitable Lead Trust When you create a Charitable Lead Trust, the CLT makes regular income-tax-deductible gifts to the community foundation as the income beneficiary. When the trust terminates, the entire principal is returned to you or to your family.
Charitable Gift Annuities A charitable gift annuity is a contract between you and the Tamworth Foundation. Your gift provides you or a loved one with a fixed annual income for life. After your death, the assets pass to the Foundation for the charitable purpose you have predetermined.
Summary As you can see, there are a variety of ways to give to The Tamworth Foundation. Please contact Gail Marrone, President, if you would like assistance in determining which approach best matches your needs and interests.