Make a Lasting Legacy in Fergus Falls

Your generous support of the 544 Foundation will help ensure the success of future Fergus Falls students of all ages.

You may wish to acknowledge a lost loved one through a memorial gift, create a charitable remainder annuity, or give cash towards a specific purpose. Whatever your goal is, your financial planner can work with you to make a lasting legacy in the Fergus Falls community.

Your membership donations helps keep us in business, paying for the every day expenses, and helps us make donations to worthy causes.

Here is an easy grid and some ideas:

 

If your goal is to:

Then you can:

And your benefits are:

Give a quick and easy gift

Make a cash donation (Check to see if your place of employment offers a matching gift program)

An income tax deduction and immediate impact for the school district

Avoid tax on capital gains

Contribute long-term appreciated stock or other securities

A charitable deduction plus no capital gains tax

Defer a gift until after your lifetime

Put a bequest in your will (cash or specific property)

Your donations are fully exempt from estate tax

Make a large gift with little cost to yourself

Contribute a life insurance policy

Current and possibly future income tax deduction

Avoid the double taxation on IRA or other retirement plan assets

Name the Foundation as the beneficiary of the remainder of your retirement plan assets after your lifetime

This will allow you to leave your family other assets that carry less tax liability

Avoid the capital gains tax on the sale of a home or other real estate

Donate the property or sell it to the Foundation at a bargain price

An income tax deduction, plus reduction or elimination of capital gains tax

Protect yourself from inflation over the long term

Create a charitable remainder unitrust

It pays you a variable income for life and provides tax benefits

Secure a life income while avoiding market risks

Create a charitable remainder annuity trust

It provides tax benefits and often boosts your rate of return

Secure a lifetime income for yourself and spouse

Create a charitable gift annuity 

Possible income tax savings, estate tax savings

Reduce gift and estate taxes on assets you pass to your children and grandchildren

Create a charitable lead trust that pays income to the Foundation for a specific term of years

It has the estate tax benefits of a gift, but your family keeps the property

 

Cash
Cash is the easiest and most common way to make a gift. You receive a charitable contribution deduction and the Foundation is able to use your gift immediately. These gifts can also be restricted to a particular area by the donor. Unrestricted gifts are used in the areas of greatest need and to sustain the Foundation's work. Make any checks or money orders payable to the 544 Foundation.

Matching Gifts
If your place of employment offers a matching gift program, you may be able to double your donation to the Foundation. Many companies also match gifts of their retired employees.

Appreciated Securities
Gifts of stocks, bonds, treasuries and mutual funds, provide a double benefit to you. When you donate appreciated securities, you are entitled to a charitable income tax deduction based on the fair market value of the securities and without capital gains considerations.

Will
A gift to the 544 Foundation through your will is a popular option, as it does not reduce your current income, yet provides substantial future support. There are no immediate tax advantages although your bequest may reduce estate taxes.

Life Insurance
If you give ownership of a life insurance policy to the Foundation, you will receive an immediate income tax deduction. If you are still making premium payments, these payments to the Foundation become a charitable gift. And, if you choose to name the Foundation as a beneficiary, the face value of the policy will eventually constitute a gift in your name, included in your estate, and is deductible for federal estate tax purposes.

Retirement Plan Assets
Retirement plan assets are one of the most taxed assets at death in larger estates, subject to both income tax and estate tax. While current tax law does not allow you to transfer these assets directly to the 544 Foundation during your lifetime, naming the Foundation as the beneficiary on your account could avoid both income and estate taxes after your lifetime.

Property
Real estate including homes, commercial buildings and land can be donated to the Foundation. Gifts of this nature are also helpful and provide substantial benefits for the donor as well. If the value of your property is more than you wish to give, you may donate a partial interest.  Property deeded with Life Estate retained is an arrangement in which you would donate your personal residence or ranch and continue to live there.

Charitable Remainder Trusts
This type of trust makes an annual payment to one or more individuals for life or a term of years. Upon termination of this charitable remainder trust, the property remaining will be transferred to the Foundation and used for the purpose you have specified. There are two types of charitable remainder trusts:
Unitrust -- Income fluctuates annually with the fixed percentage of the fair market value of the trust.
Annuity Trust -- Income payments are fixed and determined when the gift is made. This is attractive to individuals who want to avoid risk.

Charitable Gift Annuity
Charitable gift annuities are an easy and popular gift plan. It is an exchange of cash, securities, real estate or other property in return for a contractual agreement for the foundation to pay you and/or your spouse a specified amount of income for your lifetime(s), determined by a rate schedule based on your age.

Charitable Lead Trust
A charitable lead trust is an agreement in which a donor places assets in a trust that will be managed by a Trustee. During the term of the trust, a percentage of the trust's principal (specified by the agreement) is paid to the foundation each year. At the end of the term, your heirs will receive the trust's principal and any additional income and appreciation that has accrued, with no additional gift or estate taxes due. The trust's income first benefits the charity and then goes to the family members at substantial tax savings.