FOR MORE INFORMATION, CONTACT
Director of Major Gifts
WVIA members Doug and Ursula share why they support WVIA.
Members of the WVIA Insider Society donate $1,000 or more annually to WVIA’s unrestricted operating fund and believe strongly in the importance of public media for our community. These generous philanthropic investors enable WVIA to educate, inspire, and entertain all in our region who call this area home.
Insider Society members give beyond just their personal enjoyment of our programs. They give so others can benefit from our programming and services. They give because they believe in the transformational power of educational enrichment. They give because they value an informed and engaged community. They give because they desire local public affairs news and information relevant to our region. They give so inspiring art and cultural experiences can be available to all. They give because they believe WVIA is a vital regional treasure and they want it to thrive for years to come.
We are proud to extend special benefits to members of the Insider Society as our way of thanking them for the programming and services they make possible.
FOR MORE INFORMATION, CONTACT
Director of Major Gifts
For many individuals, a gift by will or through their revocable living trust is an effective way to accomplish estate and tax planning through gifts to charities. A bequest may take several forms. Among these are:
A specific amount expressed in dollars or in specified items of property or a percentage of the residuary of the estate (the amount available for distribution after specific bequests are paid).
A bequest may be designated for a particular purpose or program or may be left without restriction for the charity to use in its discretion for needs that must be met at the time it receives the payment from the donor’s estate.
A bequest may also be used to establish an endowment so that only income and/or portions of principal may be used by the charity to carry out the purposes most important to the donor. When considering establishing an endowment a conversation with WVIA staff should be held. Accomplishing your goals and objectives for the use of such a contribution will be the primary focus. Together we can structure a gift that will enable WVIA to fulfill your wishes.
When bequests are made to establish designated, unrestricted or endowed funds, they may provide that the funds be named in honor or in memory of particular individuals, foundations or families.
Donor recognition can also be given when donations are made to participate in a particular capital project. Your concern and support can be expressed in “bricks and mortar”, providing essential facilities, repairs or improvements, with an opportunity to name your gift permanently on the facility.
II. CHARITABLE REMAINDER TRUSTS
This gift plan is most useful for the individual that wants to make a significant gift to WVIA, but still retain the right to an income stream. The income is paid to the donor or donor’s designee, usually for the lifetime of that individual(s). At the end of the term of the trust the balance becomes the gift to WVIA.
Charitable remainder trusts can be established to maintain a fixed annual annuity or one that will fluctuate yearly based on the market value of the trust. In either case a charitable remainder trust plan provides many benefits to the donor while creating a significant gift for WVIA.
Some of the benefits provided by Charitable Remainder Trusts are:
III. CHARITABLE LEAD TRUSTS
In a sense, a Charitable Lead Trust (CLT) is the reverse of a Charitable Remainder Trust. Income is paid for a period of years (measured often by the donor’s lifetime) to one or more nonprofit organizations. At the end of the term of the trust the value in the fund reverts to the donor or his/her heirs. CLT’s can yield significant estate and gift tax savings and can be appropriate for transferring appreciated property to family members at low gift and estate tax costs.
As with any gift plan, it should be noted that the tax ramifications of lead trusts are complicated and varied and, as part of a prudent estate plan, should only be considered with the guidance of your estate planning professional.
IV. GIFT OF RESIDENCE: LIFE ESTATES
For most people, their home represents a significant portion of their personal net worth. In addition to providing the security of a physical and emotional base, a home can appreciate greatly in value. As a non-productive asset it is usually difficult to extract any economic benefit from one’s home other than by actually selling it. However, there are two charitable gift strategies that may be helpful.
Retained Life Estate
You may donate your residence and still retain uninterrupted use and occupancy for the remainder of your (and your survivor’s) lifetime. The property is conveyed by deed to WVIA subject to the life estate. By donating this future interest in your home to WVIA you will generate a current charitable income tax deduction and exclude the property’s value from your estate for estate tax purposes. This can be done not only with a primary residence but also with a vacation home.
V.PRESERVING RETIREMENT ASSETS
Most people are shocked to learn that if retirement assets (e.g., an IRA, 401(k), or any other qualified plan) are left to a non-spousal beneficiary, estate and other tax obligations can reduce the amount passing to your heirs, often in excess of 75% of their value. This could mean that for every dollar you had anticipated leaving to your loved ones, they would actually receive 25 cents. Clearly, this is not what you intended to happen to your retirement plan.
After taking into account the amount in your plan and minimum withdrawal requirements and determining what is needed to support your current life-style, a charitable gift might provide a solution. For example, if you intended to include charitable bequests as part of your estate, naming a charity or your foundation as beneficiary of the qualified plan will avoid all income and estate taxes. The charitable beneficiary will qualify to receive the intended amount in its entirety, at no tax cost.
Use of such funds to establish charitable remainder trusts whereby income from the assets will be paid to designated heirs is a prudent way to make charitable gifts and protect the financial health of your loved ones.
Employing one of these techniques could be the most cost-effective way of supporting your favorite charity. At WVIA we would like to assist you in finding the charitable vehicle that is most suitable for you. Let’s have a conversation.