How to Give Later
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While funds can be created today using a variety of assets, you can also make plans to leave a charitable legacy in the future.
One of the greatest opportunities for philanthropic giving occurs when you are making major business, personal and financial decisions. Some of these special circumstances include writing or revising your will, contemplating the sale of a business or other major asset, planning for retirement or receiving a financial windfall.
The foundation has four main avenues for giving in the future:
- Bequest in a Will
- Life Insurance
- Retirement Plan Assets
- Charitable Gift Annuities
You may create a new fund, such as a designated fund for your favorite charity, a scholarship fund, or a field of interest fund to benefit a broad focus area such as early childhood education (click here to view types of funds at MCF). Another option is to contribute to any of our existing funds, including our unrestricted fund used to support Dane County's best charitable opportunities and most pressing challenges.
Individuals who wish to name the Madison Community Foundation in their estate plans can complete and submit a Legacy Letter of Understanding. This ensures that you become part of our Legacy Society and are acknowledged in our annual report. Legacy members can also be anonymous.
Click here to view a list of Legacy options.
Bequest in a Will
A bequest through your will allows you to support your charitable interests while retaining complete control of your assets during your lifetime.
Bequests can be a specific dollar amount, a percentage of your estate or what remains after other bequests - such as those to family members - are satisfied.
The savings in estate taxes resulting from a gift to the foundation can be significant, since bequests to the foundation earn a full charitable deduction on estate taxes. We accept cash, real estate, appreciated securities and other assets.
For you and your legal advisor, we provide sample language for your estate documents. We are always available to assist you and your advisors craft charitable giving plans that reflect you and your interests.
Life insurance is one of the easiest ways to create a forever charitable gift. You can do this in two ways. First, if the policy premiums are complete, the Madison Community Foundation can be named as beneficiary. If premium payments are needed, you start by irrevocably assigning your insurance policy to the foundation. The foundation is named beneficiary of the policy. You can make annual tax-deductible contributions to cover the policy's annual premium. If the policy is paid up, you will receive an immediate tax deduction in an amount equal to the policy's cash surrender value.
Retirement Plan Assets
For a growing number of Americans, retirement plan assets as part of an Individual Retirement Account (IRA), 401(k) or 403(b) may be their largest single asset. Leaving these assets for your children or grandchildren may be unfavorable for tax purposes.
An alternative is to name the Madison Community Foundation as beneficiary of your retirement assets and complete a Legacy Letter of Understanding outlining your desires to either create a new fund or add to an existing fund.
For more information, contact Amy Overby, Vice President, Donor Engagement, at (608) 232-1763.
Charitable Gift Annuities
A charitable gift annuity (CGA) is a simple agreement between a donor and the foundation. In exchange for a tax-deductible gift of assets, typically cash or stock, we promise to pay you a guaranteed lifetime income. An annuity may be created for one or two people, and payments may begin immediately or can be deferred to a later time. You designate the remainder of the annuity to an existing endowment fund at the foundation or to establish a new endowment.
You must be at least 60 years old to qualify for a CGA with the foundation, and payment ratesare especially favorable for older individuals. You receive significant tax benefits, including an immediate charitable tax deduction, and a portion of each income payment is considered a tax-free return of principal.
A CGA can be created with an initial minimum gift of $10,000 if the remainder will benefit an existing foundation endowment. An initial minimum gift of $30,000 can be used to create an annuity with the remainder designated to a new endowment fund.
For more information about charitable gift annuities, contact Ann Casey, Vice President, Finance and Operations, at (608) 232-1763.
Download a CGA Brochure