Planned Giving

Bequests

A bequest to Waco Foundation or another nonprofit organization ensures that the charitable causes which have become important to a donor and his or her family continue to be supported beyond the donor's lifetime. Bequests can be made by will or revocable trust and can take a variety of forms, such as a specific amount, a percentage of the donor's estate or a certain asset. Donors can also name Waco Foundation or another charitable organization as the "residuary beneficiary" of all or part of their estate after other bequests have been made, or as a "contingent beneficiary" in the event other named beneficiaries do not outlive the donors.

• Examples include: Specific Amount or Asset or Percentage of Estate

Sample Bequest Language:

• Sample Bequest of Remainder of Estate: I give, devise and bequeath to Waco Foundation Tax I. D. #74-6054628, a nonprofit organization as described in section 170(b) of the Internal Revenue Code, all [or state the fraction or percentage] of the rest, residue and remainder of my estate, both real and personal. Waco Foundation may be contacted at 1227 N. Valley Mills Drive, Suite 235, Waco, Texas 76710.
• Sample Bequest of Specific Amount: I give, devise and bequeath $_____ to Waco Foundation Tax I. D. #74-6054628, a nonprofit organization as described in section 170(b) of the Internal Revenue Code. Waco Foundation may be contacted at 1227 N. Valley Mills Drive, Suite 235, Waco, Texas 76710.

These are merely suggestions as to content and should be written or adapted by legal counsel to fit the donor's individual situation. Please consult your professional advisor.

Beneficiary Designation

A simple beneficiary designation could be the least costly and most attractive way for a donor to support an organization after his or her lifetime. While most of the donor's assets will pass to the donor's family or favorite charities through his or her will, some assets, like retirement plans and life insurance policies, are governed by a beneficiary designation. Through this method, a donor can specify the individuals and organizations he or she wishes to support as well as the percentage of the assets the donor wants each beneficiary to receive.

Examples include: Retirement Plans and Life Insurance

Charitable Trusts

Charitable remainder trusts allow donors to place resources into a tax-favored trust that pays income to living individuals and donates the remainder to charity. These gifts pay income that help donors living on fixed incomes, those with substantial assets from which they want to continue to enjoy income, and donors who want to make substantial gifts while potentially increasing their income during their lifetime.

Charitable lead trusts reverse the income payment pattern discussed above. Charity takes the lead as the trust makes payments to the charitable organization first, and then returns the remaining assets to the donor, donor’s family or others the donor designates. The lead trust is an attractive gift vehicle for donors with appreciated assets they would like to pass intact to the next generation. Once inside the trust, the asset appreciation is not subject to estate and gift tax.