Guide to Giving - Berkshire Taconic Community Foundation

What to Give LatercontinuedBENEFITS TO YOUSimple & inexpensive way tocreate a significant futurecharitable legacyCharitable deduction at timeof gift on the current value ofyour paid-up policyIf a premium-due policy isdonated, receive an additional taxdeduction for annual gifts to charityfor annual premium paymentsLIFE INSURANCE POLICIESGiving a life insurance policy is an inexpensive way to make a substantial contribution toBerkshire Taconic Community Foundation. Many people find in later years that they don’tneed all the insurance they did when they were younger, or they may choose to purchase anew policy to donate in order to leverage their gift. Three common methods allow you to turnlife insurance policies into a charitable gift:OPTION 1: List Berkshire Taconic Community Foundation as the beneficiary when purchasinga new life insurance policy, or execute a simple change of beneficiary form on a currentpolicy. Upon your passing, your estate receives a charitable deduction and the deathbenefit passes to BTCF tax-free.OPTION 2: You may donate an existing, paid-up life insurance policy to Berkshire TaconicCommunity Foundation or purchase a new paid-up policy in BTCF’s name. You should receivea current income tax deduction equal to the lesser of your basis in the policy or the policy value.into a trust, which distributes an annual income for life orfor the duration of the trust to the income beneficiary. Thepayments can be a fixed dollar amount (an annuity trust)or a percentage of the principal (a unitrust).Charitable remainder trusts offer a great deal of flexibility.Payments may be made to you throughout your life,and then directed to your spouse or other beneficiaries afteryour death. Or, the trust may be set up by your will, benefitinga loved one for his or her lifetime. The eventual distributionto Berkshire Taconic Community Foundationwill take effect only at the end of the trust term.Minimum to establish a charitable remainder trust:$250,000BENEFITS TO YOUMake a significant gift to charityProvide a lifetime income for yourself and/or your beneficiariesReduce your taxable estateAvoid immediate capital gains tax when the gifted asset is soldRealize an income tax charitable deductionIncrease income by converting low yield assetsOPTION 3: You may transfer an existing insurance policy or purchase a new policy on your life and nameBTCF as the owner. Every year you donate sufficient funds to BTCF to pay the annual premiums.CHARITABLE LEAD TRUSTA charitable lead trust allows you to “donatethe fruit and keep the tree”: make significantcharitable gifts now while later transferringwealth to your heirs at reduced tax values.Through the trust, you determine howmuch will be paid to BTCF and for how long.The principal that remains after the trust terminateswill revert back to you or pass to anotherdesignated individual.Charitable lead trusts are an effective tool forexcluding assets – and subsequent appreciationon those assets – from your taxable estatewhile ensuring your favorite causes receive significantcharitable support and providing foryour loved ones at the end of the trust term.Minimum to establish a charitable lead trust: $250,000BENEFITS TO YOUTransfer appreciated property to family membersat low costReduce burden of gift taxes, probate costs& estate taxesUseful in a year which you have a large amount oftaxable income – use as a large currentincome tax deductionEstablish a donor advised fund to receive theincome payments, then enjoy recommending grantsto your favorite charities over timeCHARITABLE REMAINDER TRUSTGiving through a charitable remainder trust (CRT) can support Berkshire Taconic’s future grantmaking whileproviding you, or someone you select, with income for life or a specified number of years. This option allowsyou to “donate the tree, and keep the fruit.” You do this by placing cash, property or other assets irrevocablyGreat Philanthropists...Our Teachers!Although legally blind for more thanhalf of her 50-year teaching career,Violet Simmons had a clear vision for herstudents: “I am old fashioned enough tobelieve that we get from our students onlywhat we demand. If we accept mediocrity,that is what they will give...it is my sincerewish that Webutuck will continue to emphasizegoals of high scholastic achievement.”Former students of this inspiring teacher established the Violet H. SimmonsScholarship Fund in her honor in 1982. Miss Simmons becamechairman of its advisory board and helped set the high standards for aSimmons Scholar. Just before her death in 2001, at the age of 90, VioletSimmons established an endowment for the scholarship fund namedin her honor and left it a significant bequest.The scholarship perpetuates Miss Simmons’ vision and values: thatevery child can learn; that every individual, regardless of his/her circumstances,should strive for excellence; and that anything worthdoing at all is worth doing well.Since its inception, the Violet Simmons Scholarship Fund has awardedover $175,000 to graduates of Webutuck High School in Amenia, NY.Margery Barrett (1910-2000) grewup in Adams, MA and was an integralpart of the community she loved. Shegraduated from the former Adams HighSchool and from the North Adams NormalSchool (now the Massachusetts Collegeof Liberal Arts) in 1929. She was ateacher in the local schools as well aspresident of her church guild, a Sunday school teacher, member ofthe Adams’ Girls Club and an accomplished photographer. Margerymarried William Barrett, with whom she shared her life with until hisdeath in 1969.Margery established the Fund for Adams, Cheshire and Savoy to supporta better quality of life in the towns she cared about, using SpecialtyMinerals stock inherited from family. The Fund supports elderservices, arts programs, after school activities, environmental protectionand a wide variety of community education programs.Margery established the fund and increased her income during herlifetime by creating a charitable remainder trust. The Fund awardedgrants anonymously for several years, giving her the joy of seeing hergenerosity support organizations around her. Upon Margery’s death,the remainder of her trust was added to the Fund and at her instruction,her name was publicly announced for the first time.14 berkshiretaconic.orgberkshiretaconic.org 15