Through Planned Giving You Can Play a Role in the Future of the American Indian Institute
Please consider including AII in your estate plans. A “planned gift” from you can help ensure the future of AII and the Traditional Circle of Indian Elders & Youth.
And what is planned giving? A planned gift allows you to maintain access to income during your lifetime, while at the same time guaranteeing future growth in AII’s permanent endowment.
In a nutshell, here’s how planned giving works. A donor generally makes a contribution from his or her assets or estate, rather than from their current income. The donor receives income and tax benefits from their gift, while the actual benefit to charity is deferred to a future time, usually upon the death of the donor or the donor’s successor. Planned gifts are usually made in consultation with financial and legal professionals; however, the staff of the Montana Community Foundation, the manager of planned gifts to AII, can also advise donors about planned gifts (http://www.mtcf.org/planned.html).
Possible planned giving instruments are outlined below. Please consult with your financial advisor for more information to determine which approach is best for you and your family.
Charitable Gift Annuity - Donor transfers cash or securities in exchange for charity's promise to pay a fixed annuity to one or two individuals for life. The present value of the annuity is less than the amount transferred, creating a gift to charity.
Charitable Remainder Unitrust - Beneficiaries receive a fixed percentage (minimum 5%, maximum 50%) of the value of the trust assets as revalued every year (standard unitrust). Alternatively, trust may pay the lesser of the unitrust amount or the trust's actual income (a net-income unitrust); make-up provisions permitted. Additional contributions possible.
Charitable Remainder Annuity Trust - Donor funds a qualifying trust under Code §664 providing a fixed annuity (minimum 5% of original value of principal, maximum 50%) for one or more individuals. The trust may last for the lifetimes of the beneficiaries or a term of years (maximum 20 years). When the trust ends, principal passes to one or more qualified charities. No additional contributions permitted to trust.
Remainder Interests in Residences and Farms - Donor deeds personal residence or agricultural property to charity and retains a life estate for one or more individuals or for a fixed term of years. A residence need not be the donor’s primary residence. Transfer is not made in trust and may not include personal property.
Charitable Bequests and Beneficiary Designations - Donor designates charity to receive specific, general, percentage, or residuary bequest from will or revocable living trust, or names charity to receive part or all of life insurance proceeds or remaining principal in retirement, brokerage, or financial accounts.
Charitable Lead Trust - Reverse of the charitable remainder trust. The lead trust pays either an annuity or a unitrust amount to one or more charities during the trust term, remainder to donor or named beneficiary. Lead trusts can be set up during life (either as grantor or nongrantor trusts) or at death.
Life Insurance - Fair market value of policy or donor´s cost basis, whichever is less, when donor transfers all rights of ownership in policy; subject of 50% of AGI ceiling (30% for private foundations). Policy loans reduce deductions. No deductions where charity merely named death beneficiary.
Who Should Make a Planned Gift?
Planned gifts are a good fit for all who wish to reduce their taxes.
People in their retirement years who want to support charity, have non-productive assets and need increased income for retirement or annual giving.
Younger donors who have made maximum contributions to their retirement plans, want to create additional retirement income, and want to help their communities while receiving current tax relief.
Anyone wishing to take advantage of the Montana Endowment Tax Credit.
Montana Endowment Tax Credit
The Montana Endowment Tax Credit allows donors to pay less in Montana state income taxes when they give a qualifying planned gift to a qualified Montana charitable endowment. The incentive offered by the tax credit is 40% of the value of the gift, up to a maximum $10,000 tax credit in one year, and a credit of 20% of a direct gift by a qualified business, up to a maximum of $10,000 in one year.
Tribute and Memorial Giving
The memorial and honoring gift program is a way for you to honor someone special in your life, or to give in memory of a departed loved one. The symbol of giving on a person’s behalf in support of traditional Indian Elders from throughout North America is powerful. Give Now.
Endowment Contributions
AII has an established endowment with the Montana Community Foundation (http://www.mtcf.org/). It is a permanent fund in which the principal is invested and interest income is used for AII’s programs. By designating a gift to the endowment, you can be sure that your contribution will continue to generate annual funds in perpetuity.
Non-Cash Gifts
In the current climate of ever-changing tax laws and fluctuating investment market conditions, stock, bond or mutual fund gifts are an easy way to make a lasting contribution to the American Indian Institute. They may also provide contributors with significant tax benefits. For more information concerning gifts of stock or other securities, please contact Francine Spang-Willis at (406)587-1002, or by email francine@twocircles.org.