Planned and Estate Giving
There are many reasons to consider a planned gift:
- A Planned Gift helps you maximize the personal benefits of your charitable giving, while allowing you to make a gift that you may not otherwise think possible.
- Planned Gifts are a way to make a significant gift, while enjoying the benefits of charitable incentives that have been placed in the federal tax laws.
- Planned Gifts are a valuable tool for sharing your resources, while enhancing your financial situation and security.
Some planned gift options available to you include:
Gifts from Individual Retirement Account Funds
Individual Retirement Account (IRA) Owners who are 70½ or older can make a lifetime charitable gift without any tax obligations, thanks to the Pension Protection Act of 2006. This allows individuals to contribute IRA funds to the Fairfax Library Foundation, during their lifetime without having to add the distribution amount to their income, which lowers the adjusted gross income. (See more details below)
Gifts through a Will or Trust
For many people, a gift made through a will or trust is the way to make a major gift. This is particularly attractive if you are unable to make a significant gift at this time, but would like to contribute to the Library Foundation in a meaningful way. Property; including cash, stocks and bonds, jewelry, works of art, and real estate may be given through a will or trust. Through estate planning provisions, you may leave the Fairfax Library Foundation a specific dollar amount (for example, $50,000), a certain percentage of the estate, or you can state that the Fairfax Library Foundation is to receive the residue of your estate after provisions for all other beneficiaries have been made. Your bequest may be made in honor of, or in memory of a loved one. All outright bequests to Fairfax Library Foundation are tax deductible to the full extent of the law.
Charitable Gift Annuities
Gift annuities are a safe, dependable source of fixed income for donors. Gift annuities help to minimize your annual tax liability, but provide you with a charitable income tax deduction in the year of the gift. A Charitable Gift Annuity is simple to create, and can be established for amounts of $1,000 or more. All gifts donated for the creation of a Charitable Gift Annuity are added to the Library Foundation’s General Endowment. Through this fund, resources will always be available to the Library for programs, books, and computers.
Gifts of Real Estate
A gift of a personal residence, farm, vacation home or other type of real estate is another way of making a donation to Fairfax Library Foundation. If you are considering leaving your house to the Library Foundation in your will, you might consider making the gift now, while retaining the right to live in your house for the rest of your life. This type of gift is called a “Retained Life Estate” and provides a significant current income tax deduction, without changing your lifestyle. Please note: potential gifts of real estate are evaluated on a case-by-case basis before being accepted. Please contact the Foundation office to set up a gift of real estate at 703-324-8300 or email.
Gifts of Life Insurance
A practical way of making a significant gift to the Fairfax Library Foundation is by irrevocably assigning a life insurance policy to the Foundation – whether the policy is paid up, partially paid, or new. The tax benefits for this type of gift depend upon the status of the policy, at the time of the gift.
Charitable Remainder Trusts
A charitable remainder trust is a personalized life income gift that provides you with lifetime income and a charitable income tax deduction. As the creator of the trust, you select the payout rate, and the trustee. If the trust is established with appreciated property, the related capital gains tax is avoided. When a Charitable Remainder Trust is created, the assets placed in the trust are removed from your estate, and are not subject to estate taxes. After your death, the remainder of the trust is then distributed to the Fairfax Library Foundation. We would be happy to provide you with sample language, tax calculations, and informational literature. Since our information and calculations are only intended to serve as a general guide, we would be very happy to meet with you and your advisor by phone, or in person.
Instructions for IRA fund gifts:
Under the Pension Protection Act of 2006, you may contribute funds from your IRA if:
- You are age 70½ or older
- The gift(s) do not total more than $100,000 annually
- The gift is made on or before December 31 to qualify for that year
- Funds are transferred directly from an IRA or Rollover IRA
- Gifts are made to a qualified charity, such as the Fairfax Library Foundation
To make a charitable gift from your IRA, follow these easy steps:
- Contact your financial planner who can help you complete a form letter (see sample letter below)
- Send original letter to your IRA custodian
- Send a copy of the letter to the Fairfax Library Foundation
- Contact the Library Foundation office if you have any questions. 703-324-2410 or by e-mail.
Re: Your traditional IRA or ROTH IRA Account Number
Dear [Financial Planner name]:
Please consider this letter as my request to make a direct charitable distribution from my Individual Retirement Account (# Account Number) as provided by the Sec. 1201 of the Pension Protection Act of 2006 and Sec. 408(d)(8) of the Internal Revenue Code of 1986, as amended.
Please issue a check in the amount of $ [amount] payable to Fairfax Library Foundation at the address below.
Fairfax Library Foundation
12000 Government Center Parkway, Suite 329
Fairfax, VA 22035
It is my intention to have this gift qualify for exclusion during the 20__ tax year. Therefore, this distribution should be postmarked no later than December 31, 20__.
If you have any questions, please contact me by phone (your phone number) or e-mail (your e-mail address).
Thank you for your assistance in this matter.
(IRA Plan owner)
CC: Fairfax Library Foundation
12000 Government Center Parkway Suite 329
Fairfax, VA 22035