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The Foundation is happy to discuss with you outright gifts, planned gifts, and deferred (or “estate”) gifts. In the case of planned and deferred gifts, The Foundation strongly encourages donors to consult with their tax and legal advisors. We also encourage you to make the Foundation aware of your plans.
One-Time Gifts. The Foundation can accept gifts of cash, securities, real estate, collectibles, and other valuable assets as a direct gift from our donors. Typically these gifts can be put to immediate use by the Foundation, and donors can enjoy the knowledge of the current impact they have on our community.
Memorial/Honorary Gifts. The Foundation accept gifts made in honor or memory of a loved one or important person in one’s life. The family or honoree will receive notice that a donation has been made in their name.
Recurring Gifts. Some donors like the convenience of a recurring gift. These can be scheduled as an automatic deduction from your credit card, checking account, or Paypal account. They can be monthly, quarterly, or annually, and be for a fixed duration or open-ended.
Memorial Gifts. The Foundation is honored to be the designee of memorial gifts. Gifts given in memory of loved ones will be receipted by the Foundation and the family will receive a listing of those gifts. Please contact the Foundation to make arrangements. 616-235-3535
Bequest in a Will or Trust. Any asset which can be given during lifetime can also be gifted through a Will or Trust. Donor’s simply designate certain assets or a percentage of their estate to “The East Grand Rapids Schools Foundation.”
Gift of Retirement Plan Assets. One of the most attractive forms of giving from a tax perspective is a gift of tax deferred retirement assets. If a donor were to leave these assets to a child, the child would be liable for income tax on the entire amount. Moreover, in the case of large estates, the account would also be subject to estate tax. Combined, these taxes could eat up much more than half the value of the account. By comparison, if the Foundation were named as the beneficiary, 100% of the account value would benefit EGR Schools.
Life Insurance Planning. Donors can support the Foundation through life insurance in at least two ways. First, a donor can simply name the Foundation as the beneficiary of the policy’s death benefit at maturity, but maintain the policy privately. This technique provides a charitable deduction against estate taxes at death, but no current tax benefit. The second method would be for the donor to transfer a policy to the Foundation and then provide gifts to the Foundation annually in order to cover the amount of the premium. Here, the death benefit is removed from the donor’s taxable estate and the annual premium donation provides an annual income tax deduction.
Charitable Remainder Trust. These trusts provide donors the ability to contribute assets to a trust, receive an income stream from that trust for life, and at death the trust’s balance would pass to the Foundation. The strategy should be done with the assistance of the donor’s tax advisors, as it can provide significant income and estate tax savings.
Charitable Lead Trust. This is essentially the reverse of a Charitable Remainder Trust. Here, to donor places assets in a trust, the Foundation enjoys an income stream from the trust, and at the end of a fixed period of years, the trust’s remaining assets revert to the donor or the donor’s family. This strategy is an excellent way for business owners to transfer ownership of closely held stock to the next generation while still achieving their charitable goals.
Life Estate in Real Property. A “life estate” is simply the ability of the donor to enjoy the use of a property for life. In a charitable use, a donor would deed his or her home or other real estate to the Foundation but would reserve a life estate. The donor would have the ability to live in the property for life and there would be no change in the donor’s property taxes. The donor would receive an immediate income tax deduction for the value of the remainder interest (which can be calculated easily by the donor’s tax advisor.)