 Contact Director of Gift Planning Carol Bradford today at (213) 413-4130 to learn more. |
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While there are many types of assets that can be used to create a fund today, you can also make plans to leave a significant contribution to your community in the future.
One of the greatest opportunities for philanthropic giving occurs when you are making major business, personal and financial decisions. Some of these special circumstances include writing or revising your will, contemplating the sale of a business or other major asset, planning for retirement or receiving a financial windfall.
The foundation has three main avenues for giving in the future.
If you are the exector of a person's will or living trust, click here.
Bequest through a Will or Living Trust
A bequest through your will or living trust allows you to support your community while retaining complete control over your assets during your lifetime.
Bequests can be a specific dollar amount, a percentage of your estate or what remains after other bequests — such as those to family members — are satisfied. You can also arrange for your heirs to receive lifetime income from your estate, with the remainder going to the foundation for charitable purposes.
The savings in estate taxes resulting from a gift to the foundation can be significant, since bequests to the foundation earn a full charitable deduction on estate taxes. We accept cash, real estate, appreciated stocks and other assets.
You may contribute to our unrestricted pool of funds that we use to address the most pressing needs of the community as they evolve over the years. We recently used our unrestricted pool of funds to support Southern California's wildfire relief and recovery efforts. Another option is to choose a focus area — supporting local emerging artists or expanding access to primary health care, for example — or a specific group or organization to benefit from your bequest to the foundation.
Charitable Lead Trust
A charitable lead trust will appeal to those who want to leave an inheritance for children and grandchildren while minimizing the percentage taken by estate and other inheritance taxes. While a variety of asset types can be used, one of the most common is revenue-generating real estate such as apartment buildings.
How it works: A trust is set up from which the foundation receives the income from the asset (e.g., apartment building) for a specified number of years. These proceeds are used to create a fund at the foundation that benefits the issues or organizations you care about most.
The trust will reduce estate taxes and prevent the property from being taxed to your children. Then, when your grandchildren reach maturity, the trust is terminated and the assets go for their benefit. Your grandchildren receive much more than they would have otherwise, and the fund established at the foundation will serve the community in perpetuity.
For more information on our giving options, contact our donor relations team at (213) 413-4130.
Retirement Plan Assets
For a growing number of Americans, an Individual Retirement Account (IRA) may be the largest single asset — a nest egg to leave behind for the children’s future. However, you may not realize the massive tax bite the plan is subject to once it is passed on to your heirs.
The legacy intended for your children or other heirs could amount to just 30 cents on the dollar as a result of combined estate tax and income taxes on the IRA. The foundation offers two possible solutions.
The Charitable Family IRA (SM)
The Charitable Family IRA (SM) is a retirement plan option that reduces your estate taxes and eliminates the income taxes that would have applied to your IRA. You remain in control of your retirement funds during your lifetime and can choose the issues or organizations your money will support through the foundation in the future.
Once activated, the Charitable Family IRA will provide a stream of income to your children for 20 years and, ultimately, create a permanent charitable legacy at the foundation.
The Charitable Family IRA is a unique type of charitable remainder unitrust that was created by the California Community Foundation to meet the needs of our donors.
The Charitable IRA
Naming the California Community Foundation as the beneficiary of your IRA will waive both estate and income taxes and create a permanent legacy in your honor.
Leaving a bequest of an IRA to the foundation can be a sound part of an estate plan, especially if you have already provided for your children, and they could do without the income stream produced by the Charitable Family IRA.
Executors of a Person’s Will or Living Trust
As the administrator of a person’s estate, you have been directed to allocate a certain portion of the estate to charity — but the organizations are not named or you may find the task of carrying out the charitable provision of the will burdensome. The estate might also contemplate creating a private foundation — but the amount involved is too small to justify the administrative hassle.
A solution is to open a fund at the foundation in the name of the person who passed away and arrange to have the charitable portion of the estate paid to the fund. That way, we assume the task of carrying out the charitable provisions of the will. Approval of the probate court may be necessary. The foundation has handled numerous complex bequests in similar situations and has vast experience in ensuring the wishes of the deceased are carried out in full.
For more information, contact Director of Gift Planning Carol Bradford at (213) 413-4130.
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