Leave a Legacy to the Institute for Food and Development Policy
Help yourself, your family and the Institute for Food and Development Policy
A little planning on your part can be a great help to your family and, at the same time, allow you to make a significant contribution to Food First. You can save on income, estate and capital gains taxes. But best of all, you have the satisfaction of leaving a living legacy to Food First. You win and Food First wins.
ADVANTAGES TO YOU AND YOURS OF PLANNING YOUR CHARITABLE GIVING
- you have the satisfaction that comes from giving during your lifetime
- you leave a living legacy for future generations
- you receive an income tax deduction
- you reduce your estate tax
- you avoid capital gains tax
- you may set up a plan for income for you and your heirs
BENEFITS FOR THE INSTITUTE FOR FOOD AND DEVELOPMENT POLICY
- your money continues to contribute to what is a long-term project—bringing an end to hunger and poverty.
WAYS OF GIVING THAT PRESERVE YOUR ESTATE W>HILE BENFITTING FOOD FIRST
1) Including Food First in your will
Simply say “I give to the Institute for Food and Development Policy located in Oakland, California the following...” Suggested wording for your will.
2) Giving appreciated assets
Stocks and bonds, real estate (including your home, vacation home, farm, or commercial real estate), and valuables such as art and jewelry. The fair market value of these assets are deductible from income tax with certain limitations depending on you situation. Plus no capital gains tax is incurred.
3) Giving life insurance
You can give a major gift at a small cost, and receive income tax deductions. This can be:
- an existing policy that you no longer need making the Institute for Food and Development Policy the owner and/or beneficiary, or
- a new policy which names the Institute as the owner and beneficiary of the policy.
4) Pooled Income Fund
Your contributed assets are pooled into a large trust that operates similar to a mutural fund. Income from the fund is distributed to donors in proportion to the amount of each donor’s gift. Your age at the time of your gift determines the income tax deduction you can take in the year of your gift. In addition to the interest you receive during your lifetime, your original gift to the fund passes to Food First at the time of your death, creating a living legacy.
5) Charitable remainder trust
Creating a trust allows you to sell appreciated assets without any capital gains tax (see diagram). You can continue as trustee, add assets to the trust, and invest for tax-free income from these assets. This trust both provides a current income tax deduction and reduces estate taxes. This is the ultimate win-win charitable giving mechanism.
One big advantage of creating a trust is the opportunity to both leave money to your heirs and make a substantial contribution to charity. The assets that you give to charity can be replaced by purchasing a life insurance policy equal to the value of the donated asset (or whatever amount you determine should be left to heirs). This insurance can be held in the trust so that it passes to your heirs free from estate tax. It is even possible to use income from the charitable trust or the income tax savings to pay for this insurance.
6) Donating part of your IRA or qualified retirement plan
More information about 2012 and 2013 IRA provisions.
Because no tax is paid on this money at the time it is earned, both income tax and estate tax often totaling more than 75% are due at the time of death. A tax attorney can assist you in substantially reducing these taxes by setting up a trust.
For more information contact Marilyn Borchardt at The Institute for Food and Development Policy at 510-654-4400 ext 234.
Institute for Food and Development Policy
398 60th St
Oakland, CA 94618
Suggested formats for naming Food First/The Institute for Food and Development Policy in your will
You and many other individuals concerned about hunger have contributed to building Food First into an internationally recognized institution. Your gift via your will can insure that the long fight against hunger can continue beyond your lifetime.
You are free to designate your bequest to a restricted use. However, conditions and needs may change between the time you write your will and the time that Food First receives your bequest so it is preferable to make an unrestricted bequest.
Planning your will
The first consideration in planning your will is to your family and friends. All of the options presented below are legally binding arrangements. Legal considerations may vary from state to state. The fees to have a lawyer draft a will are surprisingly modest and the cost is well worth your peace of mind in knowing that your wishes will be carried out. If you choose to write your own will, you should have it reviewed by a lawyer.
Suggested wording to include in your will
Specific Bequest--For a bequest of a set amount or a certain property:
“I devise and bequeath to Food First/The Institute for Food and Development Policy located in Oakland, California (insert specific amount of cash or a description of property) to be used for its work as the Board of Trustees may designate.”
Residuary Bequest--For a bequest of the remainder of your estate after you have provided for others:
“I devise and bequeath (insert either “all” or a percentage) of the remainder of my estate to Food First/The Institute for Food and Development Policy located in Oakland, California to be used for its work as its Board of Trustees may designate.”
Contingent Bequest--For a bequest made only if your primary beneficiary(ies) do not survive you:
“In the event that the beneficiaries heretofore mentioned are not living, or are for some other reason unable or unwilling to accept my bequest(s), then I devise and bequeath his/her/their portion to Food First/The Institute for Food and Development Policy located in Oakland, California, to be used for its work as its Board of Trustees may designate.”
“I devise and bequeath to Food First/The Institute for Food and Development Policy located in Oakland, California (insert specific amount of cash, description of property, or a percentage of the remainder) to be used for its (specific program).”
For additional questions, call, write or e-mail
Food First/Institute for Food and Development Policy
398 60th Street, Oakland, CA 94618-1212
e-mail: foodfirst [at] foodfirst [dot] org