Questions & Answers About Giving
want to do something to help my favorite charity but I dont
have immediate cash to make a gift today. What can I do?
the International Society for Sephardic Progress. (ISFSP) in
your will. Bequests are the simplist form of giving that allows
you to retain use and control over the asset during your lifetime.
A gift of this nature also decreases estate taxes and avoids
probate on the gifted asset. Leaving the ISFSP in your Will
creates an endowment or a fund that generates annual income.
The income is what will provide an annual gift to support your
favorite charitable institution.
sample codicil could include:
leave $-- or --% of the residue of my estate to the International
Society for Sephardic Progress, Inc. to create an endowment fund
to be known as (donor name) Endowment Fund benefiting (your
charity name) with income from the endowment to be used for
(list purpose). The principal of the endowment shall never be
want to support my favorite charity but also earn some income
for myself. Is there something available?
You could create a charitable gift annuity. A charitable gift
annuity provides a fixed stream of income during life that is
partially tax-free for either yourself or a loved one. The remainder
of the gift not used to provide life income will go to create
an endowment to support your favorite charity. An endowment
is a fund that generates annual income. The income is what could
provide an annual gift to support your charity.
could also create a charitable remainder trust. This too will
provide a fixed income to you or your loved one. Annual payments
may not be less than 5% of the initial value of the assets placed
in the trust. The remaining amount in the trust will be used
to create an endowment benefiting you favorite charitable institution.
another option is a charitable unitrust. Here the annual
income you or your loved one receives is calculated annually
as a percentage, not less than 5%, of the value of the trust
assets. Therefore, the annual payment paid by the trust to you
fluctuates from year to year. Again, the remaining amount in
the trust will be used to create an endowment benefiting your
charity of choice.
knew someone who contributed every year and when he passed away
his estate left several hundred thousand dollars to charity. My
friend was not rich. How did he do this and how can I do the same
thing to benefit my charity?
friend might have purchased a life insurance policy and named
his favorite organization the owner and beneficiary of the policy.
Heres how it works:
purchase a life insurance policy and name the International
Society for Sephardic Progress, Inc. owner and beneficiary.
The premium payments you pay are tax deductible. When you die
the policy pays off and the dollars go to the the International
Society for Sephardic Progress, Inc. creating an endowment in
your name to benefit the charitable organization of choice.
An endowment is a fund that generates annual income. The income
is what will provide an annual gift to support your favorite
same thing can be accomplished through an existing life insurance
policy. The policy is donated to the the ISFSP who is made owner
and beneficiary. The cash value of the policy is tax deductible
in the year you donate and all subsequent premium payments will
provide an additional tax deduction.
are the tax benefits of establishing a Philanthropic Fund?
get a deduction at the time you contribute funds to establish
or replenish a philanthropic fund. You receive a charitable
deduction for the full amount of your contribution to your fund
and no capital gain is paid on any increase in the appreciation
the fund may receive. If you use appreciated assets to establish
or replenish your fund you can avoid the capital gains involved.
popular assets to bequeath include:
and Pension Plans Retirement plan proceeds paid after
death are subject to both income and estate taxes. They are
not the most ideal assets to bequeath to heirs. Naming the Foundation
as the death beneficiary can save such taxes. Changing a plans
successor or contingent beneficiary cannot be done through a
will. Contact a plan administrator or IRA custodian for the
of Real Estate* This may include gifts of homes or other
real estate through a bequest or lifetime transfer with significant
of bequests, will and other assets:
gift allows you to retain use and control over the asset during
gift decreases estate taxes and avoids probate on the gifted
gift can benefit multiple charities and/or causes perpetuating
your values and ensuring annual donations to ensure future success.
real asset can be gifted to create a lasting legacy of your
*Gifts of real estate or personal property require an appraisal
to determine value.
do I contact the the International Society for Sephardic Progress,
feel free to contact us for more information about the benefits
of charitable giving. We can be reached by any of the following
P.O. Box 621719 Oviedo, Florida 32762 USA