Lifetime gifts and bequest to family members may be subject to federal gift and estate taxes. But charitable gifts, large or small, are completely exempt from federal taxation. To learn more about planned giving contact our Foundation Treasurer at email@example.com
Life Insurance -- Your insurance company can give you information on how to make a gift of life insurance. For pennies on the dollar, you can endow the Ernest Hemingway Foundation of Oak Park with a substantial gift and at the same time enjoy tax benefits and income. You may decide to assign your annual dividends to the Foundation, donate a paid-up policy, or donate a policy on which you are still paying premiums and deduct each premium as a charitable gift.
Gifts of Real Estate -- Receive a charitable income tax deduction equal to the full fair market value of the property and save capital gains taxes.
Appreciated Securities and Real Estate -- Donors who contribute appreciated securities or real property held for more than one year (long term) get a double income tax benefit:
1. A deduction for the asset's full fair market value instead of the lower cost basis.
2. Complete avoidance of capital gains tax on the asset's appreciation
For gifts of appreciated securities or real estate held for one year or less (short term), the charitable deduction is limited to the property's cost basis. There is no tax on the appreciation.
Remembering the Hemingway Foundation in your Will -- This is a special way to ensure that our work will continue for a long time to come. Any charitable gift by a Will is deductible for estate tax purposes, so no tax will be due on assets given.
Types of Bequests:
Unrestricted: allows the Hemingway Foundation to direct your gift where it is needed the most.
Restricted: permits the Hemingway Foundation to use your gift in the manner you designate, such as a specific area of interest (Lectures, Birthplace or Boyhood Home buildings, Collections, Exhibits etc.).
Specific Bequest: gives a specific asset to the Hemingway Foundation, such as cash or securities.
Residuary Bequest: gives all or a percentage of what remains in your estate after all other specific bequests have been satisfied and all debts and expenses have been paid.
Contingent Bequest: gives all or a portion of your estate to the Hemingway Foundation when a named individual beneficiary dies before you.
The Ernest Hemingway Foundation works with the Oak Park River Forest Community Foundation (www.oprfcommfd.org/) to manage the following sophisticated gift giving programs. To discuss a planned gift to the Ernest Hemingway Foundation please contact our foundation treasurer at firstname.lastname@example.org.
Pooled Income Fund – A giving-plan for people who want to receive a life-long income which may grow through the years. The gift is combined with other donations so that the principal can be invested as a lump sum for the benefit of each giver and the future good of the Hemingway Foundation. The donor can eliminate capital gains taxes on the appreciated assets that are donated.
Life Income Gifts – Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts, so they wait to make gifts by will. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you get current tax and financial benefits. It's called a life income gift.
Charitable Gift Annuity – If your stock has appreciated, there are some great tax advantages. You would receive the full current value of the stock at the time of donation (in the form of a fixed regular payment for your life and/or that of your spouse or friend) as a tax deduction plus you do not have to pay any capital gains taxes. You benefit from an immediate tax deduction and part of each payment is tax-free for a number of years.
Charitable Remainder Trusts provide lifetime income. They also afford the Foundation a remainder following the beneficiary's death
The Charitable Lead Trust – Individuals with very large estates can use a charitable lead trust to benefit the Ernest Hemingway Foundation and pass the principal to family members with little or no tax penalty. It works like this: You transfer assets to a trust fund that provides payments to the Foundation for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate taxes.
There are other ways to give that may be better suited to your needs. The Hemingway Foundation will be happy to work with you and your financial advisor to accomplish your philanthropic goals, and put you in touch with an expert if you are not already working with one. Contributions to The Ernest Hemingway Foundation of Oak Park, a tax-exempt organization under Section 501 (c) (3) of the Internal Revenue Code, are deductible for computing income and estate taxes.