Planned Giving
How You Can Make a Difference for Future Generations
We don’t inherit this world from our parents. We borrow it from our children.
A great way to make a real difference while still ensuring that you have needed funds during your lifetime is by making a planned gift. Planned gifts can be a powerful and effective way to have a lasting impact on People For the American Way Foundation (PFAWF)’s ability to protect and defend core American values like fairness, justice, civil rights, and the freedoms guaranteed by the Constitution.
By using this thoughtful and forward-looking approach, you can make a real difference for those who come after us liberty is the greatest treasure we can pass on to the next generation.
Estate Gifts or Gifts That Increase Your Income
Depending on your situation and needs, there are a variety of options available, many of which have the added advantage of saving substantial taxes. Some also provide a lifetime income for you and a loved one.
Here are some of the most common:
Making a Gift and Getting a Lifetime Income in Return
There are a variety of charitable arrangements that People For the American Way Foundation offers that can be tailored to your particular situation and needs. All can provide you (and a loved one) with an income that can be either fixed and guaranteed for life, or grow over time with the investments.
This way, you are giving away the capital, but effectively keeping and often increasing your income for life. Adding icing to the cake, you also receive an income tax deduction. Much of the income can be tax free or subject to favorable income tax treatment. If you make a gift of appreciated assets, PFAWF can sell the assets tax free and reinvest in other investments without paying any capital gains tax!
Depending on your situation and needs, these arrangements can be a wonderful way to help you and PFAWF at the same time:
To discuss possibilities or get additional information, please contact:
Kristen Smith
People For the American Way Foundation
2000 M Street, NW, Suite 400
Washington, DC 20036
Phone: (800) 714-7730
(202) 467-2339
Fax: (202) 293-2672
Email: ksmith@pfaw.org
A bequest is a gift made to People For the American Way Foundation (PFAWF) in a will or living trust that is given when you and your spouse pass on. It can be an outright gift, a gift of a percentage of your estate, or a gift of a portion of whatever is left after making any other gifts you decide. Your estate will receive a tax deduction for the full value of the gift.
You keep full control of all assets for your lifetime, using them as you see fit. When you (and your spouse) pass on, the gift will be made from whatever is left.
Suggested Language to Bring to Your Attorney
"I give, devise and bequeath $________ [or specific asset, % of estate or % of the remainder of my estate after taking care of all other provisions] to the People For the American Way Foundation, a 501(c)-3 charitable corporation incorporated under the laws of the State of Delaware and presently having offices at 2000 M Street, NW, Suite 400, Washington, DC 20036."
Tax Saving Tip
Most estates end up having to pay income taxes on income earned prior to death but paid or collected after death. This also includes most retirement plan funds. This is called "IRD" income. Unless special wording is included in the will, this added income tax will have to be paid. If you are making any charitable gifts in your estate, it is wise to bring the following wording to your attorney to include in your will or trust:
"Any charitable gifts will first be paid from any Income in Respect to the Decedent. If there is not enough income to cover such gifts or if this is otherwise inappropriate, the remaining gifts will be taken from other available assets."
This can save your estate from paying unnecessary taxes.
To discuss possibilities or get additional information, please contact:
Kristen Smith
People For the American Way Foundation
2000 M Street, NW, Suite 400
Washington, DC 20036
Phone: (800) 714-7730
(202) 467-2339
Fax: (202) 293-2672
Email: ksmith@pfaw.org
Fixed, Guaranteed Income for Life
Charitable Gift Annuities can be a wonderful and easy way to make a long lasting gift to People For the American Way Foundation (PFAWF) while obtaining a fixed, guaranteed income. They are especially attractive for retirees, offering income that can never be outlived!
For many, it is a great way to get higher payments than a bank certificate of deposit will provide, particularly in the current low-interest rate environment. The exact amount depends on your age, number of people (1 or 2), and gift date. (See current rate table.)
How it works.
You make a gift of $5,000 or more in cash, securities or mutual funds to PFAWF. PFAWF takes the gift and reinvests the asset in conservative, diversified investments and guarantees to provide you a fixed income for life that will never vary. Every quarter, just like clockwork, you will receive a payment.
You will also get an income tax deduction for part of your gift. In all cases, much of your income will either be tax free or taxed at favorable tax rates.
PFAWF will set aside your gift in a special account and, when you no longer need the income, we will use your gift to further the important goals of liberty and democracy that PFAWF stands for.
Note: PFAWF CGAs may not be available in all states initially.
Two examples of Charitable Gift Annuities:
- A 77-year-old woman makes a $10,000 gift of cash for a PFAWF Charitable Gift Annuity. She will get a guaranteed income of 8.2% or $820 per year for as long as she lives. She will also get an income tax deduction of approximately $4,300. Better yet, most of the income will be tax free for the first 11 years.
- A couple ages 74 and 79 make a $20,000 gift of Microsoft stock that they paid $10,000 for some years ago. They make the gift and receive a fixed income of 7.2% of the gift or $1,440 per year for as long as either of them live. Approximately $350 will be tax free and $500 will be taxed at favorable capital gains rates for 15 years. They will also get a $6,800 federal income tax deduction.
If the donor lives to be 97, 107 or even 117, the checks will keep on coming — they are fully guaranteed by PFAWF for life.
To discuss possibilities or get additional information, please contact:
Kristen Smith
People For the American Way Foundation
2000 M Street, NW, Suite 400
Washington, DC 20036
Phone: (800) 714-7730
(202) 467-2339
Fax: (202) 293-2672
Email: ksmith@pfaw.org
Fixed Income for Life—Starting Later On
A Deferred Gift Annuity is ideal for those who want to make a gift today, but don’t need to receive income right now. Rather, they prefer fixed, guaranteed income for life—starting some years later.
This is a version of the Charitable Gift Annuity, except that the payments start later on and are higher because they are delayed until the time that you choose. The payments are larger, but are also fixed and guaranteed by People For the American Way Foundation (PFAWF). They also provide a larger income tax deduction.
Examples of Deferred Gift Annuities
- Mary Smith is 50 and plans to retire at 70. She has a small business and has already maxed out on her retirement plan. She would like the security of adding to her retirement income. She gives PFAWF $10,000 for a Deferred Gift Annuity.
In return, she will receive a guaranteed payment of $2,170 each year for life, starting at age 70. She will also receive an income tax deduction of approximately $5,200.
- George & Donna are 60 and 65. They are receiving annual payments of $1,100 per year from the sale of a small tract of land that will be paid off in 10 years. They would like to replace this income once the property is paid off and help PFAWF at the same time.
They make a $10,000 gift to PFAWF for a deferred gift annuity to start payments in 10 years. Starting in 10 years, they will receive $1,170 per year for as long as either of them live.
To discuss possibilities or get additional information, please contact:
Kristen Smith
People For the American Way Foundation
2000 M Street, NW, Suite 400
Washington, DC 20036
Phone: (800) 714-7730
(202) 467-2339
Fax: (202) 293-2672
Email: ksmith@pfaw.org
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