L EADI NG P E O P L E . L E A D I N G P R O S P E R I T Y.
Why Legacy Giving Is Important NEW Longview Community Foundation Since 2011 the chamber has championed taking key stakeholders from our community on InterCity Trips. Seeds have been planted and so many have taken root in our community ranging from the Animal Shelter to a 104+million bond election to the Arts!Longview Cultural District. On each trip we hear about the important roles of charity and philanthropy. Each has its place, yet we found in each community we have visited philanthropy is a critical component KRISTEN ISHIHARA for successful and sustainable community Attorney, Ross & Shoalmire and economic development. As we build a community for future generations, we need a community foundation in place so it can become a powerful catalytic force for change. We need a community foundation so companies and individuals can customize their giving program and know their legacy will have a positive impact. That is why a group of volunteers have come together to form the Longview Community Foundation. “We are definitely, in our infancy.” stated Kristen Ishihara, an attorney with Ross & Shoalmire, P.L.L.C.
HOW TO MAKE GIFTS TO CHARITY A PART OF YOUR LEGACY Clients often have charitable goals they want to accomplish – perhaps lifetime gifts to their church, or a gift made in their Last Will & Testament to their favorite non-profit charity. With the right professional guidance, you too can create a meaningful charitable legacy while lowering your taxable income during your life as well as estate taxes at your death. A true Win-Win.
What First? First, consider what charitable causes are important to you and your family. Second, consider what assets you would consider making charitable gifts from. And lastly, determine how to make the gift and implement a plan. Following are some plans to consider, after consulting your estate planning attorney.
Use Your Retirement Accounts During your Lifetime: At age 72, the IRS requires you to
take Required Minimum Distributions (RMDs) each year from your tax-deferred retirement accounts. Consider using a Qualified Charitable Distribution (QCD) to reduce your taxable income for the year and to support your favorite charity at the same time! A QCD is a direct transfer of funds from your IRA, Whatever your charitable goals, there is a payable directly to the non-profit charity. tool to meet your needs that will create a Amounts distributed as a QCD can be counted lasting legacy for you and your family. toward satisfying your RMD for the year, up to $100,000 and the QCD is excluded from your taxable income. This is not the case with a regular withdrawal from an IRA, Status of the Longview Community Foundation: Paperwork has been filed, even if you use the money to make a charitable contribution later on. teams are researching different types of foundational structures, and donors are being secured and cultivated. There is still much that needs Use Your Retirement Accounts at Death: You can benefit a charity and to be put into place for a successful public launch. It is critical that the your family by creating a Charitable Remainder Trust (“CRT”) and naming organizational structure is in place so donors are confident that funds will the Trust as the beneficiary of your retirement account. The CRT is tax be used to impact our community for generations to come. exempt during its existence and will not pay any income taxes to receive the funds. The CRT will pay taxable income during lifetime to one or more Part of the process includes helping our community understand the beneficiaries and the remainder of the funds belong to the non-profit charity. difference between charity and philanthropy. Charity focuses on A CRT may be used for other assets, specifically appreciating assets where providing immediate relief to people and is often driven by emotions, while taxable gain or income is of concern. philanthropy is focused on helping people and solving their problemsover the long-term. Philanthropy is a more strategic process of giving Bequest in Your Will: A bequest is a specific gift written into your Last Will that seeks to identity the root causes of systemic issues. We also want & Testament, or in your Revocable Living Trust, that identifies the specific to encourage corporate philanthropy. Corporate philanthropy fosters charity and the amount you wish them to receive. employee engagement and generates business value. When businesses participate in corporate philanthropy, they are creating a positive public Private Family Foundation: For families with a desire to leave a lasting image for themselves, enhancing their relationships with consumers, and legacy, a private family foundation can last for generations supporting creative a positive work environment. qualified non-profit charities and teaching future generations the importance of being charitable. Private Foundations is managed by a board of directors The role of the chamber is to plant seeds and influence actions that leads and is required by law to distribute a minimum of 5% of their assets annually people and leads prosperity. We believe having a community foundation and have annual reporting requirements. will help Longview become more strategic and intentional to become the community of choice to Live.Work.Play. Community Foundation/ Donor Advised Fund: Gifts to a Donor Advised Fund (“DAF”) are immediately tax deductible to the donor and grow tax free. The Donor retains the authority to direct grants to charities, subject Contact us at Ross & Shoalmire to approval from the charity, over the course of the Fund’s life. The today to discuss your options. administrative requirements are handled by the charity administering the fund, often a Community Foundation.
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