Making a commitment to the Endowment Trust for Justice can be an important part of an individual’s overall financial and estate strategy. The FJA Research and Education Foundation is designated by the Internal Revenue Service as a 501(c)(3) non-profit charitable organization to which tax-deductible contributions may be made, as provided by law.
Current Gifts
- A Cash commitment can be made by an individual or corporation with pledge payments fulfilled over a number of years.
- Gifts of Real Estate offer considerable tax-saving benefits. The contributor may claim the full fair-market value as an immediate tax deduction (up to the annual limitation) and avoid capital gains on the sale of the residential, commercial, or rental property.
- Contributing Appreciated Securities held for at least 12 months avoids capital gains taxes. The charitable deduction is set at the full fair-market value of the gift.
Planned Gifts
Planned gifts are very flexible and can be designed to meet the contributor’s needs, expectations and the timing of the gift. One benefit, especially for larger estates, is that estate taxes on assets transferred to named beneficiaries are fixed at the time the Lead Trust is created. If the Lead Trust grows, heirs will benefit from the increase in value – without incurring any additional estate tax on that portion of their inheritance.
- A Bequest is a personal decision incorporated into an individual’s Will. A Bequest designates that a portion of the contributor’s assets will be given to the FJA Research and Education Foundation. When properly constructed, a bequest can represent a considerable estate tax savings for an individual’s heirs.
- A Set Amount Bequest. A certain number of dollars, or shares of stock, or a parcel of real property is to be transferred to the Foundation and the individual’s Will details the exact amount of the gift.
- A Residual Bequest states that the individual “bequeaths to the FJA Research and Education Foundation’s Endowment Trust for Justice an amount equal to ___ percent of the net value” of his/her estate.
- With a retained Life Estate Interest gift, an individual gives his/her primary residence, farm, or second home to the Foundation and keeps the right to live in and use the property until death. On the date the planned gift is made, the individual receives an immediate tax deduction for a portion of the appreciated value of the property.
- Giving a fully-paid-up existing Life insurance policy that the individual no longer needs results in a tax deduction based on the current value of the policy.
- An individual may choose to set up a new insurance policy, naming the FJA Research and Education Foundation as owner and beneficiary. The contributor will make an annual tax-deductible contribution to the Foundation to be used explicitly to pay the new policy’s premium.
- A Charitable Remainder Annuity Trust is a contract that guarantees a fixed income for life in exchange for the person’s gift. As the annuity asset grows, the contributor can be satisfied that he/she has secured a set amount of income to be received each year and that the FJA Research and Education Foundation will have an even larger legacy once the annuity payout is completed.
- Through a Charitable Remainder Unitrust, the payout of income to the contributor or to a named beneficiary is based upon the value of the Unitrust each year rather than a fixed dollar amount. Unitrusts provide protection against inflation. By selecting a lower rate of return, the asset’s principal grows more quickly, thereby increasing the payout to the contributor in subsequent years.
- A Charitable Lead Trust is especially useful if an individual has income producing assets to preserve and protect for his/her own heirs but does not need income from the asset to maintain a current lifestyle. The Lead Trust provides annual income paid to the FJA Research and Education Foundation for a set number of years. When the Lead Trust ends, the asset reverts to the original contributor or his/her beneficiaries.