Making an outright gift to the NEF Endowment Fund is just one way to support our public school students. Another option is to make a planned gift, the most popular types of which are described below. Planned giving arrangements provide a unique combination of direct benefits to both the Endowment Fund and the donor.
By committing today to make a planned gift to the Endowment, you will have a lasting impact on public education in Northampton as your gift will reap dividends for our community’s schoolchildren in perpetuity.
A simple planned gift can be made by listing the NEF Endowment Fund as a beneficiary of your will.
IRA, 401 (K), 403(b), or other Qualified Retirement Plan Assets
A donor may use these assets to leave a legacy simply by naming the NEF Endowment Fund as the beneficiary. Since these assets are often subject to both estate and income taxes, they should be the first used for charitable bequests.
Name the NEF Endowment Fund as the owner and beneficiary of a new or existing policy – perhaps a policy that is no longer essential to your financial goals. Premiums on the policy that you pay will then become tax deductible.
Charitable Gift Annuity
A gift annuity is a contract between a donor and a nonprofit organization where the organization agrees to pay a fixed income, usually for the life of the donor and/or spouse, but others can be named as the life beneficiaries. At the conclusion of the annuity, the amount equal to the difference between the original gift and the cost of providing the annuity is left to benefit the organization in perpetuity.
Charitable Remainder Trust
A Charitable Remainder Trust is a trust that allows a donor to receive income (or provide income for another person) with the knowledge that the funds remaining when the trust terminates will be used to support the donor’s charitable interests.
Charitable Lead Trust
A Charitable Lead Trust is a trust that enables the donor to make significant charitable gifts in the near term then distribute the remainder interest to non-charitable beneficiaries, who may benefit from significantly lowered gift and estate taxes.
Who needs a will?
You need a will if you wish to have a say in how and to whom your assets are distributed after your death. Without a will, your estate will be divided according to the laws of Massachusetts. With a will you may be able to minimize estate taxes and provide gifts in trust for minors and/or charitable organizations.
I already have a will. How do I include the Endowment Fund?
Talk to the attorney who drew up your will. If including a bequest is the only modification you are making, this can usually be done by adding a codicil to the will.
How often should I update my will?
A change in your will is often required when you experience changes in your personal or financial situation, such as marriage, divorce, birth of a child, death of a spouse, a new business, purchase of a new home, retirement, and/or a desire to make charitable gifts.
I’m interested in naming the NEF Endowment as a beneficiary of my IRA or life insurance policy. Who should I talk to?
Contact your life insurance agent, or the financial institution where your IRA is invested.
Who should I consult about setting up one of the other kinds of planned gifts?
A financial planner can help you evaluate which type of planned gift will help you achieve your financial objectives, as well as supporting the charitable organization you care about. The Community Foundation of Western Massachusetts is another resource & can be reached at 413-732-2858 or www.communityfoundation.org.
If you would like more information before making a planned gift, please contact Monica Green, Susan Rosen, or Martin Wohl, or any one of the members of the NEF Endowment Fund Campaign Steering Committee:
Last Updated: June 2, 2011