Ways of Giving
There are many ways of contributing financial support to your community’s libraries through the Grosse Pointe Library Foundation. Whichever way you choose, you gain both personal and financial rewards. Making a contribution gives you the immense satisfaction of knowing you have played a tangible role in the continued excellence of Grosse Pointe’s libraries. It may also provide you with attractive tax savings, and in many cases income for life.
Some ways donors can give to the Foundation and at the same time enhance their own financial position are noted below.
Click here for the Grosse Pointe Library Foundation Donation form.
GIFTS OF CASH AND APPRECIATED SECURITIES
Most gifts made to the Grosse Pointe Library Foundation are in the form of cash or appreciated securities. Such gifts supply immediate funds for the project and provide a significant income tax deduction for the donor. If you give appreciated assets, you may avoid capital gains tax.
CHARITABLE BEQUEST
A charitable bequest – a gift made through one’s will – is the most common form of planned giving. It is an ideal way to support the library if you desire to make a contribution but feel you are not in a position to part with assets during your lifetime. You have the flexibility to make changes in your bequest provisions, and that includes both the amount and how you wish your gift to be used. The donor may receive a
100% charitable estate tax deduction for the amount of the gift.
You also have flexibility in that your contribution can be a ….
- simple bequest of a specific dollar amount;
- percentage bequest, so that all beneficiaries receive the same intended proportion regardless of whether your estate increases or decreases in value; or
- residual bequest – a gift of what remains in the estate after all other bequests have been satisfied.
CHARITABLE LEAD TRUST
A charitable lead trust is an excellent way to transfer assets to other family members with little or no tax liability. You establish a trust and stipulate that the trust earnings be paid to the Foundation for a specified number of years. At the end of the trust period, the assets, including appreciation, revert to the designated beneficiaries with negligible tax consequences.
CHARITABLE REMAINDER UNITRUST
A charitable remainder unitrust offers a donor several attractive benefits including:
- income for life
- a sizable income tax deduction at the time of the gift, with a five-year carryover
- avoidance of capital gains tax if trust is funded with appreciated assets
- increased current income from appreciated assets
- savings on estate taxes and probate costs.
You fund a unitrust and in return receive income for life or for a period not to exceed 20 years, at a specified rate of return, as well as the benefits noted above. Annual payout may vary from year to year, depending on the rise or fall of the investments in the trust. A unitrust is a good hedge against inflation. At the end of the trust’s term, the principal becomes the property of the Grosse Pointe Library Foundation.
CHARITABLE REMAINDER ANNUITY TRUST
A charitable remainder annuity trust is similar to a unitrust, except that it provides a fixed annual income that is not affected by market fluctuations. Payout must be at a minimum rate of return. You may want to consider an annuity trust if you prefer the security of a steady, reliable income.
IRA BENEFICIARY
One of the most attractive ways to support the library is to name the Grosse Pointe Library Foundation as beneficiary of your IRA. In fact, independent financial planners often recommend it as a planning strategy because it is one of the most tax-efficient assets you can leave to charity.
Here’s why …. If you leave the assets to your children or other heirs, they will have to pay an income tax on the distributions from the IRA, in addition to the estate taxes your executor may already have paid. But, if you leave the assets to a qualified charity such as the Foundation, this double taxation is avoided. Thus, 100% of the IRA is available to support our work. Other assets that are less “tax cursed” can be left to your heirs. This strategy makes sense for individuals who want to achieve both personal and charitable goals.
You may want to name the Foundation as a contingent beneficiary of your IRA account. If your spouse or other primary beneficiary does not survive you, proceeds from the account will go to the Foundation.
LIVING REVOCABLE TRUST
A living revocable trust is one you create during your lifetime that may be amended or revoked. As an alternative to a will, it can be used to avoid probate costs at your death so that more of your estate assets can pass directly to your intended beneficiaries, ensuring privacy and avoiding costly delays in estate settlement. It also provides you with a comfortable way to make a major gift commitment.
Typically, a living revocable trust agreement directs the trustee to pay the trust income to you for your lifetime and then, if you wish, to another named beneficiary such as a spouse. When the lifetime benefits end, the trust distributes the remaining principal to other named beneficiaries. The ultimate beneficiaries can be family, friends, or worthwhile charities such as the Grosse Pointe Library Foundation.
In the trust agreement you can reserve the right to add or remove property from the trust, to change the terms of the trust, even cancel the whole arrangement should you wish. This flexibility of the living revocable trust makes it suitable for many people to make a gift commitment to a favorite charity without fear of being locked into an irrevocable arrangement.
OTHER BENEFICIARY DESIGNATIONS
In addition to retirement accounts, you can make a simple, revocable gift through other beneficiary designations, such as a bank account, a life insurance policy or a pension plan. Usually you can list a primary and secondary (or contingent) beneficiary.
NAMING OPPORTUNITIES & DONOR RECOGNITION
Ample provision has been made for naming opportunities to honor individuals and families and to recognize donors. For information, please contact the Library Foundation, at (313) 640-4683.
IN CONCLUSION
This section has outlined a number of ways for donors to support the Grosse Pointe Public Library and at the same time receive attractive benefits for themselves. The official legal name of the Foundation is the Grosse Pointe Library Foundation. It is important that this name be used in all wills, deeds, and any written documents that evidence a gift or bequest to the Foundation.
Our institution is incorporated under the not-for-profit corporation laws of the State of Michigan.
Charitable gifts are tax deductible to the extent permitted by law. When considering a gift to the Grosse Pointe Library Foundation, you should confer with your attorney or tax advisor.
A member of the Grosse Pointe Library Foundation office is always available to discuss giving options for contributing to the Library. Please call (313) 640-4683.