• Distribute your assets according to your wishes 
• Balance your commitment to family with a desire to support a charitable organization 
• Save on estate taxes with proper planning 
• Build a legacy without giving up assets today 
• Receive a current income tax deduction 
• Reduce your potential estate taxes in the future 
• Determine the exact amount of your desired support 
• Experience the joy of giving today 

Your first step would be to ensure you have an up-to-date will (or living trust) that reflects your charitable objectives. If you do not, you would need to contact your financial advisor, attorney, or accountant and request assistance in establishing a charitable gift. A well-defined estate plan will ensure that your wishes are respected. 

In addition to cash, consider the following planned gift options: 

Bequest 

A bequest designates Native Forward as the recipient of a gift from your will or trust. You can select a particular program, or scholarship at Native Forward that is important to you to benefit from your gift. A bequest creates a charitable family legacy at Native Forward for generations to come. It’s easy to create a bequest; let your attorney know you would like to include Native Forward Scholars Fund in your will or trust. 

Three ways to allocate a bequest: 

A specific amount of cash (e.g., $10,000); 

A percentage of the donor’s total estate (e.g., 10% of an estate of $1 million would be $100,000 to charity); or 

The remaining value of the estate after all other bequests have been paid. 

Bequests are a great option for everyone as they don’t cost a donor anything during their lifetime. 

Retirement Plans and Life Insurance 

You can designate Native Forward Scholars Fund as the beneficiary of a retirement plan, Individual Retirement Account (IRA), life insurance policy, or insurance annuity. While every circumstance is unique, there can often be tax advantages to selecting Native Forward as the beneficiary of a retirement plan or life insurance policy. Beneficiary forms govern the distribution of assets from these accounts. If you choose to designate Native Forward as a beneficiary, contact your plan administrator to update your forms. 

Charitable Remainder Trust 

A charitable remainder trust can provide a steady stream of income for the term of years that you decide. What remains at the end of the term will go to Native Forward to create a lasting legacy that fulfills your charitable giving goals, such as student scholarships. You fund the trust with a gift of cash or property, receive an income tax deduction and receive a variable or fixed amount income for the length of the term. You may also name a charitable remainder trust as the beneficiary of an Individual Retirement Account (IRA) at your death as another way to support Native Forward. 

IRA to Charity 

If you’ve reached the age of 70 ½ and have an IRA, you may transfer up to $100,000 annually to support Native Forward without having to claim the money as income. A gift from your IRA can be beneficial if you do not itemize your tax returns, or if you do not need the money and would move into a higher tax bracket if you take the required minimum distribution. By making a gift to Native Forward from your IRA, you can also save your heirs from heavily taxed IRA assets. 

Real Estate 

You can gift real estate to a Native Forward, removing a large taxable asset from your estate and receiving the benefit of an income tax deduction equal to the appraised fair market value of the property, with no capital gains tax due on the transfer. The nonprofit can then either sell the real estate or keep it for its own use. 

Personal Property 

We are talking about gifts of items such as artwork, collectibles, books, equipment, or other items of tangible personal property. In many cases, the gift can yield the donor a charitable deduction for the items’ fair market value. Depending on the claimed value, it may be necessary to obtain a “qualified appraisal.” 

The types of planned gifts that protect a donor’s assets 

Sometimes donors don’t want to give up their assets completely when making a gift. In these circumstances, there are a couple of ways for you to give while still having a significant impact. 

Charitable Lead Trusts 

When you make a gift through a charitable lead trust, Native Forward receives a fixed income stream. Lead trusts are the opposite of a charitable remainder trust. However, they are also fixed to a specific term length or the donor’s lifetime. When the term ends, the assets return to you or your beneficiaries instead of the nonprofit. Lead trusts are an excellent way for Native Forward to diversify our funding channels and ensure we have a set amount coming in each year. 

For donors, charitable lead trusts can reduce estate taxes, while still transferring wealth to their heirs. Because the primary benefit is reducing estate taxes, these planned gifts are best for wealthy donors with significant estates. 

Retained Life Estates 

With retained life estates, a donor transfers a property deed or title to a nonprofit while retaining the right to use the property. Unlike a charitable lead trust where the asset returns to the donor, retained life estates belong to the nonprofit after the set term is up. At that point, the nonprofit can sell or keep the property for its own use. 

This type of planned gift is great for donors who want to simplify their estate settlement process and reduce estate taxes. Like most planned gifts, they can also receive an income tax deduction for the property’s value.