Planned Giving Guidelines
Founded as an
adjunct to the Rotary Club of Madison, the Madison Rotary
Foundation receives gifts from members and others for memorials,
scholarships, and other Rotary projects. Rotarians who wish to
make a gift that impacts on the local community and, at the same
time, helps to "pay back" Rotary for the great and wonderful
fellowship it provides, are encouraged to make that gift through
the Madison Rotary Foundation. The Foundation looks to its
membership to continue its charitable practices in the Madison
community for those purposes that are within the scope of Rotary
interest. The service of the Rotary Club of Madison is extended
through Foundation gifts to local nonprofit organizations,
schools, youth organizations, scholarships, and many special
projects.
The Madison Rotary
Foundation receives, invests, and distributes gifts for the Rotary Club
of Madison. In this role, the Madison Rotary Foundation engages in fund
raising on a limited basis. Although the only ongoing fund raising for
the Foundation is an annual drive in which each Rotarian is asked to
participate, there are other opportunities to make outright or deferred
gifts to the Foundation. An explanation of these opportunities follows.
Outright Gifts
An outright gift is an immediate gift with no deferred element to it.
The best vehicles for outright gifts are cash, usually in the form of
personal checks, or gifts of securities. Each of these gifts offer tax
advantages but you should always consult with your attorney or
accountant for the legal and tax implications of any gift you make to
charity.
Special Gifts
From time-to-time, Rotarians find themselves involved in situations when
significant capital gains are to be realized, i.e., buy-outs and
mergers, sale of a business or home, or other real or personal property.
Such events offer ideal circumstances for a major gift to a favorite
charity such as Rotary, particularly because of significant tax breaks.
Be sure to consult your attorney or tax advisor early in such
developments.
Annual or
Endowment Gifts
The Madison Rotary Foundation has chosen to add all gifts of $5,000 or
more, even if received as part of its annual drive, to the general
endowment fund, unless the donor specifically directs that the entire
gift be used currently or endowment is designated. Appropriate
recognition will be given to donors for such gifts. Gifts of $10,000 or
more may be used to establish an endowment fund to perpetually honor the
donor by continuing good work in his or her name. A donor may decline
the endowment assignment and direct gifts for an immediate use.
Scholarship
Program
Gifts and bequests can be made to the Foundation to establish a named
scholarship. A $100,000 fund generates an annual award to a graduating
senior from one of the seven Madison area high schools. A $50,000 fund
generates an award every other year.
Deferred Giving
A deferred gift is one in which the charity receives the benefit at a
date later than when the gift is made; in other words, the benefits
accrue to the charity sometime in the future. There are several ways to
make Rotary a beneficiary of this type of gift.
Life Income Gifts
This form of giving is ideal for the Rotarian who would like a portion
of his or her estate to go to the Foundation eventually and who would
like to have the assets professionally managed at a time in life when
such responsibilities are a chore. By placing assets in a charitable
remainder trust at the Rotarian's bank trust department, a tax
deduction, determined by the age of the life income beneficiary, is
realized. An agreed-upon percentage of the income earned by the trust
is paid to the life beneficiaries (typically the donor and his/her
spouse). Please see your bank trust officer if you are interested in
this type of gift.
Life Insurance
Policies purchased years ago to provide protection for a young family
may no longer be needed for this purpose and offer an ideal way to make
an endowment gift to the Madison Rotary Foundation. You may wish to
gift the policy to the Foundation for the cash surrender value and
receive a tax deduction. Another way to make this type of gift is to
purchase a new policy with the Foundation as the owner and beneficiary;
all premiums you pay will be deductible for tax purposes. Please see
your insurance agent for details.
Lead Trusts
A combination of annual and deferred giving is included in a Charitable
Lead Trust. In this case, a Rotarian sets aside in trust certain
income-producing assets for a set period or life. During this time, the
income is paid to the Madison Rotary Foundation and, at the end of the
period, the assets and future income revert to the donor or another
person (spouse, child, grandchild, etc.). These trusts can save
significant amounts of gift, estate and income tax, but must be
carefully planned by expert estate planning counsel.
Bequests
The easiest way to make a gift to Rotary is to include it in your will.
The language for this gift is most important. The complete name of the
Foundation for inclusions in your will is the MADISON ROTARY
FOUNDATION. A gift of this kind can be a specific cash amount, a
specific property, or a percentage amount of your will.
The following
suggestions for supporting our Madison Rotary Foundation are offered for
your consideration. If you have any questions, please call the Rotary
office to be referred to the appropriate member of the Foundation board.
Thank you for your continuing support.
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