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The Masonic Angel Foundation, Inc. is a 501(c)(3) charitable foundation

 

PLANNED GIVING WITH THE MASONIC ANGEL FOUNDATION

 

The Masonic Angel Foundation, Inc. offers an unusually great opportunity for satisfaction to its patrons. As can be seen in our financial reports, no contributed funds are used for administration or overhead, and, through several matching programs available to us, often a dollar contributed by one patron can be increased by other contributions. Secondly, the MAF has a history of working closely with patrons to ensure that their contributions will be deployed in accordance with the patronsí particular interests for the relief of children. In all circumstances, we seek to serve the greatest possible number of children in the most efficient manner.


Planned giving provides special opportunities for investment in MAF by those who want to provide for the future and help children in their local area or even across the nation.

Please be aware that any consideration of charitable giving must take into account the unique financial circumstances of each potential donor; because of individual circumstances not all of the examples discussed below will be appropriate for every individual. We encourage close consultation with a competent tax professional before undertaking any gifting program.


CHARITABLE GIFT ANNUITY (CGA) 

Many experienced philanthropists find that Charitable Gift Annuities allow them to give a substantial gift to a worthy charity while increasing their own annual income. A gift annuity is an agreement by which a supporter makes a minimum gift (at least $5,000) to the Masonic Angel Foundation, Inc. and, in return, receives guaranteed payments for life. The donor may receive these annuity payments himself, jointly, or designate another person to receive them. The donor benefits from an immediate charitable income tax deduction and partially tax-free annual payments and may be able to reduce your estate taxes.

How the Charitable Gift Annuity Works

A gift annuity is a simple contract between the donor and the Foundation involving four steps:

1) The donor chooses to support MAF by making a gift of cash, securities, or property. The minimum gift to fund a charitable gift annuity for the MAF is $5,000.

2) In return, the Masonic Angel Foundation, Inc. signs a contract to pay the donor, the donorís spouse or child or other named person, if desired, a guaranteed sum for the rest of the named personís life.

3) The Foundation invests the donorís gift to provide money to make the guaranteed payments.

4) At the time of the named personís death, the remaining funds are made available to support the mission of the Masonic Angel Foundation, Inc..

How the Charitable Gift Annuity Benefits The Donor

In many respects, a gift annuity is similar to a commercial annuity that anyone would purchase from an investment or insurance company. We offer very competitive rates, and because of the charitable nature of the gift, the donor may receive several particular tax benefits. These benefits may include:

1) A charitable deduction for a portion of the gift (typically 40-60% of the contribution). The donor can use this deduction immediately to offset a portion of their income tax liability.

2) A portion of the income the donor receives from the gift annuity is tax-free. If the gift has been made via appreciated stock or property, the donor may avoid a significant share of the capital gains taxes which would otherwise be generated by selling the appreciated property to raise funds for gifting.

3) If the donor and their spouse are the only beneficiaries, the value of the annuity is removed from their estate and is not available for estate taxation. If the donation has been made to establish a gift annuity for another person, the estate may receive a gift tax-deduction to offset a ---- portion of the gift.

 

CHARITABLE REMAINDER TRUST  (CRT)

Today many people own highly appreciated assets such as real estate or stock.  Often, they are reluctant to sell these assets because of the significant capital gains taxes such a sale would create. These same people may be looking for ways to increase their income or to diversify their portfolio. Fortunately, there may be a solution to their dilemma via a Charitable Remainder Trust. 

How the Charitable Remainder Trust Works

A Charitable Remainder Trust, also known as a CRT, is an irrevocable trust designed to convert an investor's highly appreciated assets into a lifetime income stream without generating estate and capital gains taxes. CRT's have become very popular in recent years because they not only represent a valuable tax-advantaged investment, but also enable potential philanthropists to provide a gift to one or more charities in which they have a particular interest. 

How a CRT Benefits A Donor

A CRT can potentially: 

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Eliminate immediate capital gains taxes on the sale of appreciated assets, such as stocks, bonds, real estate and just about any other marketable asset. 

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Reduce estate taxes, of which the incremental rates may reach 55%, to better preserve the donorís estate for their chosen beneficiaries instead of the Federal and State governments.

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Reduce current income taxes with an income tax deduction in the year of the gift. 

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Increase your usable income throughout the rest of your life by reinvesting your principal into higher-yielding investments. 

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Enjoy the satisfaction of having made a charitable gift that will benefit others for years. 

 

When the donor establishes a CRT with the Masonic Angel Foundation, Inc., they or another designated beneficiary receive income from the trust for life or for a term of up to twenty years. 

When the trust ends, the remaining assets pass to the Masonic Angel Foundation, Inc. for the benefit of the children we serve. 

CHARITABLE LEAD TRUST

How It Works
A patron transfers nearly any type of property to a charitable lead trust (stocks, bonds, income-producing real estate, even some privately held businesses). The lead trust then pays out income to the Masonic Angel Foundation, Inc., either for a set number of years or for the patronís lifetime. The payment to the Foundation can be the same amount each year (lead annuity trust) or a fixed percentage of the trust's annual value (lead uni-trust).

Why It Works
When the patron establishes the lead trust, his or her estate may receive a gift tax exclusion for a part of the gift, offsetting a portion of the === taxes the estate otherwise would have paid before it passes the remainder to the donorís heirs. Furthermore, from the time the trust is established until the day it passes the remainder to the heirs, all appreciation will have occurred outside of the estate and will not be subject to the --- estate tax.


GIFTS OF LIFE INSURANCE

 

If a potential donor owns life insurance that is no longer needed to protect their family members or business, the donor could consider transferring ownership of the policy to the Masonic Angel Foundation, Inc. and naming the Foundation as beneficiary. Whether or not all premiums are paid, the donor may be entitled to an income tax deduction (and possible an estate tax deduction) for such a gift.

Donors can also name the Foundation as the primary or contingent beneficiary of a new or existing policy, without transferring ownership of the policy. During the donorís lifetime, they retain ownership and have access to the policy's cash value, but realize no tax benefits. After the insuredís passing, if the proceeds of the policy are paid to MAF, their estate may be entitled to an estate tax charitable deduction.

 

GIFTS OF REAL ESTATE

Giving Real Estate is a way to further the MAFís work while at the same time providing you with substantial tax benefits. 

 

A gift of real estate is a wonderful way to help the children we serve. Donors may select a way to give that best suits their needs. For example, they may choose to receive a lifetime income or retain lifetime use of their property. Of course, there may be substantial tax benefits depending upon how one chooses to give real estate.

 

GIFTS OF RETIREMENT PLAN ASSETS

Many people have accumulated substantial sums in tax-deferred retirement accounts, which include profit-sharing plans, IRAs, 401(k)s and 403(b)s. These accounts are popular because the contributions are made with pre-tax dollars and the assets in the accounts grow tax-deferred. However, funds withdrawn from these accounts are usually taxed at both high income and estate tax rates. When the account holder dies it is possible that less than $30 of $100 in a retirement account will reach non-spouse beneficiaries.

Therefore, individuals planning to make charitable gifts at death should consider using retirement accounts to fulfill their wishes. By giving retirement account assets, donors avoid both income and estate taxes that would otherwise be due. Other less heavily taxed assets may be used to fulfill bequests to loved ones. As a result, these beneficiaries receive more after taxes.

 

GIFTS OF STOCK

Gifts of stocks or bonds are an excellent way to help the children we serve. The best way for both you and the children to benefit is to have your broker transfer your stocks directly to the Masonic Angel Foundation, Inc. That way, you can realize the best tax savings.  At the time of this writing, you receive a twofold US income tax benefit:  a charitable deduction for the full present fair market value, and no tax on the appreciation.

 

LEAVING A BEQUEST

 

By including the Masonic Angel Foundation, Inc. in oneís will donors assist us in serving children in need long into the future. A donor can make a bequest for a specific sum, a piece of property or the residue of their estate.

O
nce a person decides to leave a gift to the MAF, the first thing they should do is contact their attorney to help draw up or amend their will.  Counsel will need the following information:

 

Masonic Angel Foundation, Inc.  PO Box 1389, 49 South Orleans Road, Orleans, MA  02653-1389

Tax ID - 04-3521605

 

Our 501(c)(3) status under the Internal Revenue Code authorizes tax-deductibility of contributions by the donor, as always depending on the financial circumstances of the donor.

If you would like sample language that may be helpful if you decide to remember MAF in your will, please feel free to contact us.

Charitable bequests generally take one of four forms:

 
The Percentage Bequest: The donor may designate that a specific percentage of their estate is left to the Masonic Angel Foundation, Inc. 

The Specific Amount Bequest: A donor may include the Foundation in their will or trust for a predetermined amount. For example, ďI give, devise and bequeath to the Masonic Angel Foundation, Inc., a nonprofit organization, whose headquarters address is PO Box 1389 Orleans, MA 02653, the sum of $xxxx.xx to be used by the Masonic Angel Foundation, Inc. to further its service to children in need who often do not qualify for assistance by traditional social service programs.Ē

The Residuary Bequest: Perhaps the donor has itemized their will in order to leave specific property to particular beneficiaries. If you have, your estate will likely have a "residue" after all of your distributions have been made. By naming the Foundation as the beneficiary of this residue, you simplify the probate process and ensure that the government doesn't allocate the remainder of your estate as it sees fit.

The Final Contingency Bequest: Anyone can have a perfectly legal will that may become invalid at probate if their named beneficiaries do not survive them. In this case, the courts decide how to divide the decedentís estate, up to and including the possibility that they will find no "valid heirs" and confiscate the decedents estate. By naming the Masonic Angel Foundation, Inc. as the final contingent beneficiary the donor ensures that the government will not distribute their estate.