Cranberry Legacy Endowment

 

There are Many Ways to Give

1. Direct Donations

The minimum gift to establish a Legacy Endowment is $10,000.  The most popular method is direct donation.  Some may think that forming a Legacy Endowment is something for older people, but many community foundations are actually funded by younger adults with the goal of making a meaningful difference in their own communities.  They contribute to their endowments on a regular basis to increase the size and effectiveness of their Legacy Endowment.  In addition to supporting a specific nonprofit and civic organizations, there are a number of designated and field-of interest funds available to support.

A new legacy endowment providing lasting support for a charitable cause may be created in your name; as a memorial to a loved one; or to support a special purpose project.  If you wish, as the donor, you even could choose to remain anonymous.

How $6,500 can launch a $10,000 Legacy Endowment

While tax savings are not the reason for philanthropy, the Cranberry Legacy Endowment will allow you to qualify for a tax deduction according to IRS rules and regulations.  If you are currently in the 35% tax bracket and claim deductions, your $10,000 legacy endowment will effectively cost you just $6,500.  This maximizes your contribution in a favorable way for both you and the organization you designate as the beneficiary of your endowment.

Corporate Matching: How $3,250 can launch a $10,000 Legacy Endowment?

Many organizations match employee contributions dollar-for-dollar to certified nonprofit entities meeting IRS regulations.  Assuming your company would match a full $5,000 contribution to start a $10,000 Legacy Endowment, you would receive a tax deduction for your portion of the $5,000 donation (assuming 35% tax bracket and you are claiming deductions). Thus, for a net contribution of $3,250, you can establish a Legacy Endowment for a specific nonprofit organization or cause. You could continue to grow this endowment to new levels using your company match to maximize this benefit.

Levels of Endowments

There are currently four levels of Legacy Endowments. We recognize each level by name in our Annual Report.  The levels are:

  • Legacy $10,000
  • Heritage $25,000
  • Pillar $50,000
  • Legend $100,000

Endowments are recognized in our combined Annual Report which is mailed leading up to Cranberry Township’s Community Chest Community Days celebration in July.  In all, 15,000 copies are produced and available all year.  When your endowment is created, the Report will feature an expanded description of your fund along with a photo.  In future years, the Report will include a summary of your endowment and photo.  If you continue to grow your endowment, the Report summary will feature the different levels listed above. The size of the endowment will be recognized accordingly but more importantly, everyone will learn about the impact your endowment makes to your chosen nonprofit, civic organization or field of interest.

(To see the Cranberry Legacy section of the last Annual Report, click the cover image in the annual report block to your left for a desktop browser or below for mobile browsers.)

Inspiration: We encourage you to list your reasons for establishing an endowment as a way of encouraging others to do so in the future.  Your contribution will plant seeds in the minds of others to help their community by starting their own Legacy Endowments.

Other recognitions for Memorial Funds: A Memorial Fund can be established for as little as $1,000.  This fund is specific to the memory of an individual and will be recognized in the Annual Report.  Thereafter, Memorials will be listed by name under the Memorial Fund section.

Estate Planning: There are many other ways to give that can include business interests; royalties; mineral rights, patent rights, and the list goes on. 

It is also important to consider charitable giving in estate planning as a practical way of minimizing or eliminating inheritance tax for your loved ones while assuring that your estate is transferred in accordance with your wishes. In essence, rather than paying inheritance taxes, your planning takes advantage of the nonprofit status of the Cranberry Legacy Endowment and becomes a lasting benefit to your relatives and to the nonprofit.  There a number of innovative ways to integrate nonprofit giving into your estate planning, customized to your situation.  We are happy to explain these options, but strongly recommend that you discuss all matters involving estate planning and giving with your attorney, accountant and relatives.


2. Life Insurance as a Gift

Many people are surprised at the idea of funding a Legacy Endowment with life insurance, but it can make a lot of sense.  You can donate an existing insurance policy or take out a new one that will be owned by the Cranberry Legacy Endowment to benefit the specific nonprofit/civic group of your choice.  It is an excellent way to leverage a $20,000 donation to generate $100,000 for an individual, or $30,000 donation to generate $250,000 as a couple.   These are major donations that will have a tremendous impact on the nonprofit, scholarship or community asset for our community.  This is a Planned Investment that can have immediate tax benefits for you while creating a lasting Legacy that you can benefit future generations. 

The advantages of life insurance as a gift to fund a Major Legacy Endowment include:

  • All insurance premiums are tax deductable in the year they are made.
  • Insurance premiums made over $10,000 will be immediately recognized as a Legacy Endowment in the Annual Report.
  • Premiums can be made in convenient annual payments or in a one-time payment.
  • Company matches may be used to help pay the premiums.

 

How it works:

  • It is simple: Based on the donation level and your age, an insurance policy is created that will be owned by Cranberry Legacy Endowment and the nonprofit or cause of your choice.
  • You will be responsible for paying the premiums either in a one-time donation or through annual donations.  These donations will become tax-deductable.
  • When the policy is payable, the nonprofit or cause of your choice will benefit according to the stipulations of your agreement with CLE.

 

How much does a policy cost:

The younger you are the cheaper the policy, but even in your 70’s, there are advantages to leveraging your gift.   Below are some examples:

Guaranteed Advantage Universal Life

Face Amount

$100,000

$250,000

Issue Age:

Male Preferred

Female Preferred

Male Preferred

Female Preferred

50

$2,208.21

$1,951.41

$5,243.90

$4,451.86

55

$2,897.40

$2,481.82

$6,602.99

$5,676.04

60

$3,954.17

$3,062.05

$8,635.88

$7,268.16

65

$4,461.02

$3,894.78

$10,950.74

$9,410.43

70

$7,768.46

$5,534.98

$14,614.96

$12,288.42

 

You can further leverage your donation with a joint life insurance based on you AND your spouse.  Here are some examples:

Legacy Advantage SUL 
Non-Smoker, Annual Premiums, Pay 10 years

Face Amount

$250,000

$500,000

50

$3,373.22

$6,602.87

55

$3,994.44

$7,850.66

60

$4,977.401

$9,824.8

65

$6,377.11

$12,629.85

70

$7,577.63

$15,025.29

 

Funding a Legacy Endowment with Life Insurance is a excellent way to make a huge impact on the nonprofit or cause of your choice.  For more information, please contact a representative of the Cranberry Legacy Endowment.

3. Real Estate/Personal Property

From farmland to timberland to vacation residences to rental properties, a gift of real estate can unlock the full value of your property and offer special economic advantages. You can make a substantial gift through a transfer of residential, commercial, or undeveloped real estate. If you own property not subject to a mortgage which has appreciated in value, a charitable gift to Cranberry Legacy Endowments and the nonprofit of your choice may be an attractive proposition. 

Here are some options to make gifts of real estate:

  • An outright gift of appreciated property offers maximum tax advantages because the charitable deduction is generally based on the full fair market value of the property. An appraisal is needed for IRS purposes.
  • A gift of the remainder interest in your home or farm (called a “retained life estate”) can provide a current tax deduction, avoid capital gains taxes, and allow you to continue to live in your home.
  • A gift (or partial interest) of appreciated property can be used to create a charitable remainder trust, which will provide you (and/or you and a second beneficiary) an annual income for life.
  • From farmland and timberland to vacation residences and rental properties, a gift of real estate can unlock the full value of your property and offer special economic advantages. If you own property not subject to a mortgage which has appreciated in value, a charitable gift to Cranberry Legacy Endowment and the nonprofit of your choice may be an attractive proposition. The following options are frequently used by people of your position.
  • An outright gift of appreciated property offers maximum tax advantages because the charitable deduction is generally based on the full fair market value of the property. An appraisal is needed for IRS purposes.
  • A gift of the remainder interest in your home or farm (called a “retained life estate”) can provide a current tax deduction, avoid capital gains taxes, and allow you to continue to live in your home.


A gift (or partial interest) of appreciated property can be used to create a charitable remainder trust, which will provide you (and/or you and a second beneficiary) an annual income for life. 

Why Fund a Charitable Gift with Real Estate?

  • Unless you sell the property, your options for receiving current financial benefits from the real estate are usually limited to increasing your debt or renting the property to someone else.
  • Real property can also be a nuisance for estate planning, since it is rarely practical to transfer a single property to more than one heir. The result is a choice between leaving inequitable benefits for heirs or placing the burden-and costs-of selling the property onto your executor and estate. Property located in different states may be subject to additional probate and transfer costs. 

 

Make an Outright Gift

  • You may deed your property to Cranberry Legacy Endowment and gain an income tax deduction for the appraised value of the property. 

 

Other Personal Property

Personal items like paintings, jewelry, collections, etc may have direct or indirect value to many of our nonprofit/civic organizations. For example, the Cranberry Township Historical Society values all antiques and tries to incorporate items in their own collections, especially those items with local historical value. The Cranberry Public Library displays a number of donated paintings on their walls. All material donations must be appraised for IRS purposes. 

Give Your Property and Continue to Enjoy It

The retained life estate agreement is an opportunity to continue living in or using your home, vacation home, or farm while also establishing a gift now-and to enjoy the benefits, including current tax savings, that usually characterize only lifetime charitable gifts. While nothing changes in your current lifestyle or your use of the property, the retained life estate arrangement generates a sizable income tax deduction for you in the year you establish the gift. At the end of the retained life estate term (usually your lifetime or joint lifetimes), the property goes to Cranberry Legacy Endowment as the charitable recipient. The donor is responsible for all taxes, maintenance, etc., on the property during their lifetime.

What If I Depend on the Property for Income?

A retained life estate agreement will allow you to continue using the property productively or rent it to others during your lifetime. You can then enjoy the income tax savings immediately or save it for the future or for your heirs.

A Gift that Yields an Income Stream

It is possible to generate or replace income from real property (while avoiding or reducing capital gains taxes on the sale of the asset) through a charitable remainder trust. In this scenario, the donor must put the property into a trust before there is a signed purchase offer on the property by a third party.

Opportunity

A married couple, ages 73 and 75, wishes to establish a retained life estate agreement for their home, which is valued at $500,000.

Result

They will receive an income tax charitable deduction this year of $292,785.  They will continue to enjoy their home for life, after which CLE will receive the residence. This illustration is based on a 2.4% AFMR. The tax deduction may vary with specific properties, donors' ages, and date of the agreement.

We can help you to plan

A member of CLE will confidentially answer your questions about giving and work closely with your legal, tax, and other advisers to come up with an integrated plan that meets each of your personal goals. 

Result

Mrs. Jones claims a charitable income tax deduction for a portion of the home's value and avoids the capital gains tax she would have faced if she had sold the property herself. After the trustee sells the property, the resulting proceeds in the charitable remainder trust will yield a steady stream of income the rest of her life. Mrs. Jones' charitable wishes for are met, as the trust principal will ultimately serve her wishes.

Opportunity

Mrs. Jones is newly retired and plans to downsize from her large home to a condominium. She does not wish to retain the property and would like income to supplement her retirement savings.

Mrs. Jones has always wanted to make a meaningful charitable gift and speaks with a CLE representative about her charitable options regarding the property.  She decides to gift the house by placing it in a charitable remainder trust with CLE as beneficiary.

 

4.  Charitable Gift Annuity

An easy and popular way to make a planned gift to Cranberry Legacy Endowment (CLE) is through a charitable gift annuity which provides you with life-time income. When you make a gift of $25,000 or more to (CLE) to establish a charitable gift annuity, CLE promises to pay you (or up to two people) an income at a fixed annual rate. This rate, based on your age(s), is established at the time of your gift and never changes. Your income from this gift is guaranteed for life.

Upon your death, CLE receives the remainder of the annuity and applies the funds to the program you specified at the time of your gift.

Deferred Charitable Gift Annuity

A variation of the charitable gift annuity, the deferred charitable gift annuity, is ideal for younger donors. With a minimum gift of $10,000, you can fund an annuity at age 35.  Income payments are delayed for a minimum of one year and cannot begin before age 60.  The rate of the future annuity payment is established at the time of your gift, based on your age(s) and the deferral period before payments begin.

Benefits of establishing a charitable gift annuity include:

  • Receiving an immediate income tax deduction and potential eliminations of gift and estate taxes.
  • Avoiding or reducing capital gains tax if appreciated property is used to make a gift.
  • Designating how the remainder of your gift will benefit CLE.

 

What Is a Charitable Gift Annuity?

A charitable gift annuity is a simple combination of two concepts: a charitable gift and income for life. Think of it as the gift that gives back. A gift annuity allows you to make a gift to CLE nonprofit/civic groups of your choice and benefit from the following:

  • Safe, fixed income for your life and the life of a loved one (spouse or parent)
  • Tax savings-immediately and in the future
  • Favorable treatment of capital gains, if funded with appreciated assets


Recognition as a Charitable Annuity donor in the CTCC Annual Report (if desired) 

How Does a Charitable Gift Annuity Work?

In exchange for an irrevocable gift of cash, publicly traded securities, or other assets, CLE agrees to pay one or two persons a fixed annual income.  The charitable gift annuity rate of return is set by the American Council on Gift Annuities and is often higher than what is available from many conservative investments.

Are There Any Age or Gift Amount Restrictions?

The minimum contribution to establish a gift annuity at CLE is $25,000. You may establish more than one annuity. There is no maximum gift amount. The minimum age for receiving annuity payments is 65.

What Assets Can I Use to Fund a Charitable Gift Annuity?

While cash is the most popular way to fund a gift annuity, you may also use maturing CDs, publicly traded stock, and other appreciated assets.

Is It Worth the Time and Energy to Change from My Current Investment to a Charitable Gift Annuity?

Yes, especially if your current investment yields a variable rate of return.  Because your income from a CLE charitable gift annuity will never decrease – nor can you outlive it – this one-time purchase can provide a stable annual income. This income can allow you to meet important needs, such as buying long-term care insurance or offsetting the costs of retirement facility care.

 

5. Charitable Remainder Trust (Annuity or Unitrust)

For gifts of $100,000 and greater, you can create a charitable remainder trust, which can be created during your lifetime or through your estate.  When you transfer assets and name Cranberry Legacy Endowments (CLE) as the trustee, we invest the assets for the length of the trust term.  This gift option provides you or your loved ones with annual income, for the rest of you or your loved ones' lifetime; or a term of no more than twenty years.  When the trust term is over, the remaining assets are distributed to a nonprofit/civic group that you designated in the initial agreement. This giving opportunity ensures future income for you and your family while supporting your favorite nonprofit group.

There are two types of charitable remainder trusts:

  • Charitable Remainder Annuity Trust - This option pays a fixed amount each year for as long as the trust term lasts.
  • Charitable Remainder Unitrust - Payments are equal to a fixed percentage of the unitrust's assets after they are revalued each year. Therefore, income is variable from year to year. 


Benefits of establishing a charitable remainder trust with CLE include:

  • Ensuring a Legacy for you and contribute to your nonprofit of choice on a regular basis.
  • Supplementing your retirement income.
  • Unlocking appreciated assets (securities, real estate, business interests, etc.) without incurring a capital gains tax.
  • Obtaining a significant income tax charitable deduction. 


What Is a Charitable Remainder Trust?

  • A charitable remainder trust (CRT) is established when you transfer assets (cash or appreciated assets) to the trustee named in the trust agreement (e.g., a bank trust department or CLE). Your trustee invests the assets for the term of the trust, which can be for the life of the income beneficiary (or beneficiaries) or for a term of no more than twenty years. When the trust ends, the remaining assets are distributed under the guidelines that you previously set for your selected nonprofit or civic group.


There are two basic types of CRTs, and the payment you receive depends on the kind of CRT that you choose. A charitable remainder annuity trust pays a fixed amount each year for as long as the trust term lasts. The payment must be at least 5% of the value of the trust assets when it is established. The charitable remainder unitrust differs in that the payments may be variable because you are receiving a fixed percentage of the unitrust's assets as revalued each year. The payment must still be at least 5% of the trust's value, but in this case, it is revalued annually.

Gift of assets

Annuity Trust Example:

Mr. Smith establishes a $200,000 annuity trust with a payout rate of 5% that provides annual payments of $10,000 to his granddaughter for five years to help with the costs of her education.  The next year, if the trust appreciates to $205,000, her granddaughter still receives $10,000.  Conversely, if the trust's value declines to $195,000, her granddaughter still receives $10,000.  At the end of the five-year period, Mr. Smith has directed that the remaining principal fund a specific nonprofit or cause. In addition, Mr. Smith would receive a significant income tax deduction in the year that the trust was established. 

Unitrust Example:

Mr. Smith establishes a $200,000 unitrust with a payout rate of 5% as revalued each year with the payments going to him for the rest of his life. In the first year, if the trust appreciates to $205,000, he will receive $10,250. Conversely, if the trust's value declines to $195,000, his income will be $9,750. Mr. Smith has directed that, upon his passing, the remaining principal fund an endowment for a specific nonprofit group. In addition, Mr. Smith would receive a significant income tax deduction in the year that the trust was established.

Disclaimer: As with all investments, trust and gifts, we recommend that you seek professional council for up to date tax laws and estate planning that will best suit your needs. As with all information provided in this web site, all information offers a concept for each investment. No promises or guaranteed returns are being made.

 

6. Bequest in Will or Living Trust

After providing for family and friends, you may choose to make a bequest in your will or living trust, designating a charitable gift to Cranberry Legacy Endowments after your death to benefit a specific nonprofit/civic organization. A bequest allows you to make a gift to CLE, receive an estate tax deduction for the amount of the gift, and leave a lasting legacy to the aspect of our community which is most important to you.

If you are interested in remembering CLE and a specific nonprofit/civic organization in your will or living trust, please contact CLE about your intentions. A representative will provide you with bequest language that may assist you and your attorney when writing your will or living trust. We will also help you craft a Statement of Intent for your gift, specifying how the gift should be used when received by CLE. 

Bequest & Charitable Designations

The term “bequest” usually refers to a statement in your Will or Living Trust describing your wishes to make a charitable gift after your death. It is also common to provide similar charitable designations through a retirement plan or IRA, life insurance, and/or revocable and irrevocable trusts.

Why Should I Consider Making a Gift from My Estate to a CLE Nonprofit & Civic Organization?

  • Ensure a bright future for the nonprofit or cause of your choice and continue the tradition of giving.
  • Preserve the right to determine both the amount and the designation within CLE.
  • Establish a Legacy Endowment (minimum of $10,000), scholarship, park asset, etc., that carries your name or the name of someone you wish to honor in perpetuity.
  • Maintain flexibility in the lifetime use of both your assets and income.
  • Provide tax savings for your estate and heirs.


How Can I Establish a Bequest or Estate Designation for CLE?

Step 1: Speak to a representative of CLE or the nonprofit/civic organization regarding your gift intentions. 
We can assist you in identifying the most attractive and effective designations for your gift.

Step 2: Create a new Will or Living Trust or modify your present Will or Living Trust by adding a codicil. 
Sample language is provided below that you can share and personalize with your attorney. 
-OR- Designate Cranberry Legacy Endowment and the nonprofit of your choice as a beneficiary. 

Step 3: Notify the CLE regarding your intentions. 
Your notification affords us the opportunity to welcome you via the CTCC Annual Report as a future Legacy member, a special group of benefactors who have chosen to include CLE in their estate plans. However, if you wish, we can keep information about your plans entirely confidential.

Step 4: Provide us with a copy of your Will or Living Trust or Beneficiary Designation (or that portion that references CLE.). 

We strongly believe that donors' gifts should support those areas of the community that are most meaningful to them.  We accomplish this by drafting a Statement of Intent with the donor that specifies the intended use of the gift when it is received by the CLE.  A Statement of Intent is a written record that ensures your wishes will be carried out as intended, and it can be easily modified if your interests change.

Sample Bequest and Designation Language

Specific Bequest

I give to the following organization; ________________ to establish a Cranberry Legacy Endowment fund to benefit this group, c/o Cranberry Legacy Endowment, 2525 Rochester Road, Suite 450, Cranberry Township, Pennsylvania, the sum of $___________.  A yearly gift will be donated to the designated organization to be used as deemed best by this group.

or 

I give to the following organization; _____________________ to establish a Cranberry Legacy Endowment fund to benefit this group, c/o Cranberry Legacy Endowment, 2525 Rochester Road, Suite 450, Cranberry Township, Pennsylvania, ___% of my estate.  A yearly gift will be donated to the nonprofit/civic organization to be used as deemed best by that group.