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Planned Giving

It’s never too early to plan for the future!

Thinking about what will happen to your assets once you’re gone can strengthen your community for your children, grandchildren, and future generations. The most common types of Planned Giving are Bequests in a Will, Charitable Gift Annuities, Charitable Remainder Trusts, Life Insurance, Retirement Accounts, Charitable Lead Trusts, and Life Estate Arrangements. Your future gifts can be for an organization you want to invest in or for the general betterment of Yakima Valley.

We will work closely with you and your financial advisors to set up the type of Planned Giving program that’s best for you.

Give IRA assets.

The IRA Charitable Rollover provision allows individuals who have reached age 70½ to donate up to $100,000 to charitable organizations directly from their Individual Retirement Account (IRA), without treating the distribution as taxable income. Gifting can be accomplished with appreciated stock enabling a donor to take a charitable deduction for the fair market value of the stock and avoid capital gains tax.

Giving through Your Will or Living Trust

If you would like your designated heirs involved in grant making, your will or living trust can be through the creation of a donor advised fund or supporting organization. Alternatively, the Foundation can manage the grant making for you in one of its fund types.

Charitable Remainder Trust

In a Charitable Remainder Trust, you donate the tree but keep the fruit for your lifetime.

A charitable remainder trust provides a payment stream to the donor and/or other individuals for life or for a term of up to 20 years (the income interest). When the trust ends, its assets are distributed to one or more charitable organizations (the charitable remainder interest). A charitable remainder trust is irrevocable and must meet certain IRS requirements. The donor may serve as trustee, appoint an independent trustee, ask the Yakima Valley Community Foundation to act as trustee. If the Yakima Valley Community Foundation acts as trustee, it must be named as the charitable remainder beneficiary, and what it receives must be added to a permanent fund. The donor may save income taxes and/or estate taxes when establishing the trust.

Charitable Lead Trust

In a Charitable Lead Trust, you donate the fruit for specific time period but leave the tree to your heirs.

A charitable lead trust enables a donor to make significant charitable gifts now while providing for the eventual transfer of substantial assets to individual beneficiaries. The Yakima Valley Community Foundation receives annual payments from the trust for a certain number of years or a period measured by the lives of one or more family members. The amount paid by the trust may be distributed to charities specified by the donor or added to a donor advised fund or any other type of fund at the Yakima Valley Community Foundation When the trust terminates, its remaining assets are distributed to children or others the donor may designate. In the process, applicable gift and estate taxes are reduced or even eliminated. Also, in some cases, a charitable lead trust can be structured to provide income tax benefits.

Give Through Life Insurance

Life insurance can be a flexible and important component of charitable giving. You can donate an older policy that you no longer need or take out a new policy to fund a major charitable project life insurance offers a unique way to leverage relatively modest annual payments into a sizable charitable gift.

Give Through Charitable Gift Annuities

Issuance of Charitable Gift Annuities is regulated in Washington State and those regulations require the issuing charity to make annual filings and fund reserves necessary to insure payment to the annuitant. The Yakima Valley Community Foundation is licensed to issue charitable gift annuities and does so in partnership with PGCalc. A powerful, tax, and economically effective planned giving tool a properly structured CGA allows the donor to achieve two objectives: to make a significant gift to the charity and, in return, obtain a fixed stream of income for the specified annuity period.

In a typical CGA arrangement, a donor transfers cash and/or other property (publicly-traded securities or real estate) to a qualified charity in exchange for the organization’s legal commitment to pay the donor an agreed-upon amount annually (or more frequently) for his or her lifetime.

The gift is determined by excess of the value of the cash and/or property transferred to the charity over the value of the annuity the charity has promised to pay the donor. This excess is also the measure of the donor’s charitable income tax deduction. The deduction arises because the charity receives cash and/or property in return for its obligation (i.e., the annuity payments) that is greater than the donor would have paid for the same annuity from a commercial carrier. In other words, the donor’s “over-payment” generates the charitable deduction. 

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111 University Parkway, Suite 102
Yakima, WA 98901
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Phone: 509-457-7616
Fax: 509-457-7625
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