Bequests are an effective way to support charities in the future. Designating a charity as a beneficiary of a will or trust promotes the legacy and future success of an organization, while preserving the donor’s use of assets during lifetime. Designating a charity as the beneficiary of a life insurance policy or retirement plan are also options for providing future support to an organization. Donors who have made bequests or other planned gifts may become members of the Rossmoor Scholarship Foundation Legacy Society if they inform us of their intentions.
You can let us know of your beneficiary designation by using the Legacy Society Intention form.
A bequest generally refers to a transfer in a will or trust that will take effect at death. An individual can designate all, or a portion, of his or her estate to pass to charity at death. A bequest provides a means for a donor to support a charity through a potentially significant gift of property, while retaining the enjoyment of such property during life.
Will and trust provisions often remain revocable (subject to change) during the donor’s lifetime. As a result, there is not a current income tax charitable deduction as the gift can always be changed. For sizeable estates, the bequest may provide a charitable deduction for estate tax purposes at the time of death.
The bequest can be made by updating one’s will or trust to reflect the gift to charity. The bequest could be for a specific dollar amount, or for a percentage of the residue of the estate, using language similar to the following:
I give and bequeath to Rossmoor Scholarship Foundation, a California not-for-profit corporation, federal tax identification number 94-6126368, the sum of $__________ __________ Dollars (or a description of property to be donated) to be used for the purposes of the organization.
I give and bequeath to Rossmoor Scholarship Foundation, a California not-for-profit corporation, federal tax identification number 94-6126368, _____% of all the rest, residue and remainder of my estate to be used for the purposes of the organization.
The language can be modified to create an endowment fund or to restrict the gift to certain purposes.
Other approaches to satisfying a charitable bequest include naming a charity as the beneficiary of a life insurance policy, or retirement plan.
The foregoing is a general discussion of charitable giving strategies and not intended as tax advice. Donors should consult with their own tax advisors regarding the impact of various charitable giving strategies on their specific tax and financial planning objectives. Donors are encouraged to consult with their attorneys to create or update existing estate planning documents such as wills and trusts.
Rossmoor Scholarship Foundation is a nonprofit public benefit corporation exempt from tax under IRC section 501(c)(3). Its federal tax identification number is 94-6126368. The address of the Foundation is P.O. Box 2056, Walnut Creek, CA 94595.