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5 Steps to a Lasting Legacy

June, 2017

A charitable gift annuity provides a meaningful gift to charity while improving your financial situation in two ways for the rest of your life: a steady stream of income and tax benefits. More important, you create a lasting legacy in your community. Curtis Saiki, VP of philanthropy and general counsel for the Hawaii Community Foundation, offers these steps he shares with donors.

1. THINK ABOUT THE CHARITABLE ORGANIZATIONS OR CAUSES IMPORTANT TO YOU.
How do you want to make Hawaii better for future generations? A legacy gift will benefit a particular nonprofit or cause that you care about.

2. DO YOU MEET THE MINIMUM REQUIREMENTS?
The Hawaii Community Foundation requires that you be age 60 or older and able to donate $20,000 or more, whether in cash, funds earning low interest or appreciated assets, such as securities and real property.  For those under 60, a deferred annuity in which payment is triggered at 60 or older allows you to time your payment with certain events, such as retirement.

3. SEEK EXPERT ADVICE.
Talk with a professional advisor such as your estate planning attorney, accountant or financial consultant about how a charitable gift annuity would benefit you and meet your goals. The Hawaii Community Foundation can also provide recommendations.

4. CUSTOMIZE THE AGREEMENT TO MEET YOUR GOALS.
A Hawaii Community Foundation annuity is easy to create: The agreement is a simple contract between you and the foundation. HCF will work with you and your professional advisor to customize an annuity based on your personal situation and charitable investments. One decision that needs to be made is how to use the remaining balance upon the death of annuitant(s) designated by the original donor. The remaining balance can be used for broad charitable purposes or to support a specific cause. You decide.

5. ENJOY THE BENEFITS.
You will receive an immediate charitable deduction for a portion of the gift and a fixed annual payment for the rest of your life. Part of the annuity payments may be tax free. No capital gains taxes are owed on appreciated property used to start a charitable gift annuity. And reportable capital gains, if any, will be spread out over the annuity payments.

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Author:

Curtis Saiki