Giving with TFEC
Options create opportunities
Philanthropic gifts are essential to creating and sustaining vibrant communities. They confront the challenges many face daily—and provide sustenance and strength to those who need it most. We offer many options to help you make the most of your charitable giving.
- Marketable Securities
- Closely Held Business Stock
- Mutual Funds
- Real Estate
- Tangible personal property
(such as art, collections, antiques)
- Life Insurance Policies
- Qualified Retirement Assets
– IRA, 401(k), 403(b), and pensions
We can assist you and your financial advisor in developing planned gifts that meet your needs. Each giving vehicle provides specific advantages to fit your individual situation.
The simplest planned gift is a bequest that directs specific amounts or assets, or a percentage of your estate, to create a fund or add to an existing fund. A simple designation in your will is all that is needed. Click here for sample language that your attorney can incorporate into your estate plan.
Charitable Remainder Trusts
With this type of trust, you transfer assets that pay you or other beneficiaries an income for life or for a fixed term. When the trust matures, the remainder is used to establish a permanent fund in your name, with charitable distributions directed as you have chosen.
Charitable Lead Trusts
With this type of trust, you create an endowment fund at TFEC to receive the trust income for a fixed term. When the trust expires, the income or assets may be distributed to other named non-charitable beneficiaries, and your fund will remain at TFEC and continue to benefit the community as you have directed.
Life Insurance Policies
Many donors make a gift by assigning a life insurance policy to TFEC. Simply secure or transfer a policy and name TFEC as owner and beneficiary. Any ongoing premiums that you make may be tax deductible. When the policy matures, a permanent named fund is established to support your charitable causes.
Retirement Plan Assets
Large Individual Retirement Plan Asset (IRA) accounts at death may pay up to 70% in income and estate taxes. A good way to reduce taxes is to include charity as an IRA designated beneficiary. This can be done through an outright gift or by using a Charitable Remainder Trust that makes payments to your family members. Through TFEC, you can distribute your IRA after death in a tax-wise way and create a fund to benefit the community.
1920 Legacy Society
Donors who make a planned gift or remember TFEC in their wills are invited to become members of our 1920 Legacy Society. Members of the 1920 Legacy Society receive special recognition in our annual report and on our website, invitations to all TFEC events, and gifts to thank them for their planned gift.
Outside Investment Accounts
Keep your existing investment managers
Donors with funds in excess of $75,000 may request that TFEC use their personal financial advisor to recommend investment holdings. An Outside Investment Account allows donors to continue to have the responsibility of investing a fund in the hands of his or her trusted personal financial advisor, including bank custodians, bank trust departments, fee-based investment advisors, commission-based brokers, and insurance or mutual fund financial representatives. TFEC, meanwhile, retains fiduciary control of the fund and works with both the donor and the financial advisor to ensure policy compliance. TFEC also receives monthly investment statements and reviews the health of the fund with the advisor annually. Permitted investments include: stocks, bonds (no junk or LT), mutual funds, money market funds, and savings accounts. Prohibited investments include: variable annuities (except NIMCRUTS), short-sales, margin accounts, commodities, precious metals, and hedge funds.
IRA Charitable Rollover
Tax free charitable contributions
First enacted in 2006, the IRA charitable rollover provision has the power to help local charities strengthen their communities by allowing individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed. On December 18, 2015, Congress passed the PATH Act. As part of the PATH Act, legislators passed a permanent extension of the IRA charitable rollover legislation, making it easier for Americans to give to causes they care about.
How it Works
- Individuals make a qualified charitable distribution of up to $100,000 by transferring either Roth or traditional IRA assets to TFEC.
- Individuals must be 70 ½ years old. If married, each spouse can transfer up to $100,000 from his or her IRA annually.
- Individuals may also use other retirement assets, such as 401k’s, 403bs, etc., but must first roll those assets into an IRA to be able to participate in the benefits of an IRA charitable rollover without tax implications.
- The distribution is not included in the income of the donor for federal income tax purposes, preserving the full amount of the donor’s charitable deductions for other charitable gifts. IRA charitable rollovers count against minimum required distributions from an IRA, allowing retirement funds to last longer.
- This provision makes it possible for donors to establish funds now during their lifetime, rather than through their estate plan, allowing them to see the positive effect on the community now. The gift can be placed into a charitable fund in the individual’s name, the name of their family, or in honor or memory of someone. It can be endowed and will grow over time, into perpetuity—supporting the nonprofit organizations and causes you care about.
- Individuals can choose the type of new or established fund at TFEC to which to make a distribution:
- Unrestricted: Addresses a broad range of current and future community needs locally.
- Area of Interest: Targets your gift to areas that you are interested in (e.g. performing arts, early education)
- Restricted: Supports the work of specific IRC section 501©(3) nonprofit organizations that the individual chooses
- Scholarship: Supports higher education for students based on the criteria an individual chooses
Who can benefit from this?
- Anyone who is already making charitable contributions at the deduction limit, but wants to do more
- Anyone whose income level causes them to phase out of their exemptions or itemized deductions (limitations re-instated January 2013)
- Anyone who does not itemize
- Anyone whose additional income from their required IRA withdrawals will cause more of their Social Security income to be taxed
- Anyone who wants to remove up to $100,000 from their taxable estate
- Anyone who would like to avoid the possibility that the government will impose taxes of up to 60% on IRA funds not distributed during their lifetime
Zachary Moore Music Memorial Fund
"TFEC is family to us. It means a lot to have the fund at a place where people cared about Zachary when he was alive, and care about this memorial fund that we’ve established in his honor."
Pillars with Purpose
"TFEC has a can-do attitude. They're invested not just in getting the job done, but also emotionally invested—which makes for a great partner."
"I think it's really important that we have a structure and an entity like TFEC to help the community thrive."