What is Planned Giving? So often we hear these terms tossed around by financial advisors and estate planners without really understanding the various and innovative opportunities available.

When The Dental Foundation of Oregon talks about planned giving, we mean gifts to a charitable entity. A planned gift to a charity is one that is legally provided during the donor's lifetime, but whose principal benefits may not go to the charity until a future time. Generally this occurs at the death of the donor. But some planned gifts involve a lifetime income flow for the donor and spouse; the charity receives the benefits after both the donor and spouse have passed on.

Why should you consider a planned gift? First of all, it is a way to make a larger gift to your favorite charity than most people can give out of their pockets. It can provide income for the donor or a beneficiary. It offers a way to have assets managed at low or no cost. It can provide substantial income, estate and capital gains tax savings. It obviously encourages estate planning, and offers an opportunity for the creation of a permanent memorial with your favorite charity.

Planned gifts can take many forms. The simplest is provision in a will or life insurance policy. Other options are more complex, but offer more incentives to the donor. Appreciated assets in stocks, real estate or a business can be donated and some major tax advantages can be realized. Examples of these options would be a Charitable Gift Annuity or a Charitable Remainder Unitrust. There is also a Charitable Remainder Annuity Trust option.

Planned giving can provide a donor with an income stream — some of which is tax free — as well as an income tax deduction, a capital gains tax reduction and a diminished estate tax. It's a way to have your cake and eat it, too — while sharing your serving with your favorite charity.

Please consider the following ways to give:

Prepare a Will or Trust
Only 50 percent of those who pass away have one. Without a will, you may lose control over your belongings and assets.

Review Your Will or Trust
Update it as needed every three to five years or when changes occur in your family, marital or financial status.

Leave a Bequest in Your Will or Trust
Designate a gift for the nonprofit and charitable organizations that made a difference in your life. Imagine the positive impact on our community if everyone made a donation to a favorite nonprofit. Less than six percent of American households have included nonprofits in an estate plan.

Designate the Size of Your Bequest
Leave a specific dollar amount or a percentage of the assets in your estate to the nonprofit(s) of your choice.

Consider Using Assets for Your Charitable Gift
These include but aren't limited to: cash, stocks, bonds, CD's, real estate, vehicles, art and jewelry.

Leave a Pension or IRA Account to a Charity
Name a nonprofit of your choice as the beneficiary of your pension plan or IRA.

Leave a Life Insurance Policy to a Charity
Name your favorite nonprofit as the beneficiary of an existing life insurance policy.

Remember Loved Ones with Memorial Gifts to Nonprofits
A thoughtful and meaningful expression of sympathy is a memorial gift to a charity in the name of a family member or honored colleague.

Set a Good Example
Encourage family and friends to leave bequests to nonprofits in their wills or trusts. Help others share the satisfying feeling of "giving a gift that gives back."

FREQUENTLY ASKED QUESTIONS

Questions and Answers About Giving

How do I leave a gift for a nonprofit organization that I admire?
It's easy. You can arrange for a gift several ways, the most common being through a charitable gift in a will or a living trust. Many people set aside a certain dollar amount. Others leave a percentage of their estate or any assets left over after their family has been provided for. Some people donate something they own, like a car or their home. Others leave a paid up life insurance policy, retirement account or other financial investment.

Must I have an estate in order to leave a gift?
An "estate" is simply a word used to describe any money, property or personal belongings that you may have at the time of your death. Most people leave an estate when they die, even though they may not have a great deal of wealth. Anyone can arrange to leave a charitable gift from their estate when they pass away. Many gifts are less than $1,000.

Do I have to include my wish to leave a gift to a specific organization in my will?
A charitable bequest will not take effect unless you state your intention in your will or living trust. Without a will, you may lose control over your belongings after death. Your property and finances are settled according to state laws, whether or not they coincide with your wishes.

How do I leave a gift in memory of a person or for a specified purpose?
A planned gift is a wonderful way to recognize someone who has made a difference in your life or to honor an organization that made a difference in the life of a loved one. This kind of memorial gift can be made in the same manner as your planned gift — through your will or trust. You just need to make it clear that this gift is made in memory of a particular person or for a specific cause.

Do I tell the charity that I've left a gift?
That is up to you. Charities often like to know in advance so they can recognize your generosity. They can also tell you about specific opportunities for giving. But whether or not you let the charity know of your plans, it's your decision to make.

Who can help me arrange for a gift?
If you have a professional you're working with, such as a financial planner, lawyer, accountant or insurance agent, please talk with him or her about leaving a gift. A professional can tell you about the tax benefits of planned gifts. You can also call a nonprofit organization directly for assistance.

ESTATE PLANNING

Thinking of making a will or bequest? Let us help you design an estate that works for you — and the DFO.

As an affiliate of the Oregon Community Foundation, the DFO has access to professional estate planning expertise. From bequests to annuities, the DFO can help. For personal assistance please contact Karleanne Rogers, DFO Executive Director at 503-594-0881 or .

MAKING A WILL

Making a will need not be costly and can be deeply satisfying. Thinking of loved ones and thoughtfully providing for them can assure that your will truly reflects your wishes and feelings.

APPRECIATED STOCK

Consider this example: Dr. John Doe is a dedicated believer in The Dental Foundation of Oregon. He has not only volunteered at one of the clinics the Foundation supports, but has been a financial supporter for several years. This year he decides to make a gift of $7,500. But rather than writing a check for his contribution, Dr. Doe decides to donate some appreciated stock.

Eight years ago, Dr. Doe purchased 50 shares of "ABC stock" valued at $150 a share for a total of $1,250. By donating this appreciated stock to the DFO, he saves $1,412 in federal capital gains taxes and $562 in Oregon capital gains taxes.

Since he is in the 36 percent tax bracket, Dr. Doe also receives a federal income tax deduction of $2,448 as well as a $675 deduction in his Oregon state income tax. All in all, he waives $4,097 in taxes.

Dr. Doe's gift of $7,500 to The Dental Foundation of Oregon has actually cost him $3,403. That's a great way to support your favorite charity and get a lot of mileage out of your investment.

(+) Appreciated STOCK
(-) Capital gains and income TAXES
(=) A GIFT to ODF

CORNERSTONE SOCIETY

Honoring benefactors and friends who have named The Dental Foundation of Oregon in their estate plans.

The DFO Cornerstone Society honors supporters who have named The Dental Foundation of Oregon in their estate plans either through a will, trust, life insurance policy, or other planned giving arrangement. These generous and farsighted benefactors enable the Foundation to continue to provide funding for dental care and education for future generations of Oregonians. Deferred gifts are a wonderful way to establish a family legacy, set a philanthropic example for future generations and have a positive and lasting impact on community dental health. By becoming a member of the Cornerstone Society, your gift will ensure that the mission of The Dental Foundation of Oregon lives on through community dental clinics, education programs, and projects that enhance the lives and dental health of Oregon children.

THE BENEFITS OF PLANNED GIVING

• An income stream for yourself and other loved ones
• Immediate tax savings from allowable charitable income tax deduction
• Conversion of low-yield assets to assets that produce greater income
• Avoidance of capital gain tax on contributions of appreciated long-term capital gain property
• Elimination of federal estate taxes on property transferred to the foundation at the time of your death, as well as reduction in probate costs
• Potential to defer income until personal needs require additional revenue

QUALIFICATIONS

To join the Cornerstone Society, simply notify The Dental Foundation of Oregon that you have made a testamentary provision. You may call or write the DFO regarding the nature of your bequest or charitable gift. The size of the gift need not be disclosed.

You may wish to share a copy of the section of your will or trust that references the DFO. All information will be held in strictest confidence. If you prefer, you may join the Cornerstone Society anonymously. If you have included The Dental Foundation of Oregon in your estate plan, please let us know so we may extend our gratitude.

REWARDS

• The satisfaction of creating a meaningful gift for future generations
• Recognition in DFO publications and annual reports
• Special invitation to DFO events.
• Personal assistance with your charitable and estate planning questions
• Personal tours of DFO-funded clinics and programs

For more information on membership in the Cornerstone Society, please contact Karleanne Rogers, Executive Director, by phone: 503-594-0881 or .

BEQUESTS

Make a bequest to the DFO through a will or living trust. Bequests from a donor's estate can be in the form of a stated sum, a percentage or residual of an estate, or a specified asset.

CHARITABLE REMAINDER TRUST

Establish a life income gift such as a Charitable Remainder Trust. This gift provides an income for your named beneficiary and an immediate income tax deduction. After the trust ends, the remaining trust assets are used for the charitable work of the DFO.

CHARITABLE LEAD TRUST

Establish a Charitable Lead Trust. This plan pays out income (or the lead interest) to the Foundation for the life or lives of persons living when the trust is created or for a specified term of years. At the end of the term, the trust assets revert to the donor, the donor's estate or named beneficiaries.

LIFE INSURANCE OR RETIREMENT PLAN

Name DFO as a beneficiary of a life insurance policy or retirement plan.

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