Planned Giving to NFID

Planned Giving Introduction

Whether supported through an outright gift or planned gift, NFID programs are made possible through the generosity and commitment of people like you. A planned gift to NFID helps to ensure the future of the programs we provide and may further your financial goals.

What are planned gifts...

Planned gifts include gifts through your will, charitable gift annuities, charitable trusts, pooled income funds, and gifts of life insurance.

Bequest

How do I include NFID in my will?

Many of our supporters make charitable gifts by naming NFID as a beneficiary in their wills. The federal government encourages these gifts or bequests, by allowing an unlimited estate tax charitable deduction.

There are three ways you can make a bequest:

Specific Bequest - You designate a specific dollar amount, specific percentage, or specific property to NFID.

Residual Bequest - Your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount--the residue--will be transferred to NFID.

Contingent Bequest - You can ask that NFID receive all or a portion of your estate only under certain circumstances. For example, you can name NFID as a beneficiary of your estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to a charitable organization.

To make a bequest to NFID, the following language will be helpful to your attorney:

I give, devise, and bequeath to the National Foundation for Infectious Diseases the sum of ____________ (or otherwise describe the gift or specify a percentage of the estate).

How do I establish a life income gift?

Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gifts now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to NFID now, and in return, you (and a survivor, if you wish) receive income for life. As a result, the assets are used to carry out our mission. By making a life income gift to NFID, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do. The benefits include:

  • A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
  • You free up appreciated investment to maximize yield, diversify, or both--often without paying tax on the capital gain.
  • Your effective yield is increased by substantial income tax savings.
  • Income can be taxed more favorably in some plans.
  • You unburden yourself of investment concerns.
  • Your probate and estate administration costs may be reduced.

What are examples of life income plans?

Charitable Gift Annuity

In exchange for your gift of cash or marketable securities to NFID, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.

Gift of Life Insurance

Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to NFID. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.

Charitable Lead Trust

Individuals with very large estates can use a charitable lead trust to benefit NFID and pass principal to family members with little or no tax penalty. It works like this: You transfer assets to a trust that provides payments to NFID for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax [GST] is imposed on large transfers to grandchildren and others who are more than one generation younger than you.)

Gifts of Retirement Plans

Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to NFID.

One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to NFID. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of NFID's right to eventually receive the trust assets.

Who can I contact for more information?

Contact NFID at:

(301)656-0003.

You can contact NFID by e-mail. We welcome your feedback and questions. Send us an e-mail.

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