CASH  GIFTS                              

GIFTS OF SECURITIES

Any type of asset that you irrevocably donate to a charitable organization like the Foundation results in a current income tax deduction, but there may be other tax benefits from your contribution.

If you contribute appreciated securities that you have held more than one year, you have the added benefit of avoiding the tax on the gain.

This asset can be donated outright to the Foundation today. Using assets other than cash may allow you more flexibility when planning your gift, and there are even more potential benefits if you plan your gift creatively.

Benefits:

• Receive a current income tax deduction for gifts of securities.

• Avoid the capital gains tax with gifts of appreciated assets.

• Help fulfill our mission with your contributions.

GIFTS OF EXISTING ACCOUNTS

One of the simplest ways in which you can make a charitable gift is by opening a bank account or changing the legal ownership of an existing bank account so that it is in trust for someone else, including a charity. These are commonly known as “payable on death” (POD) or “transfer on death” (TOD) accounts and can also be used for certificates of deposit and accounts with your brokerage firm. It is not a form of joint ownership, and you retain complete control over the funds in the account while you are living. Whatever remains in the account at your death is transferred without going through probate.

Benefits:

• No cost to donor to change the account.

• Does not go through probate.

A life insurance policy, naming the Foundation as owner is a very efficient way to make a sizeable donation to the Foundation, at a minimum cost. The gift of a life insurance policy generates a very generous contribution that is often larger than would be possible out of an individual’s income, and also provides tax relief, often in the years of maximum earnings when it is most welcome.

When you specify the Foundation as the owner and beneficiary of a paidup policy, the charitable deduction is for the policy’s cash surrender value or net premium paid on the policy, whichever is less. The Foundation credits paid-up policies at a value approximately equal to the cash surrender value of the policy. If the policy is not fully paid, credit is equal to the cash surrender value and any subsequent premium payments made through the Foundation during the pledge period. Any subsequent premiums are tax deductible. The Foundation may elect to liquidate life insurance policies and evaluates each policy on a case-by-case basis.

1. Gifting of an Existing Policy — Although most gifts of life insurance are new policies, many donors find themselves with an existing one that is no longer needed. By assigning ownership to the Foundation, they receive an immediate tax deduction for the cash surrender value of the policy (less any interest earned). Any premiums, which are still owed, are also entitled to a tax receipt for each premium paid.

2. Gifting of a New Policy — A donor may decide that the best way to donate to the Foundation is by purchasing a new life insurance policy. An independent life insurance agent should be contacted to help the donor make the right decision. If the Foundation is designated as the owner and beneficiary of the policy, the donor is entitled to a tax deduction for the premiums paid. The gift of a new life insurance policy enables the donor to leverage a relatively small contribution into a substantially larger one.

Benefits to the Donor:

• The donor’s particular circumstances are addressed, and the appropriate policy is chosen.

a. Tax receipts are issued for the premiums paid OR cash value.

b. Life insurance benefits do NOT have an impact on the insured’s estate value. They are confidential, private, not contestable and the proceeds are paid directly to the named beneficiary.

Benefits to the Foundation:

• Allows the Foundation to thank the donors while they are able to participate in the recognition.

• The gifts can ensure long-term support for the services provided by the Foundation.

GIFT OF RETIREMENT PLAN ASSETS

Did you know that most retirement plan assets are facing double taxation? Assets remaining in retirement plans funded with pretax dollars are considered “income in respect of a decedent.” So not only is the amount diminished by estate taxes, but the recipient also must pay income taxes on it.

If you can make other provisions for your family, there is a better option for your retirement plan assets – a charitable gift. You can make the Foundation a beneficiary or contingent beneficiary of all or a portion of your retirement benefits.

To implement your wishes, first consult your advisor, then instruct the plan administrator of your decision and sign the required forms. For an IRA or Keogh plan you administer personally, notify the custodian in writing, keep a copy with your valuable papers, and furnish the Foundation with a copy.

Benefits:

• There is no income or estate taxes when you name the Foundation as the primary beneficiary.

• The Donation of retirement plan asset is the most cost-effective gift you can make.

GIFTS THROUGH CHARITABLE REMAINDER TRUSTS

A Charitable Remainder Trust is like a combination of a gift and investment plan. You place assets in trust, and you (and/or another beneficiary) receive lifetime income from them – then the Foundation receives the remainder.

With a charitable remainder trust, the amount you receive as income is a set percentage of the value of the trust assets, re-determined annually.

You also have the option of choosing one of five (5) variations of charitable remainder trust. A charitable remainder trust with a net income plus makeup provision, for example, pays only the actual trust yield, even if it is below the stated percentage. Then in later years, when the beneficiary needs more income, the trustee can invest the assets to generate a higher return and make up earlier deficiencies.

Benefits:

• Receive lifetime income.

• Obtain a charitable deduction.

Charitable Remainder Annuity Trusts: A charitable remainder annuity trust will pay, year after year, the same dollar amount you choose at the onset. The income payments are fixed based on the starting valuation. Then after you (or other named beneficiary’s) lifetime and the lifetime of the survivor beneficiary (if desired) the trust remainder is available to support the Foundation’s mission.

This option is excellent for devising a supplemental retirement plan. The Foundation can provide you with more details.

Benefits:

• Receive lifetime income (often greater than the yield on contributed assets).

• Obtain a sizable income tax charitable deduction.

• Avoid up-front capital gains tax if you donate long-term appreciated securities.

• Make significant gift to one or more charitable organizations.

 • Gain freedom from investment management.

Charitable Lead Trusts: Are you concerned about the possibility of the government taking a huge part of the assets you were planning to leave your heirs? A Charitable Lead Trust gives you the ability to pass assets to your family with significant estate tax savings while making a gift to the Foundation. It is called a charitable lead trust. The Foundation will receive the income from assets in the trust for a period of years, after which the principal goes to your family, with estate or gift taxes usually reduced or even eliminated.

The lead trust is an exceptional way to transfer property to your children or other heirs at minimal tax cost. It is ideal if you are willing to forego investment income on an asset but do not want to have estate taxes reduce the principal passed to heirs. With a lead trust, you carry out your philanthropic plans over the coming years and save on taxes.

Benefits:

• Fund the trust during your lifetime or through your will.

• Support the Foundation’s mission through annual income payouts.

• Reduce your taxable estate and potential gift taxes.

• Keep assets in the family.

GIFT BY WILL OR TRUST

Have you put off updating your will or living trust? Maybe you think it costs too much to do; perhaps you are having a hard time deciding how to leave your money; or you may simply have an aversion to confronting your mortality.

You can make a gift by Will or Trust to the Conquistadores Foundation by making provision in your estate planning documents. A bequest from either your Will or Living Trust lets you pass a specific amount or a percentage of your estate to the Foundation, free of any estate tax. In addition to passing a cash gift or a percentage of your estate, you can make a specific bequest of property, including stocks, bonds or other specific personal property or real property.

The bequest in your estate planning documents, to the Foundation, can be for a specific purpose or without restrictions. In order to accomplish your goals through your estate plan, we recommend that you obtain the advice of your professional counsel or an estate planning attorney.

Benefits:

• Allows you to use the assets during your lifetime and provide a legacy on your death; • Saves on any estate tax