Legacy Options: How It Works

A bequest through a will allows your client to support charitable interests while retaining control of their assets during their lifetimes. Bequests can be a specific dollar amount or a percentage or remainder of an estate. Bequests earn a full charitable deduction on estate taxes. MCF accept cash, real estate, appreciated securities and other assets.

We recommend a general designation to MCF partnered with a Letter of Understanding between your client and MCF that more fully describes your client’s wishes. The LOU can be changed or updated at any time.

Beneficiary Designation

When naming MCF as the beneficiary of a life insurance policy or retirement plan, use the following:

Legal Name: Madison Community Foundation
Tax ID: 39-6038248

If the policy premiums are complete, Madison Community Foundation can be named as beneficiary. If premium payments are needed, irrevocably assign the insurance policy to MCF as beneficiary. Then your client can make annual tax-deductible contributions to cover the premium. When making a beneficiary designation, use the following - Legal Name: Madison Community Foundation, Tax ID: 39-6038248

Naming MCF as a beneficiary of retirement funds, such as an IRA, 401(k) or 403(b), is a simple and effective way for your client to benefit the community while avoiding significant, often unanticipated, tax liabilities. When making the beneficiary designation, use the following - Legal Name: Madison Community Foundation, Tax ID: 39-6038248.

In exchange for a tax-deductible gift of assets, typically cash or stock, MCF pays your client a guaranteed lifetime income. An annuity may be created for one or two people, and payments may begin immediately or be deferred. Your client designates the remainder of the annuity to an existing endowment fund at the foundation or to establish a new endowment.

Your client must be at least 60 years old to qualify for a CGA. Payment rates are more favorable for older individuals. Your client receives significant tax benefits, including an immediate charitable tax deduction for a portion of the gift amount, and a portion of each annuity payment is considered a tax-free return of principal.

A CGA can be created with an initial minimum gift of $10,000, if the remainder will benefit an existing foundation endowment. An initial minimum gift of $30,000 can be used to create an annuity with the remainder designated to a new endowment fund.

Download a CGA Brochure [PDF]