Helping Your Clients

Legacy Options: How It Works

Madison Community Foundation offers convenience and flexibility for your client’s charitable giving today, and in the future.

If leaving a legacy is important to your client, MCF can work with you on your client’s will or estate plan.

It’s as easy as 1-2-3

  1. We discuss your client’s charitable interests and time frame.
  2. We draft a Legacy Letter of Understanding between your client and MCF.
  3. Your client’s estate planning document names MCF as a beneficiary.

Here’s how to include MCF into your client’s estate planning documents:

Bequest

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

Life Insurance

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

Retirement Plan Assets

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.

Charitable Gift Annuities

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]

To assist your clients in naming the Madison Community Foundation in their estate plans, we’ve provided this Legacy Letter of Understanding [PDF]. This ensures that your clients become part of our Legacy Society and are recognized as special partners in philanthropy. Legacy members can also be anonymous.

View a list of Legacy options [PDF]

We have a donor who reviews and changes their estate plan every two years. With your client’s instructions, we can easily modify the legacy letter of understanding.”

– Ann Casey, MCF Vice President, Finance and Operations

MCF has giving options for donors of all ages and stages. Take a look.