How To Give

How To Give

There are number of different types of planned gifts available to AAFP Foundation donors. The following list provides basic descriptions of the planned giving instruments available. Potential donors should consult with a qualified financial planner, attorney or tax accountant to determine which instrument is best for them. Any planned gift you designate for the AAFP Foundation will include you as a member of the Legacy League.

Planned Giving Instruments

Bequest -- A provision made in a donor's will, where a charitable organization receives cash and/or other assets at the time of the donor's death.

IRA Rollover -- Congress recently enacted a permanent extension of the IRA Charitable Rollover. As a result, you can make an IRA rollover gift in 2015, 2016 and beyond.

Charitable Gift Annuity -- A legal contract between the donor and the charitable organization, where the donor exchanges cash, stock, or other assets for an agreed upon income for life.

Charitable Unitrust -- Used by a donor to transfer assets to a trust, which ultimately are distributed to the charitable organizations after the death of the last income beneficiary. The donor (and/or income beneficiaries) retains a fixed or variable income for life.

Life Estate Contract -- An agreement established by a donor to transfer a deed of real property to a charitable organization while reserving for himself/herself and/or someone else the right to live on or use the property for life. Charitable deductions for life estate contracts are limited to properties that are either personal residences or farms.

Charitable Lead Trust -- Established by a donor to transfer assets to a trust that provides income to a not-for-profit organization for a period of years. At the end of that period, the trust assets revert either to the donor or to someone else the donor designates (such as the donor's heirs or other beneficiaries).

Life Insurance Policy -- Can be two types:

  • Transfer of ownership of an existing policy to the organization.
  • Purchase of life insurance by the donor, which names the organization as the beneficiary and/or owner.

Pooled Income Fund -- A common trust to which many donors make contributions and retain for themselves a pro rata share of the fund's earnings each year. As each beneficiary dies, the amount of the fund that corresponds to the deceased donor's share is severed from the fund and paid to the organization. Pooled income trusts are similar to a mutual fund. The AAFP Foundation has an existing pooled income fund for interested donors.

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