Frank Vanoni is the first to say that without the help he received all along the the line--from inspiring teachers at Torrington High School, from the Charles Brooker Scholarship Fund, that pit Yale University within reach, from the Torrington physicians who welcomed the young doctor back, and from his late wife, Vivienne--he could never have had the rich and rewarding life that he has enjoyed.
He believes he owes much to the community that nurtured him, and now that he has retired from his long medical career, he has arranged to give something back in the form of a charitable remainder trust (CRT). CRTs provide income--usually to oneself or members of the family--either for life or for a specific period of time, after which what remains is turned over to a designated charity. This arrangement usually has significant tax advantages.
"My father died when I was twelve, "Dr. Vanoni says.”My mother did her best, but we didn't have much." Without the intellectual support of those early teachers and the financial help from Charles Brooker, I could not have hoped to pursue my dream to be a doctor.
That was Torrington, and it still is Torrington. The groups we support through the Community Foundation--the Warner Theatre, the Litchfield Community Center, Friends of Hospice, programs for children--all these and many more, make our communities better places to live. Vivienne was active in some of those organizations, and we both wanted to do what we could to help them. The trust provides income for me for the rest of my life. With what is left, the Foundation will give back to the community through grants far, far into the future. It's a very satisfying way to say 'thank you' to Torrington, to Vivienne, and to our wonderful Northwest Corner.
Gifts to Start Your Fund
There are many ways to use gifts to achieve your philanthropic goals. Gifts of stocks, bonds, real estate, art work, life insurance policies and, of course, cash can be used to support local non-profits with your shared interests, and all of these types of gifts qualify for tax benefits. Your gifts can be used as donations to existing funds or to establish a new fund. Your giving can be immediate and address a specific cause or be part of a long-term plan that provides financially for you and your family as well as helping you reach your philanthropic goals.
Stocks, Bonds and Mutual Funds—Gifts of or from publicly funded securities, such as stocks, bonds and mutual funds are tax deductible equal to their market value and can help you avoid capital gains taxes on the appreciation. If the stock has appreciated over the years, you receive a double benefit, an immediate charitable deduction for the fair market value of the securities donated and exemption from any capital gains tax on the appreciation. The fair market value of contributed securities can reduce your adjusted gross income up to 30 percent. And, donations can be spread over several years to achieve the maximum tax deduction.
Real-estate—Gifts of real estate often include primary homes, vacation homes, apartment buildings, farms, and land. As with other types of gifts, gifts of real estate can be given immediately or you may choose to retain them for life and then donate the property as part of a bequest.
Cash—Gifts of cash can provide a deduction of up to 50 percent of your adjusted gross income (AGI). Just as with gifts of securities and mutual funds, cash gifts may be spread over several years to achieve the maximum tax deduction.
These are just some of the most usual ways to fund philanthropic goals. We can be as creative and as flexible as you are. We will work with you to appraise and put to good use almost anything of value. Our Gift Development and Acceptance Policy details the legal requirements for giving through the Foundation, and Foundation staff are always happy to answer any questions and help guide you toward a giving plan that suits your needs.
Gifts that Provide Income
Many of us have philanthropic spirits, but our assets are tied up in our homes, IRAs and insurance policies. Planned giving offers a way to provide for charitable giving while ensuring that your savings last for your lifetime and that your family is cared for.
Life-income gifts enable you to provide financially for yourself or your loved ones while planning for future charitable giving. Life-income gifts offer financial security and the knowledge that your money will build a charitable legacy for generations to come. Through a life-income gift, your assets remain with you and your family until they are no longer needed and then they are passed on to the Community Foundation to fulfill your and your family’s charitable goals. A life income gift can be made as a charitable remainder trust, a charitable lead trust or a charitable gift annuity.
Charitable Remainder Trusts (CRTs) provide income for you or a family member for a fixed number of years then the balance is transferred to the Foundation to be used toward your charitable goals.
Charitable Lead Trusts (CLTs) provide regular distributions of income to a qualified charitable organization for a specified period of years. Once that time period has passed, the principal is returned to you (Grantor Lead Trust) or passed on to a beneficiary, such as a family member (Non-Grantor Lead Trust). In addition to the principal, CLT Non-Grantor Lead Trust beneficiaries receive asset growth in excess of the regular charitable distributions free of additional gift or estate tax.
Charitable Gift Annuities (CGAs) also provide financially for you or your loved ones while planning for future charitable giving; but, a gift annuity will provide income to you or a loved one for life beginning at age 65. The balance is then transferred to the Community Foundation to be used toward your charitable goals.
The tax benefits of CRTs, CLTs and CGAs include reductions in income tax, capital gains, and estate tax liabilities.
Bequests are one of the most popular options in charitable giving. Leaving a legacy provision in your Will enables you to contribute to the cause of your choice without diminishing your assets during your lifetime; and, any gift you make is deductible from your estate. You may choose to leave a fixed amount of money or a specific piece of property or donate residual assets of your estate. A gift to the Community Foundation through your will or living trust can be used to establish or support one of many kinds of funds. It can be designated to benefit a particular area of charitable interest, a specific charitable organization(s) or a specific geographic area.
Life Insurance Policies can be a great tool for giving. You can name the Community Foundation as the beneficiary of your policy and continue to make annual tax-deductible contributions to cover the policy's annual premium. If the policy is fully paid, you will receive an immediate tax deduction in an amount equal to the policy's cash surrender value.
As a form of giving, charitable bequests provide the flexibility to be changed at any time during your life and may be made in memory or in honor of loved ones or established as a charitable legacy for yourself. You may also, if you desire, designate your gift anonymously. Because the savings in state and federal death taxes resulting from a gift to the Community Foundation can be dramatic, your charitable bequest can benefit your family’s inheritance while simultaneously supporting your community. Through a bequest to the Community Foundation, you can improve the quality of life for countless people in your community. And, the Community Foundation will act as a steward for the gift, ensuring that your charitable interests will be carried out in perpetuity.
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Contact us to discuss your charitable giving goals.
Support an Existing Fund at the Foundation
You can always give to an existing Fund at the Foundation. Your gift will be noted in the Community Foundation Community Report.