California Community Foundation Receives $200 Million From Los Angeles Philanthropist
In California, philanthropist Joan Palevsky, has left $200 million to the California Community Foundation—a charity that supports a number of social and civic causes. This gift is the largest bequest ever given to a U.S. charity, and the gift will increase the charity’s assets to over $1 billion.
Palevsky died at the age of 80 in March. Throughout her life, she donated funds to a number of causes, such as the Rape Foundation, TreePeople, and Amnesty International. In her will, she left a number of bequests to different charities and gifted money to friends and family. She also left $4.7 million to her alma mater UCLA for endowed professorships and other purposes.
One of the reasons that Palevsky was be able to bequest so many gifts via her will is because she grew her wealth (through investments) after her 1968 divorce from Scientific Data Systems cofounder Max Palevsky.
“Planned Giving” or “Gift Planning” is the giving of a gift to a charity during a person’s lifetime or after their death. A person can bequest personal property, real estate, or money to a nonprofit organization through planned giving. Including the bequest in a will and leaving specific instructions helps guarantee that one’s wishes will be executed after death.
Other ways to give to a charity are to set up a foundation, scholarship fund, or give an endowment gift to a specific cause.
The most common types of planned giving vehicles are:
Gift Annuities:
A charitable gift annuity provides you with lifetime income. To establish a gift annuity, you contribute funds or assets to a nonprofit organization, and the nonprofit in turn makes fixed annuity payments to you from its general assets for the rest of your life. You receive an immediate income tax deduction for a portion of the gift, and a portion of each annuity payment is treated as a tax-free return of the investment. The portion of the gift not used for payments benefits the nonprofit organization.
Charitable Remainder Trusts:
A charitable remainder trust allows you and/or other designated beneficiaries to receive income from a trust for your lifetime(s) or for a period of years not to exceed 20. At the end of that time, the balance of the trust is transferred to a charity that you have selected. You can take a charitable deduction for a portion of the gift you make to the trust in the year the trust is formed. (In some cases, additional funds may be added in later years.) The two most common types of charitable remainder trusts are annuity trusts and unitrusts, which differ in how the income you receive from the trust is calculated and distributed.
Charitable Lead Trusts:
A charitable lead trust allows you to designate a charity to receive a regular, fixed amount from a trust for a specified time period or the lifetime of a designated person. At the end of that time period, the remainder of the trust passes to your designated heirs or other non-charitable beneficiaries.
Charitable Bequests:
The term "charitable bequest" is used to describe anything you give or leave to charity from your estate through a will or a revocable inter vivos ("living") trust. An "estate" is any property, money, or personal belongings that you may have at the time of your death. Most people leave an estate when they die, even though they may not have a great deal of wealth. Even an individual with a small estate can arrange to leave a charitable bequest.
Beneficiary Designation:
By designating a charity as the beneficiary of your life insurance or retirement assets, you can enjoy some flexibility in your charitable giving as well as certain tax advantages. The designated charity will receive the specified assets upon your death, and you have the option of changing the eventual recipient throughout your life.
Sagaria Law, P.C. represents clients in all areas of estate planning. Setting up a will or a living trust, designating beneficiaries, and helping people set up their bequests are just some of the many things that we do for our clients. If you live in Santa Clara County, Monterey County, or Alameda County, contact us online or call us at 1-800-941-6730 for you a free, no obligation consultation. You can also visit us at one of our offices in San Jose, Monterey, or Fremont.
Benefactor's Final Gift Shakes A Foundation, LA Times.com, November 2, 2006
LA Philanthropist Leaves $200 Million To California Foundation, Mercurynews.com, October 30, 2006
Make A Planned Gift To Charity, Minnesotagiving.org
A Beginner's Guide To Planned Giving, Associated Content
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