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Paideia National Endowment Fund

  • The Time Has Come
  • The Track Record Is In Place
  • The Initiatives Are Many
  • The Society Must Grow
  • The Momentum Must Be Preserved
  • The Society Must Become Self Sufficient
  • The Society Must Last Forever
  • Therefore The Society Must Get Endowed
  • The Fund Requires A Strong Committee
  • With Members Of Diverse Professional Backgrounds
  • With Members From The Various Regions Paideia Is Active
  • The Committee Will Be Responsible To Identify Potential Donors
  • The Committee Will Assist Them In Structuring Their Donations
  • When The Endowment Fund Obtains Critical Mass It Will Begin Distributing Its Income In Support Of Existing And New Initiatives
  • The Initial Goal Must Be At Least Five Million Dollars
  • Time Is Of The Essence


Paideia National Endowment Fund

Ways to Support the Paideia Fund

Donations

A donor may give any amount of money or property to the Fund. The full value of the gift when donated is tax-deductible.

Bequests

Bequests are the most popular type of planned gift. A donor may leave a specified sum of money or piece of property to the Fund. Another option includes leaving the Fund a percentage of the donor’s estate or of the residue after making provisions for family and friends. Any type of bequest left to the Fund will reduce the size of the donor’s taxable estate while helping a good cause.

Life Insurance

A life insurance policy may either be donated to the Fund, or simply changed to name the Fund as the beneficiary of the policy. For the gift of a paid-up policy, the donor will be entitled to an income tax deduction equal to the lesser of the cash value of the policy or the total premiums paid. To qualify for the federal charitable contribution deduction on a gift of an existing policy, the donor must name the Fund as owner and beneficiary. Even if the donor is still paying premiums on the policy, they can give it to the Fund and future gifts to pay the premiums will be tax-deductible.

Of course, the easiest way to use life insurance for charitable giving is to simply name the Fund as the beneficiary of a policy. There are no current tax benefits to this arrangement because it is not irrevocable, and it is only partial interest in the policy. However, it provides a very generous gift with attractive tax benefits upon the donor’s death.

Charitable Gift Annuity

A charitable gift annuity is a simple contract between a donor and the Fund. Based upon the donor’s age at the time of their gift, the Fund will pay a fixed dollar amount (an annuity) for the lifetime of the donor and that of another individual, if desired. The older the donor is at the time of the gift, the higher the annuity. If appreciated property is used for the gift, such as stocks, the donor will avoid capital gains tax on the gift portion of the transaction. The remaining gain will be apportioned over the donor’s lifetime. Charitable gift annuities are a wonderful way to increase income from stocks that pay small dividends and carry heavy capital gains.

Charitable Remainder Trusts

Unitrust-CRUT

A Unitrust, also called a Charitable Remainder Unitrust or CRUT, requires that a fixed percentage (minimum 5%) of the annual value of trust assets be paid to the income beneficiary. For example, a CRUT with a value of $2,000,000 and a 5% payout would pay $100,000 to the income beneficiary in that year. If the investment performance for that year was 10% and the value of the trust on the valuation date was $2,200,000 the income beneficiary would receive $110,000 in that year. Another benefit of the Charitable Unitrust is that it will allow for additional contributions. The Unitrust will generally produce higher amounts of income but a smaller tax deduction.

A Unitrust is good for someone looking for a specific percentage return. This can be used to keep up with inflation if the trust value continues to grow over the years.

Annuity Trust-CRAT

An Annuity Trust, also called a Charitable Remainder Annuity Trust or CRAT, pays a fixed percentage of the initial value of the trust assets with a required 5% minimum annual income to the beneficiary. For example, a CRAT with an initial value of $2,000,000 and a 5% payout would pay $100,000 annually to the income beneficiary, regardless of investment performance. Income distribution is mandatory and principal may be invaded to satisfy the requested payout. No additions to the principal may be made after the trust is established.

An annuity trust is usually used by someone who wants a guaranteed income stream each and every year. Regardless of the performance of the trust, the income is paid each year without change.