The Rotary Foundation · Outright Gifts to Rotary Charitable Lead Trust (CLT) • An irrevocable...

The Rotary Foundation

The Rotary Foundation Mission

• World Understanding• Goodwill• Peace


The Rotary Foundation transforms your gifts into projects

that change lives both close to home and around the

world. As the charitable arm of Rotary, we tap into a

global network of Rotarians who invest their time, money,

and expertise into our priorities, such as eradicating polio

and promoting peace.

Ways to donateLiving Gifts

Legacy Planning Gifts

EREYEvery

Rotarian

Every

Year


Giving Opportunities

Annual Fund-SHARE – 50% of donations are returned to

your district each year through District Designated Funds

Endowment Fund - Gifts to the Endowment Fund provide a

continuous stream of income funding programs in perpetuity

World Fund/Support a Specific Cause

PolioPlus Fund

Promoting Peace

Fighting Disease

Providing Clean Water

Saving Mothers & Children

Supporting Education

Growing Local Economies


Annual Fund donationsManaged by The Rotary Foundation for

three years, then

50% to the World Fund

50% to District Designated Funds based on

the district’s spending plan

50% District

Designated

Funds

50% World Fund

The Annual Fund-SHARE System

Ways to donate

Living Gifts.. Immediate effect,

potentially greater

donation and family

benefits

Outright Gifts to Rotary


Ways to Give

• Check, draft, or wire

• Recurring giving

through Rotary Direct

• 2013 - IRA Qualified

Charitable Distribution

• Securities

• Planned giving

• Named gift

• Charitable Lead Trust

• Donor advised funds

• Personal property

• Real estate

• Employee matching

gift

• Rotary credit card

• Airline miles


Ways to Give

• Check, draft, or wire

• Recurring giving

through Rotary Direct

• 2013 - IRA Qualified

Charitable Distribution

• Securities

• Planned giving

• Named gift

• Charitable Lead Trust

• Donor advised funds

• Personal property

• Real estate

• Employee matching

gift

• Rotary credit card

• Airline miles

Recurring Giving:

Rotary Direct

Efficient Convenient Secure


Limited Time Opportunity (FOR 2013 ONLY)

IRA Qualified Charitable Distribution

• The American Taxpayer Relief Act of 2012 extended the

qualified charitable distribution provisions for 2013

• In 2013, those 70½ and older can transfer up to $100,000

from an IRA directly to a charity without federal tax

• The transfer can satisfy IRA required minimum distributions

The amount excluded from gross income is not taken into account

in determining charitable deductions


Donor-Advised Fund • A Donor makes a gift to the fund and then “advises” on

how and when to make specific gifts to charity

• Easy to establish and low cost

• Appreciated assets contributed to the fund can be sold

free of capital gains taxes

• Contributions are removed from donor’s taxable estate

• Family involvement – donor can name a successor to

make grant recommendations upon their passing


Charitable Lead Trust (CLT) • An irrevocable trust funded with cash or securities

• Income to charity and remainder interest to beneficiaries,

the charity gets the lead income

• Potential to transfer assets to beneficiaries with little or

no gift or estate tax

• Grantor types:• Grantor CLT – Donor is taxed on all income produced in the trust. Donor receives a charitable income tax deduction

as well as a charitable gift tax deduction

• Non-Grantor CLT - Donor is not taxed on the income produced in the trust and receives a charitable gift tax deduction

with no charitable income tax deduction.

• Income types:• Charitable Lead Annuity Trust (CLAT) – Fixed payments determined when trust is established

• Charitable Lead Uni-Trust (CLUT) – Variable payments based on a percent of annual balance


United Airline Miles

Put soon-to-expire,

unused United Airlines

miles toward a good

cause: Donate them to

Rotary’s Humanitarian

Miles program. Rotary Credit Card

Each time you use your

Rotary card, Rotary

International receives a

contribution

Living Gifts

Gifts that Provide Income

Gifts That Provide Income

Pooled Income Fund • Donor’s gifts are commingled with other gifts for

investment purposes

• The donor receives income for his/her lifetime and/or the

lifetime of another individual

• The returns within the pooled income fund determine the

income earned by the donor and will vary over time

• The donor claims a charitable income tax deduction in

the year the gift is made

• Easy to establish, low minimum contributions


Charitable Gift Annuity

• Among the oldest and simplest methods of making a

deferred charitable gift

• Provides cash flow to the donor in return for a gift directly

to the charity that sponsors the annuity

• Payout rate depends on the donor’s age

• Guaranteed distributions for life

• Immediate federal income tax deduction

• An easy form of charitable giving


Charitable Remainder Trust (CRT)• A split-interest gift with current payments to the donor

and remainder interest to a charity, the charity gets the

remainder payment

• Can be established with various timeframes including

one life, multiple lives, or a term of years

• Provides income and investment diversification

• Receive an income-tax deduction & reduce your estate

• Two income types: • Charitable Remainder Annuity Trust (CRAT) – Fixed payments

• Charitable Remainder Uni-Trust (CRUT) – Variable payments

Living Gifts

Rotary Recognition - Living Gifts


Individual recognition

Paul Harris Fellow• Give $1,000 or more

• Multiple Fellow with additional $1,000 gifts

• Recognize someone else as a Paul Harris Fellow

Paul Harris Society member• Give $1,000 or more annually ($83.35 per month)

Rotary Foundation Sustaining Member • Give $100 or more per year

• Every Rotarian Every Year (EREY) Program


Individual recognition

Major Donor • Cumulative donations of $10,000

Arch C. Klumph Society• Cumulative giving reaches $250,000

• Members’ portraits hang in the Arch C.

Klumph Gallery at Rotary International

World headquarters in Evanston,

Illinois.


Club Recognition

Every Rotarian, Every Year Club• Clubs that achieve $100 per capita with all members contributing to the

Annual Fund, awarded annually

100% Paul Harris Fellow Club• All dues-paying members are Paul Harris Fellows, one-time recognition

100% Rotary Foundation Sustaining Member Club• All dues-paying members give $100 or more to the Annual Fund,

awarded annually at the end of the Rotary year

Top Three Per Capita in Annual Fund Giving• The top three per capita clubs in each district, awarded annually


Named Gift Opportunities

Grants – Fund a specific program• Global Grant naming opportunities

• Rotary Peace Center term gift opportunities

Endowments - Earnings spent on a designated

program• Endowment naming opportunities

• Rotary Peace Center

Ways to donate


…After you pass


A provision in an estate plan • A provision in a will

• A provision in a trust

• Insurance beneficiary designations

• Real estate and other asset transfers

• Gifts of retirement plan assets or other

financial accounts


Rotary as Beneficiary of Life Insurance

• Advantages

• Easy to designate a charity as beneficiary

• Donor can revoke the gift & change the beneficiary

• Provides a potentially significant contribution

• Disadvantages

• No income tax deduction

• No family involvement


Rotary as Beneficiary of a Retirement

Account (IRAs, 401k, Annuities)

If the Beneficiary is a Charity

• Withdrawals are taxed at the charity’s 0% income tax rate

If the Beneficiary is a Family Member

• Withdrawals are taxed at the beneficiary’s income tax rate, as

high as 39%

If you are leaving assets to both family and charities, consider leaving

retirement accounts (but not Roth IRAs) to the charities

Rotary Recognition - Legacy Gifts



Recognizing your generosity

Only 1 in 7 donors of legacy gifts are

recognized in their lifetime!

When your estate plan is completed let Rotary

know so you can be recognized and thanked


Recognizing your generosity

Benefactor – Those who commit any

amount in their estate plan to Rotary

Bequest Society - Those who commit to

gifts of $10,000 or more


A Benefactor is an individual or couple with

a Rotary charitable provision in their estate

plan


A Bequest Society member is an individual

or couple with a $10,000 or more Rotary

charitable provision in their estate plan

How to get started

How to get started…

Talk to your family

Plan with your advisors

…start the discussion

Contact

Date post:	03-Aug-2020
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The Rotary Foundation · Outright Gifts to Rotary Charitable Lead Trust (CLT) • An irrevocable...

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