The Wichita Community Foundation is here to help your clients reach their charitable goals. We are experienced partners in philanthropy.
Deferred Giving
Wills and Revocable Trusts
A charitable bequest, made through a Will or Revocable Living Trust, is the most popular type of estate gift. Bequest gifts are flexible, fairly easy to arrange, and, perhaps most importantly, allow your client to retain control of his or her assets during their lifetime. Wills and revocable trusts provide a variety of ways to tailor your client’s legacy to what matters most to them.
To maximize flexibility, your client can give Wichita Community Foundation a Letter of Intent during lifetime. The Letter of Intent can provide for the creation of a named WCF fund at the time of death, and specify the purpose of the fund to be created. The Foundation allows such Letters of Intent to be revised to the donor’s changing wishes at no charge. The client’s Will or Living Trust can merely leave a gift “to WCF for the (named) fund.” This strategy allows for change - change in charitable goals, change in marital status, etc. In this way the client is not bound by the choices made today, and doesn’t have to amend the Will or trust whenever his or her charitable intent changes.
Naming the Wichita Community Foundation as a Beneficiary
In some cases, donors prefer to name the Community Foundation as a beneficiary of all or part of a financial arrangement such as a retirement plan, IRA, or life insurance policy. Such gifts can have several advantages. They are easy to make or modify, allow the donor to retain control of his or her assets during their lifetime, generally avoid the delays associated with probate, and are a very tax-wise way to give. Gifts to the Community Foundation are tax exempt and 100% of your client’s gift is put to work as you direct.) We encourage prospective donors to consult their legal and tax advisors regarding what will work best for them.
The Wichita Community Foundation encourages donors to seek professional legal, estate planning and financial advice before deciding on a particular gift arrangement.
Intervivos Trust
A revocable intervivos or "living" trust is an important part of the estate plan of many people. Intervivos means "during life," which is when the trust is established. Revocable means that the creator, also known as the grantor, of the trust can change the terms of the trust or revoke it completely during his or her lifetime. Assets in trust are not part of your client’s will; they are transferred according to the instructions in the trust document.
In recent years, the use of intervivos trusts has allowed donors to make their charitable contributions during their lifetimes rather than at death. Arguably this practice can increase the effectiveness and significance of a donor’s gift. This approach is complemented and encouraged by new approaches in financial planning where the donor’s ability to shape their legacy supercedes tax considerations.
The Wichita Community Foundation is experienced in administering these types of trusts and we encourage you and your client to discuss your mutual charitable objectives with us.
Gift Annuities
A charitable gift annuity can provide your client with lifetime income. To establish a gift annuity, the donor contributes funds or assets to the Wichita Community Foundation (WCF), and WCF in turn makes fixed annuity payments to the donor from its general assets for the rest of his or her life. The donor receives 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 WCF.
The income payments from gift annuities can begin immediately or be deferred. The minimum age for a gift annuity is typically 50, but it can be lower for deferred gift annuities with payments beginning after age 50. The payment your client receives is fixed and the amount is based on life expectancy and other factors.
All proposed gift annuity plans are subject to approval by the WCF Fund Acceptance Committee. We encourage you and your client to discuss this charitable option with our staff.
