John and Fannie Hertz would be pleased their philanthropic vision has reached so far and touched so many. An investment in Hertz Fellows is an investment in future leaders at a pivotal time in their development. Hertz Fellows have financial and academic freedom to maximize their academic careers and pursue areas of interest where funding is not yet available.
We have outlined a number of approaches you could explore to help keep the Hertz tradition alive through your financial support.
It may be advantageous to give securities. You can maximize the size of your charitable gifts, conserve cash you would have given, and enjoy multiple tax benefits. The gift is complete and thus deductible at the time of the transfer. Contact us for delivery instructions for stock and mutual fund gifts.
Key points to consider:
- Securities that are publicly traded and have appreciated over time: you can avoid the capital gains tax and obtain an income tax deduction for the full value of the securities at the time of transfer.
- Securities that have decreased in value: you should consider selling the asset and giving the cash proceeds, allowing you to claim tax benefits for both the capital loss and the charitable gift.
- Closely/privately-held stock: the Hertz Foundation can accept closely-held stock (e.g. from a new company) in most circumstances. Contact the Foundation to discuss the possibilities.
Giving real estate can be an effective way to support the Hertz Foundation. Call to discuss options and specifics for transfer.
a gift through your will
After providing for loved ones you can direct that a portion of your estate be devoted to charitable interests. There is no limit to the amount of charitable gifts that are deductible for gift and estate tax purposes. You can leave a specific dollar amount or specific property, a percentage of your estate, or what's left of your estate after other bequests and taxes are satisfied. Estate planning documents should be prepared in consultation with your attorney and with the Foundation.
Sample bequest language:
I hereby give to the Fannie and John Hertz Foundation the following described property: _____, to be used for the Foundation's general purposes.
If you wish to restrict your gift to a particular purpose, please include the following language to ensure that your gift will always remain productive when circumstances change unexpectedly:
If, in the judgment of the Board, changed circumstances should at some future time render the designated use of the Fund no longer appropriate, the Board shall use the fund to further the objectives and purposes of the Hertz Foundation, giving consideration to my special interest as evidenced by the purpose described above.
Charitable Remainder Trust (CRT)
A Charitable remainder Trust is a tax-exempt trust that can pay income for life to you or a family member, with the remainder going to the Hertz Foundation. Since a CRT is tax-exempt, it is most often used by donors wishing to sell a highly-appreciated asset. A CRT can sell the asset free of capital gains tax, allowing you to earn income from the full sales proceeds. In addition, funding the CRT will generate an income tax deduction for the present value of the gift to the Foundation.
There are two types of CRTs:
- Annuity Trust: pays a fixed dollar amount determined on the first day of the trust.
- Unitrust: pays the income beneficiary a fixed percentage of the trust's value as determined each year.
A life insurance policy that is no longer needed for its intended purpose can become an excellent charitable gift. In addition to providing income tax savings today, gifts of all or a portion of the value of the life insurance can result in estate tax savings.
Retirement Plan Assets
Generally, you cannot transfer retirement plan assets to another person or charity without the transfer first being treated as a taxable distribution of the fund assets. However, if you are over 70 1/2 years of age, you now can distribute up to $100,000 per year directly from your IRA to a charity without any tax consequences.
In addition, with a bequest under your will you can make a charity the beneficiary of your retirement plan account. The latter may be a good choice as you may save your heirs income taxes as well as estate taxes. Like other assets, your retirement plan will be included in your taxable estate and possibly subject to estate taxes.
Unlike most other assets, however, retirement plan assets are also subject to income tax upon receipt by your heirs. Because of the extra income tax levied on most retirement plan assets, your heirs may receive only a small fraction of the initial value after taxes. Retirement plan assets are ideal to fund a charitable gift at death, as such a gift avoids both the estate tax and the income tax.
Unrestricted and Restricted Gifts
Unrestricted gifts are especially valuable to the Foundation because they can be used most flexibly. However, you may wish to support a specific program of interest or endow a special fund to provide special assistance.
Presently you can establish a named fund for an endowed Fellowship, ensuring that a Fellow will be supported by your generosity long into the future. You will receive recognition by the Fellow in papers presented and will have the opportunity to talk with your designated Fellow.
If you wish to establish a specific fund or restrict your gift, please contact the Hertz foundation to discuss the specifics of your restriction. Several gift opportunities are available for such designations.
Gift in Recognition and Memory
You may wish to make a gift to the Fellowship program to honor another individual, celebrate a specific day or memorialize a special person. The Foundation will send an appropriate acknowledgment to the individual or individuals recognizing that gift.