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.
With the expert counsel of Silk, Adler & Colvin – a nationally
recognized law firm specializing as advisors to nonprofit grant-making
organizations and philanthropist – we have outlined a number of
approaches you could explore to help keep the Hertz tradition alive through
your financial support.
Cash gifts
Matching gifts
Securities
Real estate
Bequests
Trusts
Life insurance
Retirement plan assets
Unrestricted and Restricted Gifts
Gifts in Recognition and Memory
Cash Gifts
Whether given outright, designated or endowed a cash is still the
most popular and simplest type of charitable gift. Outright gifts sustain
the Fellowship program through the Annual Fund. A bank credit card
gift is deductible in the year the charge is made.
Matching Gifts
If your employer offers a matching gift program, you can multiply
the impact of your gift by requesting a match from your employer. Check
with your employer regarding the company process and notify the Hertz
Foundation that a match is expected, or enclose the appropriate corporate
form for our submission. More matching gifts are now possible since
the Hertz foundation was re-classified as a 501(c)(3) section 509(1)
public charity.
Securities
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. The amount if the deduction you can use in the year of
gift is limited to 30% of your adjusted gross income. You may carry
forward any unused deductions for a maximum of five additional years.
- 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.
Real Estate
Giving real estate can be an effective way to support the Hertz
Foundation. Call to discuss options and specifics for transfer.
Bequests: 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.
Life Insurance
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 you IRA to a charity without any tax consequences. If
eligible, consider this now since this special provision is set to
expire december 31, 2007.
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
with a gift of $600,000, 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. Thanks to the generosity of
a donor, it is now possible to endow a Fellowship with a gift of $300,000
which will attract another $300,000 from a matching gift fund.
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.
