What are the benefits to a donor of planned gifts?
Planned gifts offer a donor many of the same benefits that an outright gift to a charity provides, such as:
- Charitable tax deduction;
- Avoidance of capital gains tax on appreciated property, securities and collectibles;
- Removal of assets from potential estate taxation;
- Control of where the estate's “social capital” is used;
- Personal satisfaction in supporting a worthy cause; and
- Recognition for your charitable support while living.
These benefits are possible because the ADA Foundation is a 501 (c)(3) organization. It enjoys this tax-exempt status by using its resources to support charitable activities that benefit the public good.
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What are the advantages to the charity of receiving a planned gift rather than a conventional donation?
The ADA Foundation benefits from a donor's planned gift in several distinct ways:
- Planned gifts allow the Foundation to highlight the benevolence of the donor
in public forums and in printed media. This has the power to influence and
stimulate others to consider the establishment of a planned gift.
- Planned gifts allow the Foundation to recognize the donor for his or her
gift while living.
- Planned gifts allow an opportunity for dialogue with each donor about gift
wishes so that the Foundation can become a better steward of the gift.
- Planned gifts are usually larger than outright gifts, which in turn enable the
Foundation to do more work that is charitable.
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Can you provide a few examples of planned gifts?
There are numerous ways to creatively structure a planned gift. A donor's attorney and/or financial advisor should be consulted to assure that the optimum benefits are realized for the estate and charity.
- The most common form of planned giving is leaving a bequest in one's will. Charitable bequests reduce the size of the estate and reduce estate taxation.
- Remainder charitable trusts, such as charitable gift annuities or unitrusts are usually established during a donor's lifetime, providing an immediate tax-deduction, avoidance of capital gains taxation, reduced estate tax at death, and creation of a source of income for the donor's and/or other family members for life or for a specified period of time. Ultimately, the trust's residual assets pass to the Foundation for the purpose outlined by the donor.
- Charitable lead trusts provide a number of unique benefits. These types of trusts are generally used when a donor has assets that are likely to appreciate and the donor wishes to pass these assets to family members with reduced gift and estate tax consequences. Lead trusts are established for a specified period, often ten years. During this period, the charity receives regular distributions from the trust, either a fixed amount (charitable lead annuity) or fluctuating amount (charitable lead unitrust) and the donor pays income taxes on the earnings of the trust, which may be tax deductible. A charitable income tax deduction may also be available when the trust is established.
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Am I Eligible To Be A Member?
The ADA Foundation Legacy Society is open to all individuals and couples who recognize that oral health matters. Receipt of a completed Legacy Society Form (PDF)  is required.
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Is Annual Renewal Required?
No action is required for continuous membership. The Foundation simply needs to remain a beneficiary in your will or other planned gift instrument, such as life insurance policies, stocks, trusts, interests in real estate or other marketable properties or assets, etc.
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How Will I Be Recognized When I Join?
All members are recognized. However, those who do not wish to have their names publicly acknowledged will be listed as Anonymous. The choice to opt out is provided on the ADA Foundation Legacy Society Form (PDF) . You may request at any subsequent time to be recognized publicly. Each member receives a Legacy Society recognition certificate and lapel pin. Individuals choosing to receive public recognition are listed in the ADA Foundation Honor Roll of Donors annually. Members receive the Foundation's Report on Giving . Additional recognition may be provided from time to time.
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What Does My Gift Support?
Your gift enables the Foundation to pursue its vision and mission (links to about page with vision and mission statement) You may choose from a list of specific existing Foundation programs including grants for dental research, education, access or charitable assistance activities (please link program areas to their pages), or you may suggest that your gift be used for a specific program. Family members and colleagues can be honored or remembered through your gift.
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What Types Of Charitable Estate Plans Are Acceptable?
Various types of charitable estate gifts are accepted by the Foundation. Advice on wills and other estate planning issues should be secured from your attorney and/or financial advisor. ADA Foundation staff can assist by providing examples of how different charitable gift options may provide tax and other estate planning benefits for you and your family. This assistance is provided without obligation or charge. Once a Legacy Society Form (PDF) is submitted, it is reviewed to ensure that the proposed gift complies with the Foundation's Gift Acceptance Policies. Examples of gift arrangements that you may consider are listed below:
- Charitable bequest by will or codicil to an existing will
- Charitable remainder or lead trust
- IRA or retirement plan beneficiary designation
- Change of beneficiary on a life insurance policy, investment or bank account
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Is Help Available To Discuss A Proposed Planned Gift?
Yes, the Foundation's Director of Development is available to assist you. Please call the ADA Foundation at 312-440-2547 to discuss your estate and charitable goals. Any information you may wish to share will be treated as confidential. Your right to privacy will be respected.
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If I Establish A Charitable Trust, Can The Foundation Serve As Its Trustee?
The ADA Foundation gift acceptance policies do not allow us to serve as trustee of a charitable trust at this time. Guidance on the selection of a trustee is available by calling the ADA Foundation's Director of Development.
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Is There An Age Or Gift Minimum For Membership?
Anyone who names the ADA Foundation as a beneficiary is eligible for enrollment regardless of age. Although no gift minimum is required, applicants are urged to discuss their charitable plan with the Foundation before making a commitment, to ensure that the gift achieves your objectives and desire to help the Foundation with its mission.
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