Planned Giving Guidelines
Founded as an adjunct to the Rotary Club of Madison, the Madison Rotary Foundation receives gifts from members and others for memorials, scholarships, and other Rotary projects. Rotarians who wish to make a gift that impacts on the local community and, at the same time, helps to “pay back” Rotary for the great and wonderful fellowship it provides, are encouraged to make that gift through the Madison Rotary Foundation. The Foundation looks to its membership to continue its charitable practices in the Madison community for those purposes that are within the scope of Rotary interest. The service of the Rotary Club of Madison is extended through Foundation gifts to local nonprofit organizations, schools, youth organizations, scholarships, and many special projects.
The Madison Rotary Foundation receives, invests, and distributes gifts for the Rotary Club of Madison. In this role, the Madison Rotary Foundation engages in fund raising on a limited basis. Although the only ongoing fund raising for the Foundation is an annual drive in which each Rotarian is asked to participate, there are other opportunities to make outright or deferred gifts to the Foundation. An explanation of these opportunities follows.
An outright gift is an immediate gift with no deferred element to it. The best vehicles for outright gifts are cash, usually in the form of personal checks, or gifts of securities. Each of these gifts offer tax advantages but you should always consult with your attorney or accountant for the legal and tax implications of any gift you make to charity.
From time-to-time, Rotarians find themselves involved in situations when significant capital gains are to be realized, i.e., buy-outs and mergers, sale of a business or home, or other real or personal property. Such events offer ideal circumstances for a major gift to a favorite charity such as Rotary, particularly because of significant tax breaks. Be sure to consult your attorney or tax advisor early in such developments.
Annual or Endowment Gifts
The Madison Rotary Foundation has chosen to add all gifts of $5,000 or more, even if received as part of its annual drive, to the general endowment fund, unless the donor specifically directs that the entire gift be used currently or endowment is designated. Appropriate recognition will be given to donors for such gifts. Gifts of $10,000 or more may be used to establish an endowment fund to perpetually honor the donor by continuing good work in his or her name. A donor may decline the endowment assignment and direct gifts for an immediate use.
Gifts and bequests can be made to the Foundation to establish a named scholarship. A $100,000 fund generates an annual award to a graduating senior from one of the seven Madison area high schools. A $50,000 fund generates an award every other year.
A deferred gift is one in which the charity receives the benefit at a date later than when the gift is made; in other words, the benefits accrue to the charity sometime in the future. There are several ways to make Rotary a beneficiary of this type of gift.
Life Income Gifts
This form of giving is ideal for the Rotarian who would like a portion of his or her estate to go to the Foundation eventually and who would like to have the assets professionally managed at a time in life when such responsibilities are a chore. By placing assets in a charitable remainder trust at the Rotarian’s bank trust department, a tax deduction, determined by the age of the life income beneficiary, is realized. An agreed-upon percentage of the income earned by the trust is paid to the life beneficiaries (typically the donor and his/her spouse). Please see your bank trust officer if you are interested in this type of gift.
Policies purchased years ago to provide protection for a young family may no longer be needed for this purpose and offer an ideal way to make an endowment gift to the Madison Rotary Foundation. You may wish to gift the policy to the Foundation for the cash surrender value and receive a tax deduction. Another way to make this type of gift is to purchase a new policy with the Foundation as the owner and beneficiary; all premiums you pay will be deductible for tax purposes. Please see your insurance agent for details.
A combination of annual and deferred giving is included in a Charitable Lead Trust. In this case, a Rotarian sets aside in trust certain income-producing assets for a set period or life. During this time, the income is paid to the Madison Rotary Foundation and, at the end of the period, the assets and future income revert to the donor or another person (spouse, child, grandchild, etc.). These trusts can save significant amounts of gift, estate and income tax, but must be carefully planned by expert estate planning counsel.
The easiest way to make a gift to Rotary is to include it in your will. The language for this gift is most important. The complete name of the Foundation for inclusions in your will is the MADISON ROTARY FOUNDATION. A gift of this kind can be a specific cash amount, a specific property, or a percentage amount of your will.
The aforementioned items are offered as suggestions for supporting our Madison Rotary Foundation. If you have any questions, please call the Rotary office to be referred to the appropriate member of the Foundation board. Thank you for your continuing support.