Revisiting Planned Giving

With potential estate tax changes under the Biden administration, your clients may be revisiting their gift and estate planning. Charitable giving may already be a priority for your clients or may emerge as a strategy to reduce capital gains, income, gift or estate taxes. Because the North Carolina Community Foundation is a public charity, your clients will receive maximum charitable tax benefits as well as flexible giving options if they partner with the Foundation.

In this and future newsletters, we will share planned giving considerations and techniques we hope will be useful as you work with your clients. We’ll start with a few of our most frequently asked questions by clients and their advisors and dig into other topics in future newsletters.

Q: What are ways my clients may make a planned gift to NCCF?

NCCF receives planned gifts from donors through estate gifts through a will or trust, through a beneficiary designation on a qualified retirement plan, through life insurance proceeds and other avenues, like Charitable Remainder Trusts, closely-held business interests and others. Read more about planned giving options here.

Designations through a will or trust are the most straightforward and popular way for donors to make a gift to NCCF to either an existing or new fund. Donors may make designate NCCF or their fund at NCCF as beneficiary of a set amount, a percentage of the residuary estate or the entire residuary estate. Please contact our team for assistance with the proper language for designating a fund at NCCF as a bequest recipient.

Q: What are the tax benefits for my clients if they give through NCCF?

NCCF is a public charity and as such offers your clients maximum charitable tax advantages available by law.

If your client is interested in starting a private foundation, consider the alternative of starting a donor advised fund at NCCF to enjoy the experience of donor advised grantmaking with fewer administrative burdens and greater tax benefits.

Q: Does my client have to fund their endowment now or can they document their wishes and fund it later?

Your client is not required to currently have a fund at NCCF to make plans for a future gift. The Foundation will work with you and your client to document their intentions in a fund agreement today that will receive assets later when the bequest is activated.

The fund agreement is kept on file by the Foundation but will not be funded until the Foundation receives assets later when the bequest matures. We find that donors feel a sense of comfort when their intentions are documented but also appreciate the flexibility to adjust their future fund’s charitable purpose, beneficiaries or goals – without having to amend their will or trust.

Q: Are my clients limited to nonprofit organizations already supported by NCCF or NCCF funds? Can clients support causes or organizations outside of North Carolina?

Donors may establish a fund that supports any qualified charitable organization, with no requirement that the nonprofit already be supported by the Foundation or a North Carolina organization.

As always our team stands ready…

Kathryn Roebuck Holding, J.D.
Director of Development
(919) 256-6932

Beth Boney Jenkins
Development Officer, East
(910) 782-2895

Megan Lynch Ellis
Development Officer, West
(828) 355-4306

Mary Morgan, J.D.
Philanthropy Counsel
(919) 256-6909