The easiest way to create a legacy gift for AEPi is with a multi-year pledge to the AEPi Endowment Fund.
A devoted donor from Chicago made a new $100,000 pledge that is being paid over 4 years. The funds will be used for general purposes of the Foundation and to support Israel education programs for AEPi undergraduate students.
There are many opportunities to take advantage of when cash pledges are made:
No Capital Gains Tax on Appreciated Assets. By donating securities with a higher value than your original purchase price, you will receive favorable treatment on capital gains and can deduct the current fair market value as a charitable donation.
Double your Impact with Employer Matching. Many employers encourage philanthropy among their employees and will often match gifts made to eligible charities like the Alpha Epsilon Pi Foundation.
Charitable Distribution from IRA. Individuals who are 70 1/2 or older and make a charitable distribution from their Individual Retirement Account will receive the benefit of not increasing taxable income.
Secure Your Pledge Commitment and Secure Your Legacy
Should a donor pass away before fulfilling an existing cash pledge, you can ensure that your estate plans fulfill your legacy.
Naming the Alpha Epsilon Pi Foundation as a beneficiary of your retirement account can be an attractive option for creating a legacy and reducing income and possibly estate taxes for your loved ones.
A devoted South Florida donor named the Alpha Epsilon Pi Foundation as a beneficiary of his $400,000 retirement plan, thereby transferring the full value of the assets to charity with no estate or income tax.
Planning a Charitable Gift with Retirement Assets
Individual Retirement Accounts (IRAs), pensions, and other qualified retirement plans provide important tax benefits while you are funding them. However, these are often the most heavily taxed assets in an estate. These are ideal assets to use in creating a gift to the AEPi Foundation and enabling you to leave less tax-burdened assets to your heirs.
Donating an Estate Gift with Retirement Assets
When you make the AEPi Foundation the beneficiary of your retirement account, your gift is not part of your taxable estate. AEPi receives the full value of your gift to help us continue our mission.
To designate the Alpha Epsilon Pi Foundation as a beneficiary of a qualified retirement plan or other financial account, please use the following information:
Legal name: The Alpha Epsilon Pi Foundation, Inc.
Address: 8910 Purdue Road, Suite 730, Indianapolis, IN 46268
Federal Tax ID number: 13-6141078
It is important to let us know!
Several large financial services companies explicitly state that they have no obligation to notify AEPi or your other charitable beneficiaries of your gift after your lifetime. If we don’t know about your gift, we can’t act to make sure your wishes are carried out. Please contact the Alpha Epsilon Pi Foundation staff to let us know that AEPi has been named as a beneficiary.
IRA Charitable Rollover
Through a law passed by United States Congress, you may the IRA Charitable Rollover as a gift to satisfy the required minimum distribution from your IRA while reducing your taxable income, even if you don’t itemize.
Here’s how it works:
•You must be 70½ or older.
•An individual may transfer up to a total of $100,000 per year, and a married couple may give up to $200,000.
•Your gift must be transferred directly from your IRA account to AEPi.
•Your gift is a transfer of funds from your IRA to AEPi, so while it does not generate a charitable deduction, it does not create taxable income for you.
•The transfer of funds can count towards your annual Required Minimum Distribution from your IRA as long as your gift is received by December 31. If you are using a checkbook issued by your IRA administrator to make your gift, please send your gift as early as possible to ensure that it qualifies for a distribution in the current year.
Please contact Jay Feldman at the Alpha Epsilon Pi Foundation for a Sample Request Letter from You (IRA Plan Owner) to IRA Administrator for Charitable Distribution
Make a meaningful donation after your lifetime that costs you nothing today.
A bequest is the most commonly used vehicle to make a planned gift to charity. The terms of a bequest do not become effective until death, giving you full control of the assets or property to be bequeathed during your lifetime. By making a bequest to AEPi, the full value of these assets is removed from your taxable estate.
Types of Bequests
Bequests to charity may include gifts of cash, property or securities. Depending on your needs and preferences, you may choose among several different types of bequests:
Specific Bequest. You stipulate the exact dollar amount of your cash gift, type(s) and dollar amount(s) of gifts of securities, specific property, or percentage of your estate that you wish to bequeath to the Alpha Epsilon Pi Foundation.
Residuary Bequest. After other bequests in your will have been paid, AEPi receives all or a portion of the remainder of the assets left in your estate.
Contingent Bequest. This type of bequest takes effect only if a primary beneficiary passes away before the donor. In this case, the AEPi would be next in line behind one or more primary beneficiaries to receive your charitable gift.
Trust Remainder Bequest. You may wish to set up a trust in your will for one or more of your beneficiaries. Using the trust, you may choose to designate all or a portion of the trust assets as a gift to AEPi, contingent upon the beneficiary’s reaching a stated age or the beneficiary’s death.
General Endowment Fund. You may create an endowment fund in your will to bequeath assets to the Alpha Epsilon Pi Foundation. You may establish the endowment fund as a living memorial to family members or loved ones. Alternatively, you may stipulate that the endowment fund will benefit a specific AEPi program.
Sample Bequest Language for General Charitable Purposes
Consider a Codicil in Your Will
If you already have a will in place, you don’t have to start from scratch. You can use a codicil, which is an addition or supplement that explains or modifies your existing will.
Sample Codicil
This example codicil form is for educational purposes only and does not constitute legal advice. It is recommended that you consult a qualified attorney, licensed in your state, to ensure that this form meets all legal requirements for your state.
[Date]
I, [Name], give, devise and bequeath ($ ______ or ______% of the residue of my estate) the Alpha Epsilon Pi Foundation, a not-for-profit corporation, having its principal offices at 8815 Wesleyan Road, Indianapolis, IN 46826, Tax ID number 13-6141078, to be used for its general purposes (or for the support of a specific fund or program).
In all other respects I ratify and confirm all of the provisions of my said last Will and Testament dated on the _________ day of ______________, 20__.
IN WITNESS WHEREOF, I sign, publish and declare this instrument to be a Codicil to my last Will and Testament in the presence of the persons witnessing said Codicil at my request this _____ day of ___________, 20__.
_________________________ residing at __________________________ (name)
Witnesses
_________________________ residing at ___________________________
(name)
_________________________ residing at ___________________________
(name)
To be valid, the codicil must be signed in the presence of witnesses, and the original placed with your other valuable papers. A copy can go to your lawyer and a copy to the Alpha Epsilon Pi Foundation.
Give or bequeath a gift of real estate to the Alpha Epsilon Pi Foundation. You may also be able to donate the property and continue to live in it.
There are several ways to make a gift or real estate, including your primary home, vacation residence or commercial property, and derive significant benefits.
Charitable Contributions of Real Estate
Outright Gift. You may donate your entire property, or a portion. The property is deeded to AEPi and sold. You receive an immediate tax deduction based on the appraised fair market value. Upon sale, you also bypass income tax on any capital gain.
Gift with Retained Life Estate. You can continue to reside in and enjoy your home while deriving substantial tax benefits, and make a significant charitable gift to the Alpha Epsilon Pi Foundation. You may deed over all or a portion of your primary or vacation home to the Foundation as the succeeding owner.
You continue to use your home for your lifetime or a specified number of years. This life- time transfer generates a charitable tax deduction and bypasses any capital gains tax on the property’s appreciation in value. You also reduce estate taxes, since the donated property is removed from your estate. (While you retain and use the property, you continue to pay property tax, insurance and other expenses.)
Establish a significant gift, with little cost to you, by naming the Alpha Epsilon Pi Foundation as owner and irrevocable beneficiary of a life insurance policy, or by transferring an existing policy you no longer need.
Life insurance is potentially an easy and low-cost method of creating a major philanthropic gift. Premiums can be relatively modest and are tax deductible.
• Turn a small contribution into a major gift with no estate taxes
• Premium payments are tax deductible
• In a “second-to-die” policy, proceeds are paid upon the death of the second spouse
Giving a Gift of Life Insurance. If you gift an existing policy, a portion of the current value may be immediately tax deductible, and possibly remaining future premiums. If you take out a new policy, you will be making a major gift with tax-deductible payments over time. Another reason to consider a gift of life insurance is if you currently make annual gifts to the Foundation and would like these to continue beyond your lifetime.
A Pledge for Tomorrow! Perpetual endowment funds can help you achieve your philanthropic goals while strengthening Alpha Epsilon Pi’s future.
An endowment fund is the perfect vehicle for you to leave a lasting legacy with Alpha Epsilon Pi. The donor may select that the payout be used to endow their annual contribution to the Foundation or support a particular AEPi area.
What is an Endowment Fund? It’s simple: You set up a perpetual fund with a tax-deductible contribution. A designated amount becomes the principle of the fund. This principal is not spent, but rather is invested to generate annual income. One of the goals of an endowment is to preserve and increase principal over time, thereby increasing the payout each year.
An Enduring Memorial
Establishing an endowment fund is a wonderful way to ensure the legacy of a loved one. The fund can be named to honor/memorialize family members or Brothers of AEPi, and can be set up in perpetuity, or for a specified period time to support a special project.
Create a fund that offers immediate tax benefits and make grants to your favorite charity organizations, such as the Alpha Epsilon Pi Foundation.
Many people contribute to their Donor Advised Funds (DAFs) and Philanthropic Funds at the end of the year as a tax planning vehicle. You control the timing of your deduction and distribution of your gifts. Any time you transfer appreciated securities into your fund, your gift is free of capital gains tax.
Use Your Donor Advised Fund to Create Your Legacy of Philanthropy
When you create your Donor Advised Fund or update your succession plans, please consider naming the Alpha Epsilon Pi Foundation as a beneficiary of funds remaining after your lifetime.
You may even designate the Alpha Epsilon Pi Foundation to receive a portion of the account value, leaving the remaining portion for your children or grandchildren to continue your legacy of philanthropy.
If you decide to change your beneficiary designation, we would like to recognize you for your generosity and ensure that your gift is used as you intend.
To designate the Alpha Epsilon Pi Foundation as a beneficiary of any financial accounts, please use the following information:
Legal name: The Alpha Epsilon Pi Foundation, Inc.
Address: 8815 Wesleyan Road, Indianapolis, IN 46268
Federal Tax ID number: 13-6141078
There are several flexible ways to participate in a Legacy Gift to AEPi!
Many of these gift ideas provide attractive tax benefits for you and your loved ones.
Gift or Bequeath Personal Property. A work of art, a collection of antiques, jewelry, rare books or other collectibles may provide you with income tax benefits you never could have imagined. With an outright gift of personal property, the Alpha Epsilon Pi Foundation will sell the property and use the proceeds to help further our mission of developing leadership for the Jewish community. The gift is removed from your taxable estate, and you receive a charitable tax deduction.
Charitable Remainder Trust. An attractive lifetime income for you and your heirs, you can create a tax-exempt trust. Once these obligations are met, the trust terminates and the remainder is distributed to the Alpha Epsilon Pi Foundation for charitable purposes.
Charitable Lead Trust. A sophisticated estate planning tool with greatly reduced estate and gift tax impact. You can financially support AEPi on an annual basis, and upon termination of this type of trust, all remaining assets are either returned back to you or transferred to your designated heirs.
The Alpha Epsilon Pi Foundation is not a financial or tax advisor. Please consult your tax advisor regarding your financial, tax, and charitable needs.
AEPi’s Washington Square Arch Trust — Be remembered. Be recognized.
All supporters who make a planned gift of $10,000 or more will be listed as a member of Alpha Epsilon Pi’s Washington Square Arch Trust donor recognition program. Donors also receive a special, commemorative lapel pin and their name will be added to a dedication wall at the international headquarters and Executive Office building. When applicable, a recognition plaque will also be sent to the Donor’s chapter house for display.
The Alpha Epsilon Pi Foundation development staff will be happy to discuss your interests, concerns, and work personally with you and/or your legal and financial advisors to create a legacy plan that meets your needs and supports Alpha Epsilon Pi. For more information about Planned Giving options, such as a bequest in your will, please contact Jay Feldman, Executive Director at [email protected].
The Alpha Epsilon Pi Foundation development staff will be happy to discuss your interests, concerns, and work personally with you and/or your legal and financial advisors to create a legacy plan that meets your needs and supports Alpha Epsilon Pi. For more information about Planned Giving options, such as a bequest in your will, please contact Jay Feldman, Executive Director at [email protected].
