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Planned Giving
Planned giving is a way to make a lasting gift to benefit public education. Mary Hatwood Futrell, former NEA president and advocate for the foundation's endowment, was the first to make a planned gift.
Advantages of Making a Contribution
Your planned gift can:
Provide creative ways of using assets, resulting in maximized benefits for you and your family, such as:
- Deduction on current year income tax return
- Reduction of capital gains tax on appreciated stock
- Reduction of estate or income taxes for heirsIncrease in retirement income
Help your NEA colleagues continue your legacy of improving public education. Your financial support, dedication, and service in public education can benefit others for years to come.
Support your commitment to and belief in your NEA membership. Your gift can strengthen the solidarity of the NEA membership and ensure that the NEA continues to thrive and grow beyond your lifetime.
How to Contribute
The NEA Foundation currently accepts the following planned gifts:
Wills and Bequests
Bequests can be made in the form of a specific gift of cash or other financial assets, or a percentage of the remainder of an estate. The latter allows more flexibility in planning. The following language has been approved by The NEA Foundation's counsel as an effective bequest to the organization:
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I give to The NEA Foundation for the Improvement of Education, or its successor, organized under the laws of the District of Columbia, the sum of $ ___ (or ___% of my estate; or the financial property described herein) for its general purposes.
Gifts of Securities
Owners of appreciated securities may obtain substantial tax benefits by transferring those assets directly to The NEA Foundation. Under current tax law, donors will receive an income tax deduction equal to the fair market value of the stock on the effective date of the gift. In addition, such a gift reduces capital gains tax on any appreciation.
Life Insurance Gifts
The large cash value resulting from a relatively small premium makes a life insurance policy an attractive planned gift. Donate a fully or partially paid policy, or purchase a new policy, and name The NEA Foundation as irrevocable owner and beneficiary. For fully or partially paid policies, the donor is entitled to an income tax deduction in an amount equivalent to the cash value of the policy. Further payments for a new or partially paid up policy are also income-tax deductible.
Tax-Qualified Retirement Plan Gifts
Careful planning for the disposition of tax-qualified retirement plan assets, such as IRAs, can help reduce taxes. In certain situations, gifts of retirement account balances to The NEA Foundation can improve the donor's overall tax consequences, increase the amounts passing to heirs, and reduce income and estate taxes.
Charitable Remainder Trust Gifts
Trusts can help a donor significantly reduce estate and income taxes, more so than other planned giving options, because any number of assets can be given to form the trust. Once the trust is formed, the donor can draw income from it, providing a steady, predictable, and potentially increased income for life. The assets are then transferred to the donor's designated charity.
Charitable Lead Trust Gifts
The donor puts assets into a trust, and income is paid to the charity for a designated period of years, at the end of which the funds are returned to the donor or the donor's heirs. The charity can receive and budget income immediately, giving the donor the satisfaction of making a sizeable gift during his or her lifetime. The gift is returned to the donor or the donor's heir at a reduced tax cost.
Charitable Gift Annuities
This type of gift frees up the donor's assets in order to generate an income and can be started with a relatively small amount of money. The donor makes a gift to a charity, which then pays out stipulated annual payments to the donor for the donor's lifetime. The donor may choose to defer payments until a designated time, such as retirement.
Testamentary Trusts and Annuities
Donors can provide for the establishment of trusts or annuities in their wills, with proceeds going to the charity and the donor's heirs.
Benefits of Making a Contribution
- Lifetime membership in the Touch the Future Society, which thanks and recognizes donors for their generosity and dedication to public education.
- A personalized certificate and membership pin.
- Invitations to special events, such as the annual Salute to Excellence in Education Gala.
- Periodic updates and publications, such as The NEA Foundation's annual report, to keep you informed of the important work that the foundation supports.
- Opportunities to connect with the foundation's extraordinary grantees.
Contact Information
If you would like more information about making a lasting donation, or if you have already named The NEA Foundation as the beneficiary of a planned gift, please contact the Foundation at 202-822-7840.
The NEA Foundation is happy to discuss these planned gifts with you. However, this information is not intended to be tax or legal advice. The foundation encourages you to speak with your legal or financial advisors before making a donation, to design the best plan for you and your heirs. The National Committee on Planned Giving has a set of professional standards, which can help you select a professional advisor.
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