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Resources for Advisors

Resources

  • Solutions for Your Clients - Learn how we can help you help your clients structure tax-wise gifts and more. Download
  • Why Work With Us? - Five ways we can simplify your client's giving and maximize their impact. Download
  • Open a Fund Online – Review the online form your client will complete to establish a fund at the Foundation.
  • Plan Now, Give LaterInformation appropriate to share with your clients on strategies to include charitable giving in their estate or financial plans including gift calculators. Learn more.

Bequest Language

For giving to the Austin Community Endowment

I hereby leave ___ percent (__%) of my estate to the Austin Community Foundation, a 501(c)(3) public charity (the “Foundation”), for the Austin Community Endowment Fund. It is my desire that each year the Fund will distribute an amount based on the Foundation’s spending policy for endowment funds to such charitable organizations that the Foundation may appropriately determine pursuant to its then applicable policies and procedures.

For opening an endowed fund at the Foundation

I, _____________________, hereby leave ____________________ to the Austin Community Foundation, a Texas non-profit corporation exempt under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Foundation”), located in Austin, Texas, for the purposes set forth herein. The Foundation will establish the ________________ Fund, a permanent fund of the Foundation (the “Fund”). It is my desire that each year the Fund will distribute an amount based on the Foundation’s spending policy for endowment funds to such charitable organizations as I have set forth in instructions that I have provided to the Foundation, with the understanding that Foundation will have “variance power” should circumstances change so as to render unnecessary, undesirable, impractical or impossible a literal compliance with my expressed desires.  In all respects the use of the Fund shall be in accordance with the charitable purposes of the Foundation and subject to the approval of the Foundation’s Board of Governors.

For giving to an existing fund at the Foundation

I hereby leave ___ percent (__%) of my estate to the Austin Community Foundation, a 501(c)(3) public charity (the “Foundation”), for the ______________ Fund which has been previously established and funded at the Foundation; provided, however, that if the _____________ Fund is not in existence at the time this bequest is to be funded, it is my desire that this bequest will be used by the Foundation to fund charitable activities as similar as practical to those previously funded by the ____________ Fund.

For giving to a nonprofit’s fund at the Foundation

I give, devise, and bequeath to Austin Community Foundation, a Texas nonprofit corporation (the “Foundation”), the following assets: [Insert specific assets, dollar amount, percentage, or portion of residuary] to be added to the [Name of Non-profit Endowment Fund] Fund, a component fund of the Foundation (the “Fund”).  I direct that this bequest become part of the Fund. If the __________ Fund is not in existence at the time this bequest is to be funded, it is my desire that this bequest will be used by the Foundation to fund charitable activities as similar as practical to those previously funded by the ____________ Fund.

For creating a designated fund to benefit one or more nonprofits

(Fund may be named for donor or any name selected by donor.)

I give, devise, and bequeath to Austin Community Foundation, a Texas nonprofit corporation (the “Foundation”), the following: [Insert specific assets, dollar amount, percentage, or portion of residuary].  It is my desire that this gift will create a permanent fund (the “Fund”) for charitable purposes in accordance with the Foundation’s then applicable policies and procedures. The Fund shall be named the [Name] Fund.  Annual distributions from the Fund, as determined by the Foundation’s spending policy in effect at that time, shall be paid to or for the support of [Name of Designated Organization] with the understanding that Foundation will have “variance power” should circumstances change so as to render unnecessary, undesirable, impractical or impossible a literal compliance with my expressed desires.  In all respects the use of the Fund shall be in accordance with the charitable purposes of the Foundation and subject to the approval of the Foundation’s Board of Governors.

Common Concerns

Q: Your client wishes to sell appreciated real estate property or a rental property, but is concerned about capital gains taxes.

A: Giving all or part of real estate that has appreciated in value to the Foundation will eliminate or reduce capital gains taxes and can replace less efficient charitable giving. We accept gifts of real estate through our supporting organization (Charitable Holdings II) and transfer their value to your client’s fund when they have been sold. Your client can even continue or begin to receive lifetime income from their gift. They will have the satisfaction of giving to one or more charities (in Austin or beyond) immediately, during their remaining lifetime and even creating a legacy that lasts forever.

Q: Your client will be receiving additional taxable income this year. She’d like to give some to a charity, but isn’t ready to decide which one and might want to extend her giving over future years.

A: By opening a Donor Advised Fund, your client locks in her tax deduction for the current year and then can take time to set her charitable goals and enjoy her giving.

Q: Your client has served on nonprofit boards and is approaching retirement age. How can he continue his generosity while his earnings begin to taper off?

A: A Donor Advised Fund is a great solution for someone at the peak of their income who has philanthropic goals for the future. By investing today’s dollars in an endowed fund, your client can continue giving generously well into her retirement.

Q: What is an endowment?

A: An endowment is an invested fund created to provide charitable gifts to nonprofits in perpetuity by investing the principal (endowment corpus) and expending a fixed portion of the income to carry out the donor’s recommendations. The goal of an endowment is to ensure that the fund maintains its purchasing power over time to support future generations. The power of an endowment is that donated assets may provide for community needs in perpetuity.

Power of Endowment

Q: Your client has a large retirement fund but is concerned his children will only receive 20 or 30 cents on the dollar as beneficiaries.

A: Giving the retirement fund to an endowment from which heirs may recommend charitable gifts will reduce estate tax, eliminate income tax on the IRA distribution and create a family legacy. In the meantime, other assets can be used for gifts to family members.

Q: Your client has no children and it’s time to write a will.

A: What are they passionate about? How do they want to be remembered? A bequest to the Austin Community Endowment at the Foundation will provide for the needs of our community forever. Ask your client to consider giving 5% or more to charity and sign the Austin Giving Pledge. Learn more

Q: Your client wants to help a relative or long-time employee.

A: A life-income gift, such as a Charitable Gift Annuity, can provide the friend a lifetime income—and allow your client to support a favorite charity following the friend’s death.

Q: Your client has valuable artwork, jewelry or real estate and would like to set up a fund.

A: The Foundation can accept almost any tangible asset to help you set up a charitable fund.

Q: Your client wants to open a Fund but prefers to retain your services to invest their funds. Can a third-party manage a Fund held at the Foundation?

A: We use long-term investment strategies to ensure that philanthropic dollars donated by generous Austinites last forever while also making available the maximum amount possible for grantmaking every year. However, we understand the value of long-term relationships. It is possible for your client to create a Fund at the Foundation and retain your investment management.

Related Resources

Learn about our investment strategies

Investing the charitable dollars you have entrusted with us is an important part of our work. Review recent investment statements, our audit and financial documents.

Learn how your client can benefit from working with us

The ease of a donor advised fund with all you love about Austin. We provide personalized service, professional expertise plus homegrown knowledge of needs and opportunities.