A lasting commitment to future generations
With a Legacy Fund, donors can create a charitable legacy for the communities they cherish, anywhere across the globe. A Legacy Fund will make gifts to a donor’s preferred charity or cause, in perpetuity or for a specific number of years. Contributions can be made during the donor’s lifetime, or through a charitable bequest or other planned gift.
How Does It Work?
Opening a fund
You may establish a Legacy Fund to provide continued support to a favorite organization overseas, or to advance a particular issue that is dear to your heart, in the city or country of your choice. You may choose for your fund to exist in perpetuity, or instruct us to spend all assets in a specific number of years. We will work with you to structure your fund so that it meets your needs and matches your passions
Contributing to your fund
You can contribute to your Legacy Fund during your lifetime and claim an income tax deduction for such contributions. You can do so through a charitable bequest as well, and your estate will benefit from an estate tax deduction. You can also name your fund as the beneficiary of a retirement account or life insurance policy. See a brief overview of planned giving options below.
Investing assets to generate revenue
The assets of your fund will be invested, under the guidance of our Investment Committee, allowing them to earn income and grow tax-free over time. When establishing your fund, you can select one of our four investment pools for the allocation of your assets, or you may recommend that their management be entrusted to an investment advisor of your choice.
Supporting the causes you cherish
Each year, we will disburse a sustainable percentage of your fund’s assets to nonprofit initiatives overseas, in line with your wishes and instructions. If you intended to provide continued support to a favorite organization, we will work with that organization to identify specific initiatives to be supported. If your fund was established to advance a specific issue, we will identify the top nonprofits active in the designated geography and support those that achieve the greatest impact.
To help us cover our operational expenses, KBFUS charges a management fee of 70 basis points – or 0.7% of the invested assets per year. This fee structure is all inclusive – there are no other legal, maintenance or investment fees.
A Wide Range of Giving Options
Gifts during your lifetime
Gifts of cash are deductible up to 60% of adjusted gross income in the year of the contribution, with a five-year carryover for the excess not used. If you contribute appreciated stock or other real property, capital gain taxes are eliminated, and you can take a charitable deduction for the fair market value of the gift, up to 30% of your adjusted gross income.
You can bequeath a specific dollar amount, property to be sold, or a percentage of your residual estate. Your estate will receive an estate tax charitable deduction for the amount of the gift. We can provide you with sample language to include in your last will and testament to make a charitable bequest to your existing Legacy Fund, or to establish a new Legacy Fund at KBFUS.
Life insurance policies
You can name your Legacy Fund as the beneficiary of an existing life insurance policy that is no longer needed to provide for dependents. While the value of the policy will be included in your estate, an offsetting estate tax charitable deduction will be allowed.
Retirement plan assets
If you designate your Legacy Fund as the beneficiary of a retirement account upon your death, there will be no estate taxes to be paid, nor income taxes on distributions.
Charitable remainder trusts
With a charitable remainder trust, a contribution of cash, securities or other assets is placed in a trust. The trust makes an annual payment to one or more beneficiaries, for life or for a specific number of years, and when it terminates the remaining assets are transferred to your Legacy Fund. You will benefit from an immediate income tax deduction and avoid capital gain and estate taxes.
Charitable lead trusts
With a charitable lead trust, your Legacy Fund receives an annual payment from the assets placed in trust or from their earnings, for a specific number of years. When the trust terminates, the assets return to you, to your estate, or to your heirs, who may benefit from significantly reduced gift and estate taxes.
Consult your legal advisor to see how the above tax rules apply to your specific circumstances.
Answers to many questions can be found on our FAQ page. You can also reach us anytime at [email protected] or (212) 713-7660