Think GLOBALLY, Act LOCALLY, Impact the FUTURE!
The goal of UMD’s “Funding the Future Endowment” is to secure our ongoing global impact, charitable efforts, while continuing to meet our core objective: Successful Macedonian Communities for future generations.
$10 million GOAL
We need Inaugural Endowment Visionaries with an initial investment of $100,000 (Lifetime Visionaries), $50,000 (Founder’s Circle), $25,000 (Chairman’s Circle), $15,000 (President’s Circle), $10,000 (Sons and Daughters of Macedonia) or more per year or spread out over 2, 3, 5, and 10 years.
All Donations are Tax-Deductible
These generous donors will be recognized as Inaugural Endowment Visionaries.
Lifetime Visionaries
The Bitove Foundation
Marian Ilitch and the late Michael Ilitch
Sons/Daughters of Macedonia
John and Elizabeth Anevski
Goran and Divna Popovski
Nicholas Thaw and Irena Gapkovska
The United Macedonian Diaspora Endowment Fund, “Funding The Future Endowment Fund” offers all Macedonians and Friends of Macedonia Worldwide a unique opportunity to help support the continual promotion and advocacy of Macedonia and Macedonian people around the World while at the same time allowing our donors to leave a lasting legacy for generations to come. Listed below are ways to give both now and in the future allowing for planning strategies that not only will help UMD carry out its mission but will also help you to potentially minimize your tax implications.
A variety of assets can be used to make charitable gifts, including:
CASH
The simplest and easiest way to give, cash gifts are generally deductible up to 50% of adjusted gross income. Cash gifts are an easy way to make an impact and allow you to give at any time.
SECURITIES
Appreciated securities which include stocks, bonds, and mutual funds both publicly traded and closely held can be donated which can potentially lower your tax bill. We will work directly with your financial advisor making the process easy for you.
REAL AND PERSONAL PROPERTY
Gifting real and personal property often allows an individual to contribute more than they may have thought possible. Gifts of real and personal property including real estate, buildings, companies, as well as other tangible assets such as precious metals, art, and other collectables, often allows an individual the ability to contribute more than they may have imagined.
IRA/RETIREMENT FUND ASSETS
Retirement assets are often used as testamentary gifts, creating charitable funds as part of an overall estate plan. Funding a charitable bequest with an IRA or other retirement plan can be a very effective way of making a gift with estate tax benefits. As an example, a donor can make a “qualifying charitable distribution” from traditional IRA or Roth IRA accounts which can be excluded from gross income directly from the IRA Trustee to the charitable organization (with no intervening possession or ownership by the IRA owner). If you are 70 1/2 or older, you can transfer up to $100,000.00 to the Endowment tax-free each year – even if that’s more than your Required Minimum Distribution (RMD). The money counts as your required minimum distribution but it isn’t included in your adjusted gross income.
There are many planned giving options. A planned gift is a charitable donation created during your lifetime but not available to the UMD Funding The Future Endowment until sometime in the future. Following are descriptions of the various types of planned gifts for you to consider.
BEQUEST BY WILL
An outright bequest to the Funding The Future Endowment through the Cleveland Foundation is the simplest means for providing for UMD and all of its worthwhile causes. UMD with the assistance of the Cleveland Foundation staff can even help with the bequest language if you so choose.
IRA OR QUALIFIED PLAN
Funding a charitable bequest with an IRA or retirement plan can be a very effective way of making a gift with estate tax benefits. At death, retirement plan or IRA balances are included when figuring estate and income taxes to your beneficiaries – often up to 85%. Funding a charitable bequest with an IRA or retirement plan prevents the bequest from becoming a liability to your estate, and the gift is made with pre-tax dollars.
CHARITABLE REMAINDER TRUST
A charitable remainder trust offers a gift to the UMD Funding The Future Endowment without loss of income and provides a current income tax deduction for a future gift. The value of the gift is based on current market value without triggering a taxable capital gain. A charitable remainder trust offers income at a desired percentage without regard to current investment return.
CHARITABLE LEAD TRUST
Assets transferred to the trust are eventually returned to the donor or, more typically, to the donor’s children. Income is paid to the Endowment annually while the assets are in the trust. Such trusts can be created during your lifetime or at death, with significant savings in gift or estate taxes possible because of the “temporary” nature of the gift to the Endowment through the Cleveland Foundation.
CHARITABLE GIFT ANNUITY
A gift annuity is a life annuity for one or two lives, issued by the Cleveland Foundation in exchange for gift property. The Foundation guarantees annuity payment to the annuitant(s). The charitable gift annuity offers charitable tax deduction for the value of the remainder gift. The basis is recovered tax-free over your lifetime, and the Endowment receives your capital gift when the income need ends.
LIFE INSURANCE POLICY
Life insurance makes it possible for virtually everyone to make a meaningful gift. Policies that were never used for their original purpose can make excellent gifts when given to the Endowment. The donor can deduct the replacement value of the policy. Some donors find they can make a much larger gift by purchasing a life insurance policy and naming the Endowment as owner and beneficiary.
| BEQUEST | CHARITABLE GIFT ANNUITY | CHARITABLE REMAINDER TRUST | CHARITABLE LEAD TRUST | |
|---|---|---|---|---|
| REVOCABLE | Yes | No | No | No |
| MINIMUM GIFT AMOUNTS | None | $10,000 | $100,000 | $1 million |
| APPROPRIATE ASSETS THAT CAN BE USED | Virtually any | Typically cash or marketable assets | Virtually any | Virtually any |
| TAX BENEFITS POSSIBLE | Estate | Income and estate | Income and estate | Possibly income and estate (depending on how the trust is structured) |
| WILL THIS GIFT CREATE A STREAM OF PAYMENTS TO ONE OR MORE INDIVIDUALS? | No | Yes (at a percentage determined by the age of the recipients) | Yes (at a prenegotiated percentage) | No (However, this gift does allow for the transfer of property to one or more recipients with possible tax savings.) |
| CAN ADDITIONAL GIFTS BE MADE? | Yes | No | Yes (only the unitrust type) | Yes (only the unitrust type) |
| AGE LIMITS TO CREATING | None | Payment beneficiaries must be at least 60. | Payment beneficiaries must be at least 60. Trust may also be based on a term of years. | Calculating ages must be at least 60. Trust may also be based on a fixed term of years. |
| FEES/APPLICABLE COSTS (OTHER THAN PERSONAL LEGAL EXPENSES) | None | None | Up to $1,000 for administrative purposes | Up to $1,000 for administrative purposes |
| PHILANTHROPIC OUTCOMES | Entire bequest can flow to UMD Endowment | The entire amount through the Cleveland Foundation can be used for all of the worthwhile projects of the United Macedonian Diaspora. |
You have a number of options when it comes to your charitable giving.
UMD in conjunction with The Cleveland Foundation staff will work closely with you and your tax and estate planning professionals to identify and develop the most effective customized strategy in order to choose the type of gift that meets your needs when making your donation.
| YOUR GOALS | YOUR ACTIONS | YOUR BENEFITS |
|---|---|---|
| Make a quick and easy gift | Contribute a gift in cash or by check | An income tax deduction and immediate benefit for the Endowment |
| Make a gift with other existing sources | Example: Donate a life insurance policy you no longer need | Current and possible future income tax deductions |
| Defer a gift until after your lifetime | Bequeath cash, property, or a portion of your estate | An estate tax deduction |
| Make a gift while minimizing the impact on taxes and capital gains | Contribute long-term appreciated stock or other securities | A charitable deduction that may reduce capital gains tax |
| Minimize the two-fold taxation on IRA or other employee benefit plans | Designate the UMD Endowment at the foundation as one of your beneficiaries | May reduce tax liability on assets left to heirs |
| Secure a fixed payment stream and make a gift to benefit The Endowment | Create a charitable gift annuity | Tax benefits and fixed payments for life |
| Receive income today while creating a permanent philanthropic legacy for the future | Create a charitable remainder trust that pays income to you during your lifetime for a designated time period | At maturity, assets benefit the Endowment Fund which meet the needs important to you |
The United Macedonian Diaspora in conjunction with the Cleveland Foundation will work with you to customize charitable solutions to fit your situation. We will work closely with you to tailor solutions that meet your charitable giving needs, offer the maximum charitable tax deductions, and provide many ways to incorporate charitable giving into your estate plans. Here are examples, which may fit your situation, and how we can work with you for the best possible outcome.
Closely Held Business Owners
Scenario: Your personal net worth is tied up in a closely held company, but you want to find a way to donate to the Endowment Fund to help perpetuate your Macedonian heritage by supporting the various programs and activities of UMD.
Solution: Donate a portion of your company stock to the Cleveland Foundation on behalf of UMD’s Funding The Future Endowment Fund. The company, or current stockholders, may buy back the stock over time, which will add to the fund.
Benefit to the Donor: You earn an income tax deduction for the fair market value of the appreciated stock, you assist UMD and its worthwhile programs, all the while control of the company stays with known parties.
Liquidity Events
Scenario: You earn a large year-end bonus or commission, sell a business, receive an inheritance, etc. You like the idea of making a long-term donation to UMD’s Funding The Future Endowment Fund but you are not sure of the best way to go about it.
Solution: You, along with your tax and estate planning professionals in conjunction with UMD and the staff of the Cleveland Foundation determine the tax and estate plan that best serves your needs and that of the Macedonian Community.
Benefit to the Donor: You earn immediate tax deduction, gains access to the Cleveland Foundation’s professional planning staff for suggestions, and you provide ongoing support for a cause that you care about.
Family Dynamics
Scenario: You have more than enough assets to provide amply for your children, who are financially successful in their own right, but you don’t want to “spoil” your grandchildren or other family members.
Solution: Donate to UMD’s Funding The Future Endowment Fund for a purpose that is meaningful to your family.
Benefit to the Donor: You know that your gift will help promote and benefit the Macedonian Community and has the potential to pass on philanthropic values to successive generations.
Philanthropy in the Estate Planning Process
Scenario: You have gotten “stuck” in estate planning, and you suspect that it’s because thinking about the end of life is simply hard, as it is for many people.
Solution: With your donation you will be advancing your Macedonian culture and heritage and help other Macedonians in need which will give you something positive to think about.
Benefit to the Donor: Focusing on something future-oriented – like leaving a legacy to the Macedonian Community. This will create a sense of personal satisfaction that may be enough to promote a feeling of closure in the estate planning process.
Preserve Resources
Scenario: You have always been generous in your charitable giving, but, as you age you have grown more anxious about ensuring that your resources last long enough to provide for your needs.
Solution: A charitable gift annuity or charitable remainder trust will generate lifetime income.
Benefit to the Donor: You earn an immediate tax deduction and the assurance of a predictable income stream while helping UMD with all of its worthwhile programs.
No Children to Inherit Your Estate
Scenario: You do not have children and you have more than enough in your estate to appropriately remember special loved ones.
Solution: Donating to the UMD Funding The Future Endowment Fund will preserve your legacy and allow for a charitable deduction, reducing your estate taxes.
Benefit to the Donor: You can create a lasting legacy in the Macedonian Community, while saving taxes at the same time.
These are just some of the ways that donating to the United Macedonian Diaspora “Funding The Future Endowment Fund” can help you with both your tax and estate planning strategies, while at the same time providing the long-term funding necessary for UMD to accomplish its mission of promoting and protecting the rights of Macedonians worldwide as well as our beloved Macedonian homeland.
If you would like to make a planned gift to UMD, and/or include UMD as a charitable beneficiary of your estate plans, or would like to learn more about how you can help UMD through its Endowment Fund, please contact Metodija A. Koloski at (202) 350-9804 or Donald L. Sazdanoff at (419) 884-8309 for further details. The Cleveland Foundation staff is also available to discuss gifting ideas with you. Please feel free to contact a member of the Cleveland Foundation Advancement Team at (216) 685-2006 or toll-free at (877) 554-5054.
The Cleveland Foundation
1422 Euclid Avenue, Suite 1300
Cleveland, Ohio 44115
UMD is proud to be working with The Cleveland Foundation where the Funding The Future Endowment Fund is held. The Cleveland Foundation will handle all administrative and management responsibilities. Created in 1914, it is not only the world’s first community foundation but is one of the largest with assets of more than $2.1 billion. In the first century of its existence, it has granted nearly the same amount back to the community – $1.7 billion.
United Macedonian Diaspora is a not-for-profit organization recognized as tax-exempt under Internal Revenue Code section 501(c)(3). Donations to UMD are tax exempt to the extent permitted by law.
The information contained herein is not legal or tax advice. This information is intended to provide an overview of planned charitable gifting. All donors are strongly encouraged to seek the advice of their personal tax, financial, and legal professionals to ensure compliance with all federal and state laws and to determine how making any donation will affect their own individual situation.
Sources: The Cleveland Foundation IRS Publication 526