GIVING WITH THE MASONIC ANGEL FOUNDATION
Masonic Angel Foundation, Inc. offers an unusually great opportunity for
satisfaction to its patrons. As can be seen in our financial reports, no
contributed funds are used for administration or overhead, and, through
several matching programs available to us, often a dollar contributed by
one patron can be increased by other contributions. Secondly, the MAF
has a history of working closely with patrons to ensure that their
contributions will be deployed in accordance with the patronsí
particular interests for the relief of children. In all circumstances,
we seek to serve the greatest possible number of children in the most
Planned giving provides special opportunities for investment in MAF by
those who want to provide for the future and help children in their
local area or even across the nation.
be aware that any consideration of charitable giving must take into
account the unique financial circumstances of each potential donor;
because of individual circumstances not all of the examples discussed
below will be appropriate for every individual. We encourage close
consultation with a competent tax professional before undertaking any
GIFT ANNUITY (CGA)
experienced philanthropists find that Charitable Gift Annuities allow
them to give a substantial gift to a worthy charity while increasing
their own annual income. A gift annuity is an agreement by which a
supporter makes a minimum gift (at least $5,000) to the Masonic Angel
Foundation, Inc. and, in return, receives guaranteed payments for life.
The donor may receive these annuity payments himself, jointly, or
designate another person to receive them. The donor benefits from an
immediate charitable income tax deduction and partially tax-free annual
payments and may be able to reduce your estate taxes.
the Charitable Gift Annuity Works
gift annuity is a simple contract between the donor and the Foundation
involving four steps:
The donor chooses to support MAF by making a gift of cash, securities,
or property. The minimum gift to fund a charitable gift annuity for the
MAF is $5,000.
In return, the Masonic Angel Foundation, Inc. signs a contract to pay
the donor, the donorís spouse or child or other named person, if
desired, a guaranteed sum for the rest of the named personís life.
The Foundation invests the donorís gift to provide money to make the
At the time of the named personís death, the remaining funds are made
available to support the mission of the Masonic Angel Foundation, Inc..
the Charitable Gift Annuity Benefits The Donor
many respects, a gift annuity is similar to a commercial annuity that
anyone would purchase from an investment or insurance company. We offer
very competitive rates, and because of the charitable nature of the
gift, the donor may receive several particular tax benefits. These
benefits may include:
A charitable deduction for a portion of the gift (typically 40-60% of
the contribution). The donor can use this deduction immediately to
offset a portion of their income tax liability.
A portion of the income the donor receives from the gift annuity is
tax-free. If the gift has been made via appreciated stock or property,
the donor may avoid a significant share of the capital gains taxes which
would otherwise be generated by selling the appreciated property to
raise funds for gifting.
If the donor and their spouse are the only beneficiaries, the value of
the annuity is removed from their estate and is not available for estate
taxation. If the donation has been made to establish a gift annuity for
another person, the estate may receive a gift tax-deduction to offset a
---- portion of the gift.
REMAINDER TRUST (CRT)
many people own highly appreciated assets such as real estate or stock.
Often, they are reluctant to sell these assets because of the
significant capital gains taxes such a sale would create. These same
people may be looking for ways to increase their income or to diversify
their portfolio. Fortunately, there may be a solution to their dilemma
via a Charitable Remainder Trust.
the Charitable Remainder Trust Works
Charitable Remainder Trust, also known as a CRT, is an irrevocable trust
designed to convert an investor's highly appreciated assets into a
lifetime income stream without generating estate and capital gains
taxes. CRT's have become very popular in recent years because they not
only represent a valuable tax-advantaged investment, but also enable
potential philanthropists to provide a gift to one or more charities in
which they have a particular interest.
a CRT Benefits A Donor
CRT can potentially:
the donor establishes a CRT with the Masonic Angel Foundation, Inc.,
they or another designated beneficiary receive income from the trust for
life or for a term of up to twenty years.
the trust ends, the remaining assets pass to the Masonic Angel
Foundation, Inc. for the benefit of the children we serve.
patron transfers nearly any type of property to a charitable lead trust
(stocks, bonds, income-producing real estate, even some privately held
businesses). The lead trust then pays out income to the Masonic Angel
Foundation, Inc., either for a set number of years or for the patronís
lifetime. The payment to the Foundation can be the same amount each year
(lead annuity trust) or a fixed percentage of the trust's annual value
the patron establishes the lead trust, his or her estate may receive a
gift tax exclusion for a part of the gift, offsetting a portion of the
=== taxes the estate otherwise would have paid before it passes the
remainder to the donorís heirs. Furthermore, from the time the trust
is established until the day it passes the remainder to the heirs, all
appreciation will have occurred outside of the estate and will not be
subject to the --- estate tax.
OF LIFE INSURANCE
a potential donor owns life insurance that is no longer needed to
protect their family members or business, the donor could consider
transferring ownership of the policy to the Masonic Angel Foundation,
Inc. and naming the Foundation as beneficiary. Whether or not all
premiums are paid, the donor may be entitled to an income tax deduction
(and possible an estate tax deduction) for such a gift.
can also name the Foundation as the primary or contingent beneficiary of
a new or existing policy, without transferring ownership of the policy.
During the donorís lifetime, they retain ownership and have access to
the policy's cash value, but realize no tax benefits. After the
insuredís passing, if the proceeds of the policy are paid to MAF,
their estate may be entitled to an estate tax charitable deduction.
OF REAL ESTATE
Real Estate is a way to further the MAFís work while at the same time
providing you with substantial tax benefits.
gift of real estate is a wonderful way to help the children we serve.
Donors may select a way to give that best suits their needs. For
example, they may choose to receive a lifetime income or retain lifetime
use of their property. Of course, there may be substantial tax benefits
depending upon how one chooses to give real estate.
OF RETIREMENT PLAN ASSETS
people have accumulated substantial sums in tax-deferred retirement
accounts, which include profit-sharing plans, IRAs, 401(k)s and 403(b)s.
These accounts are popular because the contributions are made with
pre-tax dollars and the assets in the accounts grow tax-deferred.
However, funds withdrawn from these accounts are usually taxed at both
high income and estate tax rates. When the account holder dies it is
possible that less than $30 of $100 in a retirement account will reach
individuals planning to make charitable gifts at death should consider
using retirement accounts to fulfill their wishes. By giving retirement
account assets, donors avoid both income and estate taxes that would
otherwise be due. Other less heavily taxed assets may be used to fulfill
bequests to loved ones. As a result, these beneficiaries receive more
of stocks or bonds are an excellent way to help the children we serve.
The best way for both you and the children to benefit is to have your
broker transfer your stocks directly to the Masonic Angel Foundation,
Inc. That way, you can realize the best tax savings.
At the time of this writing, you receive a twofold US income tax
benefit: a charitable
deduction for the full present fair market value, and no tax on the
including the Masonic Angel Foundation, Inc. in oneís will donors
assist us in serving children in need long into the future. A donor can
make a bequest for a specific sum, a piece of property or the residue of
a person decides to leave a gift to the MAF, the first thing they should
do is contact their attorney to help draw up or amend their will.
Counsel will need the following information:
Angel Foundation, Inc. PO
Box 1389, 49 South Orleans Road, Orleans, MA 02653-1389
ID - 04-3521605
501(c)(3) status under the Internal Revenue Code authorizes
tax-deductibility of contributions by the donor, as always depending on
the financial circumstances of the donor.
you would like sample language that may be helpful if you decide to
remember MAF in your will, please feel free to contact us.
bequests generally take one of four forms:
The donor may designate that a specific percentage of their estate is
left to the Masonic Angel Foundation, Inc.
Specific Amount Bequest:
A donor may include the Foundation in their will or trust for a
predetermined amount. For example, ďI give, devise and bequeath to the
Masonic Angel Foundation, Inc., a nonprofit organization, whose
headquarters address is PO Box 1389 Orleans, MA 02653, the sum of $xxxx.xx
to be used by the Masonic Angel Foundation, Inc. to further its service
to children in need who often do not qualify for assistance by
traditional social service programs.Ē
Perhaps the donor has itemized their will in order to leave specific
property to particular beneficiaries. If you have, your estate will
likely have a "residue" after all of your distributions have
been made. By naming the Foundation as the beneficiary of this residue,
you simplify the probate process and ensure that the government doesn't
allocate the remainder of your estate as it sees fit.
Final Contingency Bequest:
Anyone can have a perfectly legal will that may become invalid at
probate if their named beneficiaries do not survive them. In this case,
the courts decide how to divide the decedentís estate, up to and
including the possibility that they will find no "valid heirs"
and confiscate the decedents estate. By naming the Masonic Angel
Foundation, Inc. as the final contingent beneficiary the donor ensures
that the government will not distribute their estate.