Individual Retirement Accounts (IRAs) and other qualified retirement plan assets are excellent sources for funding a charitable gift to SWCRF.

Why use retirement plan assets to make a charitable gift?
Retirement assets continue to be among the most heavily taxed assets at death, subject to federal income tax, federal estate tax and, sometimes, generation-skipping transfer tax. Retirement assets passing to loved ones other than your spouse are subject to estate tax. In addition, retirement asset distributions are taxed as ordinary income to your loved ones when they receive them. If you designate SWCRF as beneficiary of all or a portion of your retirement assets, those assets are fully deductible for estate tax purposes, and SWCRF pays no income tax since it is tax exempt. This means that the cost of the gift may be as little as 30 cents on the dollar.

How do you name SWCRF as the beneficiary of your retirement plan?
Your plan administrator can provide you with forms for changing your beneficiary designation. When designating SWCRF as a charitable beneficiary, you must use our legal name when you fill out the beneficiary forms. Note: In some states, depending on the form of your retirement plan, beneficiary designations may be invalid if they do not comply with state law requirements for executing wills. You may need to include your gift to SWCRF in your will or comply with specific requirements in completing your beneficiary designations. Check with your attorney to determine if this applies to you.

Using your required distributions to make a charitable gift
After you reach age 70 1/2, the IRS requires you to withdraw a certain percentage of your retirement assets each year. This required distribution is taxed to you as ordinary income. If you do not need the income, you may wish to use the distribution to make a gift to SWCRF. This will entitle you to an income tax charitable deduction, which will offset the reportable income. Please note, under current law you cannot directly distribute the money from your retirement account to SWCRF.

Providing for SWCRF and your loved ones by using retirement assets to establish a charitable remainder trust
Using retirement plan assets to establish a charitable remainder trust can further reduce your estate tax liability and provide a stream of income for your loved ones.

Naming SWCRF a contingent beneficiary of your retirement plan assets
You may wish to name SWCRF the contingent beneficiary of your retirement plan assets. SWCRF will receive the assets if your primary beneficiary does not survive you.

When you join the Heritage Society of the Samuel Waxman Cancer Research Foundation by making a planned gift, you become part of a special group of donors that shares a deep commitment to SWCRF’s future. These donors make the ultimate philanthropic commitment - the gift of a lifetime. For this, SWCRF is very grateful.

As a member of the Heritage Society, you will be invited to attend our annual recognition event as well as gift and estate planning seminars. We also will present you with a certificate of appreciation, and, with your permission, you will be listed in SWCRF’s Annual Report. You also may choose to remain anonymous.

Build your own charitable portfolio and SWCRF’s future. Charitable trusts are a most flexible way to establish a gift for SWCRF’s future, while generating income for the financial security of your family and yourself. Depending on the type of trust, you may fund it with cash, appreciated securities, real estate, retirement plan assets, or even tangible personal property. Establishing a trust, during your lifetime or through your estate, will generate a stream of income for you and/or loved ones, save taxes and ultimately provide key support for patient care, research and education programs at SWCRF.

Two of the most common types of trust are the Charitable Remainder Annuity Trust (CRAT) and the Charitable Remainder Unitrust (CRUT).

CRATs are ideal for those who want the security of fixed payments, regardless of how the trust investments perform or how volatile market conditions may be. You may establish a CRAT by donating cash or readily marketable securities. The trust pays beneficiaries a fixed amount that cannot be less than 5% of the value of the original trust principal. You may name any number of beneficiaries, although it is customary to designate yourself (or you and your spouse) as life income beneficiaries. The trust terminates upon the death of the last beneficiary (or at the end of a term of years up to twenty). Then, the remaining assets are eventually transferred to SWCRF to use as you designate in the trust agreement.

There are numerous tax advantages. You are entitled to a charitable deduction for a portion of your gift, according to IRS formulas. If you donate highly appreciated stocks or mutual funds, you will completely avoid capital gains tax as well. If your CRAT is established at death (by will), your estate saves estate taxes.

"CRAT" example:

Eileen wishes to convert some of her appreciated low-yield stock into a steady source of income. She establishes a charitable annuity trust with $100,000 worth of stock that originally cost $50,000 and sets the payout rate at 6%. The trust will pay her $6,000 every year for life - no matter how the market fluctuates. She is entitled to an income tax deduction of $52,551 and avoids $7,500 in capital gains tax. Aside from those financial benefits, Eileen is gratified to know that after her lifetime, her gift will support cancer research as a legacy to her philanthropy.

Suggested Minimum: $100,000 in cash or appreciated securities.

Age: 65+

Including SWCRF in your will or revocable trust is one of the easiest ways to make a planned gift to the Foundation and thus, the most popular. A bequest is simply a statement in your estate plan that expresses your wish to give all or part of your assets to a loved one or charity, such as SWCRF, upon your death. You can stipulate exactly how and when your gift is used and create a truly meaningful legacy at SWCRF that commemorates a loved one or a special physician.

A general-purpose bequest in your will or trust is most valuable to SWCRF as it gives us the greatest flexibility to use your gift where it is needed most. You may designate either a fixed dollar amount, a percentage of your estate or a particular asset such as real estate. Here is sample general-purpose bequest language for your attorney:

"I hereby give to the Samuel Waxman Cancer Research Foundation, a New York not-for-profit corporation located at 1249 Fifth Avenue, Suite 907, New York, NY 10029, the sum of $__________[or __________% of the rest, residue and remainder of my estate] for its general purposes."

SWCRF’s planned giving staff welcomes the opportunity to work with you and your attorney to plan a bequest gift that is meaningful to you as well as supportive of SWCRF's mission and most critical needs.

You may establish a unitrust by donating cash, securities, real estate or even personal property such as jewelry to the CRUT. You select any number of beneficiaries, although, like CRATs, it is customary to designate yourself and spouse as life income beneficiaries. The trust terminates upon the death of the last beneficiary (or at the end of a term of years up to twenty). Then the remaining assets become available to SWCRF for its general use or those purposes you stipulate in the trust agreement.

Your income is based on a payout rate - no less than 5% - that you select when you establish the trust, and on the trust's investment performance. Specifically, it is the payout rate multiplied by the fair market value of the trust as revalued annually, usually on January 1st. A young working doctor might establish a 5% unitrust because he wants the trust principal to grow for higher income later in life. Often, a lower payout on a long-term trust will yield more cumulative income. But a retired couple might choose 7% to maximize current income.

Tax benefits will vary depending on the assets you donate to the trust and other factors, such as the age and number of beneficiaries. You are entitled to an income tax charitable deduction for a portion of your gift, and you may also save capital gains taxes. Trusts established through your estate reduce your estate taxes. It is often advantageous to give highly appreciated property, such as securities or real estate, as you will completely avoid the capital gains tax that would be incurred if you sold those assets. You also may consider using your tax savings to fund a life insurance trust to replace donated assets for your heirs. Your tax advisor will be able to help you decide what assets to give for maximum benefits.

Suggested Minimum: $100,000 in cash or appreciated securities, or $250,000 in real estate

Age: 60+

Who Will Manage My Trust?
For either of the individually managed trusts described above, a trustee, or co-trustees, responsible for investment, trust administration and tax reporting must be named by the donor. Donors may name themselves, another person, financial institution of their choice, or name SWCRF to serve as trustee.

Real estate is an excellent choice for funding a charitable gift to SWCRF. A personal residence, farm or investment property can be used to make a charitable gift. Such a gift may provide you with an income tax charitable deduction, estate tax savings and a reduction or elimination of capital gains tax.

Why use real estate to make a charitable gift?

• Significant appreciation in the value of real estate may expose you to large capital gains tax. Using real estate to make a charitable gift can reduce or eliminate capital gains tax liability.
• Often the high carrying costs and responsibilities associated with property ownership, such as real estate taxes and maintenance, become burdensome.
• The illiquid nature of real estate can pose serious challenges when it comes time to sell the property. Often a seller will not realize the full value of real estate if it needs to be sold quickly. This is why it may be advisable to fund a charitable gift with real estate and retain liquid assets in case you or your estate needs access to the funds immediately.

Note: It is necessary to obtain a real estate appraisal to determine the fair-market value of real estate.

Making an outright gift of real estate
Making an outright gift of real estate provides significant tax benefits. First, you will not recognize capital gains on the property. Second, you may deduct the full fair-market value of the property, up to 30% of your adjusted gross income in the year of the gift. Any amount in excess of the 30% limitation may be carried over for five years. These benefits mean that the actual cost of such a gift may be much less than that of a cash gift.

Making a bequest of real estate
You may choose to give real estate to SWCRF as a bequest in your Last Will and Testament. This will reduce your estate tax liability because the fair market value of the bequest is fully deductible for estate tax purposes.

Making a gift of a remainder interest in real estate
If you would like to use your personal residence to make a charitable gift to SWCRF, but still live in it, you can transfer the property to SWCRF while retaining a right of possession. You will immediately realize an income tax deduction for the present value of the remainder interest, and you can continue living in the home as long as you wish. However, you continue to pay real estate taxes and maintenance on the property so long as you retain possession. Note: personal residences and farms are the only real estate you can transfer while retaining possession. All other types of real estate must be transferred using a qualifying trust.

Making a gift of a partial interest in real estate
If you would like to fund a gift to SWCRF with real estate, but the value of the gift you are contemplating is less than the fair-market value of the real estate, you may wish to give a fractional interest in the real estate. While an income tax charitable deduction is generally not permitted for an outright gift of a partial interest in real estate, there is an exception to this rule when the gift represents an undivided fractional interest.

Making a gift of real estate and generating a stream of income
If you would like to use real estate to fund a gift to SWCRF while retaining a stream of income, you can use the real estate to fund a charitable remainder trust. This will enable you to receive payments for life or for a specified term (not to exceed twenty years). At the time the gift is made you will receive a charitable deduction for the value of the remainder interest in the real estate. This type of gift will enable you to receive an immediate income tax deduction, based on the full fair-market value of the property, the ages of the beneficiaries, and the rate of return. Note, in certain circumstances, income may begin immediately if property that generates income is also contributed. Finally, if you choose to fund your charitable remainder trust with real estate, the property must be unencumbered.

Charitable gift annuities are a wonderful way to make a meaningful gift to SWCRF now, while receiving a guaranteed income stream and terrific tax benefits. The following information tells how charitable annuities work and how both you and SWCRF can benefit from them.

What is a Charitable Gift Annuity?
A Charitable Gift Annuity is an agreement between you and SWCRF whereby the Foundation pays you and your spouse a fixed annuity payment for life in exchange for your gift of cash or marketable securities. Your payment is based on your age at the time you make your gift. SWCRF’s minimum to establish a charitable gift annuity is $10,000.

What are the Tax Benefits?
Charitable tax deduction: You are entitled to a charitable income tax deduction for a portion of your gift in the year you establish your gift annuity.

Tax-free Income: A portion of your annuity may be tax-free for a period of time, further boosting your income.

Capital Gains Tax Reduction: If you fund your annuity with long-term appreciated securities, you can significantly reduce the amount of capital gains tax that would otherwise be imposed if you sold the securities.

How are the Annuity Payments and Charitable Tax Deductions Determined?
SWCRF follows the rate schedule established by the American Council on Gift Annuities. The amount of your gift and the number of annuitants affect the charitable deduction and annuity amount. Age also is a factor: the older you are when you make the gift, the higher the deduction and annual rate of return. We recommend establishing a charitable gift annuity after you reach age 60.

Example: John, age 76, transfers a non-income producing asset worth $50,000 (small closely held stock or raw land) for a charitable annuity to support cancer research. In exchange, SWCRF pays him 6.8% ($3,400) annually, of which $2,186 is tax-free for 13 years. He also receives a charitable tax deduction of $19,816 in the year that he makes his gift. After his lifetime, SWCRF can use his gift for important research programs.

Can annuity payments be deferred if income is not currently needed?
Yes, and the longer the deferral period, the greater the payout and charitable deduction will be. This type of annuity is known as the Deferred Payment Charitable Gift Annuity. It is an excellent gift vehicle for younger individuals wishing to supplement future retirement income while obtaining the largest charitable deduction now.

Example: Cliff, age 45, wishes to provide support for melanoma research and also supplement his future retirement income. By transferring $10,000 for a deferred payment gift annuity, Cliff receives a $3,312 charitable tax deduction now and a $1,570 annual annuity beginning at age 65.

How is Capital Gains Tax Treated?
If you use long-term, appreciated securities to fund a regular or deferred payment gift annuity, your annuity payments and charitable contribution are based on the full fair market value of the stock when it is transferred to SWCRF. Only a portion of the capital gains tax that would otherwise be due if you sold the stock would continue to be taxable, and in most cases, the gain is reported ratably over your life expectancy.

Example: Linda, age 75, owns $100,000 of stock yielding very little income that she purchased many years ago for $20,000. She wishes to increase her income stream and support SWCRF. If she sells the stock and pays capital gains tax on the $80,000 of appreciation, her original $100,000 is reduced to $88,000. However, if she contributes the stock for a gift annuity, she receives an 7.2% or $7,200 annual annuity plus an immediate income tax charitable deduction of $43,046. Moreover, her capital gains tax liability is reduced from $80,000 to $45,563 and is payable over her 12- year life expectancy.