The Giving Guide

Copyright © 1995 by the National Federation of the Blind.

Introduction.
What Your Gift Can Mean.
The Giving Guide.

Introduction

The National Federation of the Blind has prepared this guide about SPECIAL GIFTS as a means of encouraging you to include the blind in your plans for the legacy you will leave to society.

Ironically, many still believe that such giving is mainly the responsibility of the very rich. The fact is, the numerous gifts from those with modest assets sustain much of the good work of organizations such as the National Federation of the Blind.

Beyond the pleasure that comes from creating a helpful legacy, there are the practical aspects of well-planned bequests. It is these we will try to address here.

What Your Gift Can Mean

TO PARENTS OF A BLIND CHILD --
"We were devastated when we learned that our precious newborn baby boy was blind. We didn't know where to turn... Then we found the National Federation of the Blind, and slowly we began to see that our son had a future worth living."
TO A NEWLY BLIND ADULT --
"If only I had known of the National Federation of the Blind at the time I lost my sight--I wouldn't have needed to lose my job, my wife, my home, my dignity. I'm rebuilding my life now, but it's slow. If only I had known."
TO A BLIND DIABETIC --
"Meeting others who were blind and had diabetes gave me the courage to go on. If they could manage blindness and this disease so could I. We learn from each other."
TO A BLIND CHILD --
"I wanna be like Fred when I grow up. He reads Braille and uses a white cane and runs a computer and has a good job. I met him at the National Federation of the Blind meeting. He's neat!"

The National Federation of the Blind (N.F.B.) has chapters in all 50 states plus the District of Columbia and Puerto Rico. The National Federation of the Blind has been built and led by blind persons themselves for more than 50 years and has made the difference between life with dignity and purpose or mere existence for much of America's blind population.

From its headquarters at the National Center for the Blind in Baltimore, Maryland, the N.F.B. coordinates far-reaching programs for the blind including:

Job Opportunities for the Blind.
Assistance to parents of blind children.
Support groups for newly blind individuals.
Scholarships for blind students.
Distribution of special devices for the blind.
Production and distribution of Braille and recorded materials for the blind.
Research and development of new technologies for the blind.
International Braille and Technology Center for the Blind.
Direct personal assistance to blind persons in need.
National Blindness Information Center and Library.
Low interest business and technology loan programs.
Public education about blindness.

The Giving Guide

These examples of giving are only to illustrate the variety of vehicles which may be used. We will be happy to supply additional information, or you may wish to talk with your own lawyer or accountant. Our purpose in bringing this information to your attention is to remind you of the good work of the National Federation of the Blind and to invite you to consider the Federation in your giving plans.

GIFTS OF CASH -- Cash gifts are tax-deductible up to 50% of the donor's adjusted gross income. They are a common form of giving and easy to make. Gifts in excess of the 50% limit can be carried forward and deducted for up to five subsequent years. In most states the income tax code allows for a charitable deduction for such cash gifts.

APPRECIATED SECURITIES -- A gift of appreciated securities will receive favorable tax treatment. For instance, your gift of an appreciated security to the National Federation of the Blind avoids the capital gains tax and qualifies for a charitable income tax deduction at the full fair market value of the securities. This means that the "profit" on your appreciated security is counted toward your deductible gift.

REAL ESTATE -- Gifts of real estate to the N.F.B. also receive many of the same favorable tax advantages that apply to appreciated securities. Gifts can be made of your entire ownership of real estate or your partial ownership. You may also choose to make a deferred gift of your interest in a farm or residence, a method which allows you to use your property for life while giving the N.F.B. a future interest. It is an excellent method of giving because you will continue to enjoy your property for the rest of your life while receiving a current income tax deduction. The life interest means you have the advantages and responsibilities of ownership but may not dispose of the future interest you have donated to the N.F.B..

LIFE INSURANCE -- Once you have provided for your family's financial security and you no longer feel the need for the coverage you felt necessary earlier in your life, you may wish to give one or more of your life insurance policies to the National Federation of the Blind. You would simply make the Federation the owner and beneficiary and continue to maintain the payments of premiums. This would lead to a tax-deduction based on the current value of the policy and immediate recognition of your generosity by the N.F.B.. Life insurance is an excellent method of deferred giving that provides capital for the future needs of the blind above and beyond what you might accomplish with a current outright gift.

THE CHARITABLE GIFT ANNUITY -- In this method you may choose to make a gift of cash, securities or real estate to the N.F.B. which would become obligated to pay you or other beneficiaries an income for life. Upon the death of the beneficiaries the Federation would receive the principal and apply it to whatever use you directed. Usually a life income gift will entitle the giver to an immediate charitable tax-deduction based on the value of the property you transfer to the Federation, less the value of the life income interest retained by you. If you would like to explore further details of the Charitable Gift Annuity, the N.F.B. would be pleased to advise you.

DEFERRED GIFTS -- Deferred (or planned) Gifts can provide income tax advantages and other benefits such as life income, future use of donated property and avoidance of capital gains taxes. One such method is the CHARITABLE TRUST . Trusts are often used for gifts of $50,000 or more because of their flexibility. The trust would be established through an irrevocable agreement between you and the N.F.B. as trustee. The two main varieties of these trusts are the Remainder Trust and the Lead Trust.

A Charitable Remainder Unitrust is quite flexible and may be established with tax-free bonds to provide tax-free income. In the unitrust the beneficiary receives a fixed percentage of the trust's assets as income, usually distributed quarterly.
The Charitable Annuity Trust is an instrument similar to the remainder unitrust, except that it must pay a fixed dollar amount each year to the trust beneficiaries. The same favorable income and capital gains treatment usually apply.
The Charitable Lead Trust is essentially the reverse of the remainder trust. Through a Lead Trust the N.F.B. would receive income from the trust for a period of years with the trust passing to the donor's beneficiaries, or even to the donor, when the terms of the trust conclude. No estate or gift tax is required of the value of the portion of the trust which represents the gift to the Federation.

DONATIONS IN MEMORY -- When a loved one dies, many persons prefer to make contributions to a nonprofit organization such as the National Federation of the Blind as a living memorial to the deceased. In this case, you may wish to print the name and address of the N.F.B. in the obituary and have it announced at the funeral services.

BEQUESTS IN A WILL -- Gifts made by will are usually exempt from federal and state estate taxes. If you choose an annuity or life income arrangement for your beneficiaries to begin after your death your estate will normally qualify for a tax-deduction based on the value of the future interest given to the N.F.B..

You may wish to make certain charitable bequests after the needs of your family and other beneficiaries are assured. In this case may we suggest you designate to the N.F.B. a fixed percentage of your net estate. Under this method you would not have to alter your will because of changes in the size of your estate. If you feel you cannot make a fixed dollar bequest or a percentage bequest because of other obligations, you may wish to name the N.F.B. as a contingent beneficiary. This means that the Federation would receive assets under your will only if the primary beneficiaries are no longer living. The language of your will in this aspect need not be complicated and your lawyer will help you with the phrasing.

If you wish to make a bequest for a specific purpose, such as a scholarship, the N.F.B. or your lawyer, or both, can advise you. Also, in addition to your will, many investments allow you to designate primary or secondary beneficiaries to receive your assets upon your death. These include Keogh and IRA accounts and life insurance. If the N.F.B. receives property in this manner, your estate will generally receive a tax deduction based on the value of the property at the time the will is probated.

If you or a friend would like to remember the National Federation of the Blind in your will, you can do so by employing the following language:

I give, devise, and bequeath unto the National Federation of the Blind, 1800 Johnson Street, Baltimore, Maryland 21230, a District of Columbia nonprofit corporation, the sum of $__________ (or "_________ percent of my net estate" or "The following stocks and bonds: ________________") to be used for its worthy purposes on behalf of blind persons."

Your lawyer or banker will help you make arrangements for your gift. A Federation representative will be happy to work with you or your representative as desired.

TO MAKE A GIFT NOW OR FOR MORE INFORMATION

If you would like to make a gift right now--perhaps in memory of a loved one--or if you would like more information, please use this form.

Send your questions or comments

The Giving Guide

Copyright © 1995 by the National Federation of the Blind.

Table Of Contents

Introduction

What Your Gift Can Mean

The Giving Guide

TO MAKE A GIFT NOW OR FOR MORE INFORMATION