Legacy Gifts - Estate Planning

Creating a Legacy through the Electronic Frontier Foundation's Long-Term Investment Fund for Digital Civil Liberties

CHARITABLE REMAINDER TRUSTS
When you enter into a life income plan, you irrevocably donate assets to a trust or annuity, which in return pays an income stream to you and/or a loved one for a life or for a set term of years. The creation of a life income plan entitles you to an income tax charitable deduction, and your gift will be fully credited to EFF.

Making the Right Decision
When you make a planned gift to EFF, you are endowing the future of online freedom. It is a right decision for our time, and for time to come. Planned giving means something different to each person. Please consider carefully which plan works best for you. Because the tax and financial consequences involved with any gifting program depend upon your particular personal and financial situation, we urge you to consult with your financial, legal and accounting advisors to review any and all planned giving programs.

PLANNED GIFTS THROUGH THE USE OF TRUSTS
How many times do you have the opportunity to make a significant charitable donation, while providing yourself or a loved one with a lifetime income? A Charitable Remainder Trust can help you accomplish three things:

  1. Achieve your personal financial objectives for yourself or your loved ones. The beneficiary you designate will receive income during his or her lifetime from the investment.
  2. Make a significant charitable contribution. Your philanthropic deeds can provide for EFF now and in the future.
  3. Provide considerable income tax savings. When you create a Charitable Remainder Trust benefiting EFF, you are entitled to take an immediate tax deduction, which can be carried over for five years.

A Charitable Remainder Trust can be established to meet your needs now and in the future. It can be designed to fund a child or a grandchild's college tuition (trust income would be paid directly to the student who is taxed at a lower rate). Or, you can structure a Charitable Remainder Trust to provide you or a loved one with retirement income. Charitable remainder trusts require a minimum donation of $250,000.

Charitable Lead Trusts provide for the contribution of income from assets to EFF for a period of years or for the lives of named individuals. When that period is up, the income and assets are retained by you or given to a non-charitable beneficiary. You can create a charitable lead trust during your lifetime or by will. The use of a charitable lead trust can yield significant tax savings in lifetime family transfers, particularly when the donors or their intended beneficiaries are in high Federal and State Income or Estate Tax brackets.

A Charitable Remainder Annuity Trust is created by the transfer of assets into a trust that will pay you annually not less than 5% of the amount originally used to fund the trust. The trust principal may be used if the trust does not earn the designated income payment in any year. This type of trust is best for donors who seek a regular, fixed income.

A Charitable Remainder Unitrust pays a fixed percentage of the annual net Fair Market Value of the trust. It can increase your income dramatically when you face large capital gains taxes on assets that have risen in value but generate little or no income (such as real estate or high-growth stocks). If the trust's assets increase, you, the donor, receive a larger payment, which provides a hedge against inflation. And, you can make additional contributions to a Unitrust.

Unitrusts and Annuity Trusts can provide you with the benefits of a good income, a charitable gift, tax advantages and security in one package. It is a combination of a gift and an investment.

BENEFITS TO YOU AND YOURS:

  • An annual amount is paid to you or one or more of your named beneficiaries during their lives.
  • At the death of all named beneficiaries, the trust passes to EFF's Long-Term Investment Fund for Digital Civil Liberties.
  • You receive an immediate Federal Income Tax deduction in the year the trust is established.
  • If you give appreciated securities or other property to fund the trust, you may avoid capital gains.
  • The trust pays no tax on future capital gains.
  • Federal Estate Tax is reduced and may be eliminated entirely.
  • Through the use of life insurance, a charitable trust can be created that would not reduce your estate that would be distributed to your children or heirs.

Specific Language

Organization name: Electronic Frontier Foundation
Address: 815 Eddy Street, San Francisco, CA 94109
Tax identification number: 04-3091431
Organization type: Nonprofit organization with 501 (c) (3) status
Legal Language: Electronic Frontier Foundation, Inc., a nonprofit corporation, organized and existing under the laws of The Commonwealth of Massachusetts, and with the principal business address of 815 Eddy Street, San Francisco, CA 94109.

For more information: Please contact Shari Steele by phone at 415-436-9333 ext. 103 or by email at ssteele@eff.org.

JavaScript license information