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How to Contribute
As of July 21, 2018

You have many choices when making an investment in ELECTRI International. Some ways of giving may have a more favorable tax implication for you than others and can be an important part of your overall tax and estate strategy. Planned gifts are very flexible. They can be designed to meet your needs and expectations and you are in control of the timing of the gift as well. No single method may be best. In fact, a creative mix may permit you to be more generous than you thought possible.

Before making your decision, please consult your attorney and tax advisor. The information presented here is strictly a guide and neither represents nor replaces professional assistance.

Make a Pledge and Write a Check

The simplest way to support the Foundation is to write a check. You may make a multi-year pledge, provide the initial payment now, and pay the balance over a planned number of years. Young Contractors (under age 50) and Legacy Partners may take a maximum of 20 years to fulfill the pledge.

Give Appreciated Securities

If you hold long-term appreciated securities, an attractive option is to give the securities outright to ELECTRI to sell or invest. You receive two specific tax benefits. First, you will be able to take a charitable deduction for the current value of the asset no matter how much the securities may have increased in value since you first purchased them.  Second, you pay no capital gains tax on the appreciated portion of the asset. 

Give Personal Property

Contributing tangible personal property can be very beneficial both you and to ELECTRI. Your commitment to the Foundation may range from a rare stamp collection, antiques and jewelry to real estate, boats, or an art collection.

There are special Internal Revenue Service rules regarding the manner in which the fair market value of personal property contributions must be calculated. Prior to accepting and recognizing a gift of personal property, the Foundation will require an evaluation and report completed by a certified appraiser.

Legacy Initiative

Legacy investments in ELECTRI include bequests specified in an individual’s will, charitable trusts that will provide income for you and your spouse during your lifetime, a life insurance policy naming ELECTRI as owner and beneficiary, and several other giving instruments. 

Giving Real Property Has Real Benefits

By contributing appreciated Securities that you have held for at least 12 months, you will completely avoid capital gains taxes and your charitable deduction is based upon the full fair-market value of your asset. Contributing Real Estate offers several considerable tax-saving benefits. You can claim the full fair-market value as an immediate tax deduction (up to the annual limitation) and you avoid capital gains on the sale of the residential, commercial, or rental property.

With a retained Life Estate Interest gift, you contribute your primary residence, farm, or even a second home to the Foundation and keep the right to live in and use the property for your lifetime. On the date the planned gift is made, you receive an immediate tax deduction for a portion of the appreciated value of your property. 

There are special IRS rules in place that may allow you to contribute the value of an Individual Retirement Account to a charitable organization. Because of ongoing review of the estate tax laws, you will need to get up-to-the-minute tax and legal advice on this planned giving instrument. 

If you contribute a fully-paid-up existing Life insurance policy that you no longer need, you get a tax deduction based on the current value of the policy. You could choose to set up a new insurance policy, naming ELECTRI International as owner and beneficiary. You make an annual tax-deductible contribution to ELECTRI and it uses those dollars explicitly to pay the new policy’s premium. 

A Contribution to ELECTRI Plus Income for You

There are several ways that you can contribute to the Foundation AND at the same time preserve or increase the asset’s income. Each plan will reduce or eliminate capital gains taxes and will also provide a charitable deduction for a portion of the gift. Of even more importance for wealthy individuals, this kind of planned gift can remove the asset (and future years’ appreciation) from your estate - with even more tax savings as a consequence. 

A Charitable Remainder Annuity Trust is a contract that guarantees a fixed income for life in exchange for your financial commitment to ELECTRI. As the asset in the trust grows, you can be satisfied that you have secured the set dollar amount of income you want to receive each year and that ELECTRI International will have an even larger legacy once the trust payout is completed. 

Through a Charitable Remainder Unitrust, the payout of income to you as donor or to your named beneficiary is based upon the value of the trust each year rather than a fixed dollar amount. Often considered to be more beneficial, Unitrusts provide protection against inflation. By selecting a lower rate of return, the asset’s principal grows more quickly, thereby increasing the payout in subsequent years. 

A Charitable Lead Trust is especially useful if you have income producing assets that you want to preserve and protect for your own heirs but do not need income from that asset to maintain your current lifestyle.  The Lead Trust provides annual income paid to the Foundation for a set number of years.  When the trust ends, the asset reverts to you or to your beneficiaries.   One benefit, especially for larger estates, is that estate taxes on assets transferred to named beneficiaries are fixed at the time you create the trust.  If the trust grows, your heirs will benefit from the increase in value - without incurring any additional estate tax on that portion of their inheritance. 

Remember the Foundation in Your Last Will and Testament

Today, all across America, loyal and dedicated volunteers help ensure the future of the organizations they serve by making a bequest.  A bequest is a personal decision, a statement incorporated into your will that you wish to have a certain portion of your assets given to the organization(s) you name.  Properly constructed, a bequest can represent a considerable estate tax savings for your heirs. There are a few varieties that you should consider. 

A Set Amount Bequest

A certain number of dollars, or shares of stock, or a parcel of real property is to be transferred and you spell out in your will the exact amount you want to have tranferred from your estate. 

Residual Bequests

Sometimes, we are reluctant to name a specific dollar amount for a planned gift because we do not know what our family will need or what our resources might be in years to come. This type of bequest would state that you bequeath a percentage of the net value of your estate. The residual bequest can be structured so that ELECTRI International receives the amount after the death of your spouse. 

The Foundation will be pleased to provide additional information on planned giving options and encourages you to consult your tax and legal counsel when considering this type of investment in ELECTRi International.