Leaving a Legacy

A full 100% of your contribution to Ridgecrest Foundation will be applied directly toward the fund(s) that you specify. You can give with the confidence of knowing that your contribution is tax deductible to the fullest extent of the law.

Gift Planning Options

Many donors think only of a cash contribution when considering a gift to Ridgecrest Foundation. A cash gift of any size is always welcomed; however you may want to consider a gift of appreciated securities as well.

Gift planning allows you to maximize the advantage of tax savings while achieving your financial planning objectives and may enable you to impact Ridgecrest Foundation with a larger gift than you may have thought possible or practical.
Persons associated with Ridgecrest Foundation are prepared to assist you in structuring a customized giving plan that meets all your objectives.

Some gift options may include:

  • Gifts of Securities- A gift of appreciated securities offers definite tax advantages for not only do you receive a charitable income tax deductions for the full fair market value of the securities (up to 30% of your adjusted gross income), but you also will not have to pay capital gains tax on the appreciation in the value of the securities.
  • Gifts of Life Insurance- A gift made of a whole life insurance policy that is fully paid up receives a current charitable income tax deduction equivalent to the policy’s replacement value or your cost basis, whichever is less. If the policy is not fully paid up, your deduction is approximately equal to the cash surrender value (but it cannot exceed your cost basis). Your insurance company can provide these values. Future premium payments on a policy which names Ridgecrest Foundation as owner and irrevocable beneficiary are usually fully tax deductible. A gift of life insurance usually qualifies for the maximum charitable deduction of 50% of adjusted gross income. (However, term life insurance provides no charitable deduction, since term insurance has no cash value.)
  • Gifts by Bequest- A bequest under your will or a revocable trust is one of the simplest and most direct ways to make a planned gift. It can be a specific amount of cash or a particular asset or it may be expressed in terms of a percentage or share of your residuary estate. This deferred gift take effect after your death; the value of your gift will be fully deductible for estate tax purposes.
  • Charitable Remainder Annuity Trusts or Charitable Remainder Unitrust – With either of these types of deferred gifts you transfer cash or securities to a Trustee named in your trust agreement. You will receive trust income for life (and/or for the lives of others named as beneficiaries), and on the death of the income beneficiaries the principal of the trust will be distributed to Ridgecrest Foundation.
    Appreciated securities which you transfer to a charitable remainder trust can be sold by the trust without incurring tax on any capital gains. Your   income tax deduction is based on the value of the trust’s remainder interest. This is deductible in the year the gift is made; any unused portion of the deduction may be carried forward for a full five years. There is no estate tax payable on the remainder interest, and there are no probate proceedings.
    Variations of the Charitable Remainder Trusts provide some customization options. Your income payment preferences and other factors would determine if the Charitable Remainder Annuity Trust or the Charitable Remainder Unitrust would be most advantageous for you.
  • Charitable Lead Trusts – This is a gift in trust which pays income to Ridgecrest Foundation, not to you as with the Charitable Remainder Trusts. At the end of the trust term, the principal reverts to you or to your designated beneficiaries. Income payments to Ridgecrest Foundation may be structured as an annuity or Unitrust amount. For relatively large estates a Charitable Lead Trust can provide significant tax benefits.

The Gift Planning Options include:

  • the use of appreciated securities
  • gifts of personal property and real estate
  • gifts of a residence with retained life interest
  • “bargain sales”

Which type of planned Gift is most appropriate for you?

Many factors need to be taken into consideration when determining the type of planned gifts that would be most advantageous for you. Members of Ridgecrest Foundation will be pleased to work with you and your tax counsel to analyze all of the factors unique to your situation, and to develop the planned giving strategy that best meets your financial planning objectives and charitable goals.