Heritage Fund : The Community Foundation of Bartholomew County

Why Consider a Gift to Heritage Fund?

Most people understand that charitable gifts are encouraged during a donor's lifetime because they are deductible from annual income taxes. However, the high tax rates incurred at the time of death make charitable giving a choice that should be seriously considered in estate planning.

Property subject to federal estate tax includes real estate, personal and jointly held property, and life insurance. The taxes on an estate can reach as high as 55%, leaving only 45% for heirs. Additionally, certain qualified retirement plans such as IRAs and 401(k)s will also pay income tax, in addition to estate tax, leaving as little as 25% for heirs.

By consulting with lawyers, accountants and/or financial advisors, individuals can divert to philanthropic causes much of the asset base that would have gone to the IRS at the time of death. By taking advantage now of a number of techniques, this can be accomplished with little negative impact on heirs and with a positive impact for donors from reduced income tax during their lifetimes.

There are a number of reasons to consider Heritage Fund as the vehicle through which to make your philanthropic gifts.

Community Impact: The Heritage Fund is local - it is rooted in our community. It is organized and operated so it will always direct the contributions of present and past donors to the needs of this community.

Flexibility: Through the Heritage Fund, an individual, family or company can establish single or multiple funds uniquely tailored to the donor's specific philanthropic interests.

Permanence: If the original purpose of a fund becomes obsolete, the Heritage Fund Board has legal authority to redirect the fund to the most closely related use. This assures donors that the original intent of their fund will be fulfilled despite changing circumstances.

Proactivity: The Heritage Fund awards grants to existing charities or organizations. If a need is identified for which no community initiative exists, Heritage Fund resources are used to build an appropriate community response.

Professional, Informed Management: The Heritage Fund provides expertise in investment and administration, achieving high returns and significant economies of scale which permit the maximum return to charities and philanthropic causes.

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