Fund Planning

Whatever your philanthropic dreams, the GLCF provides expertise and flexibility in charitable giving. We will work with you to create a giving program that is customized to your passions, your assets and your personal and financial goals. We offer several types of funds to help simplify your giving and allow you to focus on making a difference. From donor-advised funds that give you the option to suggest grant recipients, to field of interest funds that allow you to focus on the causes you care about most our giving options are flexible and tailored to meet your needs. You can leave a legacy by establishing a community endowment fund and support a permanent charitable resource dedicated to meeting community needs today and tomorrow.

We offer unparalleled local knowledge, expertise, personalized service, professional advice and investment options. We'll help you create a tax-wise plan that provides advantageous charitable deductions while increasing the impact of your giving. Our goal is to help you determine the means of giving that best suits your personal interests and profile - and we can handle complex transactions, including donations of real estate, stock and other appreciated assets.

Contact us to discuss how we can help you to make a lasting difference.

Establishing a Fund by Will

You or your Estate Planner is encouraged to contact us to be sure that we can help meet your long term charitable goals and discuss the options for bequeathing from your estate.

Establishing a Fund by Trust

Charitable trusts can benefit any of the permanent funds at the Foundation or other named nonprofit organizations. Such trusts can provide a current tax benefit, reduce estate taxes, provide for family or friends, and ultimately benefit the community. The GLCF can also serve as trustee when other nonprofit groups are supported through an endowed fund with us.

Why should I consider creating a Discretionary Fund?

Your gift keeps pace with changing times, will be overseen by community leaders and it will be used to meet current community needs - regardless of how they change over time.

How can a Private Foundation Participate?

Private foundations can work as a partner with the GLCF to facilitate their own grant making process through a donor-advised fund. Private foundation trustees continue to advise where, how and when grants should be made from these funds. A private foundation can also work with the GLCF on its discretionary grant making efforts.

Sometimes it is in the best interest of the trustees of the private foundation to convert into a donor-advised fund that continues the original name of the founders. In addition, assets may be distributed to a discretionary fund at the GLCF or to one or more field of interest funds. Private foundations may also convert into a supporting organization of the GLCF. This corporate structure allows donors to participate on a Board of Directors, recommend grants and review proposals.

The GLCF can also prepare draft endowment agreements, charitable gift annuity projections and other reports.

We look forward to discussing charitable giving vehicles with you and your professional advisors. The table below summarizes several options including the basic fund options:

Giving Vehicle Description Benefits
Donor-Advised Fund You make a donation or series of donations to the GLCF and establish terms for how the funds will be distributed; either to designated charities, or at your recommendations, etc. Interest accrued increases the fund's charitable value.
  • Immediate tax deduction for up to 50% of adjusted gross income for cash contributions
  • Immediate tax deduction for up to 30% of adjusted gross income for long-term appreciated securities
Charitable Gift Annuity Simple contract between you and the GLCF. In exchange for your donation, the foundation agrees to pay you a lifetime income stream determined by actuarial charts. Upon your death or that of your spouse, the remainder goes to an endowment fund created by you for a nonprofit organization or cause.
  • Immediate income tax deduction for value of the gift that will pass to the charity (based on actuarial data)
  • Tax-free income stream helpful for people living on a fixed income
  • Reduced capital gains on gifts of long-term appreciated assets
Charitable Remainder Trust Created when cash, securities or real estate is transferred to a trust. The trust then pays you or your designated beneficiary an income for life or for a specific number of years. The remainder is then distributed according to your wishes.
  • Immediate income tax deduction for value of the gift that will pass to the charity (based on actuarial data)
  • No capital gains or income taxes on trust
  • Income to beneficiaries can be taxable
  • Estate tax reduction for amount that passes to charity
Charitable Lead Trust Creates an opportunity for donors to distribute assets to heirs in a tax-advantaged way. You transfer your assets into a trust, and give the GLCF the trust income for a set period of time. At the end of that period, heirs receive the original assets.
  • Heirs benefit from substantial estate and gift tax savings when they receive your assets, including no additional capital gain tax liability, since taxes were paid at a lower basis at the creation of the trust.
  • You are not taxed on income earned by the trust.
  • You receive a federal tax deduction for the value of the income stream passed to the community foundation
Retained Life Estate Contribute property to the GLCF and continue using it during your lifetime. At your death, the property is liquidated for charitable purposes.
  • Immediate tax deduction based on property value
  • Lowers estate taxes since property is no longer part of the estate

©2009 Greater Lowell Community Foundation - 100 Merrimack Street, Suite 202, Lowell, MA 01852          Phone: 978-970-1600        Fax: 978-970-2444          National Standards