There are different ways that individuals can support the mission of the National
Headache Foundation through donations. A present donation of money or other
items of value is the most frequent manner of support. Provisions for specific
bequests or residual bequests in one’s will or trust are often utilized. As part of
one’s estate planning or planned giving, an individual can provide for charitable
giving that may minimize gift and estate taxes while providing for (a) the smooth
transfer of ownership, (b) the care and support of dependents, and (c) the
avoidance of disputes among survivors.
Three commonly used planned giving vehicles are:
1. Charitable remainder annuity trust. Assets (generally securities)
are transferred to a trust. The trust makes fixed annual payments
to the donor or other specified beneficiaries named by the donor.
When the trust terminates upon the death of the donor or other
specified beneficiaries, the remainder of the assets in the trust pass
to the charity. A trust document is required. The donor retains the
ability to change the designated charity.
2. Charitable remainder unitrust. Assets are transferred to a trust.
The donor or other specified beneficiaries named by the donor
receive fluctuating payouts from the trust (a percentage of the value
of the principal) and, upon the death of the donor or other specified
beneficiaries, the remainder of the assets passes to the designated
charity. A trust document is required. The donor retains the ability
to change designated charity.
3. Charitable gift annuity. The donor, under a contract with a charity,
transfers cash or securities to the charity. The charity pays the
designated beneficiary a fixed income for life. Upon the death
of the beneficiary, the remaining balance passes to the charity.
No trust document is required and the charity cannot be changed.
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Volume 4, Issue 1 • 2014
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