The Easiest Way to Make an Impact

A Gift in Your Will or Living Trust

Interested in helping Phi Delta Theta Foundation with our mission but feel overwhelmed by the thought of writing another check or giving up your assets today? A simple, flexible and versatile way to ensure we can continue our work for years to come is a gift in your will or living trust, known as a charitable bequest.

By including a bequest to the Foundation in your will or living trust, you are taking your place in the Living Bond Society and ensuring that we can continue our mission for years to come.

A Potential Scenario

When Tom and Martha got married, they made a point to put together a will to protect their assets. They both loved the Foundation and decided to include a bequest of $75,000 to us in their will.

As Tom and Martha’s family grew to include three children, they decided to revise their gift to ensure their children’s future financial security. They met with their attorney and simply revised the bequest language so that their gift to the Foundation was now a percentage of their estate instead of a specific amount. Tom and Martha now rest easy knowing when they die, their plans will provide for the people and charitable work they love.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. He can provide you with additional information on bequests or chat more about the different options for including the Foundation in your will or estate plan. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor.
3. Once you have decided to include the Phi Delta Theta Foundation in in your plans, you’ll need our legal name and federal tax ID.Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803
4. Notify the Phi Delta Theta Foundation of your plans, so we can recognize your gift in our Living Bond Society.

Continue Supporting Our Work After Your Lifetime

Beneficiary Designations

Passionate about supporting the mission of the Phi Delta Theta Foundation even after your lifetime? It’s not only possible, it’s easy to do with a beneficiary designation. Just name the Foundation as a beneficiary to receive assets such as retirement plans and life insurance policies after you’re gone. You simply fill out a form that is entirely separate from your will—which makes this approach an easy way to give.

Not only is it an easy way to give, but it’s also flexible—you aren’t locked into the choices you make today. You can review and adjust beneficiary designations anytime you want.

A Potential Scenario

Robert and Carol treasure the financial help they’ve been able to give their children and the Foundation over the years. Now that their kids are grown, Robert and Carol changed their estate plan so it could work harder for the people and causes they love. The couple updated their will to leave stocks and real estate to their kids. And they left us a $75,000 IRA to be transferred after their death. Because the Foundation is tax-exempt, all $75,000 will help support our mission.

If Robert and Carol had left the IRA to their children, approximately $18,000* would have gone to pay federal income taxes—leaving only $57,000 for their family’s use. Robert and Carol are happy knowing they are making the most of their hard-earned money thanks to their updated estate plan.

*Based on an assumption of a 24 percent marginal income tax bracket.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. He can provide you with additional information on beneficiary designations. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Talk to your financial or legal advisor to learn which assets will or will not trigger taxable income when paid to a beneficiary.
3. Once you have decided to include the Phi Delta Theta Foundation in in your plans, you’ll need our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803
4. Notify the Phi Delta Theta Foundation of your plans, so we can recognize your gift in our Living Bond Society.

Turn Your Generosity Into Lifetime Income

Charitable Gift Annuities

When you are looking for ways to further the mission of the Phi Delta Theta Foundation, you shouldn’t feel like you are choosing between your philanthropic goals and financial security. One gift that allows you to support the Foundation’s work while receiving fixed payments for life is a charitable gift annuity.

Not only does this gift provide you with regular payments and allow us to further our work, but when you create a charitable gift annuity with the Foundation you can receive a variety of tax benefits, including a federal income tax charitable deduction when you itemize.

A Potential Scenario

Say that Justin, 66, and Mary, 65, want to make a contribution to the Foundation that will support our work for generations to come, but they also want to ensure that they have dependable income during their retirement years. They establish a $20,000 charitable gift annuity with the Foundation. Based on their ages, they will receive a payment rate of 4.5 percent, which means that they will receive $900 each year for the remainder of their lives. They’re also eligible for a federal income tax charitable deduction of $6,129* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support our mission.

*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. He can provide you with additional information on all the assets that you can use to fund a charitable gift annuity, and chat with you about the personal benefits of creating an annuity with the Foundation. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor.
3. Once you have decided to include the Phi Delta Theta Foundation in in your plans, you’ll need our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803
4. Notify the Phi Delta Theta Foundation of your plans, so we can recognize your gift in our Living Bond Society.

Discover a Gift That Is Truly Win-Win

Charitable Remainder Trusts

Looking for a way to give the Foundation a significant gift? If you have built up a sizeable estate and are also looking for ways to receive reliable payments, you may want to check out the advantages of setting up a charitable remainder trust.

Benefits of a charitable remainder trust include:

• Potential for a partial charitable income tax deduction
• Potential for increased income
• Up-front capital gains tax avoidance

There are two ways to receive payments with charitable remainder trusts:

1. The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
2. The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

A Potential Scenario

Susan, 75, wants to make a gift to the Foundation but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 6 percent of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $30,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $276,880* in the year she creates and funds the trust. This deduction saves Susan $88,232 in her 32 percent tax bracket.

*Based on annual payments and a 3.2 percent charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. He can provide you with additional information on all the assets that you can use to fund a charitable gift annuity, and chat with you about the personal benefits of creating an annuity with the Foundation. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor.
3. Once you have decided to include the Phi Delta Theta Foundation in in your plans, you’ll need our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803
4. Notify the Phi Delta Theta Foundation of your plans, so we can recognize your gift in our Living Bond Society.

Provide For Your Loved Ones And The Foundation

Charitable Lead Trusts

Do you want to benefit from the tax savings that result from supporting the Foundation, yet you don’t want to give up any assets that you’d like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:

1. A charitable lead annuity trust pays a fixed amount each year to the Foundation and is more attractive when interest rates are low.
2. A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust’s assets go up in value, for example, the payments to the Foundation go up as well.

A Potential Scenario

George would like to support the Foundation and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor’s recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George’s trust pays $70,000 (7 percent of the initial fair market value) to the Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. He can provide you with additional information on all the assets that you can use to fund a charitable gift annuity, and chat with you about the personal benefits of creating an annuity with the Foundation. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor.
3. Once you have decided to include the Phi Delta Theta Foundation in in your plans, you’ll need our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803
4. Notify the Phi Delta Theta Foundation of your plans, so we can recognize your gift in our Living Bond Society.

Transforming Realty To Gift Reality

Real Estate

Want to make a big gift to Phi Delta Theta Foundation without touching your bank account? Consider giving us real estate. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer must deal with that property’s maintenance costs, property taxes or insurance.

Another benefit: You don’t have to hassle with selling the real estate. You can deed the property directly to the Foundation or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate

You can give real estate to the Foundation in the following ways:

An outright gift. When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation.

A gift in your will or living trust. A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for the Foundation continues after your lifetime.

A retained life estate. Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to the Foundation but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though the Foundation would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home’s value.

A bargain sale. Want to sell us your property for less than the fair market value? A “bargain sale” may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it’s worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction (when you itemize) at the same time.

A Potential Scenario

Janet purchased a rental property years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she’s beginning to find management of the property more and more of a hassle. At this stage of her life, Janet has decided to move to a 55+ condominium development, where all exterior maintenance is provided, and she doesn’t have to worry about security issues. Janet sees this as an opportunity to give her rental property to a charity that’s important to her while realizing valuable tax benefits.

Janet avoids capital gains tax on the appreciation and qualifies for a federal income tax charitable deduction of $250,000, which is the property’s fair market value today. She can claim 30 percent of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Janet is happy in her new condo and loves knowing that the gift of her property will make a big difference supporting our mission.

Next Steps

1. Contact Andrew Cole at the Phi Delta Theta Foundation. to discuss the possibility of giving real estate to the Foundation. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
3. If you include the Foundation in your plans, please use our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803

Harness the Giving Power of a Private Foundation — Without the Complexity

Donor Advised Funds

Are you looking for an easy, cost-effective way to support Phi Delta Theta Foundation and other causes you love? A donor advised fund, which is like a charitable savings account, may be the right choice for you.

Here’s how it works. You transfer cash or other assets to a tax-exempt sponsoring organization such as a public foundation. You can then recommend—but not direct—how much and how often money is granted to the Foundation or other charities—sometimes as easily as using a Web portal. And you avoid the cost and complexities of managing a private foundation.

You qualify for a federal income tax charitable deduction at the time you contribute to the account, and the power to make recommendations on which charities to support whenever you want. You centralize your giving and record-keeping in one location. And maybe best of all, you can start a legacy of giving by letting your children help decide which grants to recommend.

A Potential Scenario

Joe and Laura want to give back to their hometown by putting their money where it will do the most good. They establish a $25,000 donor advised fund with a community foundation. The couple receives a federal income tax charitable deduction for the gift amount. They also get all the time they need to decide which charities to support. After researching community needs with the foundation’s staff, Joe and Laura recommend grants for the Foundation (which they’ve supported for years) and the Animal Rescue League. The foundation presents the charities with checks from the Megan Fund, which Joe and Laura named in honor of their granddaughter. Joe and Laura are delighted to start this personal legacy of giving.

Next Steps

1. Contact Andrew Cole to get to know the Foundation’s Advised Fund policies and procedures-from minimum contributions to administrative fees. 513-523-6966 ext. 236 or acole@phideltatheta.org
2. Seek the advice of your financial or legal advisor.
3. Contact the Phi Delta Theta Foundation at 513-523-6966 or foundation@phideltatheta.org to discuss using donor advised funds to support the Foundation and our mission.
4. If you include the Foundation in your plans, please use our legal name and federal tax ID.
   Legal Name: Phi Delta Theta Foundation
   Address: Oxford, OH
   Federal Tax ID Number: #34-6539803

For Professional Advisors

In your work as a professional advisor, you value professionalism, integrity and honesty, taking the utmost care when serving your clients. As a nonprofit organization, we share your values and take the same care when it comes to helping our donors plan charitable gifts to Phi Delta Theta Foundation. Please use these tools as you help your clients with their charitable plans, and feel free to contact Andrew Cole for more information or assistance.

Andrew Cole
513-523-6966 ext. 236
acole@phideltatheta.org

Tools for Professional Advisers

Legal name: Phi Delta Theta Foundation
Federal tax ID number: #34-6539803
Located in: Oxford, OH

Make a Gift to the Foundation in Your Will

If your clients are interested in supporting the Foundation with a gift in their will, we have provided sample bequest language that they can bring to their estate planning attorney.

Partner With Us

We understand that gifts to charities such as the Foundation can be an important part of your clients’ overall financial and estate plans. That’s why we’re committed to working with you to ensure that your clients find the charitable arrangements that best meet their needs. We believe that charitable planning is a process that ideally involves the donor, professional advisors and our gift planning staff—all working together to arrange the best gift possible.

The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.