Common Planned Gifts

Future gifts come in many shapes and sizes, and we specialize in endowment funds.

An endowment is a permanent fund that can help you leave a legacy. Endowment funds are invested for long-term growth and commingled with other endowments we manage. The original gifted amount – referred to as the “corpus” – is never touched; instead, investment earnings are used to accomplish your goals. Endowments are designed to last in perpetuity, with annual grants awarded in your name and memory.

Read Pat McFarland’s endowment story to spark ideas for your estate plan.

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Here are some of the most common planned gifts we work with to establish endowment funds:

Cash

Easy and straightforward, you can designate a specific cash amount in your will or trust, and as your estate assets are liquidated, that amount will come to us. Or, you can complete a Payable on Death (POD) for bank accounts, certificates of deposit and some investment accounts. When you utilize a POD, we have no rights to your assets until your passing, and you are in control and free to use the money as needed.

Appreciated Securities

Giving your stock or mutual funds that have grown over time avoids capital gains taxes, while providing a deduction equal to the current fair market value. Win-win! It is common for appreciated securities to be given during your lifetime or at your passing.

Retirement Plan Accounts

You can name the Southwest Initiative Foundation, a community foundation or another local fund as beneficiary of retirement plan accounts. This is a smart and cost-conscious way to give, with the gift happening at your passing ensuring you have full access to the assets during your lifetime. As a public charity, we do not pay income tax on the gift and the full amount will directly benefit us. In contrast, when naming a loved one to receive an IRA, 401(k) or 403(b), distributions from the retirement plan are taxed as “ordinary income” to the person who receives them. In some cases, that rate can be as high as 37 percent. It’s as easy as requesting a Beneficiary Designation Form from your retirement plan administrator and contacting us for further instructions from there.

You can also give through your IRA during your lifetime. Learn more about this gift, called a Qualified Charitable Distribution or QCD (pdf).

Life Insurance

If you have a life insurance policy that is paid-in-full and you no longer need or want it, you can give that policy to Southwest Initiative Foundation by naming us as beneficiary and owner. That ownership element results in an immediate income tax deduction. 

Alternatively, you may name us as beneficiary of the policy, and we will receive it at your passing.  

Farmland 

If you own farmland that is paid-in-full and you have no heirs to assume the farm operation, our Keep it Growing℠ Farmland Giving Program could be just the solution you are looking for. You can give the property to Southwest Initiative Foundation and request that we retain it long-term. In that case, rental income from a local tenant is used to support your charitable goals and the charitable beneficiaries you name, such as your community foundation, a place of worship, a local nonprofit, etc.