Outlined here are options for establishing a fund through a variety of financial instruments, from outright donations to more complex giving arrangements that provide income for the donors or their beneficiaries. You will also find descriptions of various types of funds reflecting a range of philanthropic priorities and desired involvement in grant making. From establishing a Community Fund that broadly assists organizations in King County to recommending grants as your interests evolve, you can create a specific fund that meets your philanthropic objectives.

These options can be used in various combinations to balance your charitable and financial goals. The Seattle Lighthouse staff will gladly help you or your professional advisor in designing a giving plan according to your wishes.

Outright Gift

An outright gift is a donation of cash or other assets to The Seattle Lighthouse for the Blind Foundation. Donors receive immediate income and capital gains tax benefits from making outright gifts during their lifetimes:

• Donors may deduct an outright cash gift from their federal income tax excess carried forward for up to five additional years.
• Donors may deduct the full fair market value of long-term appreciated property -- securities or real estate -- up to 30 percent of adjusted gross income, with any excess carried forward for up to five additional years.
• Deduction may be either for full market value or the cost basis (if the Foundation sells the property for its proceeds).

Types of Outright Gifts:

• Bequests

Life-Income Gifts

Some forms of charitable gifts commit cash and other assets to a future philanthropic purpose, while assuring the donor continued income from those assets.

Under these arrangements, assets are irrevocably transferred to The Seattle Lighthouse for the Blind Foundation itself or to a trustee, to be managed for a term of years or recommendations.

In exchange for this commitment, donors secure annual income for them-selves or other beneficiaries, as well as substantial tax and charitable advantages:

• Original commitment of assets can expand over the term, resulting in a potentially larger future gift.
• Because the commitment to the future gift is irrevocable, the donor receives immediate income tax benefits.
• The donation helps eliminate or minimize estate and gift taxes.
• Excellent vehicles for making low- or non-income-generating securities eliminating or minimizing capital gains tax.
• Income can be used to supplement retirement income, or provide for
  others unable to manage assets themselves, such as a developmentally
  disabled sibling, and elderly parent, or a less financially savvy family
  member.

Donors concerned about preserving wealth for future generations may use extra cash flow from their charitable gifts to purchase a life insurance policy. The policy’s value replaces the assets placed in trust, but its proceeds can pass on to heirs tax-free.

Types of Life-Income Gifts:

• Gift Annuities
• Charitable Remainder Trusts
• Pooled Income Funds
• Charitable Lead Trusts
• Life Insurances

For More Information

The Seattle Lighthouse staff are happy to assist you in creating a giving plan that suits your charitable and financial goals.

Have your financial advisor contact General Manager of Administration Kirk Adams for more information, or contact us directly at (206) 436-2110 or kadams@seattlelh.org.