Planned Giving

How you can provide lasting support

The decision to support one or more charitable causes in the community can be among the most meaningful and joyful decisions a person can make. You and your professional advisor can work with the FAV to achieve your charitable goals, and in many cases, reduce the tax burden for your estate and heirs.

Donors who notify the FAV of their intent to make a planned gift will be recognized in our Legacy Society unless a preference is stated to remain anonymous, which we will gladly honor. 

As you consider any of these options, we encourage you to work with your lawyer, CPA, or financial advisor. The FAV staff looks forward to working with you and your advisor as you begin this process. 

Deferred Gifts

A bequest to the Foundation for Appalachian Virginia or another nonprofit organization ensures that the charitable causes which are important to you and your family continue to be supported beyond your lifetime. Bequests can be made by will or revocable trust and can take a variety of forms, such as a specific amount, a percentage of the donor's estate or a certain asset. You can also name the Foundation for Appalachian Virginia or another charitable organization as the "residuary beneficiary" of all or part of your estate after other bequests have been made, or as a "contingent beneficiary" in the event other named beneficiaries do not outlive you. 

Download sample language to use in making a bequest as a specific amount, asset, percentage of your estate, etc. These are merely suggestions as to content and should be written or adapted by legal counsel to fit your individual situation. Please consult your attorney as this language is not intended as legal advice.

Beneficiary Designations

A simple beneficiary designation could be the least costly and most attractive way for you to support an organization after your lifetime. While most of your assets will pass to your family or favorite charities through your will, some assets, like retirement plans and life insurance policies, are governed by beneficiary designations. Through this method, you can specify the individuals and organizations you wish to support as well as the percentage of the assets you want each beneficiary to receive.

Making the Foundation for Appalachian Virginia a beneficiary designee for a retirement plan profit-sharing plan, Section 401(k) plan, or IRA is a great tax strategy because these plans produce taxable income for heirs. Most other assets an heir inherits are free from income tax. Donors who wish to make a charitable gift are usually better off transferring taxable assets that are subject to income tax to a tax-exempt charity, such as the Foundation for Appalachian Virginia, while transferring assets not subject to income tax to heirs.

Donating a life insurance policy, or naming the Foundation for Appalachian Virginia as your life insurance beneficiary, enables you to leave a legacy using something you already own, and based on your circumstances, may no longer need to provide protection for loved ones. To make a permanent gift of life insurance while you are still alive, you can transfer ownership of the policy to the FAV as the owner and irrevocable beneficiary and enjoy an immediate tax deduction as well as deductions on future premiums. The death benefit will be received by the FAV at your death, or if the policy has cash value, those funds could be received by the FAV before your death. You could also name the FAV as a beneficiary of your life insurance policy and retain ownership of the policy until your death. Beneficiary designations from a life insurance policy are not subject to federal estate taxes and will not be part of your estate.

Charitable Trust

The creation of a charitable trust is a simple way for you to support your favorite causes or charities, while generating income for life for you or other family members. 

  • Charitable remainder trusts allow donors to place resources into a tax-favored trust that pays income to living individuals and donates the remainder to charity. These gifts pay income that help donors living on fixed incomes, those with substantial assets from which they want to continue to enjoy income, and donors who want to make substantial gifts while potentially increasing their income during their lifetime.
  • Charitable lead trusts reverse the income payment pattern as described above. Charity takes the lead as the trust makes payments to the charitable organization first, and then returns the remaining assets to the donor, donor’s family or others the donor designates. The lead trust is an attractive gift vehicle for donors with appreciated assets they would like to pass intact to the next generation. Once inside the trust, the asset appreciation is not subject to estate and gift tax.