Legacies of Genius
Robert E. Riecker was an extra– ordinarily vigorous supporter and friend of AGU. His enthusiasm for the Union was, in his words, based on AGU's “can do” attitude. Today Dr. Riecker's bequest provides student travel grants to Chapman Conferences and other topical meetings.
Robert E. Riecker
1936–1992
Visionary individuals can make a lasting contribution to global science and society through bequests and other legacy gifts to AGU. There are many ways to blend philanthropic giving with your financial goals and tax planning. To discuss your needs, contact Joanna G. Tahar at +1.202.777.7514 or email jtahar@agu.org.
Will Bequests
Living Trusts
Charitable Gift Annuities
Charitable Remainder Trusts
Charitable Lead Trusts
Giving Through a Retirement Plan
Life Insurance
AGU's federal tax identification number is 52-0955532. If you have already included the Union in your estate plans, please let us know so that we may recognize your generosity.
Will Bequests
A gift made through a will bequest—either large or small—is an excellent way to perpetuate your interest in advancing Earth and space science through AGU. You may designate a specific amount of your estate, a percentage of your estate, or any residual amount that is left once all other costs and bequests have been honored. Your estate will receive a dollar-for-dollar deduction in estate taxes. You may even designate AGU as a contingent beneficiary in the event that your heirs do not survive you.
TopLiving Trusts
The revocable living trust is much like a will, with an important difference: A living trust will allow the donor's heirs to save the time and expense associated with probate of an estate. Like a will, a living trust can be changed during life. When the donor passes on, the trust automatically becomes irrevocable and assets are distributed to the beneficiary(ies).
Charitable Gift Annuities
A charitable gift annuity is the simplest form of planned giving that generates income to the donor. It is a contract between you and AGU. The Union agrees to pay you a fixed annuity for life in exchange for an irrevocable interest in the funds remaining. Annuities may also be timed so that payments won't begin until the income is needed, such as at retirement. A minimum of $10,000 is normally required to establish a gift annuity, which ultimately will benefit AGU and it programs.
Establishing a charitable gift annuity with a contribution of cash or securities will provide you—or the person you designate—with a fixed amount of annual income, as well as considerable tax benefits. Payouts are typically distributed quarterly and are based on the value of the assets at the time they are committed, as well as the age(s) of the annuitant(s).
You may find it advantageous to use appreciated assets—for example, securities—to create such a gift vehicle. This will give you an immediate tax deduction, and avoid a significant portion of the capital gain taxes that would be due through an outright sale of the stock. Additionally, a part of each income payment will be tax-free to the beneficiary.
Charitable Remainder Trust
A charitable remainder trust provides substantial income to you during your life, during the life of a named beneficiary, or both. Essentially, you place assets that produce income into trust. You then receive a life income based on the market value of the assets given. Because remainder trusts receive special treatment under the IRS code, you can realize substantial tax advantages from this type of life income arrangement. A minimum of $50,000 is needed to establish a charitable remainder trust. After the death(s) of the beneficiary(ies), the trust assets are transferred to AGU are allocated for the purpose you designate. There are two types:
Charitable Remainder Annuity Trust: You receive a fixed amount of annual income based on the value of the initial contribution, which is made in one lump sum. The tax reduction is generally larger than for a charitable remainder unitrust established for the same amount.
Charitable Remainder Unitrust: You receive a variable income that may grow as principal grows. The payout is equal to a percentage of the trust's market value, which is calculated annually. In addition, you may make multiple payments into the unitrust.
Charitable Lead Trusts
A charitable lead trust allows you to contribute assets to a trust for a specified period of time. In this arrangement, AGU receives the income from the trust as a gift, and the assets are returned to you or your heirs when the trust terminates. The primary reason for creating a lead trust is to reduce estate taxes when transferring property to heirs.
Giving Through A Retirement Plan
Did you know that retirement plan assets, passed directly to heirs, are sometimes subject to both income and estate taxes? Naming a charitable remainder trust as the beneficiary of a traditional IRA or other retirement plan can leave your estate in a much better financial position. For many, it is a smart way of ensuring that your heirs will receive a regular income (the trust payout) while avoiding significant taxes, which otherwise could be as much as 75 percent.
For donors who choose to make an outright gift in their will, an effective strategy can be to make a specific bequest of your IRA or other tax-sheltered retirement accounts to charity. Some donors make the mistake of leaving cash from other assets to charity and leaving their tax-sheltered accounts to family or friends. Unfortunately, this can mean that the net received by them is less than intended.
Since the tax-sheltered retirement account pays both estate and income taxes, your individual heirs may receive as little as 30 percent of the original balance. If, however, your bequest were to specify that AGU is to receive the IRA or other tax-sheltered account, the favored tax treatment would allow for a larger gift to both AGU and to your heirs.
Life Insurance
Life insurance can be a valuable planned giving option in certain situations. It may be used as the gift itself, or as a vehicle used to replace assets that were used as a planned gift. If AGU is named both owner and sole beneficiary of a wholly paid policy, you will be entitled to a federal income tax deduction in the year of the gift.
AGU is recognized by the U.S. Internal Revenue Service as a 501(c)(3) tax-exempt nonprofit organization. Contributions to AGU are tax deductible to the extent provided by U.S. law.