Planned and Major Giving

Thank you for considering a legacy gift to the Bonnie J. Addario Lung Cancer Foundation through your Estate Plans, which might include Securities, Life Income Gifts, Charitable Annuities or a Charitable Remainder Trust. We would be honored to discuss opportunities for legacy giving and recognition and to help you or your advisor develop appropriate language for a gift through your will or trust. Your bequest can include cash, securities, real estate, other property, retirement plan assets, a percentage of or the entire residue of your estate, or a range of life income gifts. We will honor you with membership in our Legacy Circle—a select group of supporters recognized for their leadership and commitment. What better way to leave your mark than by honoring or memorializing a loved one or simply by extending your help to those you do not know.

BENEFITS OF YOUR LEGACY GIFT TO ALCF AND/OR ALCMI

Securities

Gifts of marketable securities can afford considerable tax advantages. In most cases, the full market value of the stock can be deducted as a charitable contribution.

Life Income Gifts

This pays you, your beneficiary, or both, an income for life or for a specific period of years. It can offer significant tax advantages in the form of an immediate charitable deduction, avoidance of capital gains tax upon sale of any appreciated assets, and an eventual estate tax savings. It relieves you of the burdens of asset management and enables you to support, in a significant way, a program or research of your interest.

Charitable Gift Annuity

This provides annual payments for life for you or a loved one and can provide tax advantages including an immediate charitable deduction, potential capital gain and estate tax savings. This may be funded through a gift of cash or securities of $10,000 or more. The payment amount will depend upon the beneficiary’s age at the time of the gift and the value of the property donated. In some states, regulations may prevent our Foundation from offering gift annuities to residents of those states.

Charitable Remainder Trusts

This is another life income gift that allows you to receive income from ALCF and benefit the program you care about at the end of the trust. An individual transfers an asset, usually appreciated stock or real property, to a trustee. If the assets contributed are other than cash, the trustee usually sells the assets and reinvests the proceeds.

The annual income paid to the beneficiary is not a fixed dollar amount but instead is a percentage of the asset value, usually between 5 and 7 percent. Since the value of the assets will fluctuate from year-to-year, the trust amount that is paid to the individual will also fluctuate year-to-year.

Thank you for your consideration. You can make a difference in the future outcome of lung cancer patient survival. Contact: Andrea Parks, Associate Executive Director of Partnerships & Development, 650.598.2857 or [email protected].

Tax Advantages of Qualified Charitable Distributions (QCDs)

IRA owners and beneficiaries who have reached age 70 1/2 are permitted to make donations to IRS-approved public charities directly out of their IRAs. These so-called qualified charitable distributions, or QCDs, are federal-income-tax-free to you, but you get no charitable deduction on your tax return. But, that is fine because the tax-free treatment of QCDs is the same as an immediate 100% deduction without having to worry about restrictions that can delay itemized charitable write-offs. QCDs have other tax advantages, too.

A QCD is a payment of an otherwise taxable distribution made by your IRA trustee directly to a qualified public charity. The funds must be transferred directly from your IRA trustee to the charity. You cannot receive the funds yourself and then make the contribution to the charity. However, the IRA trustee can give you a check made out to the charity that you then deliver to the charity. You cannot arrange for more than $100,000 of QCDs in any one year. If your spouse has IRAs, he or she has a separate $100,000 limitation. Unfortunately, this taxpayer-friendly provision is set to expire at year-end unless extended by Congress.

Before Congress enacted this beneficial provision, a person wanting to donate money from an IRA to a charity would make a withdrawal from his or her IRA account, include the taxable amount in gross income, donate the cash to charity, and then claim an itemized charitable donation.

QCDs are not included in your adjusted gross income (AGI) on your federal tax return. This helps you remain unaffected by various unfavorable AGI-based phase-out rules. It also keeps your AGI low for computation of the 3.8% NIIT. In addition, you don’t have to worry about the 50%-of-AGI limitation that can delay itemized deductions for garden-variety cash donations to public charities. QCDs also count as payouts for purposes of the required minimum distribution (RMD) rules. Therefore, you can donate all or part of your 2013 RMD amount (up to the $100,000 limit on QCDs) and thereby convert otherwise taxable RMDs into tax-free QCDs. Individuals can arrange to simply donate amounts that they would normally be required to receive (and pay tax on) under the RMD rules.

Note that the charity must provide you with a record of your contribution. Also, you cannot receive any benefit from the charity in return for making the contribution. If the donor receives any benefit from the charity that reduces the deduction under the normal rules, tax-free treatment is lost for the entire distribution.

For more information on the IRA Charitable Rollover Plan please visit http://www.cof.org/content/house-and-senate-negotiators-agree-permanently-extend-ira-charitable-rollover

Philanthropy

Although philanthropy can assume many forms (scholarships, grants, humanitarian aid, public buildings, etc), all philanthropy is distinguished by the profound impact that it has on improving and enhancing the quality of life for people.

Helping the Lung Cancer Foundation (ALCF) to transform the Lung Cancer landscape — making it a chronic, manageable disease and ultimately making it a curable disease — will require the dedication and brilliance of doctors and scientists, millions of dollars and hundreds of days AND the philanthropy of generous donors who think big.

If you and your family, your business or corporation, would like to be among the philanthropic leaders who want to change the future for mankind in a critical way, please contact: Andrea Parks, Associate Executive Director of Partnerships & Development ([email protected] // 650-598-2857). Your philanthropy will be life changing!