Give

Fund Options
Planned Giving
Donate Now

FUND OPTIONS

Unrestricted
These funds enable the Leadership Legacy Life Foundation to meet pressing needs by allowing the Board of Directors to determine the recipients.

Donor Advised Funds
Distributions from these funds are made through consultation and with the advice of the donor to benefit charitable organizations.

A donor-advised fund is a charitable giving vehicle administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual. A donor-advised fund offers the opportunity to create an easy-to-establish, low cost, flexible vehicle for charitable giving as an alternative to direct giving or creating a private foundation.  Donors enjoy administrative convenience, cost savings, and tax advantages by conducting their grant-making through the fund.

Started in 1931, donor-advised funds are the fastest growing charitable giving vehicle in the United States with more than 125,000 donor-advised accounts established, holding over $27 billion in assets.

Because the fund is housed in a public charity1, donors receive the maximum tax deduction available, while avoiding excise taxes and other restrictions imposed on private foundations. Further, donors do not incur the cost of establishing and administering a private foundation, including staffing and legal fees. Since the maximum tax deduction is received by the donor at the time of the gift, the foundation administering the fund gains full control over the contribution, granting the donor advisory status. As such, they are not legally bound to the donor, but make grants to other public charities upon the donor’s recommendation. Most foundations that offer donor advised funds will only make grants from these funds to other public charities, and will usually perform due diligence to verify the grantee’s tax-exempt status.

Donor advised fund benefits:

  • Receive a current-year income tax deduction
  • Make grant recommendations now or in the future
  • Donate appreciated assets without incurring capital gains taxes
  • Involve family in charitable giving

Charitable Gift Fund benefits:

  • Minimum contribution of $5,000
  • Pick fund name – just like a private foundation

1A public charity as described in the Internal Revenue Code Sections 501(c)(3), 509(a)(1) and 170 (b)(1)(A)(vi).

A Donor Advised Fund account provides consolidated reporting and record keeping. Donors can make grants to multiple charities and will need only one tax substantiation letter (for each contribution to the account). Donors can also review history of grant-making online before making future gifts.

 

How the donor advised fund works

Complete the simple Application either online or on the phone.

Contribute assets to Fund. Leadership Legacy Life Foundation will accept as little as $5,000 as an initial contribution. When the application is completed, Leadership legacy Life Foundation will contact donor or professional advisor to arrange transfer of the assets.

When Leadership Legacy Life Foundation accepts a contribution, the donor is sent a letter acknowledging the gift, and a supply of grant recommendation forms.
Donor retains the right to advise LLL in administering the affairs of the Fund. Donor’s role is that of an advisor (hence the name donor advised fund). This concept of advice is key to Fund’s superior tax treatment by the IRS.

  • Contributions, once received and accepted by LLL, are irrevocable.
  • All recommendations from donor are advisory. IRS regulations common to all donor advised funds requires that the sponsoring charity (in this case, LLL) must have final say on all recommendations.
  • The Donor Advised Fund must be operated exclusively for charitable purposes.
  • LLL can only consider grants to US-based, tax-exempt, public charities or to qualified governmental organizations.
  • LLL will contact you immediately regarding grant recommendations that do not comply with tax regulations.

Fee
LLL incurs expenses in operating the Donor Advised Fund. These include Donor services, phone support, mailed notices, statements and communications, grants administration, and online services. To cover the costs associated with these services, the Fund assesses an account administrative fee. Fees are charged directly to a Fund and not charged to the donor.

Save taxes in four ways

1) Contributions are tax deductible in the year they are made. Because the Leadership Legacy Life Foundation is a public charity, contributions qualify for immediate and maximum tax benefits.

  • Deduction for cash: Up to 50% of adjusted gross income (AGI).
  • Deduction for securities and other appreciated assets: Up to 30% of AGI.
  • Five year carry forward of unused deductions.

2) Avoid capital gains on gifts of appreciated property.

3) Avoid estate taxes.

4) Investments in a Donor Advised Fund can grow tax free.

Other tax considerations

When contributing the following asset types to Leadership Legacy Life Foundation, donors can deduct the full market value of the asset subject to the AGI limitations mentioned above. If contributed to private foundations, the donor’s deduction would likely be limited to cost basis.

Privacy in the LLL donor advised funds

Although most donors opt for full recognition, donors may want a greater degree of privacy in charitable giving.

Points to consider:

Contribution privacy: donors sometimes want a higher degree of privacy in contributing assets.

Investment privacy: donors may want privacy in the investments in their Fund.

Grant-making privacy:

  • Donors may be concerned about being inundated with unsolicited grant requests.
  • Donors may want to avoid future grant-making pressures or hurt feelings.
  • Donors may not want to be “lobbied” for pet projects.
  • Donors may want absolute anonymity to protect a child from special attention.

Grant Eligibility
The Leadership Legacy Life Foundation considers recommendations for grants to any organization it believes to be classified as a public charity under Section 501(c)(3) of the Internal Revenue Code. Consistent with IRS regulations that apply to all Donor Advised Funds, Leadership Legacy Life Foundation cannot approve recommendations for grants:

  • to individuals.
  • to private foundations.
  • that satisfy a pre-existing charitable pledge.
  • for any private benefit (e.g. school tuition sent to individuals, dues or membership fees, benefit tickets, the donor’s time or services, or goods bought at charitable auction).
  • for political contributions or to support campaign activities.

The Leadership Legacy Life Foundation reviews each grant recommendation to ensure that it complies with IRS requirements. If there is a problem with a recommendation, we will contact you immediately. Upon approving a recommendation, we will arrange to liquidate appropriate Fund investments for the amount needed. We then prepare a check and send it to the charitable organization. The transmittal letter that accompanies the check to the charitable organization is prepared on your Fund’s letterhead. You receive a copy of the letter that accompanies the check. The charitable organization also sends you an acknowledgement of the receipt your grant.

The Leadership Legacy Life Foundation processes grants on an ongoing basis. Checks can be distributed within a few days of receipt of your grant recommendation.

Anonymity
Donors can choose to support a charity without disclosing identity to the organization.

Sample Language for a Charitable Bequest in your will

The following three types of bequests direct your gift to the American Endowment Foundation.

Percentage bequest:
”I give, devise and bequeath to Leadership Legacy Life Foundation, a nonprofit corporation of the State of Texas, located at 301 Congress Avenue, Suite 320, Austin Texas, 78701, ____% of my estate to create a Donor Advised Fund.”

 

Specific bequest:
“I give, devise and bequeath to Leadership Legacy Life Foundation, a nonprofit corporation of the State of Texas, located at 301 Congress Avenue, Suite 320, Austin Texas, 78701, to create a Donor Advised Fund,
(Choose one)
1) The sum of $___________.”
2) __________ shares of stock in ________________Company.”, or
3) my real property commonly known as _________________.”

 

Residual bequest:
“I give, devise and bequeath to Leadership Legacy Life Foundation, a nonprofit corporation of the State of Texas, located at 301 Congress Avenue, Suite 320, Austin Texas, 78701, all the residue of my estate, including real personal property to create a Donor Advised Fund.”

Donor Designated Funds
These funds are created to benefit specific organizations

Field of Interest

These Funds are created to benefit particular area (s) of charitable interest.

Charitable Remainder Trusts
This type of trust will make payments to a designated beneficiary during his or her lifetime, after which the principal passes to the Foundation.

Charitable Remainder Trusts

Donors can create an opportunity for continuing family involvement by naming Leadership Legacy Life Foundation as the remainder on a Charitable Remainder Trust. Here’s how it works:

  1. A donor contributes to a CRT, receives capital gains tax benefit, income tax deduction, and lifetime income stream.
  2. At termination of trust, the remainder interest is transferred to a Donor Advised Fund at the Leadership Legacy Life Foundation.
  3. A donor’s family can stay involved in these meaningful assets after the CRT terminates. The family can then recommend distributions from the Donor Advised Fund to charities over time.

LLL Foundation Giving

Benefits:

1) Continuing family involvement.

2) This strategy eases the pressures associated with deciding the ultimate charities. Leadership Legacy Life Foundation, an IRS recognized 501 (c)(3) charity, qualifies for the maximum and immediate tax deduction .

3) The donor can use the Donor Advised Fund as the vehicle for their lifetime charitable giving.

4) When income from the CRT is no longer needed, the Donor Advised Fund can become the charitable overflow to the CRT.

5) If a donor wants to accelerate a CRT in order to give more to charity now or in the near future, he/she can collapse the CRT into a Donor Advised Fund.

Naming leadership Legacy Life Foundation as income beneficiary on a Charitable Lead Trust

LLL Foundation Giving

A donor contributes an asset to a CLT for a specified period (either a term of years or someone’s life), and receives tax benefits.

Distributions are made annually from the CLT to the family’s Donor Advised Fund.

The donor and then children recommend distributions periodically to charities from the family Donor Advised Fund.

After specified period, the principal goes to your family (or other designated beneficiaries).

Benefits:

1) Continuing family involvement.

2) Provides a unique forum for families to work together.

3) Offers the opportunity for several generations to join in a common purpose.

4) May become the “link” that connects families whose branches are increasingly geographically dispersed.

Memorials and Tributes
Contributions can be made as a memorial or as a tribute to the living. The Leadership Legacy Life Foundation sends a note to the honoree or the next of kin (in the case of a memorial contribution) that acknowledges the source of the contribution. The Foundation maintains a Book of Memories that provides a permanent record of all memorial contributions received.

PLANNED GIVING

Donors can ensure their charitable intent with a bequest to the Leadership Legacy Life Foundation through their will or trust.

Bequests
Bequests are the most frequent type of planned gift made to charity. The Donor’s estate receives a charitable deduction for the full amount given, so heirs pay no estate tax on the gift.

Donors may direct bequest to the Leadership Legacy Life Foundation by funding a Donor Advised Fund in advance ($5,000 minimum contribution), or by completing a Leadership Legacy Life Foundation Donor Advised Fund application in advance and inserting appropriate language in your will.

DONATE NOW

You can make a donation in the following ways:

  • Give to the Leadership Legacy Life Fund (take to form)
  • Make a memorial or tribute to the Leadership Legacy Life fund.  (take to a form)
  • Donate Stock to the Leadership Legacy Life Fund.  (take to PDF instructions)

All gifts are recognized in the Annual Report. Donors to the Leadership Legacy Life Foundation receive the L3 newsletter.

Thank you for giving!