by Greg Epps
If you are reading this, you, no doubt, have a place in your heart for the work of the Epilepsy Foundation. Many of you graciously give of your time and resources to support the work of the foundation. If you are like me you just wish that you could do more financially to further the work of the foundation. Just surviving in these times is often a major task!
Current contributions help to support the day to day operations and needs of the foundation. Many organizations set up an endowment to fund daily operations. What does endowment fund mean? "An investment fund set up by an institution in which regular withdrawals from the investments are used for ongoing operations or other specified purposes." Endowment funds are often used by nonprofits, universities, hospitals and churches. They are funded by donations, which are tax deductible for donors. Source: investopedia.com. As an example, a $1 million endowment that paide out 5% each year would contribute $50,000 per year toward the support of the foundation. Wouldn't it be great to have an endowment that totally supported the day to day operation of the foundation? Then, all current contributions could go to programs and outreach. Building an endowment fund takes time and commitment.
What many people do not realize is that there are strategies to enable you to make a lasting impact on the work of the foundation. There are many sophisticated strategies that you can employ in your lifetime and legacy gifting programs. One such strategy is the use of life insurance to support an organization. Without going into all the gory details, if properly structured, an individual can purchase a life insurance policy and make premium tax-deductible payments. You may also transfer an existing policy. At your death the proceeds go to the organization. This can really leverage the impact of your contributions. There are many other strategies that you might employ to leave a substantial legacy without compromising your current lifestyle or needs.
Setting up the giving is not the hard part. Don’t think “oh this is too complicated” or “too much trouble”. It is not! The hard part is making the commitment to start such a planned giving program. I would encourage each of you to consider the establishment of a planned giving program. Talk to your friends and family about including the Epilepsy Foundation in their planned giving. Many times people want to get involved but they don’t know how. Let’s get the message out.
This information does not constitute legal or tax advice. If you are interested in these strategies, the foundation can help direct you. Call Executive Director Mickey McCamish at (423) 634-1771 today to talk about how you can plan a gift to the Epilepsy Foundation of Southeast Tennessee and help hundreds of families locally who are affected by epilepsy. The success and continuation of our foundation’s work depends on us all!
Greg Epps is a Certified Financial Planner and is on the board of Directors for the Epilepsy Foundation Southeast Tennessee
