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WAYS OF GIVING • OUTRIGHT GIFTS: An outright gift is the simplest way for a donor to make a charitable gift. BEQUESTS: Another simple way a donor can make a charitable gift is through their will. Through a bequest, a donor can name a charity as the residual beneficiary of their estate or as the recipient of a specified gift (either dollar amount or percentage). There are also "contingency" clauses that would permit everyone to put charity in their will. Bequests are deductible for federal estate tax purposes. LIFE INCOME GIFTS: A donor makes an irrevocable transfer of assets to the Foundation and in return receives a lifetime payment for a specified beneficiary — the donor, spouse, children or friends. Upon the death of the beneficiary, the assets are used by the Foundation for charitable purposes defined by the donor. The donor receives a current income tax charitable deduction for the remainder value of the charitable gift. These gifts, known as life income gifts, include the following: CHARITABLE REMAINDER TRUST — Cash or property is transferred to a trust, which pays the beneficiary either a variable income equal to a fixed percentage of the trust's fair market value as determined each year or a fixed annual amount. Upon the death of the beneficiary, the Foundation receives the remaining assets assuring that they will be used for the purposes specified by the donor. POOLED INCOME FUNDS - The pooled income funds combine gifts from many donors to create common investment portfolios. Net income is paid in proportionate shares to donors and their • beneficiaries. At the end of the life income interests created by the donor, the shares of the pooled income funds contributed by the donor are used by the Foundation as the donor directed. CHARITABLE GIFT ANNUITY — Cash or other property is contributed to the Foundation in exchange for a commitment to pay the donor, or other beneficiaries, a specified annual amount for the remainder of the beneficiary's life. A gift annuity can be directed to support purposes or organizations of the donor's choosing. OTHER GIFTS: CHARITABLE LEAD TRUST—The charitable lead trust provides income to the Foundation for a specific period of time and then distributes the assets to the donor or others designated by the donor. There can be a significant estate tax savings with this type of gift. PRIVATE FOUNDATION—Private foundations can make a direct gift or transfer all or part of their assets to the Foundation. The identity and purpose of the original donor are preserved, and the donor or others designated by the donor can participate as fund advisors. Because the Foundation is a public charity,there are no taxes to pay and the Foundation is responsible for all accounting and reporting requirements. Also,donors have the assurance that a permanent nonprofit organization is in place to administer the fund in the future. RETAINED LIFE ESTATE - A donor can contribute a private residence, vacation home or farm while retaining the right to live in and use the property. The donor can receive a generous income tax deduction for such a gift,as well as other advantages.