Planned Giving by liaoqinmei


									Planned Giving
How your gift today can
help tomorrow’s leaders

The MPI Foundation funds
research, thought-leadership and
education to advance the global
meetings and events industry.

                                                          Contributions from MPI members,
                                                          chapters, and organizations are
                                                          invested in high-impact programs
                                                          to support a rich, global meetings
                                                          and events industry and provide
                                                          investment into the future of the
                                                          meetings and events profession.

                                                          Founded in 1984, the focus of
                                                          the Meeting Professionals
                                                          International Foundation (MPI
                                                          Foundation) is to support the
                                                          vision and mission of Meeting
                                                          Professionals International (MPI),
                                                          the meetings and events indus-
                                                          try’s largest and most vibrant
                                                global community comprised of more than
                                                24,000 members representing 70 chapters
                                                worldwide. MPI provides members op-
                                                portunities for success through meaningful
                                   connections to innovative knowledge, rich relationships
                                   and abundant marketplaces.

                                   The MPI Foundation has raised more than $13 million
                                   and re-invested those funds back into relevant program-
                                   ming, projects and services, which benefit the global
                                   meetings and events industry. Events such as Rendez-
                                   vous and Blackjack are very important fundraising tools
                                   for the MPI Foundation and provide thousands of dollars
                                   annually. Last year, the MPI Foundation invested nearly
                                   $1.7 million at the industry, chapter and individual levels
                                   through grants, scholarships and major research proj-

What Is Planned Giving?                                               Why do I need a will?
Planned giving encompasses a variety of philanthropic strate-         Creating a detailed will is critical to ensuring that your estate will
gies that help you provide for charity through your estate plan       continue to yield benefits to your family and to the organizations
or by gifts made today while also advancing your own financial        that are important to you and in line with your wishes.
and personal objectives.
                                                                      How do I name MPI Foundation in my will
How do I benefit from a planned gift?                                 and/or living trust?
Planned gifts can yield benefits such as:
                                                                      To name the MPI Foundation in your will, you can contact the
 • Ability to make a significant gift to the MPI Foundation in line
                                                                      MPI Foundation Office of the Executive Vice President for
   with your objectives
                                                                      further details and recommended language.
 • Income for life
 • Expert management and investment diversification from
   Harvard Management Company                                         How do I name MPI Foundation as a
 • Savings on income and capital gains taxes                          beneficiary in my retirement plan?
 • Savings on gift and estate taxes                                   Leaving your retirement plan or IRA (or a portion of it) to the
                                                                      MPI Foundation is a tax-wise gift. Naming MPI Foundation as
What can I give?                                                      the recipient of your retirement plan after your lifetime (or at the
Donors frequently think their only option is to make an outright      death of the survivor of you and your spouse) avoids all estate
gift of cash to their charity or education foundation of choice.      and income taxes on the plan assets.
While this is a positive way to make your charitable gifts, there
are a number of other ways for you to donate to charity. Plan-        To make this gift, you can simply notify your plan’s administrator
ning your gifts is a way for you to take advantage of the tax,        of your wish to change the beneficiary. A “change of benefi-
financial, and estate planning benefits of philanthropy.              ciary” form will be required. In some states if you designate that
                                                                      your qualified retirement plan come directly to MPI Foundation
A planned gift can be made with almost anything: cash, stocks,        at your death, your spouse may need to sign consent to the
bonds, mutual funds, real estate -- even property such as             designation.
artwork and royalties. Please contact the MPI Foundation office
if you have questions about a possible donation.                      If your spouse and children are currently the beneficiaries of
                                                                      your retirement plan, you can continue to keep them as benefi-
How do my heirs benefit?                                              ciaries, and also include MPI Foundation as the beneficiary of
Your heirs can benefit tremendously from a planned gift. For          a portion of the plan. Upon your death, the plan administrator
instance, you can design a gift to pay income for life to you         can “cash out” MPI Foundation’s share of the account without
and your spouse. Also, a planned gift can reduce your estate          affecting your family’s portion of the account, so that MPI Foun-
tax liability. The assets that you transfer to the MPI Foundation     dation and your heirs benefit from your retirement savings.
remain outside of your taxable estate.

What about my children and grandchildren?
You can tailor your planned gift options to benefit your children
                                                                      PLANNED GIVING VEHICLES
                                                                      The MPI Foundation Planned Giving Program offers
and grandchildren. In addition, by involving your family in your
gift, you can teach your children and grandchildren about your        numerous vehicles to leave that legacy:
philanthropic values, and transfer those values to future gen-
erations.                                                             Bequests
                                                                      The most common planned gift is a bequest: the leaving of a
How does MPI Foundation benefit from a                                charitable gift by a donor through a will. A donor may give a
                                                                      specific dollar amount, a specific piece of property
planned gift?                                                         or other asset, a fixed percentage of the assets passing
Your gift can make a significant impact on the MPI Foundation
                                                                      through the estate, or a donation of the residue of the estate
now and/or in the future, and you can choose to direct your
                                                                      after making provisions for family and other close individuals.
gift to aid a specific project. One of our planned giving experts
can assist you with the designation and legal language for the
project(s) that you would like to support.
                                                                      Gifts of Appreciated Property
                                                                      Real estate holding, stocks, bonds, and other similar assets
What does MPI Foundation Management                                   grow in value. When the owner sells those assets, generally a
                                                                      tax is due on any capital gain that such a sale provides. If that
Team do?                                                              asset has been held for a year or more, an individual who do-
MPI Foundation Office manages the MPI Foundation endow-               nates that asset rather than selling it may take a tax deduction
ment and the life income plans and trusts that are donated to         based on the current value of the asset and also avoid paying a
the MPI Foundation. Performance figures and other information         capital gains tax on the asset growth.
are available from the MPI Foundation management team.

Life Insurance                                                             Charitable Lead Trust
Perhaps you have a fully paid up life insurance policy, the                A donor may create a trust providing income for a charitable
purpose of which is no longer necessary or applicable to your              purpose for a given time. Upon completion of that time period
current circumstances. One may donate this policy by naming                the trust can then be transferred to heirs or other individuals
the MPI Foundation as the beneficiary. Such a gift provides the            with little or even no estate or other related taxes due.
donor with several income tax benefits as well as furthering the
mission of the MPI Foundation.                                             Revocable Living Trust
                                                                           The use of a Revocable Living Trust enables a donor to make a
                                                                           gift of real estate, unities, cash, or other assets, knowing that all
Charitable Remainder Trust                                                 or part of the gift may be returned upon request.
Charitable Remainder Trusts allow a donor to contribute assets,
while providing the donor and/or other beneficiaries with pay-
ments for a specified length of time, even a lifetime. Once that
time period ends, the assets transfer to the MPI Foundation.
Two types of Charitable Remainder Trusts exist. A Charitable
Remainder Annuity Trust pays a fixed rate of return to the ben-
eficiary of the trust. Once established, additional contributions
cannot be made. A Charitable Remainder Uni-Trust pays a very
low rate of return; the rate of that return is recalculated annually.
Again, once that period of time has passed, the assets of that
trust pass to the MPI Foundation.

Goals and Benefits

 Your Goals                                       Your Strategy                                   Your Benefits

 Maximize your deduction; minimize the gift       Use cash to make your gift to MPI Founda-       Claim your deduction against a larger
 details                                          tion                                            portion of your adjusted gross income
                                                                                                  and make an immediate impact on MPI
 Afford a larger gift to MPI Foundation – and     Give appreciated stock or bonds held over       Buy low and give high – make a gift that
 avoid capital gains liability                    one year                                        costs you less than the benefit it delivers
                                                                                                  to MPI Foundation, while avoiding capital
                                                                                                  gains tax
 Make a gift for MPI Foundation’s future that     Put a bequest in your will (cash, specific      Today – a gift that costs you and your
 doesn’t affect your cash flow or portfolio       property, or a share of the estate residue)     family nothing. Tomorrow – an estate tax
 now                                                                                              deduction
 Retain income benefits from the assets           Make a contribution to MPI Foundation’s         Receive income for your lifetime; receive
 you give to MPI Foundation – thus afford a       pooled income fund. Create a charitable         a charitable deduction; diversify your
 larger gift                                      gift annuity or a charitable remainder annu-    holdings
                                                  ity trust or unitrust
 Reduce high tax liability now; gain addi-        Establish a deferred gift annuity               A larger deduction and a higher income
 tional income later                                                                              rate than other life-income gifts offer
 Tap one of the most valuable assets in your      Use real estate to make your gift to the MPI    Avoid capital gains tax, receive an
 portfolio to make a gift to the MPI Founda-      Foundation                                      income tax deduction – and have the
 tion                                                                                             option of a gift that does not affect your
 Reduce gift and estate taxes and control         Contribute the partnership interest or          Avoid capital gain liability, receive an
 the timing of passing assets to your chil-       closely-held stock to MPI Foundation            income tax deduction, and utilize a gift
 dren and grandchildren                                                                           asset you may have overlooked
 Locate an overlooked asset that you can          Name MPI Foundation as beneficiary of           Eliminate income tax on retirement plan
 easily give to MPI Foundation                    your retirement plan; leave other assets to     assets; free up other property to pass to
                                                  family                                          your heirs

GLOSSARY OF TERMS                                                      Life Income Trust
                                                                       A plan whereby gift assets are placed in trust for the lifetime
Annuity                                                                benefit of an income beneficiary, with the remainder going to
A contract, legal obligation, to pay specified amounts over a          another beneficiary.
specified period of time to a specified individual (s) in exchange
for cash, securities, or other tangible property                       Personal Property
                                                                       Tangible – jewelry, artwork, antiques, clothing.
Beneficiary                                                            Intangible – stocks, bonds, notes, patents.
One named in a Will, Trust or other legal document to receive
an interest in an estate.                                              Probate
                                                                       The process of providing a Will’s validity; used loosely to mean
Bequest                                                                the administration of an estate.
A direction in a Will to pay over or distribute personal property.
Also called a Legacy.                                                  Real Property
                                                                       Includes land, buildings, and items attached in a relatively per-
Estate Tax                                                             manent manner, such as escalators and light fixtures.
A tax on the net value of property subject to tax (“taxable
estate”) plus the sum of “adjusted taxable gifts” at the time of a     Remainder
person’s death. It is based essentially on the right to transfer or    The amount remaining in a trust after income payments have
transmit.                                                              ended. A remainder is vested when payable to a designated
                                                                       beneficiary, or to a class of beneficiaries whether or not living at
Gift Tax                                                               the termination of the trust. It is contingent when dependent on
A tax on the donor of inter-vivos gifts (those made during life),      some occurrence or event to take place in the future.
based on the right to transfer or transmit, and payable primarily
by the donor.                                                          Revocable Trust
                                                                       A trust that can be changed or dissolved at any time by the
Grantor                                                                grantor.
The creator of a trust or other legal instrument.
                                                                       Testamentary Trust
Gross Estate                                                           A trust established through the Will of a grantor.
Everything in which the deceased person owned an interest in
at the time of death. It embraces such items as life insurance,        Testate
or partial interests in joint property, and transfers intended to      Dying with a valid Will.
take effect at or after death, or when the power to change the
enjoyment of the property has been retained.                           Trust
                                                                       An arrangement whereby property is held by an individual or
Insurance Trust                                                        institution for the benefit of others.
A trust consists of life insurance policies or proceeds.
Funded Insurance Trust – A trust to which other property is            Party legally responsible for carrying out the terms and perfor-
transferred to be used, with the income, for the payment of            mance of a trust.
Unfunded Insurance Trust – A trust which contains no fund              A legal instrument disposing of a person’s property at the time
for payment of premiums.                                               of his or her death.

Irrevocable Trust
A trust that cannot be changed or dissolved.
                                                                       Note: This material is for reference only and is not intended
Legacy                                                                 nor should it be anyway a substitute for professional tax, finan-
A disposition of personal property by a Will                           cial and legal advice. By providing this information, the MPI
                                                                       Foundation does not intend to provide legal or tax advice or
Life Estate                                                            opinion and should not be relied upon as such.
Gift of property in which the donor retains the right to use the
property for life.                                                     For additional information on any of these methods of planned
                                                                       giving or to find out how you can make a contribution, please
Life Income Agreement                                                  contact: MPI Foundation at, or call 972-
A gift of a principal sum, property, or securities with a stipulated   702-3004
life income paid to the donor or another person for his or her

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