Rotary District 7910 How to Donate to The Rotary Foundation? Without taking it out of your pocket. Even let the IRS help pay for it !
Would You ? Donate $ to a charity you support if … • It did not come out of your pocket? • Did not effect your life style ? • Was not a significant effect on your family ? • Knew its effect would last forever ? or • Came from new cash flow savings ? (tax or expense) • Even process of considering donating resulted in… • Re-enforcedyour on the right track • Point tosignificant wealth improvements < NEW $ • Correct "unintended consequences“ • Improved control, protection and value to your family?
Overview • Rotary Foundation • Why donate? • What does it mean to your club? • How to donate • Out of pocket • Not out of pocket • How to get started • Why act now?
Rotary’s Impact To secure tomorrow TRF Permanent Fund uses only its yearly earnings to support Rotary Foundation programs that advance our mission.
Polio Rotary’s Impact • PolioPlus • PolioPlus Partners • “Eradication is attainable.”
Educational Programs Rotary’s Impact • Group Study Exchange • Ambassadorial Scholarship • Rotary Centers for • International Studies
Humanitarian Rotary’s Impact • (3-H) Grants • Health, Hunger and • Humanity • Volunteer Service Grants • Amplify YOUR club projects ... • Matching Grants • District Simplified Grants
How to donate Out of pocket! Programs you may know.. • $1,000 cash donation and you become a Paul Harris member. For support today • $100 per year via Every Rotarian Every Year (EREY) Program you become a Rotary Foundation Sustaining Member
How to donate Not out of pocket! “Planned Giving”Working with Rotary and your trusted advisors to donate now and in the future. To secure tomorrow • Without effect on your cash flow or life style. • Increase benefits to your heirs.
How to donate Not out of pocket ! • Testamentary Gifts .. least effort and cost. • Living Gifts .. more effort, greater donation and family benefits.
Benefactor ($1,000 or more) You Choose: Insurance RI as Co-Beneficiary Rotary Form (1-page) Will Codicil Bequest Society ($10,000 or more) Benefactor - Bequest Testamentary + = (or)
Benefactor þ You Direct Funds q Trustees’ discretion (World Fund) q To SHARE (District Designated Fund and World Fund) Bequest Society þ You Direct Funds q Trustees’ discretion (World Fund) q To SHARE (District Designated Fund and World Fund) q Children’s Fund (World Fund) q RI Centers International Studies Benefactor - Bequest Form
Testamentary Gift Rotarians IMPACT: Rotary International as of Feb’09 • 79,000 Benefactorsat $1k min. $79 million • 6,000Bequest Societyat $10k min. $60 million 85,0007% of All Rotarians Actual Impact = $478 million Just think what we could do if 100% of Rotarians did this simple step! min. $139 million Bequest Society Level 1 $ 10,000 > 1- Diamond Level 2 $ 25,000 > 2- Diamond Level 3 $ 50,000 > 3- Diamond Level 4 $ 100,000 > 4- Diamond Level 5 $ 500,000 > 5- Diamond Level 6 $1,000,000+ 6- Diamond The Rotary Foundation Permanent Fund – Leaving a Legacy … To Secure Tomorrow
Testamentary Gift Rotarians IMPACT: District 7910 potential PDG Carl: “we lost 30 Rotarians in our district last year” If they had been Benefactor or Bequest members that would have been … $30k to $300k to Rotary Foundationfrom our District in ONE YEAR! Equates to $180 for each of our 1666 District Rotarians. The Rotary Foundation Permanent Fund – Leaving a Legacy … To Secure Tomorrow
Testamentary Gift Rotarians IMPACT: at a Club RC Westboroughis also a 501(c)3 A member doing family wealth planning used a CRT (Charitable Remainder Trust) actually left $165,000 to his club!
Benefactor-Bequest Discussion "if so simple why only 7% of Rotarians?"Is it…. ► Did not know about it?► Rotarian commitment?► Looks to complicated? ► Family impact?► No Insurance, No Will? ► Other? Your suggestions? ► DFRT Club coordinator One on One? ► Email more information? ► Meetings or Webinars?► Club Bulletin (Foundation Recognition) ► Other?
$355 million 2008-2009 Other way to donate Living Gifts “Family Wealth Planning” tools can create to make charitable donations during your lifetime. • New cash flow expense savings • New tax savings (Income & Estate) If you save $100 would you donate $10 to Rotary?
Living Gift – Club Example RC Westborough Member redirects:$ Money from IRS to RotaryOne member doing family wealth planning* contributed enough to make it possible for all remaining club members to be “Paul Harris”This made RC Westborough the 2nd club in the District to become 100% Paul Harris ! * 70.5 the IRS requires that you draw money out a minimum amount each year (aka: Required Minimum Distribution/RMD) that normally becomes ordinary taxable income. He took advantage of the tax law and donated a significant portion of the RMD to charity, including Rotary Foundation. These donations counted toward the IRS RMD but it was...TAX FREE!
Living Gift Examples Four “Win” Test Did you know that with one gift you can … • Make a major gift to support Rotary Foundation. • Receive immediate tax benefits. • Reduce capital gains tax on gifts of appreciated assets and investments. • Receive lifetime income for you or others. …want to know how? Just ask us.
Wealth Tools… Provide Charitable $ • New Family Wealth Plan Strategies can: • Reduce Income, Gift & Estate Taxes • Increase $ to Heirs • Create $ Funding for Charitable gifts How? Work with your Trusted Advisor Team & Rotary
Financial Industry Problem / Solved Problem: • Transparency • Trust Solution:(common sense) • Use an Advisor team that works together. • Consider augmenting the skill sets of your team with a fellow Rotarian
Teamwork is the key Financial “trusted advisors” need coordinated interactions and transparency to succeed. Your Trusted Advisor Team Protection Savings Growth Your Trusted Advisor Team & Rotary Like your business • Set your family goals • Select a skilled team • Develop your plan • Accountant • Attorney Tax/Estate • P&C Insurance Agent • Life Insurance Agent • Financial Planner • Banker • Benefits Advisor • Investment Advisor • Realtor & Mtg Advisor • Exit Plan Specialist • Estate Strategist Improved Plan
District Financial Resource Team Growing everyday...
District Financial Resource Team • Unique Opportunity ! • 2010 is the best time to update a family wealth • plan, while assets values & taxes are still low! • Independent Plan review can: • Re-enforcebeing on the right track • Point tosignificant value improvements • Correct "unintended consequences“ • Updated plan can provide: • RightTools selected to better achieve your goals. • Right Sequence to be more efficient. • Right Implementation timing for optimal effect. • Financial modeling to see impact before decisions.
How to get started… Talk to your family first! Strategic plan with your advisors Donating to RI can be a reason to start the discussion. Contact Rotary District 7910 Financial Resource Team to help augment your current advisors. 2010 Economy is a unique opportunity Setup or Update your Plan!
You are a part of the Rotary Family. Thank you for your support Plan now to be a part of it forever.