Retained Income Benefits

A retained income gift enables you to receive income while making a lasting gift to The Franklin Foundation. We offer several gift options to help you meet your planning goals and provide income for yourself and/or others you designate.

After your lifetime and/or the lifetime(s) of another designated beneficiary (or a fixed term of years), the remaining balance is used to support The Franklin Foundation's efforts. As always, you can choose specific funds or initiatives to support. By giving a retained income gift, you will:

• Receive regular income payments for life (or term of years).
• Get an income tax charitable deduction in the year you make the gift.
• Reduce or possibly eliminate federal estate taxes.
• Avoid or reduce your capital gains taxes if you fund your gift with an appreciated asset (such as securities or real estate).
• Become a member of the Franklin Legacy Circle.
• Your gift will help ensure that future generations will have access to opportunities in the sciences, technologies, and advanced mathematics. Access that will improve America's innovation base, and ensure our continued ability to remain globally competitive.

 

To create a retained income gift, you make an irrevocable gift of cash or securities to The Franklin Foundation through the Franklin Income Fund or a Charitable Remainder Trust.

 

The Franklin Income Fund

The Franklin Income Fund is an opportunity to make a gift to The Franklin Foundation, while you or a beneficiary retains income for life from the gift. The fund is administered by The Franklin Foundation and will be managed by PNC Bank, based in Pittsburgh, Pennsylvania. Donors make an irrevocable gift of cash or securities to the fund and are assigned units in it. All gifts are pooled together in high-quality investments that produce income.

 

Details about the fund:

• The income yield will fluctuate with market conditions.
• Donors (or person designated by donor) will receive quarterly income payments for life from the fund, according to the number of units held.
• After the lifetime payment to you and/or another designated beneficiary, the units will be withdrawn from the fund and given to The Franklin Foundation.
• Minimum initial gift is $10,000. Additions of $1,000 or more may be made at any time.
• Distributions to beneficiaries are taxed as ordinary income.

 

Charitable Remainder Trust

How a charitable remainder trust works:

• You create a charitable remainder trust and transfer assets to it.
• The trustee invests the assets in order to pay the beneficiary an annual income. The income may continue for one or more lifetimes, or for a term of 20 or fewer years.
• When the trust term ends, whatever remains in the CRT passes to one or more qualified nonprofit organizations.

 

Assets that can be used to fund a charitable remainder trust:

• Cash
• Appreciated securities sold on a major stock exchange
• Real estate (as long as it isn't mortgaged)
• Stock in a closely held corporation

 

There are two types of charitable remainder trusts:

1. Unitrust
   By establishing a charitable remainder unitrust, you (and/or others you designate) receive income for life or a term of years while ultimately helping to preserve The Franklin Foundation's future activities. The trust's annual payments are based on a fixed percentage of the trust's value. Each year the trust's assets are revalued and your income payment will change and may grow over time. A unitrust can provide an excellent hedge against inflation if the trust principal increases. Additional gifts can be made to a charitable remainder unitrust.
   
   
2. Annuity Trust
   An annuity trust allows you to give to the foundation while still receiving an income. It will pay you a fixed dollar amount every year for the rest of your life, with no investment worries or unanticipated surprises caused by unstable stock or bond markets. By establishing a charitable remainder annuity trust you (and/or others you designate) receive fixed income either for a term of years or for life, while ultimately helping to The Franklin Foundation achieve its long-term goals. Annuity trusts provide significant tax benefits along with paying regular income. Additional gifts cannot be made to a charitable remainder annuity trust. This type of trust works best for individuals who would like a fixed income for a term of years.

At the request of the donor, The Franklin Foundation's designated trustee may serve as trustee for a charitable remainder annuity trust or a charitable remainder unitrust in an amount of $100,000 or more when The Franklin Foundation is the only charitable beneficiary. At the death of the beneficiary(ies), the principal is paid to The Franklin Foundation for its restricted or unrestricted use.

 

For assistance in setting up a retained benefits contribution with The Franklin Foundation, please contact the Major Gifts team for the foundation at majorgifts@franklinfound.org.