In the United States, your estate is entitled to an unlimited estate tax charitable deduction for bequests to qualified charitable organizations. By naming American Friends of Leket Israel (AFOLI) in your will, you keep absolute control of your assets during your lifetime, yet still have a lasting impact by  supporting Israelis in need long into the future. We would be pleased to provide you or your attorney with sample language to help you achieve your goals. 

Through charitable gift annuities, you can convert cash or appreciated securities into guaranteed income for life, gaining financial security while making a significant gift to AFOLI. You may receive income immediately upon setting up a charitable gift annuity or defer the income, perhaps until your anticipated retirement age,  significantly raising the annuity payments and tax deduction. 

Because special tax considerations apply to retirement plan benefits, they are a good choice for charitable bequests. Simply name AFOLI as the beneficiary of your IRA, 401K or other qualified plan. After your lifetime, the residue of your plan passes to AFOLI tax free. 

If you are 70½ years old or older, you can take advantage of the IRA Charitable Rollover and provide a gift of up to $100,000 from your IRA directly to AFOLI without having to pay income taxes. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. If you have not yet taken your required minimum distribution for the year, your IRA Charitable Rollover gift can satisfy all or part of that requirement.

By irrevocably assigning an insurance policy to AFOLI, the organization becomes owner and beneficiary, while you receive an immediate charitable tax deduction for the policy. Or, by purchasing a new policy specifically for AFOLI, you receive an annual charitable income tax deduction for payment of the policy premiums. 

Another option is to make AFOLI the primary beneficiary of a policy. You retain ownership of the policy and have access to its cash value, but receive no charitable tax deduction.

In a charitable remainder trust, you transfer assets to a trustee who pays income for life. You will receive an immediate charitable income tax deduction based on your age, the amount of the income interest, and the federal midterm rate. Upon death, the remainder of the trust benefits AFOLI. 

A charitable lead trust, which pays income to AFOLI for a term of years or your lifetime, is an excellent way to reduce estate and gift taxes while making a significant gift to benefit AFOLI. Plus, you still retain the principal in trust for your heirs. 

By transferring the ownership of a personal residence or other property to AFOLI, you still retain the right to use the property during your lifetime, and you will receive an immediate income tax deduction based on the property’s value and your age.

American Friends of Leket Israel is launching an endowment fund. By directing your gift to the endowment fund, you are supporting food rescue and vulnerable Israelis in perpetuity. Please contact our planned giving staff for more information.