If you have built a sizable estate and also are looking for ways to receive reliable payments, consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. At the end of the trust term, the balance in the trust goes to The Michael J. Fox Foundation.
These types of gifts may offer you tax benefits and the option for income. There are two ways to receive payments and each has its own benefits:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
Susan, 75, wants to make a gift to MJFF but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.
Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Susan $92,915 in her 32% tax bracket.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Contact The Michael J. Fox Foundation at 212-509-1524 or plannedgiving@michaeljfox.org to talk about supporting MJFF by setting up a charitable remainder trust.
Seek the advice of your financial or legal advisor.
If you include MJFF in your plans, please use our legal name and federal tax ID.
Legal name: The Michael J. Fox Foundation for Parkinson's Research Address: Grand Central Station PO Box 4777, New York, NY 10163 Federal tax ID number: 13-4141945
We strive to make progress in Parkinson's disease in the following key areas by evaluating risk, opportunities and challenges through a patient-focused lens, including:
Treatments that can slow, stop or reverse disease
Better treatments for currently unaddressed or under-addressed symptoms
Treatments to address or avoid the debilitating side effects of current PD drugs
Patients first
We strive to make progress in Parkinson's disease in the following key areas by evaluating risk, opportunities and challenges through a patient-focused lens, including:
Treatments that can slow, stop or reverse disease
Better treatments for currently unaddressed or under-addressed symptoms
Treatments to address or avoid the debilitating side effects of current PD drugs
Our model is different
Our Foundation is a trusted strategic leader and partner to researchers, patients, thought leaders and philanthropists. With an unbiased expert perspective and a global network of contacts, our wide-ranging view of the field lets us collaborate to solve complex problems that require different talents and target resources where they are needed most — to pay off for patients faster.
It is accepted practice among private disease research funders that the most important decisions — how to allocate donor-raised dollars — are made by external scientific advisors and boards. We bucked this model from day one in favor of building an in-house team of formally trained PhDs and business-trained project managers.
We’re on a mission to meet every person with Parkinson’s online or face to face. We're committed to connecting patients and families to the robust nationwide PD community. By participating in clinical trials, advocating for Parkinson's policy or engaging in our community and Team Fox events, they are helping us carry new therapies over the goal line.
Our model is different
Our Foundation is a trusted strategic leader and partner to researchers, patients, thought leaders and philanthropists. With an unbiased expert perspective and a global network of contacts, our wide-ranging view of the field lets us collaborate to solve complex problems that require different talents and target resources where they are needed most — to pay off for patients faster.
It is accepted practice among private disease research funders that the most important decisions — how to allocate donor-raised dollars — are made by external scientific advisors and boards. We bucked this model from day one in favor of building an in-house team of formally trained PhDs and business-trained project managers.
We’re on a mission to meet every person with Parkinson’s online or face to face. We're committed to connecting patients and families to the robust nationwide PD community. By participating in clinical trials, advocating for Parkinson's policy or engaging in our community and Team Fox events, they are helping us carry new therapies over the goal line.
A charitable bequest is one or two sentences in your will or living trust that leave to The Michael J. Fox Foundation a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
"I give to The Michael J. Fox Foundation, a nonprofit corporation currently located at Grand Central Station PO Box 4777, New York, NY 10163, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to MJFF or other charities. You cannot direct the gifts.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.
You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to MJFF as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to MJFF as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.
A charitable gift annuity involves a simple contract between you and MJFF where you agree to make a gift to MJFF and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.