Frequently Asked Questions - Legacy Fund
What is the purpose of the Legacy Fund?
The Legacy Fund is an endowment fund that was created to develop and provide a permanent source of supplemental funding for humanitarian and charitable programs supported by the Rotary Club of Fort Collins.
Previously, club charitable activities are funded from two sources, first from direct giving by club members through an annual “ask” and second, from club fundraisers.
The Legacy Fund was designed to provide a third permanent source of funds to enhance our charitable activities. The Legacy Fund will stand alone, be invested professionally and grow into the future existing in perpetuity, providing an annual third source of funds for club charitable activities.
I already give to the club’s charitable fund annually, why give again?
The community appreciates your annual giving and your giving supports a wide range of projects, grants and scholarships. The Legacy Fund will provides for a long term endowment fund to continue these charitable activities in perpetuity, allowing you to have a positive effect on the community for years into the future.
I have already included The Rotary Foundation’s Endowment Fund (formerly the Permanent Fund) in my estate plans. Is this the same thing?
No, The Rotary Foundation Endowment Fund is a global fund that supports projects around the world. The Rotary Club of Fort Collins Legacy Fund is a local endowment fund which was created to support charitable projects, charitable giving and scholarships supported specifically by the Rotary Club of Fort Collins.
While we encourage all Rotarians to consider the Rotary Foundation Endowment Fund in their estate planning, we would also like you to consider the RCFC Legacy Fund.
What are some of the benefits to giving to the Legacy Fund with my estate plan?
- Your assets remain in your control during your lifetime
- You can modify your bequest if your life circumstances change.
- It is private; the amount of your bequest will only be released if you desire or upon your death.
Is my gift tax deductible?
Yes, the Legacy Fund is operated by the Community Foundation of Northern Colorado which is incorporated in the State of Colorado, and is a qualified, tax-exempt organization under Internal Revenue Code § 501(c)(3).
Bequests are also fully deductible for federal tax purposes. They may be deductible for state inheritance taxes also.
Do I have to specify a specific dollar amount in my estate plan?
No, a request can be specific dollar amount (“I bequeath the sum of Ten Thousand [$10,000] Dollars”) or it can be a percentage amount ("I bequeath Ten [10%] Percent of the residue of my estate")
How do I name the Legacy Fund in my estate plan?
In your estate plan, please include: Rotary Club of Fort Collins’ Legacy Fund at the Community Foundation of Northern Colorado EIN (84-0699243) with principal business address of 4745 Wheaton Drive, Fort Collins, CO 80525
Does the fund accept gifts of stocks and bonds?
Gifts of appreciated securities (bonds and stock, including stock in closely held companies) may be donated. Such gifts often provide important tax advantages. Their full fair market value is deductible as a charitable contribution up to 30 percent of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years. The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as gifts of publicly traded stock.*
Can I designate the Legacy Fund as a beneficiary to my life insurance?
Yes, Life insurance policies also can be used as charitable gifts. If you name the Legacy Fund at the Community Foundation of Northern Colorado as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All subsequent premium payments made by you will be deductible as a charitable contribution. The minimum dollar amount of the life insurance policies to be considered for acceptance by the Community Foundation is $50,000. *
Can I designate the Legacy Fund as a beneficiary retirement account?
Yes, the Legacy Fund can be designated as the beneficiary of your retirement plan (IRA/401k etc.) as the sole beneficiary or a percentage beneficiary. *
Can my estate gift be contingent on other factors or conditions?
Yes, the gift could only take effect if certain conditions are met. For example, it you may state, “In the event my spouse does not survive me, I give to the RCFC Legacy Fund XYZ amount”
I already have a completed will / estate plan. Is it expensive to make a change and include the Legacy Fund?
You can amend a will or trust to make a gift without rewriting the entire document. Your attorney can prepare a simple document, called a codicil, which adds a new bequest to the Legacy Fund while reaffirming the other terms of your will. Similarly, an attorney can prepare an amendment to a revocable trust to add the Legacy Fund as a beneficiary.
Are there other types of gifts I can give?
Yes, the fund can accept real estate and tangible personal property. These gifts must be approved first by the Community Foundation of Northern Colorado.
Can I make a donation now?
Yes, in addition to including the Legacy Fund in your estate plans, we welcome all types of gifts.
Mail: Simply make your check payable to the Community Foundation of Northern Colorado and write, in the memo line “Rotary Club of Fort Collins’ Legacy Fund”. Send the check to the following address:
Community Foundation of Northern Colorado
4745 Wheaton Drive, Suite 100
Fort Collins, CO 80525
4745 Wheaton Drive, Suite 100
Fort Collins, CO 80525
In Person: Simply make your check payable to the Community Foundation of Northern Colorado and write, in the memo line “Rotary Club of Fort Collins’ Legacy Fund” and give the check to the treasurer at any club meeting or drop in the payment box.
Other Gifts: For more complicated gifts such as appreciate stocks, please contact legacy@rotarycluboffortcollins.org
How is the fund managed? How can I be sure it is safe in the future?
The Legacy fund is held at The Community Foundation of Northern Colorado. The Community Foundation of Northern Colorado meets National Standards for operational quality, donor service and accountability in the community foundation sector.
To receive confirmation of National Standards compliance, they submitted their organizational and financial policies and procedures to a rigorous peer review. To meet all 43 standards, they were required to document our policies in donor services, investment management, grant making and administration.
The National Standards Seal indicates official confirmation from the Council on Foundations that the Community Foundation of Northern Colorado has met the most rigorous standards in philanthropy.
To receive confirmation of National Standards compliance, they submitted their organizational and financial policies and procedures to a rigorous peer review. To meet all 43 standards, they were required to document our policies in donor services, investment management, grant making and administration.
The National Standards Seal indicates official confirmation from the Council on Foundations that the Community Foundation of Northern Colorado has met the most rigorous standards in philanthropy.
Why are the Legacy Funds held in the Community Foundation of Northern Colorado rather than the club's 501c3 account?
The Community Foundation of Northern Colorado offers professional investment services which will allow the fund to grow into the future. The Community Foundation of Northern Colorado is a nonprofit organization that manages and administers more than 350 charitable funds and more than $70 million in assets.
Who decides when the funds are spent? How is it decided?
The Legacy Fund was established with a set of guidelines to regulate its operations. Distributions from the fund will be recommended by the Legacy Fund Committee. Recommendations will be approved by the Board of Directions of the Rotary Club of Fort Collins Charities, INC, a 501(c)(3) organization.
Would the club like to know when I include the Legacy Fund in my estate plans?
Yes, we appreciate if you would let us know. We would like to formally recognize that you have included the Legacy Fund in your plans. (You always have the option to remain private of course)
Also, once we know you have included the Legacy Fund, we will no longer have to include you in our annual outreach for the Legacy Fund.
* Information provided is not intended to be tax or legal advice. Please consult a qualified financial advisor before making a gift. A complete copy of the Community Foundation of Northern Colorado Gift Acceptance Policies can be found here.
Learn more about why the Legacy Fund is needed.
Learn more about how you can support the Legacy Fund.
For additional information please e-mail Legacy@RotaryClubofFortCollins.org