Planned giving refers to arranging now for a gift to take place in the future, usually upon one's death. The emphasis is on planning ahead and is focused on the needs and objectives of the donor. This usually involves some estate and tax planning. It is advisable to discuss your objectives with an accountant or tax attorney who is familiar with current estate tax law applicable to your situation.

How can I plan my gift?

Under U.S. tax law there are many ways you con contribute to the growth of the Bapak Legacy Fund while still maintaining your financial security during your lifetime. Planned gifts may include:

• Bequests by will
• Life insurance proceeds
• Annuities
• Charitable trusts
• Cash
• Securities
• Retirement Plan Assets
• Closely Held Stock
• Real Estate
• Personal property

How These Gifts Can Be Given...

Helping BLF Through a Bequest in Your Will or Estate Plan
Preparing a will ensures that the assets you have built up over the years will be distributed according to your wishes. It is a thoughtful act of planning that will make life easier for your loved ones. By including a gift in your will or estate plan to Bapak Legacy Fund, you will feel a great sense of pride knowing you are continuing to help our Subud forfill Bapak's mission.

Many people may set aside a certain dollar amount in their will for Bapak Legacy Fund. Others may leave a percentage of the residue of their estate (what is left of your estate once all designated gifts have been made, and administrative expenses and taxes have been paid). Some people may donate something specific, like a car or their home. Others may leave a paid up life insurance policy, securities (for instance, stocks or mutual funds), a retirement account or other financial asset. Although rarely a motivating factor, the tax benefits derived from these gifts are often quite substantial.

If you are interested in making a bequest - large or small - to Bapak Legacy Fund in your will, the process is very straightforward. It is simply a matter of preparing a will and including one of the following phrases:

"I give to the Bapak Legacy Fund ____% of the residue of my estate (or the sum of $______) for purposes stated in its charter."

You can also help by making Bapak Legacy Fund the direct or named beneficiary of your Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), individual life insurance policy, or group life insurance policy. As death benefits are paid directly to BLF as a beneficiary under the retirement plan or policy, probate taxes can be avoided and the risk of creditor claims against the estate can be minimized.

If you have left a gift in your will or estate plan, please contact Leonard van Willenswaard at 011 31-10-4552278 or send an e-mail to umswikic@euronet.nl.

If you are interested in learning more about these types of gifts, you can contact Howard Smith, a Subud member and a Vice President, Investments and Estate Planning Consultant at Morgan Stanley, 888-861-0263. Your own accountant or attorney can also advise you.

• Helping BLF through a Gift of Life Insurance
  
  As your needs change, new opportunities may arise. For example, you may have purchased a life insurance policy to ensure that your family will manage financially in the event of your death. But once your children leave home, your financial commitments probably decrease, along with your need for life insurance. When planning your estate keep in mind that the gift of life insurance can afford you an excellent opportunity to make a generous contribution to the Bapak Legacy Fund for relatively little cost. A gift of life insurance can also offer immediate tax savings and ensure that your entire estate passes directly to your heirs and the Foundation.For example, $20/month could ensure that Subud will someday receive $250,000 on your behalf.
  

Options for making a gift of life insurance include:
The Donation of an Existing Policy: You can designate Bapak Legacy Fund as the owner and beneficiary of an existing policy – which you no longer need – and receive a charitable receipt for its cash surrender value. If further payments are required on the policy, you will receive a tax receipt for all payments made after the policy is assigned to the Fund.

The Donation of a New Policy: You can purchase a new life insurance policy and Bapak Legacy Fund as the owner and beneficiary. In doing so, you will receive income tax deductions for the full amount of all annual premiums paid.

Naming Bapak Legacy Fund as a Primary or Co-Beneficiary of a Policy: Any death benefits paid directly to the charity under the policy will entitle the donor’s estate to a donation receipt. As death benefits are paid directly to BLF, probate taxes can be avoided and the risk of creditor claims against the estate can be minimized.

To learn more about making a charitable gift of life insurance, please consult your insurance broker, tax or financial advisor.

Helping BLF through a Gift of Securities

If you have invested wisely and now own a portfolio consisting of highly appreciated stocks and mutual funds, selling these securities could subject you to significant capital gains tax (a tax on the amount the investment has increased in value). You can help Subud and reduce the amount of tax payable on this gain by as much as 50 percent by gifting the securities directly to Bapak Legacy Fund. You will still receive a tax receipt for the full market value of the securities and you will have the satisfaction of knowing you are contributing to Subud's future.

Several brokerages including Schwab and Fidelity now offer an easy way to set up a Charitable Gift Trust. One donates appreciated stock to the Gift Trust and takes the tax deduction in the year donated. One can then order the funds disbursed to charities of one's choice whenever. See www.schwabcharitable.com or www.fidelity.com.

Please speak with your financial advisor or accountant for the latest tax planning information and how it might effect your estate planning

• Pooled Income Fund. This simple life income arrangement has many of the same compelling benefits as more complex vehicles. When you make a gift to a pooled income fund, income from your gift will be paid to you (and/or a designated family member of friend) for life. When the last life income beneficiary dies, the funds pass to the Bapak Legacy Fund. If your gift to the pooled income fund is in the form of appreciated securities, you may avoid the payment of a capital gains tax on the appreciation. At the same time, the income you earn on the donated assets may be substantially enhanced. In addition, you may be entitled to a charitable contribution deduction for the value of the Fund's deferred interest.
• Life Income Gifts. Life income gifts involve an irrevocable transfer of assets to the Fund. In return, a specified beneficiary - the donor, a spouse, children or a friend - receives a lifetime payment. Upon the death of the beneficiary, the assets pass to the Fund. The donor receives a current income tax charitable deduction for the remainder value of the charitable gift. Some examples of life income gifts include:

• Charitable Remainder Trusts. The charitable remainder trust is such a beneficial life income plan that many financial advisors recommend it to clients with no previous interest in charity. In the trust, you reserve a life interest for yourself - which pays dividends annually - and may create a succeeding life interest for a survivor beneficiary, often a spouse. Alternatively, you may set up the trust to provide a life interest for a parent, a sibling, other relative or friend. Or, in lieu of a life interest, the trust can provide that the named beneficiary will benefit for a certain number of years. On the death of the named beneficiaries, or the end of the prescribed terms of years, the charitable remainder trust terminates and the principal, which has often appreciated in value by that time, passes to the Fund. It is also possible for other charities to share in this final disposition. In addition to being a valuable method of lifetime giving, a charitable remainder trust can be established by a living trust or will to provide a life interest for a spouse, relative or friend after your death. The ultimate remainder will pass to the Bapak Legacy Fund. The benefits to the donor include:
  
  The donor is entitled to a donation receipt that can be used to reduce taxes;
  The donor retains the income generated by the property;
  The donor is free from investment decisions;
  Probate and other estates cost can be avoided; and,
  As the assets pass outside of the estate, they are not subject to challenge by family members or others who may feel disenfranchised.
  
  To learn more about a Charitable Remainder Trust or unique alternatives to this plan, please consult your financial.

• Charitable Lead Trusts. Charitable lead trusts provide income to the Fund for a specified period of time. When that time is expired, the assets are distributed to the donor or others designated by the donor. (These types of gifts can result in significant tax savings.)

• Private Foundation Gifts. Private foundations can choose to give a direct gift or to transfer all or part of their assets to the Bapak Legacy Fund. Because the Bapak Legacy Fund is a public charity, there are no taxes to pay and the Fund is responsible for all accounting and reporting requirements. Also, donors have the assurance that a permanent nonprofit organization is in place to administer the fund in the future.

• Retained Life Estate. Donors may contribute a private residence or farm while retaining the right to live in and use the property. Among several advantages of this type of gift are generous income tax deductions.

Nothing written here should be construed to be tax or estate planning advice. In all cases, rely on a tax or estate planning professional to determine the best way to meet your objectives.