Guide​ ​to​ ​Planned​ ​Giving​ ​for​ ​MONA​ ​Donors Gifts​ ​During​ ​Your​ ​Lifetime Direct​ ​Gifts You​ ​can​ ​give​ ​cash,​ ​securities​ ​and​ ​other​ ​property​ ​directly​ ​to​ ​MONA​ ​during​ ​your​ ​lifetime.​ ​ ​In many​ ​cases,​ ​you​ ​will​ ​receive​ ​a​ ​charitable​ ​deduction​ ​towards​ ​your​ ​personal​ ​income​ ​tax​ ​liability in​ ​the​ ​year​ ​of​ ​the​ ​donation.​ ​ ​The​ ​charitable​ ​deduction​ ​is​ ​usually​ ​equal​ ​to​ ​the​ ​fair​ ​market​ ​value​ ​of the​ ​securities​ ​or​ ​other​ ​property​ ​you​ ​contributed​ ​or​ ​the​ ​cash​ ​gift​ ​that​ ​you​ ​made. A​ ​gift​ ​of​ ​certain​ ​securities​ ​can​ ​be​ ​made​ ​to​ ​MONA​ ​in​ ​a​ ​particularly​ ​tax-efficient​ ​manner. Specifically,​ ​those​ ​securities​ ​(appreciated​ ​securities)​ ​are​ ​securities​ ​you​ ​have​ ​owned​ ​for​ ​more than​ ​one​ ​year​ ​that​ ​have​ ​increased​ ​in​ ​value​ ​since​ ​you​ ​purchased​ ​or​ ​received​ ​them.​ ​ ​If​ ​you​ ​were to​ ​sell​ ​the​ ​appreciated​ ​securities​ ​and​ ​then​ ​gift​ ​the​ ​proceeds​ ​to​ ​MONA,​ ​you​ ​would​ ​owe​ ​income tax​ ​on​ ​the​ ​sale​ ​and,​ ​additionally,​ ​decrease​ ​the​ ​amount​ ​of​ ​your​ ​charitable​ ​deduction.​ ​ ​If​ ​instead, you​ ​gift​ ​the​ ​appreciated​ ​securities​ ​directly​ ​to​ ​MONA,​ ​you​ ​would​ ​avoid​ ​paying​ ​any​ ​income​ ​tax and​ ​increase​ ​the​ ​amount​ ​of​ ​the​ ​charitable​ ​deduction​ ​you​ ​receive. The​ ​simple​ ​illustration​ ​below​ ​demonstrates​ ​these​ ​tax​ ​savings.​ ​ ​Assume​ ​that​ ​a​ ​donor​ ​owns appreciated​ ​securities​ ​currently​ ​worth​ ​$25,000​ ​that​ ​he​ ​purchased​ ​several​ ​years​ ​ago​ ​for $10,000.​ ​ ​Also​ ​assume​ ​that​ ​the​ ​donor​ ​is​ ​single​ ​and​ ​in​ ​the​ ​highest​ ​tax​ ​brackets​ ​for​ ​federal income​ ​tax​ ​purposes​ ​(and​ ​is​ ​not​ ​subject​ ​to​ ​state​ ​or​ ​local​ ​income​ ​tax).

Estimated​ ​Federal​ ​Income​ ​Tax​ ​Liability (assumes​ ​20%​ ​capital​ ​gain​ ​tax​ ​and​ ​3.8% net​ ​investment​ ​income​ ​tax) Charitable​ ​Deduction​ ​to​ ​Donor (and​ ​corresponding​ ​value​ ​of​ ​property received​ ​by​ ​MONA) Value​ ​of​ ​Federal​ ​Charitable​ ​Deduction (assuming​ ​income​ ​tax​ ​rate​ ​of​ ​39.6%)

Sale​ ​of​ ​Appreciated​ ​Securities​ ​and Donation​ ​of​ ​Cash​ ​Proceeds $3,570

Donation​ ​of​ ​Appreciated Securities $0

$21,430

$25,000

$8,486.28

$9,900

Based​ ​on​ ​this​ ​simple​ ​illustration,​ ​the​ ​donor​ ​would​ ​receive​ ​a​ ​deduction​ ​amount​ ​worth​ ​almost $1,500​ ​more​ ​against​ ​his​ ​federal​ ​personal​ ​income​ ​tax​ ​liability​ ​if​ ​he​ ​donates​ ​the​ ​appreciated securities​ ​directly​ ​to​ ​MONA​ ​rather​ ​than​ ​selling​ ​them​ ​and​ ​gifting​ ​the​ ​proceeds.​ ​ ​Additionally, MONA​ ​receives​ ​property​ ​worth​ ​more​ ​than​ ​$3,500​ ​more. Gifts​ ​of​ ​RMDs A​ ​donor​ ​who​ ​is​ ​at​ ​least​ ​70½​ ​and​ ​is​ ​required​ ​to​ ​take​ ​minimum​ ​distributions​ ​from​ ​an​ ​IRA​ ​may donate​ ​IRA​ ​assets​ ​directly​ ​to​ ​MONA.​ ​ ​Those​ ​donations​ ​(up​ ​to​ ​$100,000​ ​per​ ​year)​ ​will​ ​count toward​ ​meeting​ ​the​ ​donor’s​ ​Required​ ​Minimum​ ​Distribution​ ​(RMD)​ ​and​ ​directly​ ​offset​ ​the amount​ ​that​ ​is​ ​required​ ​to​ ​be​ ​withdrawn​ ​as​ ​income.​ ​The​ ​biggest​ ​benefit​ ​donating​ ​IRA​ ​assets​ ​is that​ ​the​ ​donation​ ​is​ ​no​ ​longer​ ​a​ ​tax​ ​deduction​ ​but​ ​instead​ ​is​ ​simply​ ​not​ ​counted​ ​toward​ ​taxable income​ ​as​ ​most​ ​standard​ ​IRA​ ​withdrawals​ ​would​ ​be.

Gifts​ ​Effective​ ​Upon​ ​Your​ ​Death You​ ​can​ ​also​ ​make​ ​bequests​ ​to​ ​MONA​ ​that​ ​are​ ​effective​ ​upon​ ​your​ ​death.​ ​ ​These​ ​could​ ​be charitable​ ​bequests​ ​outlined​ ​in​ ​your​ ​last​ ​will,​ ​in​ ​your​ ​revocable​ ​or​ ​living​ ​trust,​ ​or​ ​in​ ​the​ ​form​ ​of beneficiary​ ​designations​ ​on​ ​certain​ ​types​ ​of​ ​accounts.​ ​ ​The​ ​charitable​ ​bequest​ ​could​ ​be​ ​a particular​ ​dollar​ ​amount,​ ​a​ ​particular​ ​asset​ ​you​ ​own​ ​at​ ​your​ ​death,​ ​or​ ​a​ ​percentage​ ​of​ ​the​ ​assets that​ ​pass​ ​pursuant​ ​to​ ​your​ ​will,​ ​revocable​ ​trust​ ​or​ ​beneficiary​ ​designation. Bequest​ ​Gift Since​ ​your​ ​will​ ​and​ ​revocable​ ​trust​ ​can​ ​generally​ ​be​ ​amended​ ​through​ ​your​ ​lifetime,​ ​you​ ​would retain​ ​total​ ​control​ ​during​ ​your​ ​lifetime​ ​over​ ​the​ ​money​ ​or​ ​the​ ​assets​ ​that​ ​would​ ​be​ ​gifted​ ​to MONA​ ​at​ ​your​ ​death. Charitable​ ​Beneficiary​ ​Designation You​ ​can​ ​designate​ ​MONA​ ​as​ ​a​ ​beneficiary​ ​of​ ​many​ ​types​ ​of​ ​accounts,​ ​and​ ​the​ ​designation​ ​will become​ ​effective​ ​only​ ​upon​ ​your​ ​death.​ ​ ​Accounts​ ​with​ ​beneficiary​ ​designations​ ​are​ ​typically retirement​ ​accounts​ ​(your​ ​IRA,​ ​401(k)​ ​or​ ​403(b)​ ​plans),​ ​some​ ​bank​ ​accounts,​ ​some​ ​brokerage accounts,​ ​commercial​ ​annuities​ ​and​ ​life​ ​insurance​ ​policies.​ ​ ​You​ ​retain​ ​the​ ​right​ ​to​ ​modify​ ​the designation​ ​during​ ​your​ ​lifetime,​ ​and​ ​you​ ​could​ ​designate​ ​MONA​ ​to​ ​receive​ ​all​ ​or​ ​a​ ​percentage of​ ​a​ ​particular​ ​account​ ​balance​ ​or​ ​death​ ​benefit.​ ​Because​ ​of​ ​income​ ​tax​ ​considerations​ ​with these​ ​types​ ​of​ ​assets​ ​as​ ​death,​ ​a​ ​charitable​ ​beneficiary​ ​designation​ ​to​ ​MONA​ ​can​ ​be​ ​a​ ​very tax-efficient​ ​way​ ​of​ ​making​ ​a​ ​gift. Other​ ​Gifts​ ​That​ ​Benefit​ ​Both​ ​Your​ ​Family​ ​and​ ​MONA There​ ​are​ ​a​ ​number​ ​of​ ​vehicles​ ​that​ ​can​ ​benefit​ ​you​ ​or​ ​your​ ​family​ ​(or​ ​other​ ​beneficiaries)​ ​for​ ​a period​ ​of​ ​time​ ​or​ ​at​ ​a​ ​set​ ​date,​ ​while​ ​making​ ​a​ ​gift​ ​to​ ​MONA​ ​at​ ​the​ ​same​ ​time. Charitable​ ​Gift​ ​Annuity A​ ​charitable​ ​gift​ ​annuity​ ​is​ ​a​ ​contract​ ​between​ ​you​ ​and​ ​MONA.​ ​ ​Under​ ​the​ ​contract,​ ​MONA agrees​ ​to​ ​pay​ ​an​ ​annuity​ ​amount​ ​(or​ ​set​ ​dollar​ ​payment),​ ​typically​ ​to​ ​you​ ​or​ ​to​ ​you​ ​and​ ​your spouse,​ ​during​ ​the​ ​remainder​ ​of​ ​your​ ​lifetime​ ​or​ ​the​ ​joint​ ​lifetimes​ ​of​ ​you​ ​and​ ​your​ ​spouse.​ ​ ​In exchange,​ ​you​ ​agree​ ​to​ ​make​ ​a​ ​current​ ​bequest​ ​to​ ​MONA.​ ​ ​Typically,​ ​the​ ​gift​ ​is​ ​either​ ​cash​ ​or appreciated​ ​securities.

Charitable​ ​Lead​ ​Trust A​ ​charitable​ ​lead​ ​trust​ ​or​ ​“CLT”​ ​is​ ​an​ ​irrevocable​ ​trust​ ​under​ ​which​ ​MONA​ ​would​ ​receive​ ​either a​ ​fixed​ ​or​ ​variable​ ​payout​ ​(a​ ​payment​ ​based​ ​on​ ​the​ ​value​ ​of​ ​the​ ​CLT)​ ​for​ ​a​ ​term​ ​of​ ​years​ ​or during​ ​the​ ​lifetime​ ​of​ ​an​ ​individual.​ ​ ​These​ ​payments​ ​begin​ ​immediately​ ​after​ ​the​ ​CLT​ ​is created.​ ​ ​At​ ​the​ ​end​ ​of​ ​the​ ​“lead​ ​term”,​ ​the​ ​remaining​ ​assets​ ​of​ ​the​ ​CLT​ ​would​ ​be​ ​paid​ ​to​ ​the non-charitable​ ​beneficiaries​ ​named​ ​by​ ​you​ ​in​ ​the​ ​trust​ ​agreement​ ​(typically​ ​either​ ​you​ ​or​ ​your family​ ​members),​ ​and​ ​is​ ​often​ ​passed​ ​on​ ​to​ ​them​ ​with​ ​greatly​ ​reduced​ ​gift​ ​and​ ​estate​ ​taxes.

Charitable​ ​Remainder​ ​Trust A​ ​charitable​ ​remainder​ ​trust​ ​or​ ​“CRT”​ ​is​ ​also​ ​a​ ​type​ ​of​ ​irrevocable​ ​trust.​ ​ ​Under​ ​a​ ​CRT,​ ​the non-charitable​ ​beneficiary​ ​named​ ​by​ ​you​ ​in​ ​the​ ​trust​ ​instrument​ ​receives​ ​either​ ​a​ ​fixed​ ​or variable​ ​amount​ ​(calculated​ ​based​ ​on​ ​the​ ​value​ ​of​ ​the​ ​CRT)​ ​for​ ​a​ ​term​ ​of​ ​years​ ​or​ ​throughout​ ​an individual’s​ ​lifetime.​ ​At​ ​the​ ​end​ ​of​ ​that​ ​period,​ ​MONA​ ​would​ ​receive​ ​the​ ​remaining​ ​trust​ ​assets. A​ ​CRT​ ​can​ ​be​ ​a​ ​very​ ​flexible​ ​vehicle​ ​and​ ​can​ ​be​ ​set​ ​in​ ​a​ ​variety​ ​of​ ​ways​ ​that​ ​best​ ​meet​ ​the donor’s​ ​needs.

In​ ​the​ ​charitable​ ​gift​ ​annuity,​ ​CLT​ ​and​ ​CRT​ ​arrangements,​ ​you​ ​generally​ ​would​ ​receive​ ​a​ ​current charitable​ ​income​ ​tax​ ​deduction​ ​–​ ​that​ ​is​ ​a​ ​deduction​ ​in​ ​the​ ​year​ ​that​ ​the​ ​annuity​ ​contract​ ​or the​ ​charitable​ ​trust​ ​is​ ​created.​ ​ ​Since​ ​part​ ​of​ ​the​ ​annuity​ ​or​ ​charitable​ ​trust​ ​benefits non-charitable​ ​beneficiaries,​ ​the​ ​value​ ​of​ ​the​ ​charitable​ ​deduction​ ​is​ ​less​ ​than​ ​the​ ​value​ ​of​ ​the cash​ ​or​ ​property​ ​that​ ​funds​ ​the​ ​charitable​ ​trust​ ​or​ ​passes​ ​pursuant​ ​to​ ​the​ ​annuity​ ​contract. However,​ ​many​ ​donors​ ​find​ ​that​ ​the​ ​tax​ ​deductions​ ​allow​ ​them​ ​to​ ​“stretch”​ ​the​ ​value​ ​of​ ​their assets​ ​by​ ​minimizing​ ​tax​ ​while​ ​spreading​ ​them​ ​among​ ​charitable​ ​and​ ​non-charitable beneficiaries.