The AOPA Foundation, Inc.

Frequently Asked Questions

Bequests

1. How do I leave a gift to AOPA in my will?
   Naming The AOPA Foundation as a beneficiary of a will is one of the most popular planned gifts to the association. You can give a specific dollar amount or a percentage of your estate. You can leave stocks, bonds, or real estate. You can even name The AOPA Foundation as a residual beneficiary. The AOPA Foundation will receive the remainder of your estate after all other bequests and taxes have been satisfied. Please see our Bequest page for sample bequest language to share with your advisor and family.

Charitable Gift Annuity

1. What is a charitable gift annuity?
   A charitable gift annuity is a contract in which you irrevocably contribute cash or securities to The AOPA Foundation and receive a guaranteed, fixed income for your lifetime and/or the lifetime of a loved one.
2. How are gift annuity rates determined?
   Several factors determine the annuity rate, including the number of beneficiaries and their ages. The AOPA Foundation follows the gift annuity rates suggested by the American Council on Gift Annuities (ACGA). The ACGA is a non-profit organization that provides educational and other services to charities regarding gift annuities and other forms of planned gifts.
3. Who determines how the remainder of the charitable gift annuity is used?
   You do. You can choose a specific program or particular service. General aviation is a dynamic field and AOPA is constantly evolving to meet new challenges. Many supporters choose to keep the gift annuity unrestricted. Unrestricted gifts enables The AOPA Foundation to meet emerging needs or to support areas of GA that may not have existed at the time you established the gift annuity.
4. Who chooses the income beneficiaries?
   You do. For example, you can receive the income. Or, in the case of a married couple, you could receive the income first, and, at your death, your spouse would receive the income. You can also establish a gift annuity to benefit other loved ones, such as an elderly parent whom you are helping financially.
5. What assets can be used to establish a charitable gift annuity?
   The AOPA Foundation accepts cash or appreciated securities. If you use long-term, appreciated securities, you will enjoy a reduction of the capital-gain tax due on the appreciation. The remainder of the capital gain will be spread out over a number of years.
6. How old do I have to be to establish a charitable gift annuity?
   The AOPA Foundation recommends that you be 65 years old or older when establishing a charitable gift annuity. However, a deferred charitable gift annuity may be an option for younger donors. It is a simple contract between you and The AOPA Foundation. In exchange for an irrevocable gift of cash or securities, The AOPA Foundation agrees to pay to you a fixed sum each year for your lifetime, with payments starting at a future date that you choose. The longer the payments are deferred, the greater the annuity rate.
   
   This option is popular for those who want to make a gift now, but defer income until they are retired.
7. What does the contract look like?
   The contract is very simple and provides details on the gift and the contractual obligation of The AOPA Foundation to pay the annuity. Click here to see a sample contract for a charitable gift annuity with a single beneficiary.
8. Where can I find more information?
   You can find detailed information about this type of gift in the Life-Income section of this site. You can also use our Gift Calculator to see how a charitable gift annuity may benefit you.

Retirement Accounts

1. How do I make a gift from my retirement plan?
   You can include The AOPA Foundation as either a full or partial beneficiary of your individual retirement account, 401(k), or other retirement fund. You simply complete a beneficiary designation form from the plan manager and submit it to the company that holds the assets. Many beneficiary designation forms of these accounts require The AOPA Foundation's tax ID number. The attached notice certifies The AOPA Foundation's tax-exempt status and provides the ID number.
   
   Retirement-plan assets are often subject to extremely high estate taxes and income is fully taxable when received by an individual beneficiary. By naming The AOPA Foundation as the beneficiary of the retirement account, the Foundation receives the full amount, free of taxes. You can leave other assets, such as stock, to heirs without the negative tax consequences of leaving them your retirement-plan assets.

Real Estate

1. Does The AOPA Foundation accept gifts of real estate?
   Yes. Giving real estate is becoming a more common way to make a gift to The AOPA Foundation. You can give a primary residence, summer home, winter condo, or even commercial property to The AOPA Foundation. You provide vital support to general aviation while receiving a charitable income-tax deduction up to 30 percent of your adjusted gross income. Please see our Real Estate page for more information on ways to give property.

Life Insurance

1. How can I make a gift of life insurance?
   While most people own some form of life insurance because of its unique ability to meet a variety of needs for financial protection, its role in charitable giving is frequently overlooked. You may use life insurance as the direct funding medium of a gift, permitting you to make a substantial gift for a relatively modest annual outlay.
   
   You may irrevocably assign an insurance policy to The AOPA Foundation and receive an immediate federal charitable income-tax deduction. You may also name The AOPA Foundation as a beneficiary while retaining ownership of the policy. In this case, there is no immediate federal charitable income-tax deduction. Please see our Life Insurance page for an illustration and example of making a gift of life insurance.
2. What kind of policy makes a good gift?
   Gifts of paid-up whole-life insurance typically produce the largest and most immediate charitable deductions. Policies still bearing premium payments usually generate a smaller immediate deduction. In order for The AOPA Foundation to accept gifts of life insurance on which premiums are still due, the underwriting company must certify that the policy will become self-funding within no more than ten years after being given to the Foundation. In this case, subsequent gifts to allow The AOPA Foundation to pay future premiums may be viewed as charitable deductions.
3. Can I receive a tax deduction for making a gift of life insurance?
   In order to obtain a charitable income-tax deduction for an assignment of life insurance to The AOPA Foundation, you cannot retain any rights (such as the right to change the beneficiary) in the policy.
   
   Upon the irrevocable assignment of a life insurance policy, you are allowed an immediate federal charitable income-tax deduction for the less of either the policy's fair-market value or the net premiums paid. Income-tax deductions for contributions to enable The AOPA Foundation to pay subsequent premiums are also allowed.
   
   If you name The AOPA Foundation as just the beneficiary of the policy but retain ownership, there is no charitable income-tax deduction allowed for the value of the policy upon designation of The AOPA Foundation as the beneficiary or for subsequent premium payments.

The AOPA Legacy Society

1. What is The AOPA Legacy Society?