Several Supreme Council Programs benefit local Scottish Rite Foundations.

During the past year, we have received a number of calls from members interested in helping their local Scottish Rite Foun- dations and from local Scottish Rite Foundations that want to find ways to increase support of their charitable endeavors. Here are some of those questions and appropriate answers.

Question: If I contribute to the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., Inc. Pooled Income Fund, can I benefit my local Scottish Rite Foundation?

Answer: You certainly can. You just have to designate the local Foundation as the charitable remainder beneficiary of your contribution to the Pooled Income Fund.

Question: What are the benefits of contributing to the Pooled Income Fund, and what is the minimum gift I have to make to participate?

Answer: There are many benefits to making a contribution to the Pooled Income Fund. You can receive a tax deduction on part of your contribution, depending on your age and the age of any other income beneficiaries. In addition, the Pooled Income Fund provides a way to avoid the capital gains you might realize on a sale of appreciated securities. Just donate the appreciated securities to avoid realizing that gain. The minimum contribution to the Pooled Income Fund is $5,000.

Question: I want to benefit the Scottish Rite Foundation, S.J., USA, Inc., and my Local Scottish Rite Foundation with my contribution to the Pooled Income Fund. Can I do that?

Answer: Yes, absolutely. Any donor can split his or her contribution among several Scottish Rite Foundations in any percentages he or she desires. For example, a contributor could name the Scottish Rite Foundation, Southern Jurisdiction, as a 50% beneficiary, and a local Scottish Foundation as a 50% beneficiary. Our Development Office will be happy to provide potential donors with an analysis of the benefits of participating in the Pooled Income Fund.

Question: While the Pooled Income Fund is a good opportunity, at my age I am interested in getting a fixed return, not one that depends on the ups and downs of the stock market. Is there any type of gift that would provide me with a fixed income and that would allow me to benefit my local Scottish Rite Foundation?

Answer: Yes. Another chance for a donor to benefit a local Foundation is through the Scottish Rite Foundation, Southern Jurisdiction's Charitable Gift Annuity Program. In this program, the Scottish Rite Foundation, Southern Jurisdiction, and a donor sign a contract that provides for the donor to transfer cash or securities to the Scottish Rite Foundation, Southern Jurisdiction, in exchange for which the donor will receive fixed quarterly payments for the rest of his or her lifetime. An additional income beneficiary may be added, if desired. Upon the death of the donor and any income beneficiary, the assets that are left from the initial contribution are paid to the remainder charitable beneficiary, and that beneficiary can be a local Scottish Rite Foundation.

Question: Can I designate more than one charitable remainder beneficiary in my Charitable Gift Annuity contract?

Answer: Yes. As with the Pooled Income Fund, a donor can divide his or her contribution among Scottish Rite Foundations, in any percentage he or she chooses. For example, a donor can provide for 25% of the remainder to go to the Scottish Rite Foundation of Arkansas; 25%, to the Scottish Rite Foundation of Georgia; and 50%, to the Scottish Rite Foundation, Southern Jurisdiction. Through the gift annuity, a donor can make a wonderful gift to our foundations while benefiting from lifetime payments, professional management of assets, and tax savings. The Charitable Gift Annuity is available to Scottish Rite members and friends. Like the Pooled Income Fund, the minimum contribution to the Scottish Rite Foundation Charitable Gift Annuity Program is $5,000.

Question: What are the other benefits of a Charitable Gift Annuity with the Scottish Rite?

Answer: Another benefit of the Scottish Rite Charitable Gift Annuity Program is the rate of return for prospective donors; for older donors, the Charitable Gift Annuity offers a much higher rate of return than the donors currently can get from certificates of deposit or other investments. In addition, the donor receives potential tax savings. For instance, if a donor uses appreciated securities, he or she may be able to avoid the tax on a portion of the capital gain in the security. Or a donor may give an asset that has a low-yield to increase his or her income, since a Charitable Gift Annuity may have a higher yield and be taxed in a more favorable manner. The income stream to a donor and income bene-ficiary from the gift annuity is based on the age of the people receiving lifetime payments. And, a part of this quarterly lifetime income stream is a tax-free return of principal.

Question: How can I determine if a Charitable Gift Annuity makes sense for me?

Answer: Our Development Office will be happy to run an analysis of a hypothetical contribution to the Charitable Gift Annuity Program so that you can evaluate the benefits of a gift annuity and make an educated decision about whether it makes sense as a gift vehicle for you. There is no charge for the analysis, and it does not commit you to making the gift. It is just an example that can give you a better idea of the income stream, tax consequences, and gift that the specified charity or charities will get from a contribution in the form of a Charitable Gift Annuity.

Question: These programs sound good, but what if I am not sure I ought to be making a gift? Or, I know I want to make a gift to the Scottish Rite, but I can't figure out which type of gift is best for me?

Answer: We can help you to find out what makes sense in your situation through the Comprehensive Estate and Financial Review (CEFR) we offer to our members. UBS PaineWebber currently provides CEFRs for Scottish Rite Masons AT NO CHARGE. Generally, a professional financial company would charge an individual between $1,000 and $2,000 to do such a review. So, it's a great benefit for our members.

Question: But what exactly is a CEFR? Is it a brochure you can send to me?

Answer: No, the CEFR is not a brochure that can be mailed to you. Rather, it's a report that PaineWebber will prepare for each interested Scottish Rite Mason, after a PaineWebber representative meets with the individual and obtains financial and familial information from that individual. The review consists of approximately 65 pages of valuable information on such topics as: Wills, Trusts, Powers of Attorney, Reducing Income Taxes, Avoiding Estate Taxes, Long Term Care Planning, College Funding Analysis, Income Tax and Cash Flow Analysis, Retirement Security Review, Charitable Gifting Analysis, and a complete Estate Planning Review. Since all of these topics are not of interest to all of our members, each Comprehensive Estate and Financial Review is tailored to the individual participant. That is why it is such a beneficial planning tool and why it is not just a simple brochure.

Question: I am concerned about confidentiality-I don't want everybody to know my personal information from the CEFR. And, I don't want some broker giving me a sales presentation to get me to invest with him.

Answer: Please rest assured that PaineWebber holds in strict confidence any financial information provided by you to their representative for the CEFR, so the only people who know the details of your circumstances are you and the PaineWebber representative. The Scottish Rite is not given any of that information and has no access to it. In addition, the coordinator of the PaineWebber CEFR, Bro. Robert W. "Bob" Sitton, 32°, Valley of Baltimore, Maryland, is a Scottish Rite Mason, understands the need for privacy, and has pledged that none of his representatives will make this review into a sales job.

Question: Well, how do members who have gotten CEFRs feel about the service?

Answer: To date, we have completed approximately 210 Comprehensive Estate and Financial Reviews, and all of the feedback from this program has been extremely positive. Some of the completed reviews have resulted in the establishment of Charitable Remainder Trusts, contributions to the Pooled Income Fund, and participation in the Charitable Gift Annuity Program of the Scottish Rite Foundation, Southern Jurisdiction. All indications suggest the reviews will continue to result in significant gifts to a variety of Scottish Rite Foun-dations, local and national. Once again, there is never any charge to prepare this information.

Question: If I want a CEFR, how do I go about getting one?

Answer: We will be happy to arrange a Comprehensive Estate and Financial Review for you or your friends. Just call Barbara Golden, at the toll-free number, 1-866-448-3773, or Ill. Earl E. Ihle, 33°, at his toll-free number, 1-866-748-3227. We will get your contact information and have the PaineWebber representative call you to set up a meeting.

Question: I am writing my will now. I want to make sure that my local Scottish Rite Foundation receives some of my money after I pass away and that nobody else gets the money by mistake. How can I make sure my wishes are followed?

Answer: It is very important that you properly designate the beneficiaries of your estate in your will or trust, or you risk having your personal representative or the probate court make an educated guess about what you intended. To prevent your gift from going to the wrong place, you should find out: (1) the exact legal name of the organization; (2) its address; and (3) most importantly, its federal tax identification number. Many non-profits have similar names, but they have a unique federal tax identification number. By using the exact legal name of the non-profit organization, listing its correct address and its federal tax identification number, you will eliminate the chance of your estate being distributed improperly.

Question: Can the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., Inc., help me obtain the appropriate information about local Scottish Rite Foundations for my will or trust?

Answer: Yes. The Scottish Rite Foundation, S.J., USA, Inc., is happy to help any donor who wants to make a bequest to a Scottish Rite Foundation obtain the proper information to do so. Just call our Development Office, and we will help get the information for you.

Estate planning requires time and effort, but it will produce peace of mind and many other benefits, financial and personal. We are always willing to help our members achieve their estate-planning goals.

To learn more about the Scottish Rite Pooled Income Fund, click here. For a chart illustrating Scottish Rite Foundation, S.J., USA, Charitable Gift Annuity Rates–Single Life, please click here. Note: The rates shown here are subject to change and not available in all states.

Scottish Rite Foundations, Southern Jurisdiction Pledge Form

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Scottish Rite Foundations, Southern Jurisdiction Pledge Agreement

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Barbara Golden is the Director of Planned Giving for the Development Office of the Supreme Council. Barbara is an attorney with experience in tax, corporate, and commercial real estate law. She managed a non-profit legal services organization for several years and has extensive experience in fundraising, grant writing, and program operations.

Ill. Thomas M. Boles, 33°, G.C. (left in photo) has worked extensively in fund-raising for children's programs throughout our Fraternity. For more information on planned giving, call Bro. Tom at 562–691–4227 (Fax 562–691–5327) or the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., at 202–232–3579, ext. 143. Ill. Earl E. Ihle, Jr., 33°, is our development team's Director of Major Gifts. He has been a member of the Fraternity for 25 years and served in 1978 as Master of Lafayette Lodge, No. 111, Baltimore, Maryland. He is also a member of Boumi Shrine Temple in Baltimore, the York Rite, and a dual member of the Scottish Rite Valleys of Baltimore and Washington, D.C. You can reach Bro. Ihle toll free at 1–800–486–3331, ext. 143.