Alumni Fund

Thank you so very much for your willingness to help Adrian! We really appreciate your stepping forward to help him finish this task. I have attached a computer rendering of what we plan to do, which I hope will help. The sculpture and surrounding garden area will be across the drive and directly in front of the dining hall (now called The Olmsted) which was the building where Sharon, Adrian and many others regularly ate their meals. We still own the building, but have a contract with a local restaurant to have special events there – weddings, receptions, business meetings, etc. In a typical month, more than 6,000 people attend some event there, plus the many other visitors to our campus – family of residents, for example.

Those who participate in helping the Alumni fund the project will have their names engraved on the wall surrounding the sculpture, which will be in a fountain-like arrangement, surrounded by water and lighted from beneath at night. The name of the project is “A Place Called ‘Home’ “, a reference to the fact that it actually became home for many children, and that it was called the Masonic Widows and Orphans Home.

The project will be in two phases. In Phase I, we are raising the money for just the sculpture ($99,500). The approximate cost of everything else (Phase II) will be $183,000. I’m sure that sounds like a lot of money…and it is; however, the final result will be absolutely beautiful.

Hopefully, the lodges will want to make a gift from their treasury, but more than that we would hope individual brothers and their families might want to do something. That will help assure that we can raise what is needed to make it happen.

Below is information we’re making available to help potential donors decide the best way to give since there are certain assets that can be given in a way that helps the donor as well as the nonprofit. I hope that is helpful.

Please let me know if you would like additional information, and thanks again for your dedication!

Bruce

Cash – this is the most helpful way to give because it provides the committee with the immediate ability to make payments to the sculptor, stone company and others who will be providing their services. You have several sources for cash including checking, savings, money market accounts and Certificates of Deposit. The entire amount given is deductible, within guidelines established by the IRS.

Securities – If you own stock that has increased in value since you bought it, consider giving it instead of cash. Why? Because you typically can avoid paying capital gains taxes on the increase in value. (If you choose to sell it instead, you normally will owe taxes on the increase. It’s usually best to consider selling only if it has decreased in value). You claim part or all of the loss on your taxes, then give the cash as your gift and benefit from an offsetting charitable deduction. When giving appreciated stock, you normally can deduct the stock’s total value on the day you transfer ownership to the Masonic Homes (assuming you have owned it more than a year).

Life Insurance – Many individuals own policies purchased (sometimes many years ago) to provide protection for a need that no longer exists. Consider giving the policy to the Homes to fulfill your gift. Such gifts typically can be claimed as a charitable income tax deduction, which generally is equal to the policy’s value or the donor’s basis (the total of premiums paid), whichever is less.

IRA Assets – due to a recent law enacted by Congress, you now can make a gift from your IRA to the Masonic Homes. If you are required to take a minimum distribution, your gift counts toward that requirement. Individuals may transfer assets from their traditional or Roth IRA (only) directly the Homes. The gift is not taxed; however, the donor cannot claim a charitable income tax deduction for making the gift. Assets from 401(k), 403(b) and non-traditional IRA plans are not eligible. Please consult with your advisor before taking any action.

Key Points:

1. As much as $100,000 per person per year may be given. Therefore, if desired, a couple with separate IRAs could give a maximum of $200,000 in charitable gifts until 12/31/07, at which time the law may expire, be extended or made permanent.

2. The donor must be at least 70 ½ when the gift is made (which will count toward your mandatory withdrawals). If you are between

59 ½ and 70 ½ at the time of the gift, funds may not be distributed directly to charity but can be withdrawn from IRAs and other retirement accounts and then donated without payment of a 10% penalty for early withdrawal. Individuals who currently are required to take unneeded withdrawals, and others who have experienced limitations on tax benefits in the past, may find the new law of particular interest.

3. Gifts may be made only from traditional or Roth IRAs. Those from 401(k), 403(b) and non-IRA retirement plans do not qualify; however, donors may be able to “roll over” those assets directly into an eligible IRA, then make the gift.

4. Donors should not take the distribution themselves and subsequently write a check to the charity.

5. Those over 70½ who currently are taking a required withdrawal from an IRA and also giving to charity should strongly consider taking advantage of tax-free gifts from their IRAs this year.

6. Please consult with your advisor(s) before considering any gift of this type.

· Old Savings Bonds – about $13 billion in savings bonds have matured but not yet been redeemed. If you own them, you aren’t earning a penny in interest on your money. Typically, if your bond was issued before December, 1965, the interest meter ran out after 40 years; most bonds issued after that pay out for 30 years. No bond is too old to cash in, so if you own bonds under these circumstances, you can cash them in at your bank with the bond and a photo ID. Yes, you likely will owe federal tax on the payout. Then – take the cash and give it toward the Alumni sculpture and receive a charitable deduction for making the gift, thus possibly making the transactions a wash tax-wise.