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Planned Giving
For information on any of the topics
below, please contact our development
office at (212) 330-0555, or via e-mail
at
pdonahue@covenanthouse.org
Gifts of Stock or Securities
You can save twice when you make a gift
of securities. You will pay no capital
gains tax if you use appreciated
securities to make you gift to Covenant
House New York. The full value of your
securities will help our kids. Itemizers
can deduct the full appreciated value of
the stock as a charitable contribution.
This saves income tax and further lowers
the effective cost of your gift.
Gifts of Real Estate or Property
A gift of real estate will provide
similar benefits to a gift of
securities. You pay no capital gains tax
if you use real estate to make your
gift. The full value of your real estate
will help our kids. Itemizers can deduct
the full appreciated value of the
property as a charitable contribution,
for real estate held over a year.
A gift of artwork or collectibles can
also be used to help our kids to great
advantage, with one caveat. The full
value of your asset will be put to work
to help our kids, since the capital
gains tax (at the higher 28%bracket)
will be bypassed. In this case, your
income tax deduction will be limited to
the cost basis of your property,
however.
Although there are some restrictions and
these gifts can be somewhat complicated
to complete, the rewards can far
outweigh the inconveniences. We are
happy to help and guide your
contribution efforts.
Wills and Bequests
Most people would like to leave their
mark on the world -- to do something
that leaves the earth a better place.
Every day, Covenant House New York makes
the world better by helping lost kids
pull their lives together. Why not leave
your mark on the world by supporting our
kids through your estate plan? Being
remembered in your bequest is the only
legacy most of our kids will ever
receive. You’ll make the world a better
place for generations to come.
To name Covenant House New York in your
will, use the name "Covenant House New
York/Under 21, Inc., a New York
not-for-profit corporation."
There are many thoughtful ways to
include Covenant House New York in your
estate plans. To assist you and your
advisors in determining what would be
best for you, our booklet "Thoughtful
Ways to Provide for our Kids in Your
Will" is available.
If you include Covenant House New York
and our kids in your will, please let us
know so that we can thank you
appropriately for this expression of
commitment to our mission. You will also
be eligible for membership in the
Covenant House New York Cornerstone, the
group of individuals who have made a
personally significant contribution to
help our kids.
Charitable Gift Annuities
The Covenant House New York Gift Annuity
is simple to understand. The agreement
to establish your annuity is just one
page written in simple English. No Fine
Print! The minimum gift to establish a
Covenant House New York Gift Annuity is
an affordable $5,000, with no maximum
limit on the amount you can contribute!
The Covenant House New York Gift Annuity
combines guaranteed immediate income
fixed for life, with substantial
tax-free income over time and a generous
tax deduction this year. Also, if you
use appreciated securities, you will
avoid capital gains taxes as well. Most
importantly, your Covenant House New
York Gift Annuity gives our kids a
chance for a better life.
The Covenant House New York Gift Annuity
guarantees quarterly payments to the
annuitant(s) for life, beginning
immediately. The rate is generous and
based on your age on the gift date.
Another option is the Deferred Gift
Annuity, where the donor increases the
annual annuity income by postponing the
start date of payments.
All payments are guaranteed by 1) the
assets of our Segregated Annuity Reserve
Fund, set aside specifically for this
purpose under the oversight of the
Insurance Commissioner of New York State
and 2) all other Covenant House New York
assets. Annuity payments are not
guaranteed or insured by any state
agency.
A Covenant House New York Gift Annuity
can be established with either cash or
securities.
A substantial portion of each annuity
payment is tax-free over the life
expectancy of the donor because it is
considered a return of the gift
principal. After the life expectancy of
the donor, the entire annuity becomes
taxable.
Gifts of appreciated securities provide
additional benefits. Both the annuity
amount and the income tax deduction are
based on the full value of the gift. No
capital gains tax on the appreciation
will be due at the time of the gift, as
long as the donor is an annuitant. For
gifts of appreciated securities, the
tax-free portion of the annuity payments
is reduced.
If you itemize your deductions in the
year you make the gift, you will receive
an immediate income tax deduction, which
will usually exceed one third of the
contributed value. The tax deduction
will be greater if the Donor chooses a
lower annuity rate. IRS Regulations
limit charitable deductions to 50% of
your Adjusted Gross Income for cash
gifts (30% of AGI for stock gifts) in
any year. Any unused deduction can be
carried forward for five additional
years.
Prospective donors are urged to seek the
advice of a qualified tax advisor before
entering into a Covenant House New York
Gift Annuity or any gift plan.
Charitable Remainder Trusts
Of all the ways to provide support to
Covenant House New York, the most
sophisticated may be a Charitable
Remainder Trust. Charitable remainder
trusts can be tailored to meet the
widest range of needs and goals. Each
trust is individually planned, funded
and administered. This individual
handling allows the greatest flexibility
in the assets used to fund the gift, the
type and duration of income, and the
ultimate use of the gift by Covenant
House New York. A Charitable Remainder
Trust is a personalized, meaningful
contribution.
Charitable Remainder Trusts provide
income to the donor or others, after
which the trust remainder will support
our mission. But unlike the simpler Gift
Annuity, the payments from a Charitable
Remainder Trust can be customized to
your needs. Payments can be fixed or
variable to grow with the market.
Payments can be deferred into the
future. Payments can stop after a period
of years. They can continue to you for
life then to another person for life or
a period of years. The payment options
are almost unlimited to meet your needs.
Cash or publicly traded stock can be
used to establish a Charitable Remainder
Trust, as well as a Gift Annuity. But
unlike this simpler gift plan, a
Charitable Remainder Trust can be funded
with developed or undeveloped real
estate, all or part of a principal
residence, shares of a closely held
corporation, tax-exempt bonds, IRA
leftovers or even artwork. Virtually any
substantial asset that has appreciated
in value can be used to good advantage
to fund a Charitable Remainder Trust
avoiding capital gains tax.
Like the Gift Annuity, Charitable
Remainder Trusts usually provide taxable
income to the income recipient. But
Charitable Remainder Trusts provide the
widest range of payment options. Fixed
payments or variable payments designed
to grow over the years are among the
options. In special cases, Charitable
Remainder Trusts may provide mostly
tax-free income to a donor.
Our Charitable Remainder Trusts receive
high-quality administration at no cost
to the donor or to the trust. Low-cost,
high-quality asset allocation and
investment selection are obtained
through the Vanguard group of mutual
funds, with independent evaluation
through Morningstar Mutual Fund Service.
Donors can choose among a wide variety
of highly rated low cost Vanguard funds
for the investment of their trust, or
can leave the investment choice to our
Finance Committee.
Need retirement income from your assets?
Your commercial, residential or
undeveloped real estate can also be used
to create a gift plan to provide just
the income you need. Charitable
Remainder Trusts can be fully customized
to meet your needs and goals and make a
big difference to our kids.
Phone: 718-348-2421
Email:
pdonahue@covenanthouse.org
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