Planned Giving

The Heritage Club

The YMCA established its Heritage Club to honor those friends who, by including the YMCA in their financial and estate planning, have ensured our programs and services will positively impact the lives of future generations to come. A planned gift can also bring financial benefits to the donor and their family by reducing or eliminating estate taxes; converting low-yielding assets into a higher income stream at reduced capital gains cost; and producing significant income tax deductions.

There are many different types of planned gifts, including:

Bequests


The YMCA receives a gift provided for in a donor's will. The gift may be a percentage of a donor's estate, a specific dollar amount, the residual of the estate, or a certain piece of personal property. The gift reduces estate tax obligations.

Charitable Gift Annuities


In exchange for an irrevocable gift of cash and/or securities, the YMCA will provide fixed income payments to the donor for up to two lifetimes. The gift will provide an immediate charitable income tax deduction and, in most cases, a portion of the payments will be tax-free. The annuity rate is determined by the age of the annuitant(s) at the time the gift is made. The minimum contribution required to establish a charitable gift annuity with the YMCA is $10,000.

Deferred Charitable Gift Annuities


Similar to a charitable gift annuity, the donor receives an immediate income tax deduction for the gift. At a later date (usually retirement) the donor begins receiving a fixed income from the YMCA. Because the principal compounds between the date of the gift and first date of payment, the income stream can be significant.

Life Insurance Policies


When the YMCA is named as the beneficiary and owner of a life insurance policy the donor receives an immediate charitable income tax deduction. If the policy is not paid up, this tax deduction is approximately the policy's present cash surrender value. If the donor chooses to continue paying the premiums, he/she will receive a charitable deduction(s) for the amount paid. The full face value of the policy is removed from the donor's taxable estate.

Retirement Plans


Individuals at least 70½ years of age are able to make tax-free gifts from IRA funds that would be subject to taxes if withdrawn voluntarily or withdrawn under mandatory requirements. Donors may choose to make charitable contributions in any amount up to $100,000 per year. Couples with separate IRAs can each give up to that amount.

Charitable Remainder Unitrusts


A donor irrevocably transfers cash and/or securities to a trustee (often the YMCA itself) who pays the donor (or other individual) income for life or for an agreed-upon term. The amount to the donor is based on a percentage of the trust principal, recalculated each year, according to any increase in the value of the trust's assets. When the trust expires, the assets become the property of the YMCA.

Charitable Remainder Annuity Trusts


The donor receives a fixed income amount from the gift for the rest of his or her life. The amount to the donor is determined by the initial value of the trust's assets. More than one person may receive income. The principal becomes the property of the YMCA after the last beneficiary dies.

Real Estate


There are several types of real estate gifts. A donor may contribute real estate outright or transfer it in a bargain sale. A donor can use real estate to fund a gift annuity or a net income unitrust, thus converting a non-income producing asset that is presumably highly-appreciated into a life-income arrangement with significant tax benefits. Finally, a donor may make a gift of his or her residence to the YMCA while retaining the right to live in the residence for the rest of his or her life. The donor receives a tax deduction at the time of the gift and when the donor dies the property goes to the YMCA.

Our planned giving staff will be happy to meet with you and your financial advisor to design a plan that is uniquely tailored to meet your philanthropic objectives. Please contact Mary O’Leary for more information.