In making a planned gift to Boys & Girls Clubs of Boston you are ensuring the agency will always be a resource for the children and youth of Boston and Chelsea. This lasting gift provides the Club with hope for the future and to you:
-
Potentially increases your income
-
Enables a way of satisfying your personal and financial goals
-
Provides substantial tax benefits
Please visit www.clubgift.org (through Boys & Girls Clubs of America) for detailed information on types of planned gifts – including language for making codicils in your will to gift illustrations. We recommend that you seek the advice of your tax and/or legal counsel before making a planned gift to ensure that you are receiving optimal benefit from this provision.
Bequests
This is one of the simplest ways to make a planned gift as the donor can designate a specific amount or percentage of one’s estate that might include securities, jewelry, works of art, and real estate.
A donor could also make BGCB the beneficiary of a 401K, IRA, pension fund, other retirement plan or life insurance policy. Naming BGCB as partial or full beneficiary of your retirement plan can result in income and estate tax savings.
Charitable Gift Annuity
A charitable gift annuity is a contract, under which a charity, in return for an irrevocable transfer of cash or marketable securities from a donor, agrees to pay a fixed sum of money for a period measured by one or two lives. A charitable gift annuity:
- Provides fixed income for life, partly tax free (payments based upon age)
- Provides charitable deduction
- Reduces capital gains tax if the basis of the gift exceeds its current value
- Reduces estate tax
- Requires no setup cost
An acceptable gift is either cash or marketable securities (includes stocks, bonds or mutual funds) and can be designated to BGCB for endowment, unrestricted program support or a specific Club. The minimum funding amount is $10,000 (no maximum) and the donor is someone at least 60 years of age.
For example, Mrs. Doe, age 75, has $10,000 in a CD that will mature next month. She thinks she can get 4% interest on a new CD. But Mrs. Doe has been thinking about leaving $10,000 in her will to BGCB, and that leads her to think about an annuity. For a $10,000 gift, Mrs. Doe will receive: an annual income of $710 (7.1% under current suggested rates); $423 of which will be tax free, an income tax charitable deduction of $4,749, and the immediate satisfaction of making a truly significant gift to BGCB.
BGCB is working with Boys & Girls Clubs of America to manage this type of gift. Should you be interested, BGCB staff will work closely with you and BGCA on arranging specifics.
Charitable Remainder and Lead Trusts
A charitable remainder trust is a personalized life income gift that provides a donor with a lifetime income and a charitable income tax deduction. The donor selects the payout rate, usually between 5 and 7 percent, providing the donor, and the donor's spouse, with an income every year for life. The higher the payout rate, the lower the charitable tax deduction. If the donor funds the trust with appreciated securities, the donor will avoid capital gains taxes. The donor selects the trustee who may invest in almost any investment, including tax-free bonds. Donors may designate the remainder of their trust to benefit any BGCB program.
There are other trusts, Charitable Lead Trusts, which provide income payments ("lead interest") to BGCB for a set period of years. At the end of this fixed period the assets in the trust revert to the donor, to family members or to others.
Gifts of Real Estate
You can make a gift of unencumbered commercial or residential real estate to BGCB and receive substantial benefits. For an outright gift of real estate, the donor receives a charitable income tax deduction based on the fair market value (appraised value) of the property. If you are considering leaving your home to BGCB through your will, you may wish to consider giving it now but retain the right to live in it during your lifetime. You are still responsible for paying taxes, insurance, and maintenance costs, but you do receive a substantial charitable income tax deduction in the year the gift is made. In some cases, real estate may be used to provide a life income stream through a charitable remainder trust or other gift planning option.
Gifts of Appreciated Property
If you have stocks, bonds, mutual funds or other assets that you have owned for more than one year and that have increased in value since the time of purchase, you may find it advantageous to give them to BGCB. Your outright gift of long-term, appreciated securities is exempt from capital gains taxes and, if you itemize, you may claim a charitable income tax deduction equal to the full fair market value of the property at the time of transfer. For gifts of property, your gift is fully deductible for up to 30 percent of your adjusted gross income, and like gifts of cash, may be carried forward for up to five years. Appraisal is the responsibility of the donor.
Frederic C. Church, Sr. Planned Giving Recognition Society
Members of Frederic C. Church, Sr. Society honor the memory of long-time Board Chair Frederic C. Church, Sr. and strengthen the future of BGCB by designating BGCB in their will or estate plans, enabling us to build a strong endowment for generations to come.
If you would like more information on the types of gifts mentioned above or would like to see confidential examples specific to your own financial situation, please contact Alexandra Fuchs at 617-994-4712 or afuchs@bgcb.org. If you have already named BGCB as a beneficiary in your estate plan, we hope you will let us know so that we can properly thank you, if you permit, and recognize your intention.
For more information, please contact:
Alexandra Fuchs
Chief Advancement Officer
Boys & Girls Clubs of Boston
50 Congress Street, Suite 730
Boston, MA 02109
afuchs@bgcb.org
617-994-4712