A Menu of Giving Options
Planned giving strategies benefit Boys & Girls Clubs of Boston (BGCB), and often include attractive income and tax advantages for the donor. Following is a brief menu of ways to make a lasting contribution to BGCB and the members we serve. Appreciated securities, trusts, personal property, life insurance and, especially, bequests, are just a few examples.
We recommend 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.
Estate Planning
For many donors, a gift made through a will or trust is the most realistic way to make a major gift. Indeed, all bequests to BGCB that are not directed to a specific program are designated as part of the agency's permanent endowment. Those far-sighted gifts continue to provide critical support to all the agency's programs to this day.
Property, including cash, securities, jewelry, works of art, and real estate, may be given through a will or trust. Through estate planning provisions, a donor may leave to BGCB a specific dollar amount, for example, $50,000, or a specific percentage, such as 25 percent of the estate. The donor may stipulate whether the bequest is for the general support of BGCB or for a specific purpose or Club. A bequest may also be made in honor or memory of another individual. All outright bequests to BGCB are exempt from federal estate taxes.
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 BGCB. 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:
Renee Besser
Major Gifts Officer
Boys & Girls Clubs of Boston
50 Congress Street, Suite 730
Boston, MA 02109
rbesser@bgcb.org
617-994-4782