Bequest Gift
How to include Youth Development Network in my will:
How to include Youth Development Network in my will:
Donors may make charitable gift by naming Youth Development Network as a beneficiary in their wills. The federal government encourages these gift or bequests, by allowing an unlimited estate tax charitable deduction. In addition, a charitable bequest may place your estate in a lower estate tax bracket.
To make a bequest to Youth Development Network, the following language will be helpful to your lawyer:
I give, devise, and bequeath to Youth Development Network the sum of _____________ (or otherwise describe the gift or specify a percentage of the estate).
There are three ways you can make a bequest:
1. Specific Bequest: You designate a specific dollar amount, specific percentage, or specific property to Youth Development Network.
2. Residual Bequest: Your estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount -- the residual -- will be transferred to Youth Development Network.
3. Contingent Bequest: You can ask that Youth Development Network receive all or a portion of your estate only under certain circumstances. For example, you can name Youth Development Network as a beneficiary of your estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to Youth Development Network.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Charitable Gift Annuity
The charitable gift annuity enables you to make a gift to support Youth Development Network and at the same time improve the quality of life for your family. In exchange for your gift of cash or marketable securities to Youth Development Network, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.
Youth Development Network uses the charitable gift annuity rates recommended by the American Council on Gift Annuities. The following are rates for a single-life charitable gift annuity:
For example, Miss Anderson, age 75, transfers $10,000 to Youth Development Network for a gift annuity. She will receive a guaranteed annual income of $820 ($10,000 x 8.2% -- the annuity rate for her age).
Joint and Survivor Annuities
Gift annuities can be arranged to make payments for the lifetimes of two people, such as a husband and wife, brothers and sisters, parents and children or close friends. The rates for two lives are less than rates for one life because the period of payment may be longer. The following chart shows some sample rates based on two lives:
Two-life gift annuities also provide charitable deductions and payments to the recipients that are partly tax-free.
For example, Mr. Edwards is 75 and his wife is 70. They transfer $20,000 to Youth Development Network for a gift annuity and receive $1,400 annually for life ($20,000 x 7.0% -- the annuity rate for their combined ages). The full guaranteed payments continue for the survivor's life.
If you wish, you may defer charitable gift annuity. You can make the gift now, and Youth Development Network will pay you (and another beneficiary, if you wish) life income starting at any date you specify. This is a great option if you are concerned about retirement income. Also, you receive the income tax deduction in the year you make the gift. The amount you receive each year depends on the amount transferred, your age now, and your age when the payments are to start.
For example, Miss Baker, age 50, transfers $10,000 to Youth Development Network for a deferred gift annuity with payments to start at age 65. Her rate of return will be 16.3 percent, and she will receive $1,630 per year for life ($10,000 x 16.3%).
Note that the charitable deduction is available to donors who 'itemize' deductions and in some cases may not be wholly deductible in one year. Excess deductions, however, can be carried over and deducted for up to five carryover years. Remember that the charitable gift annuity is an irrevocable gift commitment, but one with excellent tax and financial benefits.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
The charitable gift annuity enables you to make a gift to support Youth Development Network and at the same time improve the quality of life for your family. In exchange for your gift of cash or marketable securities to Youth Development Network, we agree to pay you (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.
Youth Development Network uses the charitable gift annuity rates recommended by the American Council on Gift Annuities. The following are rates for a single-life charitable gift annuity:
Ages/Rate Ages/Rate Ages/Rate Ages/Rate
55 -- 6.1% 66 -- 7.1% 77 -- 8.5% 88 -- 11.4%
56 -- 6.2% 67 -- 7.2 78 -- 8.7 89 -- 11.7
57 -- 6.3 68 -- 7.3 79 -- 9.0 90+ -- 12.0
58 -- 6.4 69 -- 7.4 80 -- 9.2
59 -- 6.5 70 -- 7.5 81 -- 9.6
60 -- 6.6 71 -- 7.6 82 -- 9.6
61 -- 6.7 72 -- 7.7 83 -- 9.9
62 -- 6.8 73 -- 7.8 84 -- 10.2
63 -- 6.9 74 -- 8.0 85 -- 10.5
64 -- 6.9 75 -- 8.2 86 -- 10.8
65 -- 7.0 76 -- 8.3 87 -- 11.1
For example, Miss Anderson, age 75, transfers $10,000 to Youth Development Network for a gift annuity. She will receive a guaranteed annual income of $820 ($10,000 x 8.2% -- the annuity rate for her age).
Joint and Survivor Annuities
Gift annuities can be arranged to make payments for the lifetimes of two people, such as a husband and wife, brothers and sisters, parents and children or close friends. The rates for two lives are less than rates for one life because the period of payment may be longer. The following chart shows some sample rates based on two lives:
Ages/Rate % Ages/Rate % Ages/Rate % Ages/Rate %
65/60 -- 6.4% 70/70 -- 6.8% 80/75 -- 7.5% 85/85 -- 9.0%
65/65 -- 6.6% 75/70 -- 7.0 80/80 -- 8.0 90/85 -- 9.6
70/65 -- 6.7 75/75 -- 7.3 85/80 -- 8.4 90/90 -- 10.6
Two-life gift annuities also provide charitable deductions and payments to the recipients that are partly tax-free.
For example, Mr. Edwards is 75 and his wife is 70. They transfer $20,000 to Youth Development Network for a gift annuity and receive $1,400 annually for life ($20,000 x 7.0% -- the annuity rate for their combined ages). The full guaranteed payments continue for the survivor's life.
If you wish, you may defer charitable gift annuity. You can make the gift now, and Youth Development Network will pay you (and another beneficiary, if you wish) life income starting at any date you specify. This is a great option if you are concerned about retirement income. Also, you receive the income tax deduction in the year you make the gift. The amount you receive each year depends on the amount transferred, your age now, and your age when the payments are to start.
For example, Miss Baker, age 50, transfers $10,000 to Youth Development Network for a deferred gift annuity with payments to start at age 65. Her rate of return will be 16.3 percent, and she will receive $1,630 per year for life ($10,000 x 16.3%).
Note that the charitable deduction is available to donors who 'itemize' deductions and in some cases may not be wholly deductible in one year. Excess deductions, however, can be carried over and deducted for up to five carryover years. Remember that the charitable gift annuity is an irrevocable gift commitment, but one with excellent tax and financial benefits.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Charitable Lead Trust
Individuals with very large estates can use a charitable lead trust to benefit Youth Development Network and pass principal to family members with little or no tax penalty. It works like this:
You transfer assets to a trust that provides payments to Youth Development Network for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax [GST] is imposed on large transfers to grandchildren and others who are more than one generation younger than you.)
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Individuals with very large estates can use a charitable lead trust to benefit Youth Development Network and pass principal to family members with little or no tax penalty. It works like this:
You transfer assets to a trust that provides payments to Youth Development Network for a term of years. Then the trust principal goes to your children, grandchildren, or others free of, or at greatly reduced, federal gift and estate tax. (Please note that a generation skipping tax [GST] is imposed on large transfers to grandchildren and others who are more than one generation younger than you.)
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
A trust is a legal agreement that specifies how the assets placed under the trust will be managed. The charitable remainder trust is an attractive method to achieve a variety of goals while providing income for life and knowing that after your lifetime, the property remaining in the trust will be used by Youth Development Network as you specified.
Donate Investments
To donate stock:
Thank you for your interest in donating stock to Youth Development Network. Electronic delivery of stock shares is the most secure and expedient delivery process available and provides efficient internal control as well as cost savings. However, you may also transfer certificates directly. To help you facilitate a gift of stock, please use the following instructions. Or click here and go straight to our Gift Form for an electronic submission.
Securities Delivered Electronically
"brokerfirstname" "brokerlastname" "brokeremailId"
"brokerage_name"
"brokerage_street"
"broker_city", "broker_state" "broker_zip"
DTC Number: "brokerage_dtc"
Account Name: "brokerage_acctnm"
Tax ID# (EIN): "CharityEIN"
Account Number: "brokerage_acctno"
Please instruct your broker to include your name in the delivery instructions.
So that we are able to ensure proper acknowledgement of your gift for income tax purposes, we ask that you notify us in advance of any electronic transfers of securities. You may notify us online by e-mailing us at "emil_id" or you may complete the Gift Notification Form and forward it to us at the address referenced above. The information you provide should include a description of the securities donated, the number of shares of stock or face amount of bonds, your name, address, phone number and e-mail address if available.
Securities Delivered by Mail
Mail your unendorsed certificate(s) and stock power in separate envelopes by registered mail to:
"charityname"
"charitystockdepartment" "charitystockstreet"
"charitystockcity", "charitystockstate" "charitystockzip"
Notification of Donor Intent
Regardless of the method chosen to deliver a gift of stock, the donor or the transferring broker must provide a letter including the following information, for audit and acknowledgment purposes ("clickhere" for a sample letter, which you can customize):
* Donor's name and complete address
* Name and number of securities transferred
You may use the "giftform", provide a letter, or send an e-mail to communicate this information at time of transfer to:
"charityname"
"charitystockdepartment""charitystockstreet"
"charitystockcity", "charitystockstate" "charitystockzip"
E-mail: "charitystockemail"
Contact: "charitystockfname" "charitystocklname"
Phone: "charitystockphone"
Fax: "charitystockfax"
Valuation for Tax purposes and date of gift
The date of the gift is the day of the stock passes from your control. The value, for income tax purposes, is the mean between the high and the low quoted selling price on that day. Your gift will be acknowledged by "charityname"
Stock Donations
You can realize two tax savings by contributing stock as a gift to Youth Development Network.
1. Deduction for charitable contribution
Federal and state tax law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income. To qualify for such a deduction, the stock must have been held by the taxpayer for more than one year.
2. Save on capital gains tax
Contributions of stock may have no tax liability on the difference between the cost of donated stock and its current, fair market value (FMV): i.e. there may not be tax on the capital gains.
Here is how it can work:
Assume you purchased 100 shares of XYZ Corporation in 1988 for $2,000. Today, the shares are worth $10,000. If you sold the stock, you would realize an $8,000 capital gain. Under current tax rules, you could owe as much as $1,600 in federal capital gains tax (plus more in state taxes). You decide to make a $10,000 gift to "charityname". Normally, you make your gift by an on-line donation or check, but this year you decide to see whether a stock gift would work better for you. Your comparisons are (federal tax benefits only):
You become entitled to a charitable income tax deduction for the fair market value of the gifted securities as of the date of gift. You eliminate capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds from the sale to nonprofit. Your charitable deduction can be claimed against up to 30% of your adjusted gross income and any unused deductions can be carried forward over the next five years. This helps you to achieve your long-term financial objective of reducing your income and estate taxes.
If you find that you have securities that have declined in value over the years and are interested in donating them to nonprofit, you may find it more advantageous to sell the securities first and contribute the proceeds to nonprofit as opposed to donating the securities outright. This strategy should allow you to claim a deduction for both the loss from the sale of the securities as well as the charitable gift.
If you are considering donating stock that is subject to a cash merger or tender offer, it is important for you to note that you will be subject to tax on the capital gain even though the shares were transferred to Youth Development Network before the tender offer became effective.
Gifts of appreciated securities could provide even greater benefits to you through a charitable planned gift arrangement. Click here to learn more about the various giving options
Note: Youth Development Network is obligated to record your gift as of the day it is received into its brokerage account. Consequently, given the increased volume of year-end gift transactions, it is advisable for you to plan your year-end charitable giving as early as possible. You may wish to have regular communications with your broker to ensure that the transfer has actually taken place. These steps should help to assure you receive proper credit for your gift within the tax year desired. Youth Development Network does not make any representations as to the accuracy of the above information. You should always consult with your financial advisor before initiating a charitable gift arrangement.
To donate stock:
Thank you for your interest in donating stock to Youth Development Network. Electronic delivery of stock shares is the most secure and expedient delivery process available and provides efficient internal control as well as cost savings. However, you may also transfer certificates directly. To help you facilitate a gift of stock, please use the following instructions. Or click here and go straight to our Gift Form for an electronic submission.
Securities Delivered Electronically
"brokerfirstname" "brokerlastname" "brokeremailId"
"brokerage_name"
"brokerage_street"
"broker_city", "broker_state" "broker_zip"
DTC Number: "brokerage_dtc"
Account Name: "brokerage_acctnm"
Tax ID# (EIN): "CharityEIN"
Account Number: "brokerage_acctno"
Please instruct your broker to include your name in the delivery instructions.
So that we are able to ensure proper acknowledgement of your gift for income tax purposes, we ask that you notify us in advance of any electronic transfers of securities. You may notify us online by e-mailing us at "emil_id" or you may complete the Gift Notification Form and forward it to us at the address referenced above. The information you provide should include a description of the securities donated, the number of shares of stock or face amount of bonds, your name, address, phone number and e-mail address if available.
Securities Delivered by Mail
Mail your unendorsed certificate(s) and stock power in separate envelopes by registered mail to:
"charityname"
"charitystockdepartment" "charitystockstreet"
"charitystockcity", "charitystockstate" "charitystockzip"
Notification of Donor Intent
Regardless of the method chosen to deliver a gift of stock, the donor or the transferring broker must provide a letter including the following information, for audit and acknowledgment purposes ("clickhere" for a sample letter, which you can customize):
* Donor's name and complete address
* Name and number of securities transferred
You may use the "giftform", provide a letter, or send an e-mail to communicate this information at time of transfer to:
"charityname"
"charitystockdepartment""charitystockstreet"
"charitystockcity", "charitystockstate" "charitystockzip"
E-mail: "charitystockemail"
Contact: "charitystockfname" "charitystocklname"
Phone: "charitystockphone"
Fax: "charitystockfax"
Valuation for Tax purposes and date of gift
The date of the gift is the day of the stock passes from your control. The value, for income tax purposes, is the mean between the high and the low quoted selling price on that day. Your gift will be acknowledged by "charityname"
Stock Donations
You can realize two tax savings by contributing stock as a gift to Youth Development Network.
1. Deduction for charitable contribution
Federal and state tax law permits taxpayers who itemize to deduct the current value of charitable contributions from their adjusted gross income. To qualify for such a deduction, the stock must have been held by the taxpayer for more than one year.
2. Save on capital gains tax
Contributions of stock may have no tax liability on the difference between the cost of donated stock and its current, fair market value (FMV): i.e. there may not be tax on the capital gains.
Here is how it can work:
Assume you purchased 100 shares of XYZ Corporation in 1988 for $2,000. Today, the shares are worth $10,000. If you sold the stock, you would realize an $8,000 capital gain. Under current tax rules, you could owe as much as $1,600 in federal capital gains tax (plus more in state taxes). You decide to make a $10,000 gift to "charityname". Normally, you make your gift by an on-line donation or check, but this year you decide to see whether a stock gift would work better for you. Your comparisons are (federal tax benefits only):
| Option A Give Securities As Gift |
Option B Give $10,000 by Check |
Option C Sell Securities & Give Cash |
|
| |
|||
| Gift Value | $10,000 | $10,000 | $10,000 |
| |
|||
| Ordinary Income Tax Savings | $3,960 | $3,960 | $3,960 |
| |
|||
| Capital Gains Tax | $1,600 Saved | N/A | $1,600 Paid |
| |
|||
| Net Tax Savings | $5,560 | $3,960 | $2,360 |
You become entitled to a charitable income tax deduction for the fair market value of the gifted securities as of the date of gift. You eliminate capital gains tax that would ordinarily become due if you had sold the appreciated securities on the open market and donated the proceeds from the sale to nonprofit. Your charitable deduction can be claimed against up to 30% of your adjusted gross income and any unused deductions can be carried forward over the next five years. This helps you to achieve your long-term financial objective of reducing your income and estate taxes.
If you find that you have securities that have declined in value over the years and are interested in donating them to nonprofit, you may find it more advantageous to sell the securities first and contribute the proceeds to nonprofit as opposed to donating the securities outright. This strategy should allow you to claim a deduction for both the loss from the sale of the securities as well as the charitable gift.
If you are considering donating stock that is subject to a cash merger or tender offer, it is important for you to note that you will be subject to tax on the capital gain even though the shares were transferred to Youth Development Network before the tender offer became effective.
Gifts of appreciated securities could provide even greater benefits to you through a charitable planned gift arrangement. Click here to learn more about the various giving options
Note: Youth Development Network is obligated to record your gift as of the day it is received into its brokerage account. Consequently, given the increased volume of year-end gift transactions, it is advisable for you to plan your year-end charitable giving as early as possible. You may wish to have regular communications with your broker to ensure that the transfer has actually taken place. These steps should help to assure you receive proper credit for your gift within the tax year desired. Youth Development Network does not make any representations as to the accuracy of the above information. You should always consult with your financial advisor before initiating a charitable gift arrangement.
How do I establish a life income gift?
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gift now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to Youth Development Network now, and in return, you (and a survivor, if you wish) receive income life. As a result, the assets are used to carry out our mission.
By making a life income gift to Youth Development Network, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do.
> A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
> Your effective yield is increased by substantial income tax savings.
> Income can be taxed more favorably in some plans.
> You unburden yourself of investment concerns.
> Your probate and estate administration costs may be reduced.
What are examples of life income plans?
> Charitable Gift Annuity
> Joint and Survivor Annuities
> Charitable Remainder Trust
> Unitrust
> Annuity
> Pooled Income Fund
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Family obligations and the need to provide for retirement, coupled with the high cost of living, make it difficult for many people to consider substantial charitable gift now. But there is a way to have the satisfaction of making a meaningful lifetime gift without sacrifice. In fact, you can get current income tax and financial benefits. It is called a life income gift. You irrevocably transfer some assets to Youth Development Network now, and in return, you (and a survivor, if you wish) receive income life. As a result, the assets are used to carry out our mission.
By making a life income gift to Youth Development Network, you will receive the following benefits, in addition to the pleasure of knowing the good work your gift will do.
> A charitable deduction in the year you make the gift for the present value of our right to eventually receive the assets.
> Your effective yield is increased by substantial income tax savings.
> Income can be taxed more favorably in some plans.
> You unburden yourself of investment concerns.
> Your probate and estate administration costs may be reduced.
What are examples of life income plans?
> Charitable Gift Annuity
> Joint and Survivor Annuities
> Charitable Remainder Trust
> Unitrust
> Annuity
> Pooled Income Fund
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Life Insurance Gift
Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to Youth Development Network. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Some of our supporters no longer need their life insurance that was purchased years ago to provide for children or other family members. If that is your situation, please consider donating the policy to Youth Development Network. You may claim a charitable deduction for approximately the policy's cash surrender value, and the proceeds are completely removed from your estate.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Retirement Plan Gift
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to Youth Development Network.
One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to Youth Development Network. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of Youth Development Network's right to eventually receive the trust assets.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
For example: Mrs. Edwards irrevocably transfers $100,000 to create a charitable remainder annuity trust that will provide her with life income payments. Included in the trust agreement is the stated payout percentage of 7. She will receive $7,000 annually for her life ($100,000 x 7%). If income earned by the trust exceeds the fixed payment of $7,000, the excess is reinvested.
The many benefits of a Charitable Remainder Trust include:
- receive income for life
- eliminate taxes on capital gains on the sale of appreciated securities
- receive immediate charitable income tax deduction based on your age
- remove all or most of the assets donated from your estate, thereby
- reducing potential estate taxes
- receive the satisfaction of supporting Youth Development Network
These types of trust allow you to attain your own personal financial objectives while making a significant gift to Youth Development Network. The best type for you depends on your own individual needs.
A Pooled Income Fund is a type of charitable remainder trust that operates somewhat like a mutual fund, wherein your gift to the fund, along with similar gift from others, are invested in a common fund. A pooled income fund gift may be established with an amount as little as $5,000. You will receive income earned by the fund in proportion to the number of shares you have in the fund. Youth Development Network may use the remaining principal only after your death (and the death of one surviving beneficiary if one is designated).
For example, Mr. Simon's $10,000 life income gift is invested in our pooled income fund. The fund's net income is 6 percent this year, so he receives $600--his share of the annual earnings. Each year, Mr. Simon's payment will reflect any increase or decrease in the fund's net income.
Note: Currently, pooled income fund gift are unavailable in the states of Arkansas, Connecticut, Florida, Mississippi, Nebraska and Tennessee.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
Many individuals today have large qualified retirement plans such as an IRA, 401(k), or Keogh plan. These assets have been growing tax-free for years. Once the owner begins to receive payments from the qualified plans, the distributions are taxed. The plans are also included in the owner's taxable estate. A retirement plan may be an excellent source of funds for making a gift to Youth Development Network.
One way to make a gift of your retirement plan is to create a charitable remainder trust through your will. It works like this: Your IRA assets will be transferred to a charitable remainder trust. There is no tax due because the charitable remainder trust is a tax-exempt entity. The trust will provide life income to the beneficiary (for example, your child) with an eventual gift to Youth Development Network. The beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of Youth Development Network's right to eventually receive the trust assets.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
For example: Mrs. Edwards irrevocably transfers $100,000 to create a charitable remainder annuity trust that will provide her with life income payments. Included in the trust agreement is the stated payout percentage of 7. She will receive $7,000 annually for her life ($100,000 x 7%). If income earned by the trust exceeds the fixed payment of $7,000, the excess is reinvested.
The many benefits of a Charitable Remainder Trust include:
- receive income for life
- eliminate taxes on capital gains on the sale of appreciated securities
- receive immediate charitable income tax deduction based on your age
- remove all or most of the assets donated from your estate, thereby
- reducing potential estate taxes
- receive the satisfaction of supporting Youth Development Network
These types of trust allow you to attain your own personal financial objectives while making a significant gift to Youth Development Network. The best type for you depends on your own individual needs.
A Pooled Income Fund is a type of charitable remainder trust that operates somewhat like a mutual fund, wherein your gift to the fund, along with similar gift from others, are invested in a common fund. A pooled income fund gift may be established with an amount as little as $5,000. You will receive income earned by the fund in proportion to the number of shares you have in the fund. Youth Development Network may use the remaining principal only after your death (and the death of one surviving beneficiary if one is designated).
For example, Mr. Simon's $10,000 life income gift is invested in our pooled income fund. The fund's net income is 6 percent this year, so he receives $600--his share of the annual earnings. Each year, Mr. Simon's payment will reflect any increase or decrease in the fund's net income.
Note: Currently, pooled income fund gift are unavailable in the states of Arkansas, Connecticut, Florida, Mississippi, Nebraska and Tennessee.
We make no claims regarding the accuracy of the above information or the tax consequences stemming from your use of it. Please consult with your own tax, legal, or financial planning advisor.
