Protecting your future and the future of those you care for is one of life’s greatest responsibilities. The many charitable giving options Hillside Family of Agencies offers provide you with the opportunity to achieve both your philanthropic and income goals, thereby giving you piece of mind in knowing that your legacy is secure. You may restrict your gift to a specific area or program within Hillside to ensure the quality of the services that make a lasting difference in the lives of those who need it most.
Donor benefits of giving an outright donation of cash or securities or bequesting a set dollar amount in your will to a named Hillside affiliate include federal estate tax deductions and, dependent on the state, a death tax savings. Gifts through Life Insurance Policies Donor benefits of naming a Hillside affiliate as the owner and beneficiary of a life insurance policy on which the donor continues to pay premiums include: an immediate tax savings; and additional tax deduction for the premiums paid in future years, which will then pass on to your beneficiaries.
Donors giving appreciated real estate held for more than one year avoid capital gains tax and can receive an income tax deduction equal to the value of the donated property.
Partially tax-free income and life-long payments are just a few of this option’s many benefits. A gift with a minimum of $15,000 is required. Securities or cash are transferred to Hillside and you sign an irrevocable contract that requires Hillside to make payments to you for life. The older a beneficiary is, the higher the rate of return.
Donor benefits of a contribution of cash or marketable securities converted to shares in the fund include: making a gift you may otherwise not be able to make; partial income tax reduction; no capital gains tax; asset is removed from taxable estate; and spendable income is increased.
Charitable Remainder Trust (CRT)
The charitable trust has two functions–immediate benefit to you and your beneficiaries and a later benefit to Hillside. With a CRT, you transfer money or property to a trustee, requiring the trustee to pay benefits exclusively to you or to another person for life or a certain period of time. When the individual benefits terminate, the property transfers to a Hillside affiliate.
Charitable trusts generally come in two basic forms: the annuity trust or the unitrust. The annuity trust provides you or another named beneficiary a fixed annuity for life. The annuity payment must be at least five percent, but no more than 50 percent of the value of your gift. With a unitrust, the amount of the benefit paid to you, and to any other named beneficiary, is a specified percentage of the value of the trust property as revalued each year.
This option involves the transfer of assets to a trust specifying the income be paid to a Hillside affiliate for a term of years, after which the remaining interest passes to a donor’s designated beneficiaries.
Donors can use their IRA to benefit both family members and a Hillside affiliate with excellent tax results. For example, you can leave your retirement account to a trust that will pay income for life or a fixed number of years. Or, you can leave part of your retirement account to a Hillside affiliate and the rest to family members. You may also consider making a Hillside affiliate an alternative beneficiary and give your heirs the right to “disclaim.” It is always beneficial to contact your financial advisor or lawyer to assist you in achieving your philanthropic goals.
For more information please contact:
- Pamela White
- Director, Major Gifts and Planned Giving
- Crestwood Children’s Foundation
- Hillside Children’s Foundation
- (585) 256-7513
- E-mail: pwhite@hillside.com
Rochester, NY 14620-1699
