By making a legacy gift to the Y, you can continue to create a healthier and stronger New York City for years to come. Outlined below are some answers to frequently asked questions related to the more popular ways to give.
Sample Bequest Language
UNRESTRICTED BEQUEST OF STATED SUM OR SPECIFIC ASSETS
The standard legal wording for this basic type of bequest is as follows:
‘I give to the Young Men’s Christian Association of Greater New York (YMCA of Greater New York), a charitable organization (Tax ID 13-1624228) located at 5 West 63rd Street, 6th Floor, New York, NY 10023, [insert $ amount, percentage of residuary estate, or otherwise name gifted assets] for general program purposes or to benefit the ___________ Branch, to be used for its exempt purposes."
UNRESTRICTED RESIDUARY BEQUEST OF A PERCENTAGE OF YOUR ESTATE
This kind of bequest is a good technique of ensuring that the YMCA of Greater New York will receive the desired portion of an eventual estate, no matter how the nature and disposition of assets might change and grow over the years. The residual of an estate can be directed to the YMCA after bequests of specific amounts are provided to family members and friends. The appropriate wording would be as follows: "I give ____ percent of the rest, residual and remainder of my estate to the Young Men’s Christian Association of Greater New York (YMCA of Greater New York), a charitable organization (Tax ID 13-1624228) located at 5 West 63rd Street, 6th Floor, New York, NY 10023, or benefit the ___________ branch, to be used for its exempt purposes."
CONTINGENT UNRESTRICTED BEQUEST
In case an heir named in a contributor's Will is unwilling or unable to accept the bequest, the contributor can designate the YMCA of Greater New York as a contingent beneficiary of all or a portion of an estate. Such a bequest would read: "If (name of primary beneficiary) predeceases me or disclaims any interest in (the desired sum, property or percentage of the estate) I give such (sum, property or percentage of the estate) to the Young Men’s Christian Association of Greater New York (YMCA of Greater New York), a charitable organization (Tax ID 13-1624228) located at 5 West 63rd Street, 6th Floor, New York, NY 10023, to benefit the _______________ branch, to be used for its exempt purposes.
IRA Charitable Rollover
I've already named the YMCA of Greater New York as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
I'm turning age 70½ in a few months. Can I make this gift now?
No. The legislation requires you to reach age 70½ by the date you make the gift.
I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit-sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to the YMCA of Greater New York. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Can my gift be used as my required minimum distribution under the law?
Yes, absolutely. Starting in 2023, retirees must begin taking taxable withdrawals at age 73.
When do I need to make the gift?
We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 18 in order to give us time to process your gift before the end of the year.
Do I need to give my entire IRA to be eligible for the tax benefits?
No. You can give any amount under this provision, as long as it is $100,000 or less per year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
I have two charities I want to support. Can I give $100,000 from my IRA to each?
No. Under the law, you can give a maximum of $100,000. For example, you can give each organization $50,000 this year or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
My spouse and I would like to give more than $100,000. How can we do that?
If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, they can also give up to $100,000 from their IRA.
Charitable Remainder Trusts
Benefits of a charitable remainder trust include: Potential for a partial charitable income tax deduction, potential for increased income, and up-front capital gains tax avoidance. Payments from CRT can be set up in two ways:
The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is re-determined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
We welcome the opportunity to have a confidential conversation with you at no obligation. If you would like more information, please contact us at: donorrelations@ymcanyc.org.
The content found on this site is general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting or other professional advice. To determine how a gift or estate planning decision might affect your particular circumstances, it is expressly recommended that you consult an attorney, financial advisor or other qualified professional.