Making a Planned Gift to the Association to Benefit Children
Association to Benefit Children (ABC) offers a wide range of gift
opportunities for those who wish to contribute to our comprehensive and
compassionate programs for some of New York City’s most vulnerable children
Planned giving enables you to make a charitable gift of estate assets to
ABC during your lifetime or through a will or testament. It will involve a
certain degree of planning on your part. Planned gifts provide enhanced tax
benefits and many types of planned gifts are designed to give an income back
to you during your lifetime. Almost all of them provide a tax deduction,
either an income tax charitable deduction now, or an estate tax charitable
deduction later. We suggest that you consult your tax advisor for help in
deciding the best type of gift for your situation.
Opportunities for participation include:
How You Can Make a Planned Gift to the Association to Benefit Children
Bequest (Remembering the Association to Benefit Children in your will)
You can make a gift in your will to ABC, payable from the assets in your
estate. This simple process of including a provision in your will that
articulates your charitable intentions allows you to make a gift later
rather than now. It also provides you with an estate tax charitable
deduction. By naming ABC in your will, you could save a tremendous amount on
estate taxes. Any asset that is donated to a charity is effectively removed
from your estate, and not subject to estate taxes.
Bequests are typically made in several ways. You can set aside a specific
amount or a percentage of your estate. You can even make the bequest
contingent on certain circumstances. You can ask that your bequest be
applied to a specific purpose, or you can allow us to use your gift where
it’s needed most.
A variety of assets other than cash, such as an insurance policy, stocks,
and property, can be used to fund a meaningful gift to ABC.
Charitable Remainder Trust
When you create a charitable remainder trust, you permanently transfer
money, securities or other assets to a trust that will then pay you an
income for life or for a period of years. If you wish, the trust also can
pay an income to another beneficiary of your choice. At the death of the
surviving beneficiary, the remaining principal in the trust would go to ABC.
You would receive an income tax charitable deduction for the present value
of the charitable remainder interest, and if funded with appreciated
securities or tangible personal property the funding would not trigger any
capital gain. It is common for such trusts to be funded with property that
has increased in value, due to the fact that neither the donor nor the trust
pays any capital gains tax at the time of funding.
A charitable remainder trust provides diversification of your
investments, possibly increased income for yourself or family members and
current income tax charitable deductions.
Charitable Lead Trust
If you want to minimize estate and gift taxes on assets you intend to
leave to your children or grandchildren, particularly when significant
assets are expected to appreciate, you may want to consider a charitable
lead trust. This option can be a tremendous way for you to provide a stream
of income to ABC during a period of time prior to having the trust's assets
pass to your heirs at a substantially reduced gift or estate tax cost.
The way to set up a charitable lead trust is to transfer assets to a
trust that provides payments to ABC for a term of years. The trust principal
then goes to your heirs at greatly reduced – or even without – 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.)
A gift annuity is a simple, contractual agreement between you and ABC in
which you transfer assets to us in exchange for our promise to pay you an
annuity - a fixed, guaranteed amount. In almost every instance, a portion of
the payments will be tax-free, plus you receive an income tax deduction for
a portion of the value of the assets contributed.
For a period of years, based on a government table of life expectancies,
a portion of each payment received is considered a nontaxable return of your
investment in the gift. This further increases your after-tax dollars
available for spending or investing. If you itemize deductions on your tax
return, savings from the charitable deduction reduce the net cost of the
In addition to the annuity payment you receive, an annuity funded with
appreciated property results in these advantages: (1) the gain allocated to
the gift portion completely avoids the capital gains tax, and (2) the
portion of gain to be recognized can be spread over the expected term of the
A deferred payment gift annuity allows you to delay the start of payments
until a specified date. Deferral of payments increases the initial income
tax charitable deduction, tax savings and the annuity rate. However, it also
reduces the nontaxable amounts to be received. This option is appealing to
younger donors who wish to improve future income, such as at retirement.
You can transfer ownership of paid-up policies no longer needed by your
family to ABC and receive a current income tax charitable deduction for the
approximate cash value amount of the policies.
You also can make ABC the owner and beneficiary of a policy requiring
premiums from you and receive an income tax deduction for the premiums that
you pay. Or you can make ABC your Contingent or Final beneficiary in case
your primary beneficiaries pre-decease you.
Pooled Income Fund
A pooled income fund contribution has some of the same features as a
mutual fund investment. Your gift of cash or certain marketable securities
is combined with similar gifts in a single fund. The fund's income for the
year is then distributed in proportion to the interests of all of the fund's
donors. You also receive a current income tax charitable deduction.
You name ABC as beneficiary for all or part of your retirement plan. This
keeps the funds from being taxed twice at your death (income tax and estate
tax). Then, ABC receives the gift and your estate gets a tax deduction.
Gifts of Stock
You transfer ownership of appreciated stock to ABC and receive a
charitable income tax deduction. You may wish to reinvest the tax savings
into the same stock, obtaining a higher cost basis for that stock. ABC is
free to sell the stock and benefit from the entire sale proceeds.
For more information, please contact Andrea Zepler at
The Association to Benefit Children
419 East 86th Street
New York, NY 10028
Other Ways to Support ABC