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Planned Giving

You may be surprised to learn that estate planning and planned giving are not just for the wealthy!  Anyone who wants to ensure that their personal assets—however limited or substantial—are used wisely should consider estate planning. If we fail to plan properly for the future, a good portion of our assets could be consumed by various types of taxes, rather than passed along to the people and causes you care about.

By preparing a proper estate plan, you can accomplish your personal, financial, and philanthropic goals while protecting your assets and, in many instances, sharing them. Furthermore, an estate gift made in your lifetime may well be the best way to make a donation, benefit your heirs, and create additional income for you!

For those who want to support a charity through planned giving, it is important to keep in mind that a gift of cash can sometimes be the least tax-efficient way to make a gift.  Using other assets for the same value gift can cost you much less, out of pocket.

There's More than One Way to Make a Gift

When it comes to planned gifts, there are numerous giving options to select from that will be beneficial to Community Youth Services while providing significant tax benefits and reflecting your own values, needs, and priorities. They vary depending upon when you would like to give your gift, whether your gift involves a monetary transaction or tangible personal property, and whether you would like to receive income throughout your lifetime.

We invite you to review the following and explore those options that fit your objectives: financial, personal, and philanthropic. With thoughtful will and trust arrangements you can benefit those who mean the most to you—including the charitable causes you support.

This site is not intended to replace professional advice. We encourage you to discuss planned gifts with your own attorney or qualified financial advisor.  To the extent that CYS can assist you in finding answers to your estate planning questions, we will be glad to. And if we can help you develop a plan that meets your objectives and helps to ensure a more promising future for local youth, then for that we are exceedingly grateful.

For general information about planned giving and Community Youth Services, please contact Lynsi Polanco, Development Director, at (360) 918-7822, or click here to email.

FIRST: A Basic Glossary of Planned Giving Terms... to help you navigate your way through the process:

  • Beneficiary: One named in a will, trust, or other legal document to receive an interest in an estate.
  • Bequest: A direction in a will to pay over or distribute personal property. Also called a legacy.
  • Estate: Everything in which a deceased person owns an interest at the time of his/her death.
  • Irrevocable Trust: A trust that cannot be changed or dissolved.
  • Legacy: A disposition of personal property by a will.
  • Life Estate: A gift of property in which the donor retains the right to use the property for life.
  • Life Income Trust: A plan whereby gift assets are placed in trust for the lifetime benefit of an income beneficiary, with the remainder going to another beneficiary.
  • Planned Giving: Arrangement in which a donor sets aside money or property for a charity’s future use.
  • Remainder: The amount remaining in a trust after income payments have ended. A remainder is vested when payable to a designated beneficiary.
  • Revocable Trust: A trust that can be changed or dissolved at any time by the donor.
  • Testamentary Trust: A trust established through a will.
  • Trust: An arrangement whereby assets or property are held by an individual or institution for the benefit of others.
  • Will: A legal instrument disposing of assets or property at the time of someone’s death.

NEXT: Select a Giving Option That Matches Your Goals

What follows is a brief list of ideas for your own giving. We’ve included the most common types of planned gifts, but there can be many variations. Whatever method of giving you choose, we can work along with you in determining the ultimate use for your gift. Please always discuss your gift with your own qualified financial advisors.

As always, we very much appreciate your interest in supporting CYS!

Your Gift: Bequest
Your Goal: Defer a gift until after a lifetime
How to Make the Gift: Name CYS in your will, designating a specific amount or percentage amount or a share of the residue
Your Benefits: The donation is exempt from federal estate taxes

Your Gift: Revocable Living Trust
Your Goal: Make a revocable gift during your lifetime
How to Make the Gift: Name CYS the beneficiary of assets in a living trust
Your Benefits: You maintain control of the trust for your lifetime

Your Gift: Outright gift of cash
Your Goal: Make a quick and easy gift
How to Make the Gift: Simply write a check or make a cash donation now
Your Benefits: Immediate income tax deduction; possible estate tax savings

Your Gift: Outright gift of securities
Your Goal: Avoid tax on capital gains
How to Make the Gift: Contribute long-term appreciated stock or other securities
Your Benefits: Immediate charitable deduction; avoidance of capital gains tax

Your Gift: Outright gift of personal property
Your Goal: Share your enjoyment of a collection or personal item
How to Make the Gift: Donate tangible personal property related to CYS exempt function
Your Benefits: Charitable deduction based on the full fair market value

Your Gift: Gift of life insurance
Your Goal: Make a large gift with little cost to yourself
How to Make the Gift: Contribute a life insurance policy you no longer need and/or name CYS as beneficiary
Your Benefits: Current income tax deduction; possible future deductions through gifts to pay policy premiums

Your Gift: Gift of retirement assets
Your Goal: Avoid the twofold taxation on IRAs or other employee benefit plans
How to Make the Gift: Name CYS as the beneficiary of the remainder of the assets after your lifetime
Your Benefits: Allows less costly assets for your heirs

Your Gift: Gift of real estate
Your Goal: Avoid capital gains tax on the sale of a home or other real estate
How to Make the Gift: Donate the property to CYS, or sell it to us at a reduced price
Your Benefits: Immediate income tax deduction; reduction or elimination of capital gains tax

Your Gift: Retained Life Estate
Your Goal: Give your personal residence or farm now but continue to live there
How to Make the Gift: Designate ownership of your home to us, but retain occupancy
Your Benefits: Valuable charitable income tax deduction; lifetime use of residence

Your Gift: Charitable Remainder Unitrust
Your Goal: To create a hedge against inflation over the long term
How to Make the Gift: Create a trust that pays a fixed percentage of the trust's assets as revalued annually
Your Benefits: Receive a variable income for life; immediate income tax charitable deduction

Your Gift: Charitable Remainder Annuity Trust
Your Goal: Secure a fixed and often increased income
How to Make the Gift: Create a charitable trust or charitable gift annuity* that pays you a set income annually
Your Benefits: Immediate income tax deduction; fixed income for life, often at higher rate of return

Your Gift: Charitable Gift Annuity
Your Goal: Supplement income with steady payments that are partially tax-free
How to Make the Gift: Enter a charitable gift annuity* contract with CYS that pays you a set amount for life
Your Benefits: Current and future savings on income taxes; fixed payments for life for one or two individuals

Your Gift: Charitable Lead Trust
Your Goal: Reduce gift and estate taxes on assets you pass to children or grandchildren
How to Make the Gift: Create a charitable trust that pays fixed or variable income to use for a specific term of years; principal is retained for heirs
Your Benefits: Reduces your taxable estate; your family keeps the property, often with reduced gift taxes

*Charitable gift annuities are not available in all states or from some charitable organizations

NEXT: Suggested Wording for Various Types of Bequests... and other helpful information you may need

Community Youth Services is pleased to provide the following suggested wordings for various types of bequests for your attorney to use in drawing up your will.  Your attorney can help you determine which versions are right for you.
         
Regardless of the specific wording used, it’s important to use the proper legal name and location, as follows:  “Community Youth Services, a Washington corporation located in Olympia, Thurston County, Washington.”

Please Note: 

  1. For monetary bequests, we strongly encourage donors to specify a percentage of their estate for CYS, rather than a dollar sum.  This approach is both fair to your other heirs and will ensure that your gift to CYS will benefit the agency as you intended.
  2. If you plan to put a specific restriction on the use of your bequest (such as for a particular program or purpose or for our endowment), please consult with Susan Alexander, Director of Resource Development, to help ensure that CYS can/will accept your restriction(s).  We can give you some ideas for the proper wording of your bequest to help assure that it will be used according to your wishes and to its fullest potential.
  3. The minimum size for a separate named and/or restricted endowment fund is $25,000.

 

Suggested Wording for an Unrestricted Bequest

I give to Community Youth Services, a Washington corporation located in Olympia, Thurston County, Washington, or its legal successor thereto [insert here the percent portion of the estate, sum of money, description of property, or “the rest, residue and remainder of my estate”] to be used for its general tax-exempt purposes and without other restrictions as to use.

Suggested Wording for a Restricted Bequest

[Please check with the Director of Resource Development about how to word restrictions so that your wishes will be carried out in the best manner possible.]

I give to Community Youth Services, a Washington corporation located in Olympia, Thurston County, Washington, or its legal successor thereto [insert here the percent portion of the estate, sum of money, description of property, or “the rest, residue and remainder of my estate”] to be used for [insert here the purpose for which the gift is to be used; e.g., “for foster parent programs,” “for crisis shelter programs,” “for homeless programs,” etc.]  If in the future there is no longer a need for the funds so specified or it is unwise, in the judgment of the Board of Directors of Community Youth Services, to use the gift for the purpose(s) specified above, then the Board of Directors, in its discretion, may use the gift to fulfill such other tax-exempt charitable objectives as it may designate, keeping in mind the objective(s) set forth above and keeping as close as possible to the original purpose of the gift.

Suggested Wording for an Unrestricted Bequest to the CYS Endowment

I give to Community Youth Services, a Washington corporation located in Olympia, Thurston County, Washington, or its legal successor thereto [insert here the percent portion of the estate, sum of money, description of property, or “the rest, residue and remainder of my estate”] which bequest shall:  (1) if large enough to meet the minimum sum required for a permanent endowment, be used to create a permanent endowment fund in my name [or name(s) of loved ones, mentor, etc.] of which the principal is kept intact and only the income and/or growth expended, to be administered in accordance with policies established by Community Youth Services for its general tax-exempt purposes and without other restrictions as to use; or, (2) if not large enough to meet the minimum sum required for a permanent endowment, be allocated to the general endowment fund of CYS.

Suggested Wording for a Restricted Bequest to the CYS Endowment

[Please check with the Development Director about how to word restrictions so that your wishes will be carried out in the best manner possible.]

I give to Community Youth Services, a Washington corporation located in Olympia, Thurston County, Washington, or its legal successor thereto, [insert here the percent portion of the estate, sum of money, description of property, or “the rest, residue and remainder of my estate”] , to establish a permanent endowment fund in my name [or name(s) of loved ones, mentor, etc.] to be used for [insert here the purpose for which the gift is to be used; e.g., “for foster parent programs,” “for crisis shelter programs,” “for homeless programs,” etc.].
The specific purpose(s) of the endowment fund, and criteria for which its investment income is to be spent for such purpose(s), shall be governed by an agreement with CYS kept by its Director of Resource Development and Chief Operating Officer.  In the absence of such an agreement, or if the bequest does not meet the minimum sum required to create a permanent endowment fund, the Directors of Community Youth Services are authorized to use the bequest or its investment earnings in the best manner possible for the purpose(s) specified above, as they may so designate.  If in the future there is no longer a need for the funds so specified or it is unwise, in the judgment of the Directors of Community Youth Services, to use the gift for the purpose(s) specified above, then the Board of Directors may, in its discretion, use the gift to fulfill such other tax-exempt charitable objectives as it may designate, keeping in mind the purpose(s) of the gift set forth above and keeping as close as possible to the original purpose(s).

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Note:  Immediately following any of the above wordings, in order to reduce possible income taxes due on the estate, your attorney may add, “This gift shall be paid out of ‘income with respect of a decedent,’ as that term is defined in the Internal Revenue Code, to the fullest extent possible.  If such ‘income with respect of a decedent’ as valued for U.S. estate tax purposes is insufficient to pay this bequest, then the bequest shall be paid to the extent necessary out of the general assets of my estate.”

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Changing an Existing Will

If your current will is OK, but does not include a bequest for Community Youth Services, you can change it quickly and inexpensively to make a gift to CYS by using a document called a “codicil.”  This is a legal way to modify an existing will.  Your attorney will be able to prepare a codicil for you by using the information provided here about Unrestricted and Restricted bequests.

Informing Community Youth Services

Your thoughtful plans mean a great deal to Community Youth Services and its patrons.  Such testamentary gifts will, over the years, provide a strong financial base to help us fulfill CYS’s mission in many ways.  When you make a bequest to CYS, please notify us so we can express our appreciation for your generosity and recognize you appropriately.

Friends who have included CYS in their wills or made other “planned” gifts, such as charitable trusts, gifts of life insurance, etc., automatically become members of CYS Legacy Circle.  Members of the CYS Legacy Circle are invited to special social events, and are recognized with other donors in CYS publications.

Once again, in addition to notifying us if you are making a bequest to CYS, if you want to place a restriction on the use of your bequest, we ask you to contact the Director of Resource Development to discuss the nature of the restriction and whether or not it is acceptable to CYS.  We will also help you with the appropriate wording for your restriction to be sure it is clearly written and, thereby, most effective. 

If you have questions, please contact:

Lynsi Polanco, Development Director

Community Youth Services
711 State Ave NE
Olympia, WA 98506

Phone: (360) 918-7822

Email

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