What is Planned Giving?
Planned giving can benefit you, your loved ones, and the Harlem Children’s Zone. A planned gift enables charitable donations at a level that you might not have thought possible, while maximizing tax benefits for you and your family. Through our planned giving options, HCZ can help you achieve your financial and philanthropic goals.
How Can You Support The Harlem Children’s Zone Through Planned Giving
Bequests
A will allows you to make gifts to your family and friends as well as to charitable organizations. Through a bequest, you may leave a specific dollar amount, all or a percentage of your residuary estate, or specific assets such as marketable securities.
Retirement Assets
Some assets are not transferred through a will. These include assets in a qualified retirement plan (qualified plans include an IRA, Keogh, 401(K), 403(B), or defined benefit plan) that remain after your lifetime. Often, a retirement plan is a pre-tax asset and, when transferred to a beneficiary, is subject to estate tax as well as income tax. Naming the Harlem Children’s Zone, Inc. as the beneficiary of your qualified retirement plan may be advantageous and financially judicious. Most often you simply need to name the Harlem Children’s Zone, Inc. on the beneficiary line when you sign up for your retirement plan, or to modify your current election by notifying your plan administrator.
Charitable Lead Trust
This is created by irrevocably transferring income-producing assets (cash, stock, other assets, or a combination of these) to the Harlem Children’s Zone, Inc. to be managed and invested. The income from these assets (either a fixed dollar amount or a fixed percentage of the trust principal as revalued annually) is paid to HCZ for a specified number of years. Upon termination of the trust, the remaining trust assets, including any appreciation in those assets, pass to you or your designated beneficiaries, with little (or no) gift taxes. During each year of the trust, you receives a charitable income tax deduction for the amount of that year's income paid to HCZ from the trust. Additionally, because the trust assets are removed from your estate, they are exempt from estate taxes.
Charitable Remainder Trust
This is established by irrevocably transferring income-producing assets to the Harlem Children’s Zone, Inc. to be managed and invested. You or your beneficiary will receive income payments for life or a period of up to 20 years, at the conclusion of which the trust's remaining assets will transfer to HCZ for its general use or use as specified by the terms of the trust instrument. Depending on how the trust is invested, the payments to you or your beneficiary may consist of ordinary income, capital gains income, tax-free income, or return of principal. Regardless, you are entitled to an immediate charitable income-tax deduction of the projected value of the "remainder interest" at the time the trust terminates. If appreciated property is used to fund the trust, you can reduce or eliminate capital gains tax on the appreciation.
If you have included the Harlem Children’s Zone in your long-range financial and/or estate plans, we would love to know. Please contact Jennifer Klein at
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or (212) 360-3255 so that we can thank you and include you in special mailings and events.
