Heritage Club

 
The Heritage club is comprised of individuals and families who support the mission of the Newark YMCA through gifts to the YMCA’s endowment funds.  As the leading nonprofit for Youth Development, Healthy Living and Social Responsibility, you can trust that your gift will support our Y’s mission for generations to come. Your gift today ensures that tomorrow’s kids and families can enjoy the same chance to learn, grow, and thrive. A planned gift strengthens our Y’s endowment and delivers two benefits. In addition to the satisfaction of making a lasting gift, your generosity can result in significant tax and estate planning advantages for both you and your family.

  

 

 

 

 

Membership Privileges

A gift of $10,000 will provide a spot on our donor plaque placed in our building.

Membership Qualifications

  • An outright gift to the Newark YMCA Heritage Club Endowment Funds of money, securities, property, or other marketable assets.
  • Naming the Newark YMCA Heritage Club to receive a bequest in one’s will or living trust.
  • Naming the Newark YMCA Heritage Club as the beneficiary of life insurance.
  • Naming the Newark YMCA Heritage Club as a remainder beneficiary of a Charitable Remainder Trust, Gift Annuity, Pooled Income Fund, IRA or a gift of personal residence with a retained life estate.
  • Make a commitment now or in the future to support YMCA quality programs and services that build a healthy spirit, mind and body for all!

 

Bequest

How it Works & Benefits:

  1. You include a bequest provision in your will or trust
  2. At your death, the Newark YMCA receives the bequest you specified

Deferred Gifts

How it Works & Benefits:

  1. Charitable Lead Trust – your heir will benefit with potentially lower tax rate, and the charity receives an annual payment
  2. Confer with your accountant, tax advisor, or wealth manager

IRAs & Retirement Plans

How it Works & Benefits:

  1. Naming the YMCA primary beneficiary avoids all income and estate taxes
  2. Partial savings occur when you give the YMCA a specific amount before giving the family the remainder
  3. Naming the YMCA as the contingent beneficiary allows for greater flexibility

Qualified Charitable Distributions

You can gift money directly from your IRA to a charity while you are living if you meet certain criteria. You must be age 70 1/2 or older and have the trustee of your IRA transfer the money directly from the IRA to the YMCA and the amount of the qualified charitable distribution can’t exceed $105,000 per calendar year. The advantage to using a qualified charitable distribution to gift your IRA to the YMCA is you don’t have to report the distribution as income and then itemize your deductions to claim the tax break.

How it Works & Benefits:

  1. Instruct the IRA custodian to make a Qualified Charitable Distribution of up to $105,000 per year made payable to Newark YMCA Heritage Club
  2. IRA custodian will issue a check directly to the Newark YMCA Heritage Club
  3. Distribution is not taxable and does not have to be reported as income on a tax return

Life Insurance

A life insurance policy with greater coverage than you need at this time can be a sensible gift to consider. You can also use life insurance to replace the value of a different gift. For example, you could donate stock to the YMCA due to the tax advantages and then purchase life insurance to benefit your heirs in the amount they would receive had you left them the stock.

How it Works & Benefits:

  1. Donors can make a sizable face value gift for a minimal outlay of cash
  2. May give an existing policy (fully paid, partially paid or a new policy)
  3. Naming the YMCA as beneficiary. Upon the donor’s death, the YMCA will receive all or portions designated from the policy
  4. The donor is entitled to a charitable income tax deduction equal to the cash surrender value of the property and any future premiums paid only if the YMCA is named as the owner and beneficiary of the policy
  5. The donor will have flexibility by naming us beneficiary, but keeping ownership
  6. The donor will have security for your family by naming us contingent beneficiary
  7. The donor will have potential reduction in estate taxes because proceeds are removed from your estate

Real Estate

Before selling land, a building, or a personal residence, consider the advantages of offering it as a charitable contribution to the YMCA.

How it Works & Benefits:

  1. Donors can make a sizable face value gift for a minimal outlay of cash
  2. Donors can give while alive or give at passing by naming the Newark YMCA Heritage Club as a beneficiary. (Transfer on Death Deed)
  3. Income tax charitable deduction for the full market value
  4. Avoidance of tax on the property’s appreciation
  5. No gift tax, plus a reduction of your taxable estate
  6. Consult with your estate planning attorney

Another way to receive some of the tax advantages of a charitable gift of real estate, while continuing to live in your personal residence, is through a retained life estate. Even with stipulations about occupancy, a gift of your home, farm or condominium results in a charitable deduction on your income tax.

  1. Lifetime use of the residence for you and/or another person
  2. Income tax savings through charitable deduction
  3. Estate tax savings even when you give a non-spouse lifetime use
  4. Ability to give only partial interest in property and receive tax advantages
  5. Consult with your estate planning attorney

Securities

A stock or bond portfolio is often among the most valuable assets you own – and one that can carry substantial capital gain, or appreciation value. A gift of marketable securities is another charitable gift that presents a win-win situation for all. Although a charitable organization cannot legally be bound to go through the redemption at the time it receives the securities, the YMCA Heritage Club plans to convert them to cash and include the dollars with our other investment funds.

How it Works & Benefits:

  1. Income tax deduction for the full market value of the securities at the time of the charitable contribution
  2. No capital gains tax on the appreciation in value
  3. Consult your financial advisor and/or tax advisor

Donor Advised Fund

A Donor Advised Fund (DAF) is a philanthropic vehicle that allows donors to make charitable contributions, receive an immediate tax deduction, and then recommend grants from the fund over time. Donors can contribute assets such as cash, stocks, or other investments to the fund, which are then managed by custodian of the DAF at the direction of the donor. The funds can grow tax-free, and donors can recommend grants to their favorite charities whenever they choose, providing flexibility in their charitable giving. DAFs are a popular choice for individuals who want to streamline their giving, maximize their tax benefits, and support multiple charities through one fund.

Other Assets: Livestock, grain, digital currency, and other real assets such as collectibles

How it works & Benefits:

  1. Can be gifted to a Donor Advised Fund or directly to the Newark YMCA Heritage Club
  2. Receive a deduction for the market value of the gift and at this time of donation
  3. Avoid tax on income and/or appreciation of gifted asset
  4. Consult your tax advisor and/or financial advisor

Charitable Remainder Trust

If your goal is to provide income for your family with a significant estate tax savings, a charitable remainder trust may be your answer. A charitable remainder trust may allow you to make a substantial gift to the YMCA, avoid capital gains tax, and provide regular income for you and your family. Estate or gift taxes could potentially be reduced or eliminated.

How it Works & Benefits:

  1. Can be funded during your lifetime or through your will
  2. You support our mission through annual income payouts
  3. May reduce your taxable estate and potential gift taxes
  4. Consult with your tax advisor and estate planning attorney

Charitable Lead Trust

If your goal is to pass assts to your family with a significant estate tax savings, a charitable lead trust may be your answer. The YMCA receives income from assts in the trust for a period of years and the remaining principal goes to your family, with estate or gift taxes reduced and sometimes eliminated.

How it Works & Benefits:

  1. Can be funded during your lifetime or through your Will
  2. You support our mission through annual income payouts
  3. May reduce your taxable estate and potential gift taxes, leaving more of your assets in your family
  4. Consult with your estate planning attorney

A financial gift to the YMCA allows us to continually find new ways to build thriving communities. A planned gift to the Y will continue this work for generations. If you are interested, have any questions regarding the options above, or would like to become a Heritage Club member, please contact Olga Lorenzo via email at HeritageClub@newarkymca.org or by phone at 973-596-6824.