Charitable Gift Annuity
a gift you can’t outlive

The charitable gift annuity is one of the simplest and most popular methods of planned giving.

If you’re 55 or older, HIAS contractually agrees to pay you (and/ or a loved one) a guaranteed lifetime income, which is partially tax-free, in exchange for an irrevocable gift of cash or appreciated marketable securities. You can also claim a charitable deduction on your income taxes. The amount you receive annually is based on the full value of your gift and varies according to your age. Since, a portion of the income you receive is income tax free, your return is further enhanced. When you can no longer collect the income, the remaining funds are used by HIAS, generation after generation, to continue our mission of rescue and safe resettlement for those fleeing oppression.

You may have stocks, bonds, CDs, or bank accounts that pay you less than you could receive from a HIAS charitable gift annuity.

Sample rates currently paid by HIAS for individual annuitants are:

Age	Rate
55	6.0%
60	6.4%
65	6.7%
70	7.2%
75	7.9%
80	8.9%
85	10.4%
90+	12.0%

 

Here's an example of how this can work. Let's assume Jack, who is 75 years old, has just redeemed a $10,000 CD, which was paying him 3.0%. Instead of rolling it over as usual, he contributes the money to HIAS to establish a charitable gift annuity. As a result he will:

• Be able to take a deduction on his current income taxes of approximately $3,805;
• Receive a fixed rate of return of 7.9% on the full value of his gift, $10,000;
• Receive $790 a year (more than double the CD rate), guaranteed for the rest of his life, of which more than half will be income tax free for the next 12 years (further enhancing his return);
• Reduce the value of his estate;
• Leave a continuing legacy of safety for future generations who may need HIAS’ help.

Deferred Charitable Gift Annuity
exceptional returns for an exceptional tomorrow

If you are saving for future income, a deferred charitable gift annuity may be just what you are looking for. When you establish a deferred charitable gift annuity with HIAS, you are eligible for an immediate charitable deduction on your income taxes for the year in which you make the gift, however, you can defer the payment of your lifetime annual income for up to 19 years (but no less than one year). This may be especially attractive to those who are already taking advantage of a 401(k) or 403(b), and an IRA, but would still like to ensure additional income for retirement years.

With a HIAS deferred charitable gift annuity, you do not have to worry about fluctuating interest rates or volatile market activity, because the income you will receive in the future is contractual, and determined at the time the annuity is established.

For example: Gerry, who has just turned 50, is saving for her retirement. She is already contributing the maximum to her company’s 401(k) plan and an IRA. She is also putting away extra savings but is still concerned that she will be caught short in her retirement years. Since she was helped by HIAS as a child, and wishes to support this type of assistance for future generations, she decides to contribute to a HIAS deferred charitable gift annuity. She establishes a $10,000 gift that will begin to pay her income when she retires in 16 years at age 66. As a result, she will:

• Be entitled to a charitable deduction on her income taxes in the year she makes the contribution (2002) of $ 5,002.80;
• Receive a fixed rate of 15.5% on the full contribution of $10,000;
• Receive an annual income of $1,550.00 for the rest of her life, beginning at age 66 years, of which $261.95 is income tax free through the year 2035;
• Leave a continuing legacy of safety for future generations who may need HIAS’ help, just as she did when she was a child.

The rate of 15.5% is contractually agreed upon when she makes her contribution and will last her entire life.

If you have questions or wish to discuss any of the above planned giving options that support HIAS, please contact the office of Planned Giving by calling 212-613-1474, or 866-337-3337 (toll-free).

Charitable Remainder Trusts
giving … and receiving

The flexibility of charitable remainder trusts makes it possible to significantly effect HIAS’ future while achieving your own financial goals. These trusts offer opportunities for HAIS supporters to:

• Provide a fixed or variable income for themselves or loved ones to span lifetimes or a limited number of years;
• Control the timing of income payments
• Contribute assets other than cash or marketable securities
• Avoid capital gain liability
• Receive professional asset management and administration
• Reduce estate size

There are two basic types of charitable remainder trusts. One is a Charitable Remainder Annuity Trust, and the other is a Charitable Remainder Unitrust.

Charitable Remainder Annuity Trusts pay a fixed amount of money, regardless of market conditions or interest rate fluctuations.

Charitable Remainder Unitrusts pay a fixed rate of return, based on the annual re-evaluation of the assets in the trust.

Both types of charitable remainder trusts offer a wide range of flexibility in the types of items that can be donated in addition to cash or appreciated securities, such as art, real estate, jewelry, and more. However, Charitable Remainder Unitrusts offer the most ease in timing and size of income payments, adding assets, and type of property that is acceptable into the trust.

If you have questions or wish to discuss any of the above planned giving options that support HIAS, please contact the office of Planned Giving by calling 212-613-1474, or 866-337-3337 (toll-free).

Life Insurance
giving a gift but keeping the value

Ever wish you could make a huge gift to HIAS, but were concerned your loved ones might not agree with your wishes? By establishing to a charitable gift annuity or charitable remainder trust, and the use of life insurance, you may be able to make a significant contribution to HIAS and replace the value of the contributed asset(s) for your family without laying out any extra funds. You would be able to leave a legacy of safety for future generations, without diminishing your family’s inheritance.

Advantages of using life insurance:

There are many reasons why life insurance could be considered the “Ultimate Endowing Tool”:

1. A life insurance policy provides a guaranteed death benefit. So, assuming premiums are paid, HIAS’ receipt of a given amount is certain.
2. Life insurance provides an “amplified” gift. Incredible leverage is possible. A relatively small amount of premiums can translate into a large and meaningful gift. The leverage ratio of death benefit to premiums paid is extremely favorable, usually many times more than HIAS would otherwise receive through a non-life insurance gift.
3. Life insurance can legitimately be considered a way to obtain “immortality on the installment plan”: Almost anyone, regardless of economic station, can assure a meaningful and significant gift, a larger gift to charity through life insurance than by other methods.
4. Life insurance can be publicity-free or can provide “leveraged” honor. The size and even the existence of a life insurance gift can be completely confidential because of the contractual nature of life insurance. On the other hand, amplified recognition is possible if publicity is desired.
5. From a cash flow perspective, the gift of personally owned life insurance to charity is not typically perceived as the loss of “a needed asset” because no income-producing asset is being given away. From wealth transfer perspective, a gift of life insurance to charity doesn’t affect the family business, home, or investment portfolio that the heirs expect to receive.
6. Upon making the gift, the donor typically pays no ordinary income tax on any gain in the policy, no matter how large the gain

Traditional ways to use life insurance":

Contribution of paid-up or single pay policy - The oldest, simplest, and most appreciated way to use life insurance to benefit a charity is through an outright contribution (absolute assignment) of all rights to an existing “paid-up” or single premium policy

Contribution of ‘premium-paying policy’ - A premium-paying policy is one for which premiums remain payable. Typically, a charity is made the absolute owner and beneficiary, and holds all ownership rights. The charitable organization must have an insurable interest in the donor. Otherwise, all deductions may be lost. State law must be checked. If the charity has an insurable interest, the charity can be the original owner and beneficiary. Otherwise, the donor (or preferably donor’s spouse) can purchase the policy and make an immediate absolute assignment once the policy is issued.

Name charity as contingent beneficiary' - Some clients have few relatives and should consider naming a charity as a contingent beneficiary of a policy. For example, the beneficiary designation might read, “To my wife if living, otherwise to my children in equal shares or their issue, but if no children survive, to The Boy Scouts of America, Troop 74, North Wildwood, New Jersey.” This is simple. To the extent money is actually paid to the charity, the proceeds are estate tax deductible.

Name charity beneficiary of all or a portion of insurance proceeds - This is a very simple procedure and will avoid probate. The donor retains flexibility and total control over the policy and its cash values, and can remove the charity and name a family member, friend, or trust at any time. Under this technique, the donor’s estate can deduct the amount of proceeds that actually pass to charity.

If you have questions or wish to discuss any of the above planned giving options that support HIAS, please contact the office of Planned Giving by calling 212-613-1474, or 866-337-3337 (toll-free).

Retained Life Estate
you can always go home

The value of a home can often greatly increase the size of your estate. If you think this real estate will be disposed of after you are gone, why not contribute this property to HIAS now, but continue to use it for as long as you live. By making this gift in your lifetime, you will:

1. greatly reduce the value of your estate and possibly save or eliminate estate taxes
2. be eligible for a significant current tax deduction
3. eliminate possible probate delays and fees
4. take satisfaction and pleasure in making a wonderful gift while you can still receive thanks and recognition.

You will still be responsible for taking care of the property and paying the taxes. Yet, you can continue to use and enjoy the real estate, and even receive any income it may generate, for as long as you like.

If you have questions or wish to discuss any of the above planned giving options that support HIAS, please contact the office of Planned Giving by calling 212-613-1474, or 866-337-3337 (toll-free).

Bequests
the simplest way to leave a legacy

The most popular form of planned giving is a bequest. By remembering HIAS in a will or trust, you reach past your lifetime and create a legacy of safety for future generations. These gifts ensure that HIAS will always be there, ready to rescue those who must flee persecution, resettle them in safe haven, and reunite them with their loved ones.

Cash Legacy
I hereby give, devise, and bequeath to HIAS, Inc., (also known as The Hebrew Immigrant Aid Society), a 501(c)(3) nonprofit organization, having its principal offices at 333 Seventh Avenue, New York, NY 10001, the sum of $_____, to be used for its general purposes.

Residuary Bequest
I hereby give, devise, and bequeath to HIAS, Inc., (also known as The Hebrew Immigrant Aid Society), a 501(c)(3) nonprofit organization, having its principal offices at 333 Seventh Avenue, New York, NY 10001, all (or __%), of the rest, residue or remainder of the property owned by me at my death, real and personal and wherever situate, to be used for its general purposes.

Specific Legacy
I hereby give, devise, and bequeath to HIAS, Inc., (also known as The Hebrew Immigrant Aid Society), a 501(c)(3) nonprofit organization, having its principal offices at 333 Seventh Avenue, New York, NY 10001, my detailed property description, to be used for its general purposes.

Contingent Bequest
I hereby give, devise and bequeath description of property to my spouse, if he or she survives me. If my spouse does not survive me, I give, devise and bequeath description of property to HIAS, Inc., (also known as The Hebrew Immigrant Aid Society), a 501(c)(3) nonprofit organization, having its principal offices at 333 Seventh Avenue, New York, NY 10001, to be used for its general purposes.

Endowment Bequest
I hereby give, devise, and bequeath to HIAS, Inc., (also known as The Hebrew Immigrant Aid Society), a 501(c)(3) nonprofit organization, having its principal offices at 333 Seventh Avenue, New York, NY 10001, the sum of $___ to be added to its endowment fund, and the net income there from shall be used for (specify program* or general purposes, etc.)

*consideration should be given to whether a program will still be possible and/or relevant in the future

(to be reviewed by personal legal advisor)

If you have questions or wish to discuss any of the above planned giving options that support HIAS, please contact the office of Planned Giving by calling 212-613-1474, or 866-337-3337 (toll-free).