Make a Planned Gift to SSP
Donors who include SSP in their long-term planning will help ensure the organization’s future viability and strength, and continue the legacy of generosity begun over 25 years ago. This page explains the planned giving options that are available to donors. Any inquiries may be directed to Angel Francis, Development Manager at 212-986-9575 ext 116 or afrancis@sspnyc.org.
Gifts Through Wills or Living Trusts
Give Through Your Will or Living Trust
One of the most common ways individuals leave a legacy at charitable organizations is through a bequest in their will or living trust. Bequests come in many forms. Here are a few methods to consider:
-Specific Bequest - A specific bequest provides that SSP will receive a specific dollar amount.
-Residuary Bequest - A residuary bequest provides that SSP will receive all or a stated portion of an estate after all other bequests, debts, taxes, and expenses have been distributed.
-Contingent Bequest - A contingent bequest can ensure that if circumstances make it impossible to carry out a donor’s primary provisions (such as when a spouse or other heirs do not survive the donor), the assets will then pass on to SSP rather than to unintended beneficiaries.
SSP can be supported through gifts of life insurance policies that are fully paid for, and are no longer needed. After ownership is transferred, SSP will cash in the policy to provide immediate support. Such gifts provide generous income tax charitable deductions to donors. In order for SSP to accept a gift of life insurance, and for a charitable income tax deduction to be generated for the donor:
-The ownership of the policy must be transferred to SSP.
-SSP must become the sole beneficiary of the policy.
-The policy documents must be transferred to our office.
Life Income Gifts: Ways to Give and Receive
Life income gift plans have become a very popular way for donors to make major gifts. Typically, the donor makes the irrevocable gift to a special fund and reserves the right to receive an income from the gift property for his or her life. Alternatively, the donor may direct that an income be paid to one or more designated individuals for as long as they may live. The gift property passes to SSP, or becomes available to SSP, only after all the income rights are terminated. Examples of Life Income Plans include the following:
-Charitable Remainder Annuity Trust – a trust that will hold and invest property and pay the donor and/or other designated beneficiaries a specified dollar amount each year for as long as the donor or beneficiaries may live. The donor can select the amount of annual income payments. Payments must be at least 5% of the value of the gift but could be as much as 9%. Nothing would be paid to SSP until all income rights have terminated. At that time SSP receives all property held by the trustee.
-Charitable Remainder Unitrust - a trust that differs from the annuity trust in one very important way – rather than a fixed-dollar income, the unitrust arrangement must provide for income payments that vary with the investment success of the trust. Specifically, the unitrust must direct that the trust assets be valued each year and that a specified percentage of the value be paid to the individual beneficiary or beneficiaries. If the value of the trust assets goes up, the annual payments go up. But the reverse is also true – the annual payments will decrease if the value of the trust assets decreases. A donor can also make additions to a unitrust, but not to an annuity trust.
-Charitable Gift Annuity - The easiest way to make a tax-favored deferred charitable gift is through a gift annuity program. The donor transfers money or securities through a charity in exchange for its commitment to pay the donor a specified annuity for as long as he or she lives. The amount of income or annuity that will be paid generally depends on the age of the beneficiary (or beneficiaries). In most cases it ranges from 7% to 12%. Persons making a contribution to a gift annuity fund may arrange to postpone annuity payments for a period of years. For example, a 55-year-old donor may postpone any annuity payments until he is 65 years of age and retired. The delay in making payments permits the charity to increase dramatically the amount of annuity that will eventually be paid.
The 1986 Society
Named for the year SSP was founded, the 1986 Society was established to honor and recognize those individuals who have included SSP in their estate plans. These individuals have made bequests, contributed life income gifts, or given insurance policies to the organization. Remembering SSP in this manner is a meaningful way to ensure that the gift of educational opportunity will continue for generations of SSP students to come.
If you want to support SSP through a bequest or life income plan, speak with your own attorney or tax advisor first. They are in the best position to assess your personal situation and provide guidance. Gifts are 501(c)(3) non-profit tax deductions.