A strong endowment fund is critical to supporting the performance and educational initiatives of The Young Americans® through long-term financial stability. The Endowment Fund allows supporters of The Young Americans® to make a lasting contribution and leave a legacy as an arts and education supporter. The Young Americans® has a long history of reaching a diverse array of audiences and improving the lives of all those we work with. With your support The Young Americans® will continue to reach new heights!
What is the Endowment Fund?
The Endowment Fund is a way for contributors to make a gift for the purposes of investing in the life of The Young Americans®. All contributions are invested and only income earned from these investment activities can be dispersed. The principal gift amounts can never be dispersed. It is the gift that keeps on giving!
Who can contribute to the Endowment Fund?
Anyone who wishes to help ensure the long-term ability of The Young Americans® to meet its mission can contribute to the Endowment Fund. A big misconception is that contributing to an endowment fund requires substantial financial resources. The reality is that anyone can make a contribution to the Endowment Fund. You can make a gift that will have substantial and lasting impacts without disturbing your current financial situation.
What are the benefits of contributing to the Endowment Fund?
Certainly the most rewarding benefit is the knowledge that you are making a contribution that will continue to provide support for the lifetime of The Young Americans®. You can also ensure that your personal legacy is upheld in perpetuity according to your wishes, and reflects your passion for the arts and education. Additional benefits include immediate income tax-deductions; avoidance of capital gains taxation; and possible estate and gift tax deductions for you and your heirs.
How can I make a contribution to the Endowment Fund?
Endowment Fund contributions are very personal in nature and offer a wide range of benefits for each supporter. The information below is a summary of the options available to contributors and should not be substituted for professional legal and financial planning advice.
- Estate Planning – The simplest way to make a contribution is to have an addendum (Cadicil) added to your current estate planning documents naming The Young Americans Inc, as a benefactor. You can bequest a fixed dollar amount, a percentage of your estate value, the balance on your retirement planning accounts, real estate or any other asset. You can also specify to have your contribution made in honor of your family name or of a loved one.
We hope that if you choose to add The Young Americans, Inc. as a benefactor of your estate, you will notify us so that we can address your specific wishes for how the bequest is to be used, but most importantly so that we can thank you and offer to you the added reward of special event invitations.
- Cash Gift – The Young Americans® accepts cash contributions, but for those who want to ensure their contribution has lasting impacts on the organization you can specify that your cash contribution be allocated to the Endowment Fund. This ensures that only the income earned from the investment of your cash contribution can be allocated to ongoing costs associated with fulfilling the missions of The Young Americans®; the principal amount of your cash contribution can not be reduced.
You can deduct up to 50 percent of your adjusted gross income for the taxable year. Any cash exceeding 50 percent is deductible over the next five years.
- Real Estate – You can name The Young Americans, Inc. as a full or part benefactor of any real estate holdings in your estate. As a full benefactor The Young Americans, Inc. has the option to either sell the holdings or retain them for use. As a partial benefactor you should name the percentage amount of any sales or rental income generated from the property to be bequeathed to The Young Americans, Inc.
Donors who want to make a substantial contribution in their lifetime may choose to donate real estate holdings while retaining the right to live there for life. These donors receive the benefits of an immediate income tax deduction based upon the present value of the property discounted by the estimated length the foundation will wait to receive the property. The donor will have full responsibility for the care and maintenance of the property but will benefit from the avoidance of probate and estate taxes on the property.
- Stock Options – You can donate your share holdings. The Young Americans, Inc. will either include the share holdings in the investment portfolio or present them to the issuing company for redemption and invest the sales income into the Endowment Fund.
Through the contribution of stock holdings you may be able to deduct the Present Market Value and in addition, you will incur no gain and thus owe no tax on the appreciation in value. If you have securities which are sustaining a loss you can sell them and donate the proceeds to the Endowment Fund. This allows you to offset any gains in sales with the loss deduction.
You can deduct up to 30 percent of your adjusted gross income in any tax year. Any excess is deductible over the next five years.
- Retirement Planning – A designation in your retirement plan can be a very cost effective way to make a gift to The Young Americans®. Retirement plans left to your heirs will result in the plan assets being first reduced by estate taxes and then by income tax to be paid on the lump sum distribution or the income stream generated from the plan. The Young Americans, Inc. does not have to pay this tax and retirement planning can result in a very generous contribution…of course you need to make sure your family is provided for through other provisions.
If you need to provide for your family through your retirement planning you may want to consider assigning a specific amount to The Young Americans, Inc. before dividing the remainder among your family, or by designating the endowment fund as a beneficiary of the balance after your spouses or selected beneficiaries’ lifetime.
- Charitable Living Trust – The establishment of a living trust allows you to control your assets now and in perpetuity. A Living Trust not only gives the donor the satisfaction of knowing they are supporting a good cause, but also offers significant benefits in allowing contributors to receive an income for life, immediate income tax deductions, bypass capital gains tax on stock and real estate sales, and reduced estate tax obligations.
You can place any asset – cash, stock, or real estate – into a Charitable Living Trust. The contribution is invested by your trustee and in accordance with your investment preferences to pay you income for the rest of your life, and if you wish, pay your heirs for life or for a limited term. After the death of any and all beneficiaries the trust passes to The Young Americans, Inc.