There are many instruments that will allow you to donate and leave a legacy for the future by contributing to The Cove's Endowment Fund. Please contact Mary Andersen, Executive Director at (203) 634-0500 to discuss options for Planned Giving.
How is Legacy Giving Defined?
- To convey one's values through creation of a future gift to charity
- A foresighted action to strengthen a favorite cause
Legacy gifts provide future support for charity. Contributions by will, trust, other forms of written designation, life-income arrangements and endowment gifts, all represent forms of legacy giving. Any individual, at any point in their life, can create a legacy gift. It can be as easy as naming a charity on the beneficiary form on a savings, checking or pension account, or through a more complex instrument like a charitable trust. All these gifts represent a powerful and meaningful way for individuals to create a philanthropic legacy for their community and the organizations they care about.
Seven out of ten Americans make gifts to charity during their lifetime. Yet fewer than one in ten leaves a gift to charity in their will or trust. Why are most of us generous in supporting nonprofits during life but make no provision for them at death? Research studies provide a simple answer — it never occurred to most of us to create a legacy gift!
CREATE A LEGACY TODAY - To make a gift directly to The Cove's Endowment Fund donate here:
The Cove Center for Grieving Children is a 501 (c) 3 nonprofit organization, Federal ID#06-1546563. We hope that you will consider contributing to the stability of our organization, and create a lasting legacy in your name.
Planned Giving / Legacy Gift Glossary of Terms
Charitable Bequest – A gift designated in your will that becomes available to the charitable organization(s) after the individual’s lifetime. The primary characteristic that distinguishes a bequest from many other planned gifts is its revocable nature, i.e. the donor can change his/her mind. Therefore, there is no charitable income tax deduction for a bequest. Sample bequest language.
Charitable Gift Annuity– A combination of a gift to charity and an annuity. For senior persons, annuity rates may be 8%, 9% or even higher. Since part of the annuity payment is tax-free return of principal, the gift annuity may provide the donor with a very substantial income. The combination of partially tax-free income and the initial charitable deduction makes this agreement quite attractive. And after all payments have been made for the lives of the annuitant, a favorite charity will benefit from the charitable gift. Can be immediate or deferred payments to donor.
Charitable Remainder Annuity Trust (CRAT) – Highly appreciated, low yield property may be transferred into a living remainder annuity trust. The individual selects an annuity amount or a percent of the initial fair market value that will be paid for one or two lifetimes. The annuity amount will be fixed and will not change regardless of the value of the trust principal or the return of the trust. The charity receives the trust principal after all income payments have been completed.
Charitable Remainder Unitrust (CRUT) – Similar to the CRAT, but the amount paid may vary as the rate of return is re-evaluated annually based on market conditions and the return on the trust. After all of the income payments have been completed, the remainder is distributed to qualified charities.
Endowment Fund - An Endowment Fund is a fund which is kept in perpetuity to provide interest and dividend earnings for the benefit of a charitable cause.
Charitable Lead Trust – Property is transferred into a trust permitting a fixed annuity to be distributed each year to the selected charity for a chosen number of years. At the end of the chosen term of years, principal is distributed to family members.
Retained Life Estate – A donor can contribute a primary personal residence, second home or a farm to a charity and continue to occupy the property until death. The donor benefits from an irrevocable donation to charity, current income tax deduction and continued enjoyment of property for lifetime.