Leave a Legacy

BEQUESTS

Your last will and testament is the document through which you may pass on your legacy to family, friends, and charitable organizations that you support. You may make a bequest to Robin Hood by directing in your will and/or your revocable living trust that certain assets be transferred to Robin Hood after your death. You can structure the bequest to be a specified sum of money, a percentage of your estate, or as a contingent bequest.

During your lifetime, such assets will continue to remain in your control and you may also modify the bequest to address changing circumstances during your lifetime. Although no lifetime income tax deduction is available for the bequest, your estate will receive an unlimited estate tax charitable deduction for the bequest to Robin Hood. We encourage you to discuss your estate plans with your attorney or tax advisor.

LIFE INSURANCE POLICIES

You can name Robin Hood as the beneficiary or contingent beneficiary of a life insurance policy, which can reduce the value of your taxable estate. Please contact Robin Hood to discuss this option and to make arrangements for the payment of future premium payments, if any.

RETIREMENT PLAN ASSETS

Funds held in retirement plans (including 401Ks and IRAs) at death can often be subject to income and estate taxes of approximately 80 percent of the assets (leaving only 20 percent for heirs). This double taxation can be avoided by gifting such assets to Robin Hood, and therefore make excellent candidates for testamentary charitable giving. The most effective way to transfer a retirement plan to Robin Hood is to name Robin Hood as a designated beneficiary in the plan or IRA document or, alternatively, direct that an IRA distribution be made directly to Robin Hood.

CHARITABLE REMAINDER TRUST

A charitable remainder trust (CRT) is a trust that provides annual payments to one or more individual beneficiaries for a term specified in the instrument creating the CRT. At the expiration of the term, any property remaining in the CRT is distributed to one or more charitable beneficiaries.

A CRT may be created under a will and testament at death, or under a separate irrevocable lifetime trust agreement.

A CRT has the following advantages:

Tax on income and gains related to the contributed assets may be deferred for a significant period. Establishing a CRT can be an advantageous way for you to sell and diversify low-basis assets.

If the CRT is structured and administered properly, you will be eligible to receive an income tax charitable deduction in an amount equal to the present value of the remainder interest in the property contributed to the CRT, which is expected to pass to the charitable beneficiaries of the CRT at the CRT’s termination. If the CRT terminates upon your death, your estate will be eligible for an estate tax deduction for the full amount then passing to charity.

You also can provide that upon your passing, your spouse will continue as the “non-charitable” beneficiary after your death, and your estate should be eligible for the Federal estate tax marital and charitable deductions. Please speak with your attorney or tax advisor to discuss the tax advantages of creating a lifetime or testamentary CRT.

Robin Hood may accept a designation as a remainder beneficiary of a CRT.

CHARITABLE LEAD TRUST

A charitable lead trust (CLT) is a trust that pays an annuity to one or more charitable organizations for a term specified in the governing instrument of the CLT. At the expiration of the term, any property remaining in the CLT passes, free of additional transfer taxes, to one or more designated non-charitable beneficiaries.

A CLT may be created under a will and testament at death, or under a separate irrevocable lifetime trust agreement.

The transfer of property to a CLT really constitutes two gifts for Federal gift tax purposes:

1. A gift to charity of the present value of the charity’s right to receive the annuity payments over the term of the CLT, and
2. A gift to the non-charitable remainder beneficiaries of the fair market value of the property transferred to the CLT, reduced by the present value of charity’s right to receive the annuity payments over the term.

If a lifetime CLT is properly structured, a donor may claim a Federal gift tax charitable deduction in an amount equal to the present value of the charity’s right to receive the annuity payments over the term of the CLT. This deduction will reduce the amount of the donor’s taxable gift. Please speak with your attorney or tax advisor to discuss the tax advantages of creating a lifetime or testamentary CLT.

Robin Hood may accept a designation as income beneficiary of a CLT.

GIFT OF OTHER COMPLEX ASSETS

Robin Hood may also welcome gifts of real estate, interests in other entities, private company stock, restricted stock, LLC and Limited Partnership Interests, and pre-IPO shares, as well as certain types of tangible personal property.

You may also wish to consider making a gift of appreciated securities to Robin Hood, which may allow you to obtain a charitable income tax deduction for the fair market value of the gift and, more importantly, avoid capital gains on the appreciation of the security.

Such gifts are considered on a case-by-case basis.

ENDOW A ROBIN HOOD PROGRAM

Robin Hood is not only a leader in providing effective grants to New York’s top nonprofits, but also in providing our generous donors with a range of opportunities to get involved with Robin Hood, from concerts that raise money for our grantees, to speaker series that educate donors on issues surrounding poverty and grant-making. Please consider endowing your favorite Robin Hood program:

UNPLUGGED

Unplugged is a thematic speaker series that is held regularly throughout the year at the Robin Hood offices. Experts on a variety of topics, from board placement to metrics, share their thoughts and best practices with donors of all levels, with opportunity for questions and conversation afterwards.

Your endowment of the Unplugged series will enable us to continue with, and expand, this program, so that we can provide even more philanthropists with the tools they need to more fully understand the nonprofit world.

FAMILY PHILANTHROPY

The giving spirit of our donors extends to the youngest members of their families. For years, the children of Robin Hood’s loyal donors have learned about poverty and what it is to be a resourceful philanthropist, by raising money with Lemonaid in the summer, attending Camp Robin Hood with their peers, and volunteering during their school vacations at our grantee sites.

The family philanthropy program has grown significantly over the years, and can continue to do so with your support. Educating the next generation about poverty and how to break it is one of the most effective tools we have at our disposal for helping our neighbors in need. Consider endowing an Unplugged series in your area of interest, whether it be Education, Jobs & Economic Security, Early Childhood, or Survival.