Gifts that Provide You Income as You Give
Life income gifts provide future support for NYTS while also providing a charitable income tax deduction and payments to you and/or your loved ones.
Four basic types of life income gifts are:
1 : Charitable gift annuity provides a fixed income for life in exchange for a gift of cash or stock of $10,000 or more.
A gift annuity is a contract whereby you (and/or another beneficiary, if desired) exchange a gift of money or securities for a fixed income for life. The amount of annual income is based on your age/s at the time the annuity is established. After your income payments begin, a significant portion of each payment is exempt from income tax when you donate cash for the annuity. You are also allowed a potentially significant charitable income tax deduction in the year the gift annuity is created.
- Your gift to NYTS establishes a charitable gift annuity.
- Immediate income tax deduction and a fixed annual payment for your lifetime.
- Upon death, the remainder goes to support the area of NYTS most important to you.
2 : Deferred charitable gift annuity provides a deferred, fixed income for life in exchange for a gift of cash or stock of $10,000 or more.
The deferred payment gift annuity differs from a regular gift annuity in that payments begin at a date in the future, such as the year you expect to retire. This gift vehicle allows you to make a gift now and use the resulting charitable deduction to lower your income taxes. Later, when you need the security of additional income, you will receive a fixed income for life.
3 : Charitable remainder unitrust is a trust that pays you and/or other recipients an income for life or designated years for a gift of $100,000 or more, and ultimately benefits your designated purpose at NYTS.
The charitable remainder unitrust is ideally suited for those wanting to make a gift using highly appreciated assets currently yielding a low rate of return, while also desiring to avoid capital gains tax on the transfer of assets to New York Theological Seminary. You receive a unitrust amount for life in exchange for an irrevocable transfer of assets. The assets are managed as a separate fund paying a fixed percent (at least 5%) of the fair market value of trust assets as revalued each year. The percentage of the trust received as payment is agreed upon between you and New York Theological Seminary at the time of the gift. You receive a significant charitable income tax deduction in the year the trust is created.
- You make a gift to your CRUT.
- Immediate charitable deduction and a variable annual payout for life or for a specified number of years.
- At the end of the term, the remainder goes to the area of NYTS most important to you.
4 : Charitable remainder annuity trust provides a fixed income like a charitable gift annuity but the tax treatment of the payout may be preferable for gifts of highly appreciated assets of $100,000 or more.
The charitable remainder annuity trust guarantees you income for life at a fixed dollar amount in return for an irrevocable transfer of money or appreciated assets to the school. When the trust is created you set the dollar amount, which must be at least 5% of the value of the assets used to fund the trust. Capital gains tax is entirely avoided on the transfer of assets to the trust. Plus, you are entitled to an immediate charitable income tax deduction.
Gifts that Provide Help to NYTS in the Future
5 : Establish a bequest by naming NYTS as a beneficiary in your will or revocable (living) trust. This is the most common way to support NYTS through a deferred gift.
A charitable bequest is a very simple way of making a generous gift to New York Theological Seminary. When drafting or updating your will, we encourage you to consider including NYTS as a beneficiary of your estate, creating a legacy that will help ensure excellent theological education for future generations.
Bequests can be made for general unrestricted use by the School or you may choose to restrict your bequest gift for a designated purpose. There are several kinds of bequest gifts, but whichever you choose, it’s important that your intentions be specified in writing, using appropriate language. We encourage you to review the following options with your advisors.
As its name suggests, the specific bequest provides a gift in a specific dollar amount, or of specific assets. Such a gift can be conveyed as follows:
“I give to New York Theological Seminary, located in New York, NY the sum of $________________ or ________________ (name of asset) for the general uses and purposes of said institution.”
A percentage division of your estate keeps all bequests in proportion to one another, even as specific financial circumstances may change. Such a bequest may be conveyed as follows:
“I give to New York Theological Seminary, located in New York, NY, (percentage amount) of my total estate disposed of by this will, to be used for the general uses and purposes of said institution.”
Alternatively, you may choose to designate NYTS as a residue beneficiary of your estate. In that case, the Seminary will receive the assets remaining after other bequests have been fulfilled. The following language might be used in conveying such a bequest:
“I give the residue of my estate (or you may state a percentage of the residue) to New York Theological Seminary, located in New York, NY, to be used for the general uses and purposes of said institution.”
Through your will, you may also establish a testamentary trust. Such a trust supports selected beneficiaries during their lifetime, after which trust assets are assigned to Claremont. Language such as the following can be used to establish a testamentary trust:
“Upon the death of (name/s), or upon my death if (she/he) fails to survive me, the entire balance then remaining of the trust estate shall be distributed to New York Theological Seminary, located in New York, NY, for the general uses and purposes of said institution.”
Note that alterations in family status, changes in the law, alterations in the value of property you own, and so on can make your estate plan obsolete. Whichever form of bequest gift you choose, we therefore encourage you to update your will and any other plan documents as your circumstances change. NYTS encourages you to have a qualified attorney prepare or revise your estate plan.
1 : Gifts of retirement plans name NYTS as a primary or contingent beneficiary of a retirement account (e.g. IRA, SEP, 401(k), 403(b), ESOP, etc.). This gift may enable you to make a larger gift than you anticipated because income and estate taxes are not imposed when plan assets are distributed to NYTS
Your retirement plan will be subject to income tax after your death and may be subject to estate tax if you leave a large estate. You can avoid these taxes by naming New York Theological Seminary as a beneficiary of your qualified retirement plans, such as individual retirement accounts (IRAs), 401(K)s, 403(b)s, Keoghs or other plans. Simply ask the administrator of your plan for a death beneficiary change form and indicate the amount or percentage of assets you wish to be transferred to New York Theological Seminary following your lifetime. Your spouse may need to consent to your designation.
2 : Gifts of life insurance may name NYTS as a beneficiary of your policy.
Insurance you no longer need to protect you, or your family can be the basis of a charitable gift to New York Theological Seminary. When donating a paid-up policy, you are eligible for an income tax deduction based on the replacement cost of the policy or the cost basis — whichever is lower. When donating a policy that is not fully paid, you receive a charitable deduction for the approximate cash surrender value or the cost basis, if lower. If you continue paying the premiums, these payments can also be deducted. If you wish, you may also obtain a new policy naming New York Theological Seminary as the beneficiary. A tax deduction may be claimed for the amount of premium payments, if the School is both the owner and beneficiary of the plan.
3 : Charitable lead trusts can be used to transfer assets to children or other loved ones at a significantly reduced tax liability.
The charitable lead trust distributes income to New York Theological Seminary rather than you. After a specific period of time, the trust assets revert to you or are distributed to others (usually family or friends). There may be significant benefits, including possible estate and gift tax savings.
Gifts that Provide Immediate Help to NYTS
When donating securities that you have owned for more than twelve months, you may claim an income tax deduction based on their full market value at the time the gift is made, if you itemize. In addition, you pay no capital gains tax on the appreciation of the securities.
Such gifts are generally limited to offsetting more than thirty percent of your adjusted gross income but may be carried forward for the succeeding five years.
If you own real estate that has increased significantly in value since you purchased it, you may find that capital gains tax may be a significant issue upon the sale of the property. When making a gift of real estate to New York Theological Seminary, you may qualify for a charitable income tax deduction based on the property’s full appreciated value — up to thirty percent of your adjusted gross income in the year the gift was made. Any unused charitable deduction may be carried forward for the succeeding five years. A gift of real estate will help you avoid capital gains tax.
Ways to Give
Make an online gift using Visa, Mastercard, Discover or American Express. You can choose a one-time donation or schedule recurring gifts using the online form and your credit card information.
Gifts by App
NYTS is pleased to provide the option of giving through PayPal, Zelle, and Apple Pay apps.
Text-to-Give at NYTS
Please follow the following instructions to donate by text.
1. Open a new text message.
2. Enter 24365 as the recipient number.
3. In the body of text message type: NYTS (not case sensitive).
4. Send the message.
5. Next you will receive a reply text message with a link.
6. Click on that link.
7. You will arrive at the NYTS donor page.
8. Click on DONATE NOW.
9. Complete the form and follow the instructions.
Gifts by Bank Wire
Please use the following information to donate to New York Theological Seminary by bank wire:
Routing#/Acct Number/Swift Code
Many companies match contributions made by an employee or their spouse. Please inquire if your employer has such a program, and if so, obtain the proper forms to forward to New York Theological Seminary.
Gifts by Check or Money Order
Please mail check or money order to:
New York Theological Seminary
475 Riverside Drive
New York, NY 10115
Planned giving allows you to show your support and esteem for New York Theological Seminary as well as achieve your own personal, financial, and philanthropic goals.
Click here to learn more about the basic types of planned giving.