Planned Giving

The triangle is the enduring symbol of the YMCA. For over 160 years, the triangle has represented the unity of spirit, mind, and body. Through these values, we create a firm foundation for living in any day and age.

Today, 68 donors are proud to call themselves members of the Triangle Society and are helping to ensure a strong YMCA for future generations. The Triangle Society recognizes and honors individuals and families who have made a commitment to the YMCA by including the YMCA in their estate plan or by making an outright gift of $10,000 or more to the endowment.

You are eligible for complimentary membership in the Triangle Society if you:

• Include the YMCA of the North Shore or one or more of its branches in a will or living trust
• Create a gift annuity or charitable remainder trust
• Name the YMCA of the North Shore or one of its branches as a beneficiary of your retirement fund or life insurance
• Make an outright gift of $10,000 or more to the YMCA of the North Shore endowment

In appreciation of your efforts, you will receive invitations to special programs and events, including the Annual Triangle Society Dinner, as well as the opportunity to receive formal acknowledgment in our annual listing of benefactors. There are no dues or fees associated with membership.

If you have already included the YMCA in your estate plans or are planning on making a bequest, we would like to welcome you to the Triangle Society and recognize your extraordinary commitment to the YMCA.

Discover how you can make a meaningful gift while enhancing your family's financial well-being by joining the Triangle Society.

For more information about planned giving or to have a confidential conversation, please contact Jane Stark, Chief Development Officer, at 978-922-0990 or by e-mail at starkj@northshoreymca.org.

Read below to learn how this popular option has worked in the past, and consult your tax or financial advisor if you are considering a charitable IRA rollover.

FREQUENTLY ASKED QUESTIONS

What is a charitable IRA rollover?
The charitable IRA rollover, or qualified charitable distribution (QCD), is a special provision allowing certain donors to exclude from taxable income -- and count toward their required minimum distribution -- certain transfers of Individual

Retirement Account (IRA) assets that are made directly to public charities, including the YMCA of the North Shore, Inc.
Many Y donors age 70 1/2 or older have used this popular option to support the areas of their choice with tax-wise gifts ranging from $100 to $100,000.

The provision was first enacted for tax years 2006 and 2007, and has been extended periodically. The new law made the IRA charitable rollover retroactive to January 1, 2015 and will remain in effect for 2016 and beyond.

How does this help me?
A charitable IRA rollover makes it easier to use IRA assets, during lifetime, to make charitable gifts.

Why will lifetime IRA gifts be easier?
Under reinstated law, withdrawals from traditional IRAs and certain Roth IRAs are taxed as income, even if they are immediately directed to a charity. The donor receives a tax deduction for his or her donation, but various other federal, and sometimes state, tax rules can prevent the deduction from fully offsetting this taxable income. As a result, many donors have chosen not to use IRA assets for lifetime gifts. The charitable IRA rollover eliminates this problem for a limited time.

What gifts would qualify for a 2015 charitable IRA rollover?   
A gift that qualifies, technically termed a “qualified charitable distribution,” would be:

• Made by a donor age 70 1/2 or older
• Transferred from a traditional or Roth IRA directly to a permissible public charity, such as the YMCA of the North Shore, Inc.
• Completed in calendar year 2015 for the 2015 tax year

Is there a limit on the amount that can be given?
Yes, there is a limit. An individual taxpayer's total charitable IRA rollover gifts cannot exceed $100,000 per tax year.

What about the required minimum distribution (RMD)?
If you have not already taken your required minimum distribution in a given year, a qualifying rollover gift can count toward satisfying this requirement.

Is an income tax deduction also available?
No. The gift would be excluded from income, so providing a deduction in addition to that exclusion would create an inappropriate double tax benefit.

Why are Roth IRAs included? Aren't withdrawals from a Roth IRA tax-free?
Withdrawals from a Roth IRA may be tax-free only if the account has been open for longer than five years or if certain other conditions apply. Otherwise, withdrawals are taxed as if they came from a traditional IRA. Therefore, certain Roth IRAs could benefit from a charitable IRA rollover.

Can other retirement plans, such as 401(k) and 403(b) accounts, be used?
No. However, it may be possible to make a tax-free transfer from such other accounts to an IRA, from which a charitable rollover can then be made.

Can a gift be made to any charity?
No. Excluded are:  

• Donor advised funds 
• Supporting organizations
• Private foundations

Who can benefit from using the charitable IRA rollover to make a gift?

• Persons with significant assets in an IRA
• Persons making gifts that are large, relative to their income (Because a charitable rollover is not included in taxable income, it does not count against the usual percentage limitations on using charitable deductions.)
• Persons having so few deductions that they choose not to itemize 

Can a rollover gift be used to fund a charitable remainder trust or charitable gift annuity?
No. The donor can receive no benefits in return for the gift. This includes life income plan payments.

What if a withdrawal does not meet the requirements of a charitable IRA rollover?
It simply will be included in taxable income as other IRA withdrawals currently are.

Is the charitable IRA rollover right for everyone?
While this is a great option, other types of gifts may provide donors with more tax benefits. As with any gift planning question, donors should consult their tax professionals for specific advice.

Can I still make a gift with an IRA beneficiary designation?
Absolutely! Whether or not you choose to make a charitable IRA rollover gift, you can still designate the YMCA of the North Shore, Inc. as a beneficiary to receive IRA assets after your lifetime. The lifetime charitable IRA rollover is simply another option for donors who would like to see their philanthropy at work now.

If I made a charitable IRA rollover gift in other tax years, can I do this again for the 2015 tax year?
Yes. Even if you and your spouse both made the maximum $100,000 charitable IRA rollover gift to a qualifying charity during one or more previous years, you can still take advantage of this legislation again for the 2015.

What about 2015 and beyond?
The legislation had been approved to extend this special tax advantage to Dec. 31, 2016, so charitable IRA rollover gifts of up to $100,000 are now available to you in both the 2015 and 2016 tax years.

More questions?
Please contact Jane Stark, Chief Development Officer, at 978-922-0990 or by e-mail at starkj@northshoreymca.org.

Through various types of bequests to the YMCA of the North Shore, you may secure a charitable estate-tax deduction for the value of the gift. Best of all, you will know that your generosity will support our mission for years to come.

You may prefer to state in your will or trust a sum of money or a percentage of your estate that you wish to give to the YMCA of the North Shore.

Whatever form of bequest you choose, it is not subject to federal estate taxes and so significantly reduces the tax burden of an estate. The value of the bequest may be deducted when the taxable estate is determined, and there is no limit to the deduction.

How It Works
1. You include a bequest provision in your will or revocable trust
2. At your death the YMCA of North Shore receives the bequest you specified

Benefits

• You may change your bequest at any time
• You control the property funding the bequest during your lifetime
• Your bequest will not be subject to any potential federal estate tax
• You provide future support for the YMCA of the North Shore

GIFTS THAT PAY YOU INCOME
Do you want to support the YMCA of the North Shore but worry about having enough income for yourself and your loved ones? Life-income gifts such as gift annuities and charitable remainder trusts can provide you with an income stream, significant tax savings and the satisfaction of providing the YMCA of North Shore with vital long-term resources. The creation of a life-income gift benefits both the giver and the receiver—a "win-win" situation. The following life-income gifts are available, and one may be right for you:

CHARITABLE GIFT ANNUITIES
To establish a charitable gift annuity, you make a gift to the YMCA of the North Shore and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any YMCA program that you choose.
 
While gift annuities can be funded at a younger age, this type of gift might be especially attractive if you are aged 70 or older, you want to support the YMCA of North Shore and would like to secure an immediate stream of income for yourself or for yourself and your spouse. The amount of the annuity payments is based on the age(s) of the income beneficiary(ies). The older one is, the higher the payout rate one receives. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction.
 
How It Works

• Transfer cash or other property to the YMCA of the North Shore
• The YMCA of the North Shore guarantees to make lifetime payments for up to two annuitants 

Benefits

• Guaranteed payments for life that are favorably taxed
  1.  When gift is funded with cash, part of payment will be tax-free
  2.  When gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free and part will be taxed as ordinary income
• Federal income-tax deduction for a portion of your gift
• Gift will provide generous support for the YMCA of the North Shore

DEFERRED GIFT ANNUITIES 
This type of gift might appeal to you if you want to support the YMCA of the North Shore, are 40 to 60 years old, have a high income, need to benefit now from a current tax deduction and are interested in augmenting potential retirement income.
 
The deferred gift annuity involves the current transfer of cash or marketable securities in exchange for which the YMCA of the North Shore agrees to pay the donor an annuity starting at a future date—usually at the donor's retirement. The gift can consist of a single transfer, a series of transfers or periodic transfers to the plan in high-income years.
 
You realize an immediate charitable deduction for the gift portion of each transfer to the deferred gift-annuity plan. A portion of each annuity payment, when the payments begin, will be a tax-free return of principal over the life expectancy of the annuitant. When appreciated long-term capital-gain securities are transferred, any reportable capital gain is spread out over the donor-annuitant's life expectancy.
 
How It Works

• Transfer cash or other property to the YMCA of the North Shore
• The YMCA of the North Shore guarantees to make lifetime payments—for up to two annuitants—beginning at a future date of your choosing

Benefits

• Guaranteed payments for life that are favorably taxed
• When gift is funded with cash, part of payment will be tax-free
• When gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free and part will be taxed as ordinary income
• Federal income-tax deduction for a portion of your gift
• Gift will provide generous support for the YMCA of the North Shore

CHARITABLE REMAINDER UNITRUST 
The unitrust provides for annual payments to the designated beneficiary(ies) of a specified percentage—at least 5% of the value of the trust as it is valued each year. Since the value of trust assets may vary from year to year, the payments may also vary. At the death of the last income beneficiary, the trust principal is distributed to the YMCA of the North Shore.
 
In addition to the income you will receive from the trust, you will also be entitled to a charitable income-tax deduction for the value of our remainder interest in the trust assets.
 
How It Works

• Create trust agreement outlining terms of the trust
• Transfer cash or other property to trustee
• Trustee invests and manages trust assets
• Trustee makes payments to income beneficiaries
• Remainder to the YMCA of the North Shore for purposes you specify

Benefits

• Income to one or more beneficiaries that will vary annually with the value of the trust
• Federal income-tax deduction for the charitable remainder value of your gift
• No capital-gain tax when trust property is sold
• Trust remainder will provide generous support for the YMCA of the North Shore

Sometimes people find themselves with life insurance policies they no longer need after the death of a spouse or after children are grown. By contributing such a policy to the YMCA of the North Shore, you can make a wonderful gift and reduce taxes that may otherwise be due upon your death.
 
You can also receive a charitable income-tax deduction for the cash surrender value of the policy when you irrevocably assign the policy to the YMCA of the North Shore. Be sure to use our legal name and address as follows:
 
YMCA of the North Shore
245 Cabot St
Beverly, Massachusetts 01915
 
Gifts of Percentage Interest in a Policy
You might choose to designate the YMCA of the North Shore to receive only a partial interest (e.g., a percentage) of a life insurance policy.
 
Gifts of New or Partial-Paid Policies
You may also assign a partially paid policy to the YMCA of the North Shore and keep the policy active by sending premium payments to the YMCA of the North Shore. Or you may purchase a new policy and name the YMCA of the North Shore as owner and irrevocable beneficiary. All of your payments would be tax deductible if you itemize.
 
Gifts That Save Capital Gain
Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with the YMCA of the North Shore named as a beneficiary. By donating securities, capital-gain tax can be eliminated entirely.
 
Insurance Dividends
The dividends of a whole life insurance policy may be designated to the YMCA of the North Shore without reducing the death value of the policy for your beneficiaries. The donor, who remains the owner of the policy, retains the right to borrow against the policy.
 
Naming the YMCA of the North Shore as Beneficiary
Another option is to name the YMCA of the North Shore as the primary beneficiary or co-beneficiary of a life insurance policy. You would retain ownership of the policy and have access to the policy’s cash value. Because you retain ownership, no charitable income-tax deduction is allowed at the time of the gift. Although the face value of the policy will be included in your gross estate at your death, your estate will be entitled to an offsetting charitable estate-tax deduction.
 
How It Works

• You assign all the rights in an insurance policy to the YMCA of the North Shore and receive an income-tax deduction
• The YMCA of the North Shore may surrender the policy for its cash value or hold it and receive the proceeds at your death 

Benefits

• You receive a federal income-tax deduction
• If premiums remain to be paid, you can receive income-tax deductions for contributions to the YMCA of the North Shore to pay these premiums
• You can make a substantial gift on the installment plan

The YMCA of the North Shore receives a gift they can use now or hold for the future

Retirement-plan benefits often make an excellent choice for funding a testamentary charitable gift to the YMCA of the North Shore. Not only will such a gift escape federal income tax, but it will also avoid any potential federal estate tax.

How It Works

• You name the YMCA of the North Shore as beneficiary for part or all of your retirement plan benefits
• Funds are transferred by plan administrator at your death 

Benefits

• No federal income tax is due on the funds that pass to the YMCA of the North Shore
• No federal estate-tax liability

You make a significant gift for the programs you support at the YMCA of the North Shore

Through an outright gift to the YMCA of the North Shore’s endowment, you will be establishing your legacy and supporting the Y for perpetuity.  The simplest way to support the YMCA of the North Shore is through cash gifts. But creative gifts of assets can include stocks, bonds, and property (real estate and personal property such as artwork.) These can not only provide you with charitable deductions, but often offer additional tax savings as well.

General Endowment Gift (minimum $10,000 to be recognized as a Triangle Society member)
An outright gift will support your local Y in perpetuity.

Named Endowment (minimum $25,000)
Establishing an endowed fund in your name (or name of your choosing) directed to a program or funding area important to you, will provide annual support in perpetuity.

We recently caught up with Elaine and David McKechnie, charter members of the Y’s Triangle Society. Elaine and David shared their involvement with the Y over the years, why they see the Y as a special place, and why they decided to make a legacy gift.

How long have you been involved with the Y?
Elaine: I grew up swimming at the Y in New Hampshire. When we moved to Cape Ann I became a member and used it as an exercise facility. When the kids were young we did swim lessons, floor hockey, basketball, birthday parties...

David: ...it was a place for our whole family. I discovered the YMCA as a young adult, playing racquet ball. I've been involved for over 30 years. I began serving on the Board in 1996 and was President at the time when the Cape Ann Y merged with the Greater Beverly Y – the beginning of the YMCA of the North Shore.

It's a great organization, both nationally and locally. We have seen the youth in our community struggle and the Y has been one of those big answers providing an alternative choice to some not so healthy options.

Elaine: We’ve also been going to a family YMCA camp on Lake Winnepeasaukee for about 19 years. It was our boys’ favorite summer vacation!

What's your favorite thing about the Y?
Elaine: It’s hard to say. I guess what I appreciate most about the Y is its dedication to kids, families and adults...they impact so many areas and get involved with so many things, from the achievement gap, homelessness, childhood obesity, running summer programs, to addressing the aging population, it's amazing!

David: I like that the Y never sits still: constantly evaluating, innovating, exploring the next under-served population they can help; and who to collaborate with to make something better. It's a very unselfish attitude as a nonprofit.

What challenges do you see our communities facing in 50 years?
David: Connectivity. With technology at our fingertips, we're becoming more and more afraid of the outside world...it's a real problem. It takes a village to raise a child, we need our village to get stronger not weaker. The Y is going to be key to ensuring that it is central to delivering a better community for all its constituents, young and old.

What's your favorite spot on the North Shore?
Elaine: Mine's probably Good Harbor Beach.

David: Any golf course on the North Shore! Followed closely by Wingaersheek Beach, definitely here on Cape Ann.

Why did you decide to make a planned gift to the Y?
David: Being in the financial services industry, I think that life insurance is a widely underutilized tool. For a fixed tax deductible amount per year, over ten years and guaranteed by a major insurance company, we were able to leverage that gift to a much more significant number.

It’s a great way to leverage your assets; you still keep the corpus of what you worked for, for your children. You give away a certain amount of money during your lifetime, which could go to annual giving, but this is a piece that’s tucked away in perpetuity. It’s an irrevocable gift, which we feel good about, taking care of organizations, like the Y, which are near and dear to our heart.

Elaine is currently serving on the Cape Ann Board, while David is now serving on the Board for the YMCA of the North Shore. Thank you David and Elaine for all you have done, and continue to do for the Cape Ann community and across the North Shore!