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Since 1970,
Special Olympics New Jersey has relied on many different types of donations and sponsorships to
fulfill it’s mission of providing year round sports training and athletic competition
for children and adults with intellectual disabilities. Many of our supporters choose to make
gifts of cash or in kind goods and services. There are, however, other ways that a
substantial gift can be made to
Special Olympics New Jersey that
offer tax advantages to you and your family. A planned gift can also increase the ability
to make larger contributions, as donors can retain control of, or continue to receive
income from the assets they donate. Most planned gifts are the result of estate planning.
The information provided below is intended to discuss, in general terms, various planning
options. Everyone’s situation is unique and we encourage you to seek the counsel of
your personal advisors. A representative from
Special Olympics New Jersey would be pleased to work with you and your advisors to ensure that
your gift is of the greatest possible mutual benefit to you and to
Special Olympics New Jersey.
Planned Giving Newsletters
BEQUESTS - YOUR WILL
The most common type of planned gift that
Special Olympics New Jersey receives is the outright charitable bequest - simply a provision in
your will to leave a gift to our organization. Gifts through wills are popular because
they are both easy to arrange and revocable. A charitable bequest can take several forms:
- You may make a specific bequest leaving property such as
securities, real estate, and items of value, or cash.
- You can designate a percentage of your total estate to be
given to
Special Olympics New Jersey.
- You can bequeath the residue of your estate, that is, all or
part of your estate remaining after all other bequest are satisfied.
- You can name
Special Olympics New Jersey in a contingent bequest, the gift to take effect only if your
primary beneficiaries are deceased or are otherwise not able to receive their bequest.
This type of bequest works well for younger donors who want to ensure that their spouses
or children are not adversely affected.
Your outright charitable bequest is deductible for estate
tax purposes and may therefore significantly reduce taxes assessed against your estate.
And like most other gifts to
Special Olympics New Jersey, your
bequest can be restricted (designated for the endowment fund) or unrestricted. Because of
the uncertainty of our future needs, you may want to make your bequest unrestricted,
thereby allowing
Special Olympics New Jersey to
utilize the funds where they are most needed to continue to provide quality athletic
training and competition to as many athletes as possible.
The following language may be helpful if you are planning a bequest to
Special Olympics New Jersey.
UNRESTRCITED BEQUEST
I give and bequeath to
Special Olympics New Jersey,
Inc., a not-for-profit corporation, located at 3 Princess Road
Lawrenceville, NJ 08648,
____________ (describe dollar amount, property to be given, or proportion of residuary
estate), to be used as the Officers of said organization may direct.
RESTRICTED BEQUEST
I give and bequeath _____________ (describe dollar amount, property to be given, or
proportion of residuary estate), to
Special Olympics New Jersey,
Inc., a not-for-profit corporation located at 3 Princess Road
Lawrenceville, NJ 08648, to
be held as a permanent fund within the organization’s general endowment, with the
income from this fund to be used to support the athletic training and competition for
individuals with intellectual disabilities.
CHARITABLE REMAINDER TRUSTS
This type of planned gift gives income back to you. The gift is made during your
lifetime, then those very assets are put to work to provide income to you, or others you
may name. To establish this trust you make an irrevocable contribution of cash or other
assets to the trust, the assets are invested and the trust pays you or your named
beneficiary for the rest of your life and, should you so choose, the life of another
beneficiary, or for a fixed term. When the trust ends, the remainder passes to
Special Olympics New Jersey. There are several
benefits to establishing a Charitable Remainder Trust:
- You will receive a charitable deduction in the year you
establish the trust. (This deduction is for the current value of the remainder interest
and is computed using IRS tables based on the ages of the beneficiaries and the amount of
income to be paid out each year.)
- If you fund the trust with appreciated assets, you may defer
and perhaps avoid capital gains tax on the amount of appreciation. This plan works
especially well if you have assets that have greatly appreciated in value yet yield low
income.
- You will receive income for your lifetime, and if you so
wish, the life of your other beneficiaries.
- When the trust is terminated, you will have made a
significant gift to
Special Olympics New Jersey.
- Rather than for a lifetime, you may set up the trust for a
specific number of years. This might fund a child’s education, for example, or
provide income to you or your beneficiary for a particular length of time.
To qualify as a charitable remainder trust, IRS regulations
require that a trust be either a Charitable Remainder Annuity trust in every respect or a
Charitable Remainder Unitrust in every respect.
CHARITABLE REMAINDER UNITRUST
A Charitable Remainder Unitrust is a trust from which the income fluctuates with the value
of the assets held as the principal. The unitrust pays a percentage of the trust assets,
as revalued annually. You may make additional transfers of cash, securities, or properties
after the unitrust has been established as long as the trust agreement permits such
additions.
CHARITABLE REMAINDER ANNUITY TRUST
A Charitable Remainder Annuity Trust provides you and/or your designated beneficiaries
with income of a fixed dollar amount. The payout is based on the value of the assets
contributed at the time the annuity trust is established, and it remains fixed for the
term of the trust agreement. No additional contributions may be made after the initial
funding.
CHARITABLE LEAD TRUST
A Charitable Lead Trust offers a way for you to presently support our programs and
still transfer your assets to beneficiaries (children or grandchildren, for instance),
with potential for significantly lowered gift and estate taxes. To establish this type of
trust you transfer property to an irrevocable trust, which pays an annual amount to
Special Olympics New Jersey for a specified period.
The payout may either be a fixed amount (an annuity trust), or a fixed percentage of the
annual value of the trust (a unitrust). At the end of the trust period, the remaining
trust assets return to you or a non-charitable beneficiary of your choice, such as a
family member in the next generation, or beyond. The property is generally appreciated and
can yield income and estate tax savings.
GIFTS OF LIFE INSURANCE
Sometimes, a person reaches a point in life where life insurance no longer has the
financial significance that it once held for the family. Children may be grown, or the
insured person may have outlived the beneficiary. A life insurance policy, paid up or with
premiums still due, may be gifted to
Special Olympics New Jersey. For
life insurance to qualify as a tax deductible gift,
Special Olympics New Jersey must be both owner and beneficiary of the policy. Estate taxes
savings may be realized by naming
Special Olympics New Jersey as
beneficiary and this designation is revocable.
GIFT ANNUITIES
A charitable gift annuity is a contract between
Special Olympics New Jersey and the donor. We agree to make regular, fixed payments to you for
life in exchange for assets which you contribute to
Special Olympics New Jersey. Your benefits include guaranteed, regular income, an immediate
income tax charitable deduction, and-if you donate appreciated property-favorable tax
deferral on the unrealized gain.
A deferred charitable gift annuity gives you an immediate income tax deduction, but defers
the receipt of income. This type of gift can have the benefits of a tax shelter because
you can receive the charitable donation deduction in a high-income year and defer income
until a later time when your income and tax bracket may be lower.
GIFTS TO THE ENDOWMENT FUND
A gift to the
Special Olympics New Jersey
Endowment Fund is a gift that remains in perpetuity and helps to serve the future of
Special Olympics New Jersey. The principal of your
gift is placed in a managed fund which seeks to maximize the return on investment,
consistent with the preservation of capital. The interest from the fund is used to
increase the number of athletes in our program through scholarships to local training
programs, and to increase the number and quality of training and competitions provided to
athletes with intellectual disabilities throughout New Jersey.
THE CIRCLE OF CHAMPIONS
The Circle of Champions was established by
Special Olympics New Jersey to recognize our families, volunteers and friends who contribute
and provide support through planned gifts. As a member of the Circle of Champions, you
will receive a distinctive lapel pin and recognition in our annual report. You will also
receive a subscription to the Olympian, our newsletter to keep you abreast of our
activities, a copy of our annual report, and special invitations to our Games and
Festivals throughout the year so you may experience first-hand the joy and excitement that
you are helping to bring to our athletes’ lives.
To become eligible for Circle membership, kindly notify us in writing that
Special Olympics New Jersey has been included in
your estate plans. You will then be enrolled in the Circle of Champions.
FOR ADDITIONAL INFORMATION:
We would be pleased to send additional information and/or meet with you to discuss a gift
that best meets your needs. Please complete the following
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