A Legacy of Giving
Gifts and bequests to William Penn House are vital to the future of our mission and programs. Deferred giving provides an additional avenue for forward-thinking donors to make a meaningful contribution to the future of William Penn House programs.
Bequests of all sizes play an important role in helping William Penn House to ensure excellence in our work today and meet the challenges of the future. Simply put, a bequest is a gift made through your Will. You may include a bequest when you have a new Will prepared, or add a codicil to your existing Will. Either way, a bequest is a simple method for including William Penn House in your estate plans.
Your will reflects your personal priorities and can be a means of providing for the people who are important to you such as children, nieces, nephews or close friends. You may also use your will to provide for the charities you have supported throughout your lifetime. When you include William Penn House in your will, you demonstrate your lasting commitment to ensuring a strong future for our program. You also earn our sincere and heartfelt thanks.
Forms of Bequest
Careful planning will ensure that your bequest accomplishes your charitable goals. Donors find the simple language needed to create a bequest clear and easy to understand. Common types of bequests are described below.
1. Specific Bequests, which may take the form below, allow a donor to transfer a specific sum or asset such as securities, real estate, or a collection.
I give [dollar amount or list of specific items] to William Penn House, 515 East Capitol Street SE, Washington, DC 20003 for [any of its proper uses and purposes] or for [__________].
2. Residuary Bequests, which may take the form below, allow a donor to transfer all or a portion of the remainder of their estate, after the specific bequests have been made.
I give [all or specific %] to William Penn House, 515 East Capitol Street SE, Washington, DC 20003 for [any of its proper uses and purposes] or for [______________].
There are other types of planned gifts which not only benefit William Penn House at the time of your death but provide income to you, or your named income beneficiaries, right now.
Charitable Gift Annuity
A charitable gift annuity provides an immediate federal income tax deduction and a fixed lifetime income payment, some of which might be free from federal income tax. Annuity rates are tied directly to the age of the income beneficiary at the time the gift is made. The older the annuitant is at the time of the gift, the higher the rate. The minimum gift for an annuity is $10,000. The minimum age for the annuitant is 60.
Gift Annuities Meet Your Needs
Careful planning will ensure that your Charitable Gift Annuity accomplishes your philanthropic goals. You may establish a Charitable Gift Annuity to benefit either one or two age-qualified income beneficiaries. Most donors receive the annuity payments themselves but a charitable gift annuity can also be a way to provide income for a loved-one. At the time of the death of the annuitant, William Penn House would receive the current value of the annuity, a significant gift.
Deferred Gift Annuities
If you prefer, you may defer the income payments for a year or more to better fit your personal income requirements. By deferring your income payments, you would receive a higher rateannuity payment. In the interim period, the gift accumulates under professional investment management.
Charitable Remainder Trusts
For larger gifts of $250,000 or more, a charitable remainder trust could be considered. Charitable remainder trusts can provide a fixed or variable annual income, for any number of income beneficiaries, depending on the type of trust you choose.
Upon the death of the last income beneficiary, the balance of the trust’s assets would be given to William Penn House for our general purposes or for some specific purpose that you might designate.
Benefits of Contributing Appreciated Securities
If you sold appreciated securities in order to make a charitable gift, you would be required to pay capital gains tax on the proceeds of the sale. Only the balance would be available to use in making your gift. By transferring the appreciated securities directly instead of the cash, (1) you defer the capital gains tax and (2) you are able to take a charitable deduction for a portion of the total fair market value of the securities contributed.
Deductions and Roll-forward
There is an annual limit to how much you are allowed to deduct in a given year for gifts of long term appreciated securities, generally not to exceed 30% of your adjusted gross income. However, you can roll forward the balance of the deduction over the next five years.
Real Estate Assets
If you have real estate that you might like to use to fund any type of gift, please contact our office at (202) 543-5560 or email [email protected] in order to determine how we might arrange such a gift.
Friends Fiduciary Corporation
The William Penn House Charitable Gift Annuity program is offered in partnership with Friends Fiduciary Corporation (FFC), a Quaker non-profit corporation, which supplies financial services to other Quaker non-profit organizations and Meetings. Annuity rates increase with age, but the rate is fixed once the gift is made. Rates offered by FFC are those recommended by the American Council on Gift Annuities. When you establish a Charitable Gift Annuity with your irrevocable transfer of cash or appreciated securities to benefit William Penn House, you enter into a legally binding written contract with FFC. FCC will manage all aspects of your Charitable Gift Annuity including beneficiary payments, income tax reporting and investment.
For information about these and other gifts please contact our office.