Ways To Give A Planned Gift

There are a variety of vehicles that may be utilized to make a planned gift to the American Technion Society. Below is a brief description of the most common ways to honor ATS with a planned gift.

Bequests
Wills
Charitable Gift Annuities
Charitable Remainder Trusts
Unitrust
Income Only Unitrusts (IOT)
Income Accumulation Trusts
Annuity Trust
Gifts of Real Estate
Gifts of Artwork & Other Collectibles
Charitable Lead Trusts
Philanthropic Funds

For more information or a personal consultation, contact Mark Hefter, Associate Vice President of Planned Giving, at 212.407.6313 or by email at mark@ats.org.

For other giving options, such as wire transfers, stock transfers, and planned giving, please contact:

Carol Follenius
Planned Giving Associate
212.407.6346
carol@ats.org

Tax Identification Number:American Society for Technion—Israel Institute of Technology, Inc.
13-0434195


Bequests

A bequest is the easiest planned gift. You do so by having your lawyer write a simple codicil to your existing will. Your bequest can be the basis of a memorial or tribute to the donor or an individual you designate. A bequest provides an estate tax charitable deduction permitting you to make a gift to ATS for as low as $.45 on the dollar.

The following is sample wording of a bequest:

“To the American Society for Technion-Israel Institute of Technology, a not-for-profit corporation having offices at 55 East 59th Street, New York, N.Y. 10022, the sum of (specify amount), said amount to be used for (specify program).”

Many supporters also send us a letter that confirms their intention to maintain the bequest. Besides ensuring that your wishes will be carried out, this bequest commitment letter enables the ATS to recognize your gift currently, to discuss designation of your gift and in some cases to obtain matching funds from the Israeli government, thereby multiplying the effect of the gift.


Wills

A will allows you to determine how your assets will be distributed and to appoint an individual to handle you affairs after your passing.

Click here to read more about frequently asked questions regarding wills.


Charitable Gift Annuities

A Charitable Gift Annuity (CGA) is a form of life income gift established by execution of a simple agreement between you and the ATS. In exchange for your gift of cash or marketable securities, the ATS will agree to pay you or your beneficiary a fixed income for life. The annuity return from the CGA will be, in most cases, higher than that available to you in the marketplace.

Annuity payments are based on the size of the gift, current interest rates and other market factors, and your age or the ages of your beneficiaries at the time the gift is made. Annuity payments, once established, are fixed and will not be affected by inflation, financial market corrections, or fluctuations in the economy.

Your CGA provides you with an immediate income-tax deduction in the year it is established. If you fund your CGA with appreciated securities, you will also avoid any capital gains tax resulting from a sale or other transfer of the securities. A portion of each annuity payment is considered a tax-free return of principal. (When a CGA is established with a gift of appreciated securities, a portion of each annuity payment is taxed at lower capital gain rates.) When the contract terminates, usually upon the death of the beneficiary, the assets of the annuity revert to the ATS to be used in Israel at the Technion for purposes you specified.

If you are relatively young and more concerned about supplementary retirement income than about financial security for heirs, you might consider a Deferred Charitable Gift Annuity. Under this arrangement, annuity payments are put off to a future date of your choosing. The deferral increases the charitable deduction in the year the gift is made and each year’s income payment. The longer the period of deferment, the greater your annual income.


Charitable Remainder Trusts

A Charitable Remainder Trust (CRT) is a lifetime gift vehicle similar to a CGA but a CRT can be tailored to meet your specific requirements if you need special income payout rates, variable income or an inflation hedge payment schedule, income deferral and income payment periods (e.g. a specific term of years, a minimum term, or multiple generations or lifetimes). The CRT is also a perfect vehicle for those who wish to fund a life income gift with real property or other non-liquid assets. There are two types of Charitable Remainder Trusts:


Unitrust

A UNITRUST provides a variable income based on investment performance. Unitrust income is calculated as a fixed percentage of the value of the trust, determined each January 1. If trust investment performance exceeds annual income payments to you, the trust’s value should increase each year. So then should your income. The unitrust is a perfect vehicle for the risk-tolerant investor or/for those who desire an inflation hedge. You may make multiple or serial contributions to a Unitrust. There are also several special types of unitrusts. These include:


INCOME ONLY UNITRUSTS (IOT)

For gifts of real property and other assets not producing or producing income (e.g., rental income), donors earn a current charitable deduction. Annual income is the lesser of the stated percentage of the IOT’s value, or the trust’s annual earned income.

The IOT is an excellent vehicle for gifts funded with highly appreciated non-income producing property.


INCOME ACCUMULATION TRUSTS (IAT)

As their name suggests, IAT’s allow you to invest trust principal so as to minimize trust income payable to you in years in which you have little need of the income. When you do need the income, the IAT’s portfolio is altered so as to provide you with a much higher return than that available from other vehicles.

The IAT may help someone looking to establish retirement savings, funding a child’s or grandchild’s education, or save for long-term care.


Annuity Trust

An annuity trust provides a fixed income stream at a guaranteed level based on the value of the trust’s assets at the time it is established.

The income from either a CRAT or a CGA is in many cases greater than that available to you in the commercial marketplace, and can be used to: maintain or enhance current lifestyle transfer income to family members or heirs provide additional cash support for the Technion purchase wealth replacement life insurance to provide tax-free inheritance to heirs

As with any other charitable gift, you will gain a charitable deduction from your taxes in the year you establish your CRT. At the end of the term of the trust, the assets revert to the ATS and are used for purposes you specified.


Gifts of Real Estate

Almost any type of property—primary residence, vacation home, farm, commercial property, etc.—can become the basis of a planned gift to the ATS. Whether by bequest or lifetime transfer, such gifts provide significant benefits to you and to the Technion.

When your real estate gift is one of your primary residence or vacation home, you may opt for what is called a Retained Life Tenancy agreement, which will allow you and your spouse to live in the house for the remainder of your lives, with the ATS taking possession after the death of the last “life tenant.” Meanwhile, the “life tenant” receives a charitable tax deduction in the year of the gift, avoids capital gains taxes and, usually, incurs lowered estate taxes later.


Gifts of Artworks & Other Collectibles

Valuable works of art, antiques, ancient manuscripts, collectibles, jewelry and other personal property may also be given to the ATS if they are accompanied by a letter of appraisal from a bona fide expert. We can help! The charitable tax deduction on gifts varies according to whether or not they are related to the educational/research mission of the Technion.


Charitable Lead Trusts

By establishing a Charitable Lead Trust, you provide the ATS with income over a specific period. At the end of this period, the lead trust terminates and the principal reverts to your beneficiaries (children, relatives or other heirs). If properly structured, the ultimate transfer of lead trust assets to your beneficiaries can be tax-free.


Philanthropic Funds

A Philanthropic Fund established with the American Technion Society (ATS) offers you and your family a way to perpetuate your giving to the Technion and other favorite charitable organizations. Unlike a foundation that requires high maintenance costs and burdensome paperwork, your family’s philanthropic fund is easy to manage under ATS’s oversight. ATS helps you ensure that your endowment is managed and distributed according to your family’s preferences. And as with all charitable gifts, you and any members of your family who wish to contribute to the fund—in cash or property—will receive an income tax deduction in the year the contribution is made.

ATS is unique among charitable organizations in that we can offer you the following in connection with the establishment of your philanthropic fund:

Low Administration Fees: ATS charges only a one percent (1%) management fee per annum.Ease of Administration: ATS has few, if any, requirements concerning fund expenditures other than that all payments be made to recognized charities and that we receive a minimum of all amounts distributed (the actual amount depends on the size of the gift and other factors) from the fund every year.

Expert Design: We will work with you to custom design a unique fund program that will best meet your philanthropic desires. We will involve your children in these discussions and fund activities if you wish.

ATS holds all philanthropic fund assets with the TIAA-CREF Trust Company—the biggest mutual fund company in the United States—in one of three mutual fund groups offered. You and your family can select the fund that matches your investment preferences; you may choose from among conservative, balanced or aggressive investment approaches, and you can change your investment strategy on an annual basis.

Although every gift to the ATS is vital, your creation of a philanthropic fund can help you perpetuate your family’s charitable vision and support for Israel.

 

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