We work closely with donors, their advisors, and families. The following page outlines the many ways to make planned gifts.

Whether your gift is a direct and simple bequest or a complex legal instrument, a planned gift is defined as one that is “customized” to meet the donor’s objectives, maximizing both the value to the charity and the financial benefits to the donor. Below you’ll find more information regarding

Bequest

This is the most familiar type of planned gift. Leaving assets to Literacy Partners will reduce the size of your taxable estate. One can choose to leave a specified sum of money or particular piece of property or asset.

Other options might include leaving Literacy Partners a percentage of your estate or a percentage of the residue after making provisions for family and friends.

Sample Bequest Language:

For a Specific Amount:
“I hereby give and bequeath unto Literacy Partners, 30 East 33rd Street, New York, NY 10016, the sum of $___________ to be used for its charitable purposes.”

For a Percentage:
“After the payment of such debts and expenses as are set forth above, I hereby give, devise, and bequeath the residue as follows: ______ percent (%) to Literacy Partners, 30 East 33rd Street, New York, NY 10016.”

Informing Literacy Partners

We understand that your will is a private matter. However, if you intend to make a bequest to Literacy Partners, we ask if you would please let us know.

We would like to personally thank you for your support and ensure that your bequest is used for a specific purpose that reflects your wishes.

If you would like to inform us of your intentions, please click here to print out the form.

Be sure to consult your financial adviser before making a planned gift.

Charitable Gift Annuity

A Charitable Gift Annuity is created by an agreement between a donor and Literacy Partners for the benefit of both.

These annuities can be used both as retirement planning vehicles for individuals younger than 65 and as current income-generating vehicles for those 65 and older.

In return for a gift to Literacy Partners, a donor is paid a fixed income beginning at age 65. A portion of the gift qualifies for a current income tax charitable deduction, thereby reducing taxes, and the full value of the gift is removed from the donor’s estate. In addition, a portion of the annuity payment may be received as tax-free income. For people younger than 65, these annuities can be purchased periodically in order to build a tax-advantaged retirement plan.

If the Charitable Gift Annuity is purchased by a donor who has already reached age 65, the donor will start to receive annuity income immediately, based on the annuity rate applicable to the donor’s age on the date of the agreement.

For example, a donor, age 70 enters into a Charitable Gift Annuity agreement designating Literacy Partners to be the recipient of the charitable portion of her $10,000 cash gift. Based on the annuity rate of 5.1% for a person age 70, the donor receives income payments of $510 in each full year for the rest of her life. A portion of each payment is received by the donor as ordinary income and a portion is received tax-free. In addition, the gift provides the donor with a current income tax deduction of approximately $3, 469, and the full value of the $10,000 gift is removed from the donor’s estate for estate tax purposes.

Financial Benefits of Charitable Gift Annuity

  • Fixed income payments for donor’s lifetime, or for joint lives of donor and spouse
  • Payments can be made in quarterly, semi-annual or annual intervals
  • Portion of value of contributed assets qualifies for income tax charitable deduction, reducing taxes
  • If funded with appreciated stock, no capital gains tax due when securities are initially sold
  • Potential substantial increase in return on assets
  • Value of contributed assets is removed from donor’s estate
  • Portion of annuity payments in initial years may be tax-free income
  • Support Literacy Partners free adult literacy programs in New York City

Literacy Partners, Inc. Charitable Gift Annuity Rate Chart*

Age Rate Charitable
Tax Deduction
Tax-Free
Payment
90 9.0% 61.4% 87.6%
85 7.8% 54.2% 86.4%
80 6.8% 46.7% 83.4%
75 5.8% 41.0% 82.0%
70 5.1% 34.7% 80.5%
65 4.7% 26.6% 78.5%

* Rates for July 2013, subject to change.

Literati

Established in 2007, Literati recognizes those individuals who have made a deferred gift commitment to Literacy Partners in the way of bequest, trust, gift annuity, endowment, or other arrangement. Literati also affirms the lasting value of planned gifts.

To become a member of Literati, donors may qualify under one or more of the following provisions:

  • Provide for a charitable bequest in their will or living trust agreement
  • Establish a charitable gift annuity or other irrevocable life income plan
  • Enter into a charitable remainder trust arrangement
  • Name Literacy Partners a beneficiary of a life insurance policy, retirement plan, deposit account, or similar fund
  • Endow a fund to meet the future needs of those served by Literacy Partners

Contact Us

For additional information about leaving Literati, or to set up an appointment to discuss your planned giving options, please contact David Nathanson, Chief Financial Officer at 646.237.0123 or davidn@literacypartners.org.