Ways to give
A bequest is one of the simplest ways to provide for the Foundation’s future and can take many forms.
You may arrange for Toybox to receive:
- a specific dollar amount
- specified assets, such as securities, real estate, or tangible personal property
- all or a percentage of the remainder of your estate after all other obligations (a residuary bequest)
You may make a bequest to the Foundation by preparing a new will or adding a codicil to your present will. An outright bequest to the Foundation is fully tax-deductible for estate-tax purposes.
How to Make a Bequest: Useful Language
The most useful bequest is an unrestricted bequest for the general purposes of the Foundation. This permits the Foundation to use your gift wherever it is most needed at the time.
Suggested language for making an unrestricted bequest: "I give, devise and bequeath the sum of ___ dollars, all or ___ percent of the rest, remainder and residue of my estate of every kind and description (including lapsed legacies and devises) to the Toybox USA Foundation, 1350 Avenue of the Americas, Floor 2, Suite 266, New York, NY 10019, for its general corporate purposes."
Suggested language for a specific purpose: "I give, devise and bequeath the sum of ___ dollars, all or ___ percent of the rest, remainder and residue of my estate of every kind and description (including lapsed legacies and devises) to the Toybox USA Foundation, 1350 Avenue of the Americas, Floor 2, Suite 266, New York, NY 10019, to create an endowment fund which, subject to the Foundation's endowment spending rule, is to be used for the following purpose: state the purpose."
Important Note: If you do specify a use for your bequest, the following language will ensure that your gift will always remain productive: "If at any time in the judgment of the Trustees of the Toybox USA Foundation is the designated use of this bequest is no longer practicable or appropriate, then the Trustees shall use the bequest to further the general purposes of the Foundation, giving consideration, where possible, to my special interest as described above."
Charitable Remainder Trusts
This arrangement is an individually managed trust that may be tailored to meet your specific financial needs and can provide either a fixed or variable income for the life of the beneficiaries or for a set number of years, not to exceed 20.
The donated assets (typically cash, securities, and/or real property) are irrevocably transferred to a Trustee. There are two variations:
- A charitable remainder annuity trust pays income as a fixed dollar amount that remains constant for the term of the trust.
- A charitable remainder unitrust pays income that varies from year to year.
At the termination of the trust, the remaining assets pass to the Foundation for its general purposes or for the use you specify. A charitable deduction for a portion of your contribution is available on your income tax return in the year you make the gift.
Charitable Lead Trusts
This arrangement provides income to the Foundation for a period of years, after which the trust property typically passes to the donor's heirs.
Income-producing assets that are expected to gain in value, such as stock or income-producing real estate, are irrevocably transferred to a trust. A minimum gift of $100,000 is recommended.
The Toybox USA Foundation receives income from the trust for a specified number of years, after which the property in the trust is transferred to the heirs without the imposition of any additional taxes.
An immediate charitable deduction on your gift tax return is available for the present value of the total income stream the Foundation will receive during the trust term.
This gift can reduce or effectively eliminate the gift and/or estate tax that would normally be payable on the transfer of these assets to your heirs.
With this kind of plan, you are able to ensure that:
- The Foundation can plan for the use of a stream of income for a number of years.
- When the trust terminates, the assets in the trust will pass, with no additional tax, to your heir.
- The trust property has been removed from—and therefore is not taxable in—your estate.
Planned Giving Glossary
Beneficiary: The person named to receive the income from, or remaining assets of, a trust
Bequest: A gift through one's will
Capital gains tax: The tax imposed upon profits realized from the sale of financial assets that have increased in value since they were acquired
Codicil: An addition to a will that either modifies it or revokes part of it Gift tax: A tax imposed on someone who gives money or property to another person without compensation
Irrevocable gift: A gift that cannot be annulled, undone, or changed
Present value: The value, in today's dollars, of assets to be received at some future time
Principal: The initial sum invested or borrowed, or the remainder of that sum after payments have been made
Real property: Immovable property; land, together with all the property on it that cannot be moved, together with any attached rights; often referred to as "real estate"
Retained life estate: The right to use property for life (usually a residence or a farm) after contributing the remainder interest to a charitable institution
Retirement accounts: Qualified plans like IRAs and 401(k) accounts that permit individuals to accumulate savings tax-free for retirement
Tangible personal property: Includes movable objects (e.g. china, books, cars, clothes, art, etc.) but does not include land, buildings, or other forms of real estate (real property—see above), or stocks, bonds, copyrights, cash, or other "intangible" personal property
Trust property: Property held in trust by one person (trustee) for the benefit of another (beneficiary)
Variable income: Payments received on a regular basis that are subject to change, not fixed
For more information on how these gifts might work for you, please email us.Planned Giving
Toybox USA Foundation
1350 Avenue of the Americas
Floor 2, Suite 266