What is an Endowment?
An endowment is an investment that provides endless support to charitable causes. It’s an investment in the future … the future of San Diego. It’s a gift … a promise without end, made by you to your children and grandchildren in support of your community. Endowments are made possible by you … those who have lived and embraced all that our region has had, will have and can have.
Endowments are permanent. They are funds with the requirement that the principal is never spent. The balance in these funds is invested, earning income that is then spent to support charitable works in perpetuity.
A Designated Endowment is a gift that provides a permanent source of support to a nonprofit organization selected by the donor. Is there a nonprofit organization whose charitable work is your passion? You can endow your favorite nonprofit organization through a designated endowment.
Endowments are a source of permanent support for causes that make the San Diego region an extraordinary place to live, work and play. To learn how you can invest in Alpha Project's future, contact Kyla Winters at (619) 542-1877 or via email to set up an appointment.
Did You Know…
Ways to Give
These gifts not only provide benefits to Alpha Project, but to you as well. In many instances you not only have the satisfaction of supporting the services of Alpha Project, but you also qualify for tax benefits.
Your gift enables Alpha Project to continue its work in our community. It is fully deductible for income tax purposes.
Make Alpha Project the owner and beneficiary of your old policy or a new one. If annual premiums are due, make gifts to Alpha Project in the amount of the premium and qualify for an income tax deduction.
Income to You:
Making a gift to a Charitable Remainder Trust or a Pooled Income Fund returns income to you in addition to income and estate tax benefits and bypasses capital gains taxation. The income you receive can be for your lifetime or for a period of years. In some instances, you may choose the amount of income you will receive.
Income to Charity:
Transferring assets to family members is subject to gift and estate taxes, perhaps as much as 55%. Through a Charitable Lead Trust you can reduce, even eliminate those taxes. In this vehicle you select an annual amount to be distributed to Alpha Project . You also choose the number of years for the distributions. After the selected term, the assets in the trust pass to your family at substantially reduced taxes.
A significant part of most Californians’ estate is their home. You can surrender ownership of your home to Alpha project, continue to enjoy all the benefits of staying in your present surroundings for your lifetime, and receive tax benefits.
Giving appreciated stock returns several benefits to a donor. The gift amount is the value of the stock on the date it is given, not the purchase amount. Additionally, no tax is due on the capital gains.
Similar to gifts of appreciated stock, the gift value of contributions of real estate is the fair market value of the property at the time of the gift—not the original purchase price. And no taxes will be due on the appreciated value of the property.
Transferring remaining assets in qualified retirement plans to any family member other than one’s spouse results in taxes that may exceed 80 percent. Naming Alpha Project as the successor beneficiary of your spouse allows you both to have use of the assets in your lifetimes and transfers the full value of any remaining assets to support programs at Alpha Project .
Gifts by Will or Trust Agreement
A donor can make a gift of cash or property by naming the charity as a beneficiary in his or her will or trust. This technique is often used to reduce estate tax on death.
Here is some sample language for a bequest by Will to a public charity. Please consult with your attorney before incorporating this language into your Will. For language designating a specific program, please contact your public charity of choice.
"I give, devise, and bequeath to the Alpha Project for the Homeless, located in [city, state, tax identification number ___________________], for its general purposes [(1) all of the rest, residue, and remainder of my estate or (2) state fraction or percentage of the rest, residue, and remainder of my estate]. To the extent possible, gifts to charitable organizations shall be made with assets subject to income in respect of a decedent.”
Or:
“I give, devise, and bequeath to the [legal name of the public charity], located in [city, state, tax identification number ___________________], the sum of $_____________ to be used of the general purposes of Alpha Project for the Homeless. To the extent possible, gifts to charitable organizations shall be made with assets subject to income in respect of a decedent.”
Note: Please contact your tax advisor before making any gift transfers of property.
The Nonprofit Partnership Program is a a cooperative agreement only and limited to the Endow San Diego Program. No legal connection or inter-organization authority is granted or implied between participants in the program.