Planned Giving

Planning a gift through your will is an easy, flexible way to impact the lives of children and youth facing homelessness. Specify a gift of any amount, or a percentage of your estate, or name Covenant House Missouri as a contingent or residual beneficiary. You maintain complete control of your assets during your lifetime. There may be tax savings, too, depending on the assets you designate for a gift from your estate.

The paragraph below provides sample bequest language you can provide to your attorney or estate planner for naming Covenant House Missouri as a beneficiary in your will:

I give, for general use and purpose, (insert dollar amount, property to be given, percentage of the estate, or “the remainder of my estate”), to Covenant House Missouri, a 501(c)3 non-profit organization, tax ID #43-1821599, located at 2727 North Kingshighway Boulevard, Saint Louis, Missouri 63113.

Bequests can be directed for use by a specific program or activity. Please let us know if you want your bequest designated for a particular use. We want to be aware of your desire and certain that we can meet your intention.

Designating a beneficiary of a financial account is easy to do. In most cases, beneficiary designations can be created or changed by simply signing a form provided by the account administrator. Often, a beneficiary can even be changed online. No lawyer is required. Beneficiary designations allow for assets to pass outside the probate process, which may reduce costs and the potential for contests.

Bank accounts, donor advised funds, mutual funds and brokerage accounts - Many different types of accounts, such as bank accounts (either checking or savings), donor-advised funds, mutual funds and brokerage accounts have ‘payable on death’ or ‘transfer on death’ beneficiary designations.

Life insurance - After many years, the original need that prompted the purchase of a life insurance policy may have passed, making the policy proceeds an asset that can be used for charitable giving.

Retirement accounts - Funds from retirement accounts are among the most highly taxed estate assets. For this reason, an IRA, 401(k), 403(b), Keogh Plan, SEP IRA and other retirement plans make great opportunities for charitable beneficiary designations. Your heirs will pay tax at ordinary income tax rates on distributions they receive from inherited retirement accounts. Because Covenant House Missouri is a tax-exempt organization, IRA distributions received are not subject to income tax. Designating Covenant House Missouri as a beneficiary of your IRA or other retirement plan can mean that those funds will be used to

The Charitable Gift Annuity is a popular planned giving option that provides you with quarterly, stable payments for life and an immediate income tax deduction in the year you make your gift. Gift Annuities can be made with cash or appreciated securities. The minimum donation is $5,000 and there is no maximum amount.

The plan is simple and reliable, the rates are generous, and the feeling of doing something special for young people facing homelessness is priceless.

For a proposal prepared just for you with no obligation, please call Nancy Totland, Individual Giving Coordinator, at 314.450.7674 or 314.922.81849 (cell), or email Nancy at ntotland@covenanthousemo.org.

The sample rate information provided below is for illustration only and is not intended as tax or legal advice. Annuity rates are based on recommendations by the American Council on Gift Annuities and are subject to change. Rates are based on a gift of $10,000.

Sample Maximum Gift Annuity Rates Single Life Immediate Annuities as of July 1, 2020

Age	Rate	Age	Rate
65	4.2%	80	6.5%
80	4.7%	85	7.6%
75	5.4%	90+	8.6%

If you are age 70½ or older, you have the opportunity to contribute directly from your IRA to Covenant House Missouri. This is a convenient way to satisfy your IRA Required Minimum Distribution, support Covenant House Missouri’s mission, and receive a tax break all at the same time.

When it is time to file your taxes, your distribution to Covenant House Missouri is a Qualified Charitable Distribution and does not increase your taxable income (up to $100,000).

Contact your IRA Administrator for instructions on making an IRA Charitable Rollover gift to Covenant House Missouri.

Each trust with Covenant House is individually planned, funded and administered. This personal handling allows the greatest flexibility in the assets used to fund the gift, the type and duration of income, and the ultimate use of the gift by Covenant House.

Benefits of charitable remainder trusts

Charitable remainder trusts provide income for life to you or someone you designate, after which the trust remainder will go to fund Covenant House Missouri's mission. Unlike a charitable gift annuity, the payments from a charitable remainder trust can be customized to your needs:

• Payments can be fixed or variable to grow with the market.
• Payments can be deferred into the future.
• Payments can stop after a period of years.
• Payments can continue to you for life and then be transferred to another person for life (or a period of years).
• Payment options are almost unlimited to meet your needs.

Cash or publicly traded stock can be used to establish a charitable remainder trust, as can real estate, shares of a closely held corporation, tax-exempt bonds, IRA leftovers or even artwork. The minimum for funding a trust with Covenant House is $100,000.

Covenant House Charitable Remainder Trusts receive high-quality administration at no cost to you or to the trust. Asset allocation and investment selection are obtained through Vanguard, with independent evaluation through Morningstar. You choose from among a wide variety of highly rated Vanguard funds for the investment of your trust.

The Covenant House Cornerstone Legacy Society is comprised of the treasured people who have committed to remember Covenant House youth in their estate plans. As a Cornerstone Legacy Society Member, you are an irreplaceable part of the foundation of our mission. You will receive a certificate, regular updates on our work, and invitations to Covenant House Missouri and Covenant House International events, including an invitation to Covenant House International’s Cornerstone Legacy Society luncheon.