Preserving the legacy of the YMCA

summer 2015

IMPACT

Mary and Bob Smith met in Phoenix Arizona in 1941 at a YMCA dance. They were married several months later and spent the early years of their marriage moving from Arizona to California and finally to Washington, arriving in Everett in 1955.

While in Everett, Bob first worked as a FW Woolworth’s store manager, and later entered the world of Real Estate. As they settled in to life in Everett, Mary and Bob became involved in the community, volunteering with many organizations.

Bob was especially active, and in later years chaired many fundraising campaigns for a variety of organizations including the Volunteers of America, Boys & Girls Club, YMCA, Providence Hospital, and United Way to name a few. These efforts earned him the title of “Mr. Fundraiser.”

Mary and Bob both served on the Everett YMCA Board of Directors and Bob also served on the YMCA Board of Trustees. While Bob volunteered on the Boards of many organizations, Mary wanted to do more hands-on volunteering and became active with the Assistance League, Civic Music, ICON, and tutoring English as a second language at Everett Community College, where she befriended many newcomers to America.

Their son, Richard, carried on the tradition of meeting his spouse at the YMCA. He met Mayumi at the Everett YMCA in 1975 when she was visiting Everett on a People-to-People program sponsored by the YMCA.

Bob passed away in 1997, and upon Mary’s recent passing, Bob and Mary left a significant $345,000 gift to the YMCA of Snohomish County Endowment Fund.

Just as Bob and Mary supported their community through volunteering, this gracious gift will continue their legacy of support, funding critical YMCA programs in perpetuity.

LEAVING A LEGACYDONOR PROFILE

Bob and Mary, circa 1941

Do you have a story to share? Contact Scott Sadler at 425 374 5777 or ssadler@ymca-snoco.org

A Message From The Endowment Committee Chair Dear Heritage Club Friends: Spring has ended and summer is upon us. Spring is marked by Mother’s Day, Father’s Day, and promising youth taking a step into adulthood with high school and college graduations.

At the YMCA, summer brings with it expanded opportunities to work with youth in a meaningful way. The Y offers a host of life-enriching youth programs. Many of us fondly recall our summer camp days as a time for new friends, adventures, skills, and a new found confidence and self-identity. As shared by the parent of a teen camper:

“My son came back from camp excited, which is saying a lot for a teenager who usually ‘doesn’t care about doing things.’ He said he would like to do it again next year. It was a great opportunity to experience new adventures and make new friends.”

Your investment in the YMCA Endowment Fund provides a safe, exciting YMCA experience for young people to explore the outdoors, build self-esteem, develop interpersonal skills, and make lasting friendships and memories.

In closing, I would like to welcome and recognize new Heritage Club Members Patricia Martin and David Eckert and Monti and Maryanne Ackerman. I would also like to share, that as of May 15, 2015, under the competent and watchful eye of the YMCA Investment Committee, our Endowment Fund has reached a new high of $3,470,123.

I am proud to chair this effort knowing the lifelong impact this incredible group of people we call the Heritage Club has on our community.

Best wishes for a safe and enjoyable summer!

Jeff DunleavyChair, Endowment Committee YMCA of Snohomish County

Jeff Dunleavy

PLAN GIVE IMPACTRESOURCES AT YOUR FINGERTIPSThe YMCA Planned Giving website is a useful tool for Heritage Club members, Y members, donors, volunteers, and professional advisors.

The site has recently been redesigned and includes new features:

• The site is mobile optimized and easy to read on your phone or other mobile device.

• There are a number of video tutorials.

• Downloadable and print-friendly e-brochures focus on a variety of planned gifts.

• New estate planning articles featured every quarter in the What’s New section.

• Begin my Giving Journey section helps donors assess the right gift for them to consider.

Visit the site today at ymcasnoco.planmygift.org

Financial Assistance:The YMCA of Snohomish County makes every effort to ensure that no person, especially youth, will be denied access to programs and membership because of financial hardship. The YMCA’s Finan cial Assistance Program is supported by contributions to our Annual Campaign and United Way.

Mission Statement:To inspire, nurture, and strengthen culturally vibrant communities through youth development, healthy living, and social responsibility.

Everett Family Branch2720 Rockefeller Ave.Everett, WA 98201425 258 9211

Marysville Family Branch6420 60th Drive NEMarysville, WA 98270360 653 9622

Mill Creek Family Branch13723 Puget Park DriveEverett, WA 98208425 337 0123

Monroe Family Branch14033 Fryelands Blvd.Monroe, WA 98272360 805 1879

Mukilteo Family Branch10601 47th Place WestMukilteo, WA 98275425 493 9622

Stanwood-Camano YMCA9031 271st St. NWStanwood, WA 98292360 629 9622

Big Brothers Big Sisters2722 Colby Ave., Ste. 415Everett, WA 98201425 252 2227

IMPACT is published biannually by the YMCA of Snohomish County to provide planned giving information to friends of the YMCA. Colleen Temple, editor, 425 374 5738 or ctemple@ymca-snoco.org

If you wish to be removed from the mail-ing list, please call or email the editor.

For more information on YMCA programs and services, visit www.ymca-snoco.org

Find us on Facebook:facebook.com/ymcasnoco

Watch us on YouTube:youtube.com/ymcaofsnohomishco

NEW &

IMPROVED

YMCAENDOWMENT COMMITTEE MEMBERSBrenda Baltrusch Jeff DunleavyBrian EvansHerb Fox Dan LeachJason LucasMatt MartinDawn OllarLoren Van LooDon Whitfield

Not all gifts are created equal when it comes to timing. Many can be established at any time in your life for good effect. But with certain gift types, the most advantageous tax benefits will result from making the gift either before or after retirement. Here’s a rundown on the basic strategies.

TYPE OF GIFT HOW IT WORKS BEST TIME TO SET UP THIS GIFT - BEFORE RETIREMENT? AFTER? OR ANYTIME?

Cash Write a check or charge a credit card. Anytime. When you itemize, you can always take a charitable deduction.

Securities Give appreciated assets that you’ve owned for more than one year, receive an income tax deduction, and eliminate capital gains tax.

Anytime. (Whenever long-term capital gains taxes are an issue.)

Bequest Leave a specific amount or a percentage of your estate to us through your will or living trust.

Anytime. You can change or revoke the gift as life circumstances change.

Retirement plan (given to us after your lifetime)

Name the YMCA as a primary or contingent beneficiary of part or your entire retirement plan.

Anytime. You can revoke or change your gift throughout your lifetime.

Charitable remainder trust Establish your trust with cash, securities, or other assets, and then receive income for life from the trust with the balance thereafter going to support YMCA of Snohomish County.

Before retirement. This gift can provide you with extra retirement income.

Charitable lead trust Fund a trust that provides payments to us for a term of years and then pays the balance to your selected loved ones.

After retirement. When you are retired, you will likely have a better handle on the size of your estate and may be able to temporarily forgo access to an asset.

For detailed calculations of when, what, and how to give for greatest tax benefit and other needs based on your age and income, contact your financial or legal advisor.

TIMING ISEVERYTHING When is the best time to give?

There are almost as many variations on ways to make a donation as there are needs to be met. Explore the Ways to Give section on the Planned Giving website to discover new ways to make a gift that also take into consideration your personal circumstances and the needs of your heirs.

• Gifts that pay you income.• Gifts you make today.• Gifts that make an impact after your lifetime. Visit the site today at ymcasnoco.planmygift.org?DID

YOU KNOW

NONPROFIT ORG.U.S. POSTAGE

PAID SEATTLE, WA

PERMIT NO. 134

YMCA OF SNOHOMISH COUNTY2720 Rockefeller Ave.P. O. Box 419Everett, WA 98206-9923

“Step-Up in basis” is one of the least understood topics in the financial world.

When an asset is passed on to a beneficiary and its value has increased from what it was when the original owner acquired the asset, it is referred to as “Step-Up in basis.”

Be aware: there are different rules for the deceased who live in a community property state, like Washington vs. a common law state. Those from community property states receive a tax break on the full value of the asset in the case of a spouse, while only 50 percent of the asset value (or a half Step-Up) is generally allowed in a common law state.

As an example, Donald, a client in Washington State, loved to buy rental houses. Some would call these fixer uppers, while I might call them tear downs! When he passed away, his wife Betty was mortified with the prospect of owning and maintaining 20 of these houses, worth about $3 million at the time of Donald’s death. The structures had been fully depreciated, so only the cost of the original land remained taxable, or as basis at $300,000 once sold. Had the houses been sold while they were both alive, there would have been a huge capital gains tax to pay on the gain of $2.7 million.

I suggested she sell them. Betty was hesitant because of the tax implications. I told her about Step-Up in basis and how her new taxable asset value was now the fair market value at the date of Donald’s death, or $3 million. When she sold the houses, Betty would not owe capital gains tax, provided she did not sell the houses for more than $3 million. This was a tremendous relief to Betty.

Had Donald and Betty lived in a common law state, the result would have been different. Only Donald’s half of the assets would be eligible for the Step-Up, not Betty’s. So Betty’s taxable assets would be $1.35 million or the difference between half of the current market value at the time of Donald’s death ($1.5 million) plus half of the original purchase price ($150,000). Please visit the planned giving website at ymcasnoco.planmygift.org

STEP ON UPBy Brian Evans, CPA/PFS, owner of Madrona Financial Services