A planned gift is a long-term method of supporting the future of Sacred Heart High School. Annuities, trusts, bequests, life insurance and IRA’s are examples of planned gifts. Planned gifts can provide a tax savings to you and your heirs while supporting the mission of the Green and Gold Fund.
DONOR-ADVISED FUND (DAF)
Opening a DAF allows donors to make a gift and qualify for a charitable deduction immediately without needing to decide, until you're ready, on the charities to support with grant recommendations. DAFs also allow donors to bunch charitable gifts in a given tax year to maximize a deduction, and then recommend grants at later dates. It can also be a way to offset a year with unexpectedly high earnings, or to address the tax implications of year‐end bonuses or stock option exercises, or to offset taxable income generated from rebalancing your portfolio. Once donated to the DAF, assets can be invested and earn returns without being taxed. By donating directly to a DAF, you can potentially give more to the Green and Gold Fund than if you were to liquidate assets and then donate.
A charitable annuity is a simple gift that provides income to the annuitant for life. The rate of the annuity is based on the age and number of annuitants. A deduction for the present value of the gift to the Fund may be taken in the year of the gift, and a portion of the income from the annuity is tax-free for a period of years, based on the life expectancy of the annuitant. You can delay the beginning of payments from your gift annuity. The deferral gives you both a higher income rate and a larger charitable deduction than you could receive from an annuity paying you immediately. The deferred gift annuity is especially attractive if you are still in high-income years, and are looking for both tax deductions and additional income during retirement.
One of the simplest ways of creating a planned gift is by including the Green & Gold Fund in your will or trust.
Life insurance can make a great gift to the Green & Gold Fund. If you are carrying more insurance coverage than your family obligations now require, you may want to consider gifting an unneeded, paid-up policy. If you transfer all rights and incidents of ownership of your policy to the Fund, you will be eligible for a charitable income tax deduction equal to the policy’s cash surrender value or cost basis, whichever is less. The insurance policy must be whole life, not term insurance. The value of your gift for gift crediting purposes will be the cash surrender value of your policy on the date of transfer.
HONOR & MEMORIAL GIFTS
You may make a gift in honor of or in memory of a family member, classmate, teacher, loved one, or other members of the Sacred Heart High School community. A gift in memory of someone you love or admire can be a particularly meaningful way to support the Green & Gold Fund. Upon a special occasion or the loss of a family member or friend, many choose to create a restricted scholarship or an endowed scholarship in their memory.
Gifts of a personal residence can also be made with a retained life estate. The retained life estate allows the donor or a designee of the donor to live in their home for the rest of their life. After that time, the real estate is owned outright by the Green & Gold Fund, without the complications of probate proceedings. This gift allows the donor to receive current income tax deductions for the discounted value of the property.
SECURITIES & STOCKS
There are many benefits to donating securities instead of cash. Appreciated securities held for more than twelve months benefit a donor in two ways. The donor is able to claim a charitable income tax deduction for the full market value of the securities. The deduction is limited to 30 percent of the donor’s adjusted gross income, but as with outright gifts of cash, the remaining value of the securities donated may be carried over and used for deductions for the next five years. Gifts of stock can yield a tax donation equal to the fair market value of the securities on the day the stock is sold. The donor does not pay the capital gains tax.
Will your employer match your gift to the Green & Gold Fund? Many participating companies will match the number of dollars (sometimes up to three times) given to the Green & Gold Fund by their employees, spouses and/or retirees. Donors receive credit for both the original gift and the amount of the match. Check with your personnel/human resources office for a matching gift form.
You should consult with your legal counsel and/or your accountant or tax professional regarding the legal or tax implications of a particular suggestion or strategy including any estate planning strategies, before you implement your plan. In addition, the information is current as of the date indicated and is subject to change without notice.
For additional information about making a gift to the Green & Gold Fund, please contact us at firstname.lastname@example.org