Giving Options
Different giving options will provide donors with tax advantages favorable to their personal situations. The following outlines a few, but we are always exploring different avenues and new ideas.
Gifts of Cash
Gifts of cash may be made either outright or as a multi-year pledge. These gifts are fully deductible up to a maximum of 50% of the donor's adjusted gross income.
Gifts of Securities
Gifts of securities may be made either outright or as multi-year pledges. Such gifts allow the donor to receive a charitable deduction for the full fair market value of the security (up to 30% of your adjusted gross income) while avoiding both capital gains and alternative minimum taxes on the increased value of the security.
Gifts of Property
A gift of real estate to Episcopal Collegiate School provides a charitable deduction for the full market value of the gift (up to 30% of your adjusted gross income) if you have had it for more than one year. You are not liable for capital gains on the appreciated value of the property, except in those few cases where the alternative minimum tax is applied.
Donations of artwork, computers, books, equipment, and furniture can provide helpful additions to Episcopal Collegiate School. Before making a gift of tangible personal property, however, please consult the Foundation to confirm that your gift can be used as you wish, while also meeting Episcopal Collegiate School's needs.
Gifts of tangible personal property entitle you to a deduction of the property's full fair market value (up to 30% of your adjusted gross income) as long as the object is related to the School's educational purpose and you have held it for more than one year.
Life Insurance
Donors may name Episcopal Collegiate School as a beneficiary and owner of life insurance policies. A donor may have purchased insurance in previous years for a purpose that no longer exists or is fulfilled through some other means. The donor is allowed an income tax deduction for the cost of premiums in the contract plus any future premiums paid by the donor.
Bequests, The Shield and Laurel Circle
A gift through one's will is perhaps the most popular form of a planned gift. Such gifts may enable a donor to make a significant contribution to Episcopal Collegiate School that was not possible during his or her lifetime. A bequest to the School can be included in the body of a will or in an addition (a codicil). As with lifetime gifts, a bequest may be unrestricted, providing Episcopal Collegiate School with the flexibility to meet its needs as they arise, or a specific gift may be designated for the use of your bequest. Testamentary gifts to Episcopal Collegiate School are typically deductible for estate tax purposes and may be made in several ways.
Specific Bequest
You may stipulate that a certain percentage of your estate, or a certain dollar amount, or particular securities, or other assets be given to Episcopal Collegiate School.
Residuary Bequest
You may state that a portion of your estate be given to Episcopal Collegiate School after specific amounts are distributed to other beneficiaries.
Testamentary Charitable Trust
You may establish a unitrust or annuity trust for the benefit of specific beneficiaries through your will. The trust principal is transferred to Episcopal Collegiate School only after the death of the last trust beneficiary.
Reserved Income
Trusts may be designed to provide income to Episcopal Collegiate School for a period of years, and then the assets (which may have appreciated) are returned to the donors or their heirs. Known as "lead trusts," they provide an excellent opportunity to support the school significantly while assuring continued family control of the assets in a tax-considered manner.
Charitable Remainder Trusts
Trusts of this type may be used to increase donor cash flow from highly appreciated and low dividend securities. The donor receives an agreed upon amount or percentage from the fund in income for his life or for the life of his spouse. Thereafter, the principal passes to the school.
Charitable Lead Trusts
Another vehicle that keeps property in the family is a lead trust, whereby you make a gift of income to Episcopal Collegiate School for a term of years. After the term is over, the principal may be passed on to your children or your estate.
Lead trusts can provide a means of directing assets to children or other heirs in a cost-effective way. Lead trusts do have a number of income and gift tax consequences, however, which should be considered before making a gift.
