Benefits of Planned Giving
- The donor may gain a charitable tax deduction now – even for future gifts.
- It can help a donor reduce or avoid capital gains tax.
- It can lower estate taxes.
- It can protect and potentially increase the size of one’s estate for one’s heirs
- It could increase one’s existing income.
- It continues the generosity one has shown through life.
- Finally, it can help one recognize the dream of making the largest contribution of a lifetime, giving a gift that has major impact on the success of DeSales High School.
Gifts of Cash
A gift of cash can be one of the most convenient ways to make a planned gift. Cash contributions are deductible as an itemized tax deduction in the year you make the donation, up to 50 percent of your adjusted gross income. Any excess contribution may be carried forward for up to 5 additional years.
Gifts of Securities
Establish a planned gift with stocks, mutual funds or bonds that have increased greatly in value, especially those securities producing a low yield. Using gifts of securities can help you avoid capital gains taxes, but it is critical that you transfer the physical securities to DeSales High School rather the proceeds from a sale. Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to DeSales High School.
A charitable bequest is made through a will or trust. This gift can include cash, securities, real estate, and tangible personal property such as jewelry or art, or a percentage of your estate. At DeSales, individuals may join the 1956 Society through a charitable bequest.
You may leave:
- A percentage of your estate
- The residue of your estate
- Identified property
- A specific dollar amount
Charitable Gift Annuity
A charitable gift annuity is a contract between a donor and a charity with the following terms: As a donor, you make a sizable gift to charity using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. In addition to the income stream, annuitants may also be eligible to take a tax deduction at the time of the original gift, based on the estimated amount that will eventually go to the school after all the annuity payments have been made. A portion of the payments the individual receives may also be tax-free for a period of time based on your statistical life expectancy.
You may simply name DeSales High School as the beneficiary of a policy you already own or you can establish a new policy and name DeSales as the owner and beneficiary. Or, you can donate an existing fully paid life insurance policy to DeSales High School.
A gift of real estate may be made as an outright gift or as a bequest in a will. Significant income tax deductions and the avoidance of capital gains taxes are benefits to the donor. A gift of real estate can be made through a deed during your life or through your will upon your death. Your estate can receive a 100% charitable deduction for the full fair market value of the property with no limit on the amount.
Gifts of Retirement Assets
Leave the unused portion of your retirement account to DeSales by naming DeSales High School as a beneficiary on your plan's beneficiary designation form. The tax advantage stems from the fact that most retirement plans (other than Roth IRAs) are subject to income taxes—and possibly estate taxes—if left to an individual beneficiary; however, a charity that is named as the beneficiary does not pay income or estate taxes on the distribution. Thus, the full value of what is distributed can be used by DeSales as a gift from your estate, supporting the purpose you designate.
Additionally, a charitable IRA rollover is a gift option that enables donors age 70½ or older to transfer up to $100,000 directly from the donor’s IRA (or IRAs) to a qualified charity each year. The donor does not recognize the transfer as taxable income on his or her tax return. By the same token, this transfer may not be claimed as a charitable income tax deduction. Charitable rollover amounts may count toward the client’s required minimum distribution.
To learn more about planned giving options, please consult with your attorney or estate planning agent. Contact DeSales Department of Advancement at (502) 368-6519.