DEVELOPMENT &
PLANNED GIVING
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PLANNED GIVING |
Read about Kathy Zamechansky and all the good work she has done for our school
Read about the 16th Annual Excelsior Awards
Read the New York Daily News Article about St Pius
V
The term “Planned Giving” is generally used to describe the many ways in which people can support St. Pius beyond what they are able to do on an outright cash basis.
For example, the Smiths give $100 to the 2004 Operations Fund but would like to give more. While it is not possible for them to do so on an annual basis, they may be able to do so with a Planned Gift.
How is this possible?
There are 2 basic ways to give more than one can on an outright basis:
· First, by making an irrevocable bequest provision of some type, naming St. Pius as a beneficiary:
By fixed sum:
The Unrestricted Bequest
“I give and bequeath to St. Pius V High School, located at 500 Courtlandt Ave. in the Bronx, New York, the sum of________dollars from my estate as an unrestricted gift.”
“I give and bequeath to St. Pius V High School, located at 500 Courtlandt Ave. in the Bronx, New York, the sum of _______dollars, which sum shall be added to the general, restricted permanent endowment funds of the school, so that income derived therefrom may be used for general school purposes.”
“I give and bequeath to St. Pius V High School, located at 500 Courtlandt Ave. in the Bronx, New York, ______percent (_____%) of my estate, the principal and any income of which is to be used at the discretion of St. Pius V High School for__________ or in the event that such use shall in the judgment of St. Pius V High School become impracticable, then for such purposes as St. Pius V High School in its discretion shall determine.”
Note: Each of these examples can be either fixed sum or percentage.
Appreciated assets of any sort may be given to St. Pius. Common stock is the usual vehicle.
For example, Harry Smith has some stock which he bought in 1984 for $5,000. With three splits the stock is now worth $100,000. By making a gift of that stock to St. Pius he avoids a capital gains tax of $26,000 (28% of the $95,000) and would have a tax savings of $31,000 assuming he is in the 31% bracket. It is important to remember that the full value of donated shares of common stock is tax-deductible.
For example, the Smiths might transfer $50,000 in appreciated stock to a charitable remainder trust but retain a life income of $3,000 (6 percent) from the trust.
A charitable remainder trust allows a donor to transfer cash or property to a trust. The trust then distributes a fixed dollar amount(annuity trust) or a fixed percentage of the value of the trusts assets(unitrust) annually to the donor and/or other income beneficiaries.
Another example - the Smiths transfer 400 shares of IBM stock to a charitable remainder unitrust in return for the an income of 7% of the market value of the assets in the trust, annually.
In a life tenancy agreement, a donor gives his or her home to a charitable institution while retaining the right to live in, or use, the property for life.
A life insurance policy may also be used by a donor who gives the cash value of a policy or death benefit to a charity. This provides an important tax advantage.
For example, the Smiths, no longer needing the protection of a paid-up $25,000 life insurance policy, change the beneficiary to St. Pius.
There can be significant capital gain, income tax, and estate tax savings in making Planned Gifts.
Note: Before you make a gift of any sort, please consult an attorney and personal tax / financial advisor.
Bequest for the Endowment
By percentage:
Bequest for a Specific Purpose
· Second, by retaining for themselves and/or others the income provided by the cash or property given: The “life income” gift.
Are there any other Planned Giving options?
What impact do these gifts have on taxes?See how your shopping can help contribute to Saint Pius V High School. Click Here
