Planned Giving Options
A planned gift can be a deferred gift in which cash or other assets pass to St Mary’s Central High School at a future date or an outright gift to our School of non-cash assets such as real estate. Planned gifts are a means of effective financial stewardship because they redirect assets that would otherwise be reduced by taxes. Many of these gifts also provide a lifetime income stream, back to the giver, along with income tax, capital gains tax, and estate tax benefits.
Planned giving offers you the opportunity to join your financial goals with your charitable giving. Through planned giving, you can provide for your own and your family's well-being as well as satisfy your desire to give to St. Mary’s Central High School.
Wills and Bequests
A Last Will and Testament is a legal document whereby any individual who owns property of any sort exercises his or her right to determine the ultimate disposition of that property. A bequest is a specific provision whereby an individual or organization is designated to receive the property that the person making the will transfers at death. Bequests are a vital part of the support program for any charitable cause.
There are a number of ways in which bequests can be made:
There are a number of ways in which bequests can be made:
- Contingent Bequest – You may make a contingent bequest to take effect only if those named as primary beneficiaries predecease you as follows: If any or all of the above named beneficiaries do not survive me, then I hereby give the share that otherwise would be (his/hers/theirs) to the: (non profit Organization/St Mary’s Central High School)
- General Bequest - You may make a general bequest from your estate as follows:
- I hereby give, devise, and bequeath to: (non profit organization/ St. Mary’s Central High School), the Sum of $___________, or ___________% , or____________ fractional interest of my estate.
- Specific Bequest - I hereby give, devise, and bequeath to : (non profit organization/ St. Mary’s Central High School), the sum of $___________ or the property described as : ______________________________________________________________
Residuary Bequest- You may make a residual bequest of assets remaining after all other bequests have been satisfied as follows:
I hereby give, devise, and bequeath the rest, remainder, and residue of my estate, or __________% (or Fraction interest) of the rest, remainder, and residue of my estate.
Charitable Gift Annuity A charitable gift annuity is a simple contract between the donor and the nonprofit organization/St. Mary’s Central High School) whereby the donor makes an irrevocable transfer of cash or property to the charity. In return for the contributed property, the charity agrees to pay a fixed amount of money each year for the lifetime of one or two individuals. The payout rate offered by a charity will depend on the number of annuitants and their ages. The annuitants have the option to defer receiving their annuity payments until some future date, provided that this decision is made at the time the contract is entered into.
Deferred Charitable Gift Annuity A differed charitable Gift Annuity is similar to a charitable gift annuity. You transfer cash or stocks in exchange for quarterly fixed-dollar payments that will continue for as long as you live. The difference is that the annuity payments start at some point in the future. You set the date when the gift is made. You might consider a deferred gift annuity if you don't need more income now, but would benefit from a charitable deduction while insuring a regular income at some future point in your life. Deferred gift annuities are an excellent way to combine a legacy gift with supplemental retirement savings.
Charitable Remainder Trust
Deferred Charitable Gift Annuity A differed charitable Gift Annuity is similar to a charitable gift annuity. You transfer cash or stocks in exchange for quarterly fixed-dollar payments that will continue for as long as you live. The difference is that the annuity payments start at some point in the future. You set the date when the gift is made. You might consider a deferred gift annuity if you don't need more income now, but would benefit from a charitable deduction while insuring a regular income at some future point in your life. Deferred gift annuities are an excellent way to combine a legacy gift with supplemental retirement savings.
Charitable Remainder Trust
A charitable remainder trust is an irrevocable trust in which the donor transfers cash or property to a trustee and in return the donor or other individuals named by the donor as income beneficiaries receive income from the trust for life or a specified term of years not to exceed twenty years. When the trust terminates, the corpus is distributed to the charities named as the charitable remainder beneficiaries.
There are two main types of charitable remainder trusts—the charitable remainder annuity trust and the charitable remainder unitrust. Although the two are similar in many ways, they do have a few differences; the most significant being the method by which the annual income paid by the trust to the income beneficiaries is calculated. Another major difference is that annuity trusts do not allow for additional contributions once funded, whereas unitrusts allow for additional contributions at any time.
There are two main types of charitable remainder trusts—the charitable remainder annuity trust and the charitable remainder unitrust. Although the two are similar in many ways, they do have a few differences; the most significant being the method by which the annual income paid by the trust to the income beneficiaries is calculated. Another major difference is that annuity trusts do not allow for additional contributions once funded, whereas unitrusts allow for additional contributions at any time.
Charitable Lead Trust
A charitable lead trust is one that makes payments to St. Mary’s Central High School annually for a term or for your lifetime, after which your heirs receive the trust principal. This is typically for those who have a sizeable estate and are concerned with gift and estate taxes that will be assessed when the estate is passed to their children or other beneficiaries. It is also for those who would like to see St. Mary’s Central High School benefit from their gift during their lifetime.
Life Insurance Life insurance can be used in a variety of ways to make planned gifts. A nonprofit / St Mary’s Central High School may be named beneficiary of a policy or of part of a policy at any time. The nonprofit must be irrevocably named beneficiary and assigned ownership of the policy to qualify the donor for an income tax deduction. Insurance may be used to fund most gift plans. There are three ways in which insurance can be used for charitable gift purposes:
Existing Insurance may be used to name a nonprofit as a beneficiary and owner.
An individual can purchase insurance in order to create a gift. There are many insurance programs available for application to charitable gift programs. A donor can create a large deferred gift with relatively modest premiums depending on his/her age and insurability.
Insurance can be used to create liquidity or replace wealth or one’s heirs when a donor provides a substantial gift in some other way.
Life Insurance Life insurance can be used in a variety of ways to make planned gifts. A nonprofit / St Mary’s Central High School may be named beneficiary of a policy or of part of a policy at any time. The nonprofit must be irrevocably named beneficiary and assigned ownership of the policy to qualify the donor for an income tax deduction. Insurance may be used to fund most gift plans. There are three ways in which insurance can be used for charitable gift purposes:
Existing Insurance may be used to name a nonprofit as a beneficiary and owner.
An individual can purchase insurance in order to create a gift. There are many insurance programs available for application to charitable gift programs. A donor can create a large deferred gift with relatively modest premiums depending on his/her age and insurability.
Insurance can be used to create liquidity or replace wealth or one’s heirs when a donor provides a substantial gift in some other way.
