The significant goals of The Greater Glory
Capital Campaign are based on the concept of "asset-based giving" or giving from
accumulated wealth. The most common and simplest method of funding a gift is to
give from your income stream. While cash gifts are quick and easy, they can be
limiting. There are other methods of giving that will allow donors to contribute
greater dollars at lower costs and reduced taxes. The school can turn many of
these gifts into useable cash with little to no time or trouble. Structured and
well-planned giving from total wealth can dramatically raise your ability to
give and have a significant impact on the campaign.
Some of these methods are: Gifts of Securities, Gifts of Undivided Interest in
Real Estate, Life Estate Contract, Gifts of Tangible Real Property, Individual
Retirement Accounts, Bequest Through a Will or Codicil
While considering how to fund your pledge, we do hope that you will study the
following examples of creative asset-based giving. If you need assistance in
evaluating your personal circumstances, please contact Pat Saccomanno, Treasurer,
at Strake Jesuit College Preparatory. Our fund-raising counsel, The Dini
Partners, recommends these creative ways of giving to enable you to enjoy
greater benefits from your generous support of Strake Jesuit College
Preparatory.
As with all legal and financial matters, we recommend that you consult with your
personal legal, tax and/or financial advisors before funding your gift.
Simply click on the item in the list below to review. |
 |
Gifts of Securities -
Gifts of Undivided Interest in Real Estate -
Life Estate Contracts -
Gifts of Tangible Real Property
Individual Retirement Accounts -
Bequests Through a Will or Codicil
- Gift Acceptance Policies
Securities - Land -
Donor Responsibility
Gifts of
Securities
In most cases, a Gift of Appreciated Securities entitles the donor to an income
tax charitable deduction for the fair market value of the securities on the
effective date of the gift. The donor avoids the capital gains tax that would be
due if he or she sold the stock. In many cases, the Board of Directors of Strake
Jesuit College Preparatory will also accept closely-held securities, which may
then be sold back to the company. When making a gift of securities, the donor
should transfer ownership of the stock to the School. It is imperative that the
donor not sell appreciated stocks when their intent is to make a gift of
securities. Before you transfer the securities, please contact Pat Saccomano,
Treasurer, at Strake Jesuit College Preparatory at 713-490-8106.
Gifts of Undivided
Interest in Real Estate
Quite often families have real estate for sale which has appreciated
significantly in value -- residential property, vacation property, farm land, or
commercial property. Such an individual can be approached prior to the sale of
the property to give an Undivided Interest in the property to Strake Jesuit
College Preparatory. Upon the sale of the property, the School's attorneys would
attend the closing proceedings along with the majority owner. The title company
will write a check to Strake Jesuit College Preparatory for their share of
ownership in the property, and the donor will receive a charitable tax deduction
for the current fair market value of the property given to the School. No
capital gains tax will be levied on the appreciated value of the property given
to the School.
Life Estate Contracts
Many families or individuals are simply unable to consider a significant cash
gift to Strake Jesuit College Preparatory. But there are numerous men and women
who have an interest in the School and who are willing to express an abiding
interest in Strake Jesuit College Preparatory with a Life Estate Contract. For
those who desire to create an endowment or have an impact on the full
development of the master plan for Strake Jesuit College Preparatory, a Life
Estate Contract may be the answer. A family with a personal residence or farm --
preferably one on which there is no existing debt -- can transfer the deed to
Strake Jesuit College Preparatory and reserve for themselves the right to live
on or use the property for their lifetime. The donor receives a tax benefit for
the gift based upon their age and life expectancy. This is an irrevocable gift
for which the donor can receive immediate recognition.
Gifts of Tangible Real Property
It is possible to contribute works of art, paintings, stamp and coin
collections, rare books and documents, antiques, and other personal property.
The charitable deduction depends on the use the School makes of the gift. In the
case of the sale of property, the tax benefits depend upon the amount of time
that elapses between the receipt and sale of the property.
Individual Retirement Accounts
Many families have accumulated sizable assets in their IRAs, which they plan to
pass on to their children. The reality is that estate taxes and ordinary income
taxes devour the majority of an IRA's benefits before they ever reach the
children. A family can easily indicate Strake Jesuit College Preparatory as the
death beneficiary for their IRA. This is a simple transaction which does not
require involvement of the donor's attorney.
Bequests Through a Will or
Codicil
An effective Bequest is a simple way for an individual to carry out his or her
long-term objectives of caring for family and benefiting Strake Jesuit College
Preparatory. A bequest through a will can provide a perpetual gift in support of
the School, its facilities or programs. There are three types of bequests to
consider:
-a Specific Bequest of cash or property;
-a Residuary Bequest which is fulfilled after certain family affairs are
resolved; and
-a Contingent Bequest which is made when specif- ically designated conditions
have been met.
Gift Acceptance Policies
The Board of Directors of Strake Jesuit College Preparatory has enacted general
gift acceptance policies. The following excerpts pertain to asset-based gifts.
Securities
Public and privately-held securities must be marketable and convertible to cash
within a short-term timeframe. Gifts of publicly traded securities will be
valued at the average market value on the date the full interest in the
transferred property is received. Gifts of closely held stock will be valued
based on a qualified independent appraisal at the time of the transfer.
Generally, gifts of privately held securities will be accepted only when
conversion into cash within a five- to ten-year timeframe is expected.
Property gifts other than real estate may be accepted in amounts under $5,000 by
the President or Chairman of the Board. Property gifts other than real estate
valued over $5,000 require approval by the Executive Committee of the Board of
Directors.
Land
Land gifts are explicitly excluded from acceptance, except with Board approval.
Exceptions in the form of illustrative examples in this document may be
considered on an individual basis.
Donor Responsibility
Information concerning gift planning is to be for illustrative purposes only and
is not to be relied upon exclusively in individual circumstances. A letter of
understanding from a donor of a non-cash gift may be required along with proof
of outside advice being rendered before such a gift will be accepted.
All potential or proposed planned gifts or restricted gifts may be individually
reviewed by the Treasurer, President and Chairman of the Board. Prospective
donors are encouraged to request, and may expect to receive, a letter from the
President regarding agreements to restrictions placed upon the proposed gift by
the donor.
Although representatives of the School will provide all appropriate assistance,
the ultimate responsibility regarding evaluations and/or tax deductibility
remain with the donor and such counsel as the donor may wish to secure.
To avoid conflicts of interest, the unauthorized practice of law, the rendering
of investment advice, or the dissemination of income or estate tax advice, all
donors of non-cash gifts must indicate the professional advisors rendering
opinion on the gift.
|
