The information below concerning gift planning is to be for illustrative purposes only and is not to be relied upon exclusively in individual circumstances.
We are deeply grateful to anyone considering any of these types of gifts to Bishop Marshall School and humbly remind donors that all potential or proposed planned gifts or restricted gifts may need to be individually reviewed by the Board of Trustees prior to being accepted to ensure the gift is not inappropriate for the school (e.g. property requiring significant upfront investment).
Although representatives of BJAMS 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 an opinion on the gift.
Prospective donors are strongly encouraged to be in communication with Ben Olsen, Director of Development at firstname.lastname@example.org or 802-888-4758 x232 prior to making any of these gifts.
Bequests through 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 benefitting Bishop John A. Marshall School. 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:
- Specific Bequest of cash or property
- Residuary Bequest which is fulfilled after certain family affairs are resolved
- Contingent Bequest which is made when specifically designated conditions have been met
Individual Retirement Accounts (IRA)
Many families have accumulated sizable assets in their IRAs, which they plan to pass on to their children. The reality is that ordinary income taxes and estate taxes devour the major portion of an IRA’s benefits before they ever reach the children. A family can easily indicate Bishop Marshall School as the death beneficiary for their IRA and avoid these taxes. This is a simple transaction which does not require involvement of the donor’s attorney.
Life Estate Contracts
Many families or individuals are simply unable to consider a significant cash gift to Bishop Marshall School but there are numerous men and women who have an interest in the School and who are willing to express an abiding interest in the school with a Life Estate Contract. For those who desire to create an endowment or have an impact on the future of Bishop Marshall School, 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 Bishop Marshall School 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.
In most cases, a gift of appreciated stocks entitles the donor to an income tax charitable deduction for the fair market value of the stocks 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. 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 his or her intent is to make a gift of securities.
Tangible Real Property
It is possible to contribute works of art, paintings, stamp and coin collections, rare books and documents, antiques, and other tangible 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.
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 give an undivided interest in the property to Bishop Marshall School. Upon the sale of the property, the donor will receive a charitable tax deduction for the current fair market value of the property given to the School (determined as of the date of the donation). No capital gains tax will be levied on the appreciated value of the property given to the school.