Planned gifts are creative ways to make a significant gift while retaining an interest in the donated property or arranging for a gift that the school will receive later. Typically, planned gifts are larger, more sophisticated gifts that provide the donor or the donor's descendants with tax advantages. Please consult your personal tax advisors when considering such a gift.
With limited exceptions, planned gifts to Duchesne High School are deposited in the Restricted Fund of the Archdiocese of Saint Louis Fund. Within the Restricted Fund, the planned gifts are set up as separate, restricted accounts belonging to Duchesne High School. Each account is restricted in that it may be used and accessed only for the purpose of the planned gift. For more information, please contact Bernie Naumann at firstname.lastname@example.org or (636) 946-6767, ext. 6904.
With a Charitable Remainder Trust (CRT), the donor creates the trust and transfers cash and/or property to it. The terms of the CRT provide for periodic payments from the trust to the donor and/or other individual(s). At the end of the specified payment period (not to exceed 20 years), the remainder of the assets in the trust pass to the school.
With a Charitable Lead Trust (CLT), the donor creates the trust and places assets in it. The school, or designated charities, receives a stream of payments for a certain time period. At the end of the payment terms, the remaining assets of the trust pass to the donor's descendants. There are several ways to structure a CLT.
A gift annuity is a contractual arrangement between the donor and the school. There are several types of gift annuities, but generally, the donor receives fixed payments in exchange for money or assets transferred to the school. The establishment of such an annuity makes it a charitable contribution.
Gifts of Stock
Donors can make a gift of stock and mutual funds to the school. With appreciated stock, it is important that the donor donate the stock to be able to receive the tax benefits. If the donor sells the stock and then donates the cash, he/she will be responsible for the capital gains tax. With depreciated stock, the reverse is recommended, so that the donor can receive a tax benefit from the capital loss.
The donation process is simple: The donor instructs his/her investment advisor to transfer the desired shares of stock to the Archdiocesan brokerage account and designates Duchesne High School as the beneficiary of the gift. The Archdiocese will provide the donor/ donor's advisor with necessary information regarding the brokerage account. Upon receipt of the stock, the Archdiocese will credit the gift to Duchesne.
Donor Advised Fund
With a Donor Advised Fund, the donor makes a gift to the school for a particular purpose, and will retain the right to advise the school on the use and distribution of the assets.
Gifts of Real Estate
Sometimes donors will determine that their real estate would be the best asset to use in carrying out their charitable intentions. Donors can make outright, lifetime charitable gifts of real estate. This allows them to take an income tax deduction based on the full market value of the property and avoid the capital gain tax consequences that would have followed from selling the property first, then donating the sale proceeds. The Archdiocese will work with donors who wish to make gifts of real estate to Duchesne.
Gifts Involving Life Insurance
A donor can simply donate a life insurance policy to his Duchesne High School. The gift can qualify for a charitable income tax deduction, as will any future cash gifts the donor makes to the charity to pay premiums on the policy. As the new owner of the policy, the school can access any cash value in the policy or hold it until the death of the donor/insured and receive the death benefits. Some donors will even arrange for the acquisition of a new life insurance policy with the charity as the owner and beneficiary.
A common way to make a gift involving life insurance is simply to name the school as the beneficiary of the policy. Upon the death of the donor, the death benefit passes directly to Duchesne and qualifies for a charitable estate tax deduction. But, simply naming the school as the beneficiary will not entitle the donor to a charitable income tax deduction. In order to obtain the income tax deduction, the ownership of the policy must be transferred to the school.
Gifts Involving Retirement Funds
For tax reasons, a donor may consider naming Duchesne High School as the on-death beneficiary of his/her retirement plan (IRA, 401-K, TSA, Profit Sharing, SEP, etc.) to fulfill the donor's charitable intentions. As potential beneficiaries, charitable organizations, such as DHS, have an advantage over relatives or other individuals in that retirement plans pass to charities free of any income or estate tax.
In addition, many donors age 70 ½ years of age or older, who must take annual distributions from their IRAs, are taking advantage of the extension of the IRA Charitable Rollover that was recently signed into law. This provision applies to contributions (up to $100,000) made between January 1, 2008 and December 31, 2009, and permits taxpayers to make donations directly to Duchesne from their IRAs without counting them as part of their adjusted gross income, consequently without paying taxes on them.
Wills and Bequests
A bequest can be of cash or other property. It can be specific, as in a specific amount of money (e.g., "I give and bequeath $10,000 to... "), or specific property, like common stock in a publicly-traded corporation (e.g., "I give and bequeath all of my common stock in ABC Inc. to..."). A bequest can also be unspecific and residual, referring to all or a stated percentage of the rest (or residue) of the donor's estate, after obligations of the estate and specific bequests have been paid (e.g., "I give the rest, residue and remainder of my estate to...").
Most bequests are unrestricted, meaning that the donor intends for the school to use the bequest in a manner it deems appropriate in carrying out its mission . A donor can, however, restrict the bequest to be used for a particular purpose or purposes. Your estate planning attorney can assist you in planning your gift.
Bequest language: "I give to Duchesne High School in St. Charles, Missouri... (possible options)
A cash bequest of $_______;
A stock bequest of _______ shares of common stock of ____________________ Corporation;
A percentage (_______%) of my estate;
The residue of my estate."
"I designate that no federal estate tax or state death taxes be allocated to or paid from such bequest."