PLANNING YOUR GIFT
There are a number of ways to invest in Faith Lutheran Middle School & High School to help expand the mission and reach. The information below is not exhaustive, but is meant to stimulate further inquiry. We would be pleased to work with you to determine the best way for you to make your investment. We also advise you to consult your financial planner before finalizing any gift.
Many gifts are made in the form of a multi-year pledge, which will enable you to consider a larger gift and establish a schedule of payments stretched over a period of months or years. The recommended pledge payment period is three years. Reminder notices will be sent at regular intervals as requested. Payments are tax deductible to the extent permitted by law in the year they are received.
Cash gifts, usually made in the form of a check or electronic transfer, are always welcomed. Up to 50 percent of adjusted gross income may be deducted in any one year, as long as deductions are itemized. Any excess may be eligible for deductions in subsequent years.
Many companies provide matching gift opportunities for their employees. Contact your HR department for more information. Any matching gift forms may be sent to the Faith Lutheran development offices. Please include your pledge or payment information.
Assets qualified as long-term capital (assets held for at least a year and a day), should be transferred directly to Faith Lutheran through a broker. The capital gains tax on appreciation is eliminated, and the current market value of the gift may be deducted as a charitable contribution, up to 30 percent of adjusted gross income. Excess beyond 30 percent can be carried forward for five years.
For the capital gains tax exclusion to apply, a donation must be made before the securities are sold. Contact the Faith Lutheran development office for information on transferring securities.
For securities that have decreased in value since purchase, it is usually better to sell the assets and then donate the proceeds. Both the loss on investment and the donation will qualify for tax deductions.
A gift of closely-held securities, such as those of a family corporation, is generally treated the same as a gift of marketable securities, but could also reduce liability for accumulated earnings tax. Please consult a tax specialist when considering such a gift.
CHARITABLE GIFT ANNUITY
This type of trust provides a fixed income for the lifetime(s) of one or two annuitants. The amount paid is determined by the rates recommended by the American Council on Gift Annuities. The older the annuitant, the higher the level of income. A portion of the gift and income are tax deductible.
DEFERRED GIFT ANNUITY
The annuity offers increased income and tax benefits. It provides all the basic features and benefits of a gift annuity. The income is delayed until a future date chosen by the donor. The rate of return and tax deduction is dependent on the length of the income delay.
POOLED INCOME FUND
A Pooled Income Fund operates much like a mutual fund. Contributions are pooled and managed by investment advisors. Income is paid to the donor and a second person, if desired, until the beneficiaries are deceased. The income fluctuates based on the earnings of the fund. The donor can get an immediate tax deduction for a portion of the gift. The donor avoids capital gains tax if appreciated securities are given. Gifts to pooled income funds are irrevocable.
LIFE INCOME TRUSTS
The trust assets are funds or property contributed by the donor (usually $100,000 or more). It offers flexibility in the type of property that can be donated. Real estate and municipal bondsmay be used. A Charitable Remainder Annuity Trust provides a fixed amount of income. A Charitable Remainder Unitrust Provides a variable level of income.
CHARITABLE LEAD TRUST
With this trust, a donor provides assets for use for a limited period of time. The funds are invested to provide income to the institution. The assets are returned to the donor or to his or her estate at end of a designated period. This structure can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to his or her heirs.
You can make Faith Lutheran the sole owner and beneficiary of a paid-up policy. You may receive an income tax deduction for the cash surrender value of policy. If the policy is not fully paid, you continue to pay the premiums. You may receive a tax deduction for annual premium amounts.
Outright bequests, as well as certain bequests in trust, are not subject to estate taxes. The actual cost is less than face value of gift because of tax benefits to estate. Bequest can take any of following forms:
- Bequest of a dollar amount of particular securities or other property.
- Residual bequest of all or a portion of the estate after payment of specific amounts to other beneficiaries.
- Contingent bequest to take effect if other beneficiaries die before the donor.
A bequest can often be arranged simply with the addition of a codicil amending an existing will.
For additional information related to all giving, contact the Development Office (702) 804-4410