Ways to Give
Introduction
There are many ways to help further the mission of St. Sebastian's School through charitable
contributions. Making a gift is not only a great help to the School, but
also provides tax benefits to the donor. Legal and financial advisors
can help you best determine the most advantageous and appropriate means
of making a lasting gift to St. Sebastian's. Please contact Richard
Arms at 781-449-5200 ext. 116 to obtain additional information.
Cash
This is the most common means of making a contribution, and it provides
St. Sebastian's School with funds to meet current needs. In addition to cash
and check donations, VISA and MasterCard are accepted. You can make your
donation online.
This type of donation is 100% tax deductible up to 50% of the donor's
adjusted gross income.
Appreciated Securities
Long-term, appreciated securities (i.e. stocks, bonds, and mutual
fund shares) used as a gift offer significant tax benefits to the donor.
In addition to being exempt from capital gains taxes, securities that
were owned for more than one year give the donor a charitable income tax
deduction equal to the market value of the securities on the date of their
receipt by the School for up to 30% of the donor's adjusted gross income.
Life Insurance
If you have a policy that you and your family no longer need you may wish to consider donating it by naming St. Sebastian’s as both owner and beneficiary. If the policy is completely paid up you will receive a tax deduction. If the policy has premium payments remaining you still can contribute the policy. St. Sebastian’s has the option of either cashing it in or continuing to make the premium payments. Should you continue to provide for the premiums by reimbursing St. Sebastian’s you will be entitled to additional tax deductions.
Retirement Plan Assets
Did you know that pension plan assets can be the most heavily taxed in an estate? Current law provides that these funds are first taxed as income with respect to a decedent and then again as an asset held by the estate. Alumni and friends who wish to minimize the federal tax bite on their estate may consider naming St. Sebastian’s School as the beneficiary of their pension plans, e.g., Roth IRA, 401(k), IRA, etc., and providing for family members with other, more favorably taxed assets, such as life insurance.
Alert: In August, 2006, the federal government enacted into law a two-year window of opportunity, set to expire on December 31, 2007. Individuals age 70.5 or older now have the option of having up to $100,000 of their retirement funds distributed directly from their retirement funds to St. Sebastian’s School, or any other charity. You will not be taxed on the distribution and can use these gifts to meet the requirements of minimum distribution. There are two caveats. The funds cannot be used to fund life income gifts, such as charitable gift annuities, and they may not be added to any previously-established donor advised funds. Finally, it should be noted that this type of gift does not give rise to a federal charitable deduction since no taxes were ever paid on the funds – or the growth they may have seen over the years.
Real
Estate
A donation of real estate offers a variety of tax benefits. Vacation homes, personal residences, undeveloped property, or even commercial buildings can be donated. Donors may give a future interest in the property by retaining the right to remain in the home – or to use the property- for the rest of their lives and may retain the same right for another loved one, such as a spouse or sibling.
Bequests
A will or revocable trust enables you, not the state, to provide for the people and organizations you care for most after you are gone. You can provide a specific amount, a specific percentage, or the rest and residue. You may also name St. Sebastian’s School as the beneficiary of a contingent bequest (i.e. if someone you have named predeceases you). Learn more.
Gifts Which Give Back
Charitable Gift Annuity
The charitable gift annuity is a life income opportunity that offers fixed income, guaranteed for life, and is often taxed favorably. It is a simple contract in which the donor transfers cash, appreciated securities, or other property of value to St. Sebastian’s School and receives, in turn, income that is not susceptible to the ups and downs of the stock market. The exact payout rate for any individual (or couple) is a function of the ages of the annuitants. St. Sebastian’s School invests the donated funds to provide income for the lifetime of the annuitants. Any remaining funds will later be used for whatever purpose the donor originally stipulated. Donors may claim a federal charitable deduction for a portion of the fair market value of their gift (usually around half). The minimum gift is $10,000. Learn more.
Deferred Payment Charitable Gift Annuity
There are those individuals for whom a deferred payment charitable gift annuity makes good financial sense. These are ideal for those alumni and friends who might wish to maximize their tax benefits by making a gift now, but prefer the to receive income beginning at some future date. The delay in starting the income may be as short as one year or as long as twenty-five years, or potentially longer. The minimum gift is $10,000. Learn more.
Charitable Remainder Trusts
For individuals who prefer the unique investing opportunities provided by a separately invested charitable trust, there is the charitable remainder trust. They may generate income for the income beneficiaries for life or for a specific term of no more than twenty years. Additionally, they may generate income in the form of a fixed annuity or a fixed percentage of the value of the trust’s assets (valued annually). Donors can fund charitable remainder trusts with cash, appreciated securities, or other assets of value and will receive a federal charitable deduction for some portion of the value of their gift. Learn more.