The Legacy Circle is a group of generous community members who make planned gifts to support the future financial security of Bertschi School.
“Our planned gift is a small way of saying thank you, and of continuing a tradition of generosity at Bertschi for future students and families.”- Helen Graham
What is Planned Giving?
Planned giving (sometimes called “gift planning”) enables donors to make larger gifts than they could make from their income. Some planned gifts provide lifelong income to the individual or family, while others use estate and tax planning strategies to benefit both the school and the donor.
A planned gift can maximize the contribution to the school and/or minimize its impact on the individual’s estate. Planned gifts differ from contributions to the annual fund, which usually are funded by discretionary income; annual donations are not strategically planned with an eye toward one’s overall financial worth.
Why make a Planned Gift?
Donors can contribute appreciated property, like securities or real estate, receive a charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.
Donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.
Gifts payable to the school upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, are exempt from estate tax.
What is the most common Planned Gift?
Bequest through a will, which specifies how a donor’s property will be distributed after his or her death, is the most common type of planned gift. A bequest can indicate a specific dollar amount or asset (such as tangible property), or it can assign a certain percentage of the donor’s estate to the school. Schools are often informed of a donor’s intention to name the institution in their estate plans many years in advance of receiving the gift.
It is often helpful and advisable for an individual considering a planned gift to consult with the school, particularly with regard to the intended use of the funds. Bequests designated for general purposes give the school greatest flexibility and reduce the likelihood that a donor’s wishes might not align with the school’s priorities. Bequests are critical to growing a school’s endowment, which provides recurring annual revenue and thus great financial stability during times of economic uncertainty.
Is it tax-deductible?
Donors should consult with their tax advisor regarding current charitable giving regulations and tax benefits applicable to their financial situation.