A planned gift is one way to look ahead to the future, organize your affairs, and make a gift to the Kennedy Catholic Family of Schools. We are delighted that you have interest in learning more about this form of donation as it can require more thought and foresight than the average gift. Planned giving is a means of “leaving a legacy”, that involves arranging donations to serve the future interests of the Kennedy Catholic Family of Schools, which suits the personal, financial, and tax situation of the individual donor.
- Named Facilities – A building or an area of the school, which include classrooms, library, auditorium, gymnasium, athletic field and offices.
- Named Programs – An area that incorporates your special interests with the programs of the KCFS. An example could be training/education programs for teachers and staff.
- Named Scholarships – An investment in providing and helping students who will continue their education, or taking college courses while a student here. You can designate how the scholarship recipients are to be chosen so that your interests and values are perpetuated.
- Undesignated Gifts – Many donors wish to remain anonymous or want their gifts to be used to support KCFS’s ongoing educational programs, including building projects and continuing education.
Methods of Giving
The bequest is the most common form of planned giving. With a bequest, you may make provisions for KCFS in your will, designating either a dollar amount or a percentage of your estate to the school. Whatever the amount, bequests to KCFS are entirely free from federal estate tax and the estate and inheritance taxes of most states. Bequests should be prepared and executed with your attorney’s assistance.
Gifts of Real Estate
Real estate may provide a convenient way to support KCFS. You may contribute real estate as an outright or deferred gift. For example, with a life estate agreement, a donor can make a gift of a home or farm while retaining life tenancy. Gifts of real estate should include a letter of transmittal with instruction for use of the gift.
Gifes of Life Insurance
You may assign KCFS as a beneficiary, co-beneficiary, or a secondary, remainder, or residual beneficiary of your life insurance policy. Annual dividends also may be assigned to KCFS. When KCFS is named as owner of a policy and/or the irrevocable beneficiary, the cash value of the policy may be deducted on your income tax return. The premiums paid thereafter also are income tax deductible.
Charitable Lead Trust
Also known as a charitable income trust. It is the converse of a charitable remainder trust. Whereas a remainder trust pays the income to noncharitable beneficiaries and then distributes the remainder to charity, a lead trust pays the income to charity and distributes the remainder to noncharitable beneficiaries.
Pooled Income Fund
Under the guidelines of the fund, money is irrevocably transferred to the fund, where it is invested together with similar gifts from others. Each beneficiary receives his or her share of the pooled income fund’s deductible income each year. This form of giving provides an immediate charitable deduction, offers income for life and eliminates estate taxes on the amount contributed.
Charitable Remainder Annuity Trust
The charitable remainder annuity trust shares many features with the unitrust, the principal difference being the manner of calculating the payment to the income beneficiary. If you wish to guarantee a fixed dollar income each year, the annuity trust offers you that option. This amount must equal a sum of not less than five percent of the initial fair market value of the gift in trust. In most cases, you will wish to receive the income for your lifetime. You also may wish to provide for your spouse or another beneficiary. When the beneficial interest in the annuity trust ends, the principal goes to KCFS to accomplish the goals you specify at the time of your gift. No additional contributions may be made to an annuity trust, but you may establish more than one.
Charitable Remainder Unitrust
The charitable remainder unitrust is a gift that pays you income for life and can also provide income for a successor beneficiary for life. It provides an immediate tax deduction, freedom from estate taxes. A charitable remainder unitrust provides for a fixed percentage of return of not less than five percent of the value of the trust’s assets valued annually. Because of that annual valuation, the payout to the donor will rise and fall with the economy. The rate of return is agreed upon at the time you establish the unitrust, however, the higher the rate of return the smaller the charitable deduction. When the beneficial interest in the unitrust ends, the principal goes to KCFS to accomplish the goals you specify at the time of your gift. Additional contributions may be made to a unitrust.
Charitable Gift Annuity
The Charitable Gift Annuity is a simple contract between you, the donor(s) and the KCFS/(Underwriting Company). Your tax deductible gift will be used to fund an annuity that will guarantee you lifetime income, and then upon death, the principal goes to KCFS.
These items can be funded with:
- Securities i.e.; stocks, bonds, mutual funds, other investments
- Real Estate i.e.; house, land, building
- Life Insurance
For advice and assistance relating to a planned gift, please consult with your Attorney and or Tax Advisor.
Click here to download the Confidential Participation Form which will confirm your estate gift intentions. Please return this form and, if possible, a copy of the section of your will or other document which mentions KCFS to the school. Please contact Director of Advancement, Janet Taylor with any questions on this or other giving programs.