Make a Plan to Amplify Your Impact
Bishop Mora Salesian High School exists today because people like you, who studied and flourished there, have kept the school in their hearts and supported it financially through the years. This legacy of giving and belief in the future of our special school is exemplified in those alumni, parents and friends who have remembered Salesian through planned giving. What is planned giving and how can you make a difference through this smart method of philanthropy? Simply explore the links below to find out.
What Is Planned Giving?
Planned giving is finding ways to make charitable gifts now or after your lifetime while enjoying financial benefits for yourself.
Planned gifts are sometimes referred to as “stop-and-think” gifts because they require some planning and, often, help from your professional advisors. Unlike cash donations, they are typically made from assets in your estate rather than disposable income, and come to fruition upon your death.
A misconception is that planned giving is only for the “wealthy.” The truth is, even people of modest means can make a difference through planned giving.
The most common planned gift is a bequest in your will or living trust. Other planned gifts include:
A charitable gift annuity
If you’d like to support our mission and receive steady payments during your retirement years, a charitable gift annuity may be right for you.
How It Works
Through a simple contract, you agree to make a donation of cash, stocks or other assets to Salesian High School. In return, you (and someone else, if you choose) receive a fixed amount each year for the rest of your lifetime.
A charitable remainder trust
With a charitable remainder trust, you or other named individuals can receive income each year for life or a period not exceeding 20 years from assets you give to the trust you create. Payments can be either variable or a fixed amount. After the life of the named individuals or the set period of years, the balance in the trust goes to the charities of your choice.
A charitable lead trust
Do you want to benefit from the tax savings that result from supporting Salesian High School, yet you don’t want to give up any assets that you’d like your family to receive someday? You can have it both ways with a charitable lead trust.
How It Works
You give assets to a trust that pays Salesian School an income for a number of years, which you choose. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members down the line (typically children and grandchildren) at a minimal cost.
There are two basic types of charitable lead trusts: a grantor lead trust and a non grantor or family lead trust. Which one is right for you?
In a grantor lead trust, you are considered the owner of the trust. You receive the remainder interest at the end of the trust’s term. As the owner, you are taxed on all the income. You are entitled to claim a current federal income tax deduction for the present value of the income payments to charity. This type of trust works well if it is funded with municipal bonds.
A more popular option is the non grantor or family lead trust. With this type of trust, your family members receive the remainder interest at the end of the trust’s term. You do not qualify for an income tax deduction. However, you will receive a charitable gift tax deduction for the present value of the charity’s interest. This is an excellent way to transfer property to family members down the line at a minimal tax cost. This type of charitable lead trust is especially appealing to Salesian High School supporters who have appreciating assets and are financially comfortable enough that they can forgo investment income on some assets.
Retirement plan assets
Want to get the most value from your nest egg, protect your heirs from heavy taxes and make your mark at our organization? Consider leaving a portion of your retirement plan assets to Salesian High School.
How It Works
If you die with retirement plan assets in your estate, those assets are subject to income taxes. This can reduce the amount that normally would be passed to heirs by up to 39.6 percent. In contrast, as a nonprofit organization, we are tax-exempt and eligible to receive the full amount and bypass any federal taxes. Income taxes can be eliminated or reduced through a carefully planned charitable gift. Consider these gift options:
Designate Salesian High School as the primary beneficiary for a percentage (1 to 100 percent) of your retirement plan assets.
Designate a specific amount to be paid to us before the remainder is divided among family beneficiaries.
Make us the contingent beneficiary to receive the balance only if your loved one, as primary beneficiary, doesn’t survive you.
Life insurance policies
Life insurance is an asset you may not think of donating to Salesian High School until you hear how powerful, practical and simple it can be.
How It Works
When you own a life insurance policy with accumulated cash value, you’re essentially sitting on a pile of money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support a worthwhile cause. One option is simply to name Salesian High School as the primary beneficiary. (Naming us as beneficiary while you retain ownership of the policy, however, does not qualify you for an income tax deduction.) Or, you can name us as the beneficiary and also assign us ownership of the policy as a current charitable gift. Doing so provides you tax benefits as outlined below.
A remainder interest in your home
Many of our supporters can’t imagine living anywhere else but their current homes. Many would also love to make a major gift to Salesian High School but don’t have the means to make such a gift today. If this sounds like you, you may want to consider a charitable giving arrangement called a retained life estate.
How It Works
With a retained life estate, you deed a personal residence or farm to Salesian High School now. You retain the right to occupy the home for life and continue to pay real estate taxes, maintenance fees and insurance on the property. In addition, you can later decide to rent your home or make improvements to it. After your lifetime—and the lifetime of your spouse or another person you choose to retain rights to live in the home—we take possession of the property.
Consult with your financial advisor to see how you can make a difference by giving to Salesian High School.
State income/estate taxes or state law may vary depending on your place of residency. The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney.