Ways to Give
Most people do not realize that there are a number of ways to give other than cash. And many of these ways can be more efficient, more beneficial and have greater tax advantages than cash. It does not matter whether the gift is annual giving, capital campaign or endowment. The benefits and advantages are all the same.
By utilizing any of the methods described here, you may find that you can give more and save more, which is a valuable combination for everyone.
Gifts of Securities
A gift of stock you have owned for a number of years can have tax advantages for you. If you have owned the stock for more than a year and it has increased in value, its outright gift to Norfolk Collegiate School would mean a significant tax savings. You are not required to pay capital gains tax on the appreciation, so the actual cost to you may be less.
Life Income Gifts
Stock, real estate and other investments that have been accumulated over a lifetime are often used as an ongoing source of income in retirement. One way to give is to transfer these investment assets to a "charitable remainder trust." The income from the trust would still be paid to you or to a beneficiary for life or a term of years, after which the assets would be distributed outright to Norfolk Collegiate School. There are tax advantages to such an arrangement since you are making a gift to the school through a charitable trust. In addition, since the trust can sell the gifted assets and reinvest the proceeds in higher yielding assets without paying capital gains tax, the amount of income received by you or your beneficiary may actually increase through this method.
Gifts of Real Estate
A residence, vacation home, rental property, farm acreage, or vacant lot may have appreciated in value through the years so that its sale would mean a sizable capital gains tax. By making a gift of this property, you would avoid the capital gains tax and at the same time receive a charitable deduction for the full fair market value of the property. It is also possible to structure the gift so that you or your beneficiaries can continue to use it during your lifetime.
Gifts of Life Insurance
Life insurance offers two ways to provide a donor with a significant charitable deduction and benefit Norfolk Collegiate School at the same time. One way is to purchase a new policy and make the school the beneficiary. The second is to make a gift of a policy that you no longer need. To receive this deduction, you simply designate Norfolk Collegiate School as both the owner and the beneficiary of the life insurance policy. It is important to check with your life insurance agent for details. Wills and BequestsIncluding Norfolk Collegiate School in your estate plan is a simple way to remember the school. It involves no loss of capital or income for you and may have positive tax benefits for your heirs. Many donors find that a bequest is a tremendous way to supplement their lifetime gifts to the school. Please note that you should contact your attorney, accountant, tax adviser or insurance agent for additional information or assistance in utilizing one or more of these techniques of giving.