Advancement » Planned Giving

Fr. Tom Elewaut • Planned Giving • Contact Fr. Tom Elewaut
805.967.1266 x 121

What is Planned Giving? Planned giving, sometimes referred to as gift planning, may be defined as a method of supporting Bishop Garcia Diego High School that enables philanthropic individuals or donors to make larger gifts than they could make from their income. While some planned gifts provide a life-long income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on the donor's estate. Thus, by definition, a planned gift is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning. By contrast, gifts to the annual fund are made from a donor’s discretionary income, and while they may be budgeted for, they are not planned. Whether a donor uses cash, appreciated securities/stock, real estate, artwork, partnership interests, personal property, life insurance, a retirement plan, etc., the benefits of funding a planned gift can make this type of charitable giving very attractive to both donor and Bishop Garcia Diego High School . What are the 3 types of planned gifts? First, outright gifts that use appreciated assets as a substitute for cash; Second, gifts that return income or other financial benefits to the donor in return for the contribution; Third, gifts payable upon the donor’s death. What gift plans return income to donors? Charitable gift annuities make fixed payments, starting either when the gift is made (an immediate-payment gift annuity) or at a later date (a deferred or flexible gift annuity). Pooled income funds, which commingle donations, pay beneficiaries variable depending on the earnings of the fund, and generally operate like a charitable mutual fund. Annuity trusts are individually managed trusts that pay the beneficiaries either a fixed percentage of trust income or a fixed dollar amount. What are the tax benefits of planned gifts? 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 charity upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax. The Most Popular Planned Gifts Bequest

How it Works Include a bequest to Bishop García Diego HS in your will or trust. (Here's sample language for your will.) Make your bequest unrestricted or direct it to a specific purpose. Indicate a specific amount, or a percentage of the balance remaining in your estate or trust. Benefits Your assets remain in your control during your lifetime. You can modify your gift to address changing circumstances. You can direct your gift to a particular purpose (be sure to check with us to make sure your gift can be used as intended). Under current tax law there is no upper limit on the estate tax deduction for your charitable bequests. Bishop García Diego High School, Inc. is a 501(c) non-profit institution. Our tax ID number is 95-2056632.

Gifts From Your Retirement Plan

How It Works Name Bishop García Diego HS as a beneficiary of your IRA, 401(k) or other qualified plan. Designate us to receive all or a portion of the balance of your plan through your plan administrator. The designated balance in your plan passes to Bishop García Diego HS after your death. Benefits Avoid the double taxation your retirement savings would face if you designate them to your heirs. Continue to take regular lifetime withdrawals. You have flexibility to change beneficiaries if your family's needs change during your lifetime.

Gifts of Appreciated Securities

How It Works You transfer appreciated stocks, bonds or mutual fund shares you have owned for one year or more to Bishop Garcia Diego HS. Bishop García Diego HS sells your securities and uses the proceeds for its programs. Benefits You receive an immediate income-tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them. You pay no capital gains tax on the transfer. Giving appreciated stock could be more beneficial than giving cash.

Gifts of Life Insurance

How It Works You transfer ownership of a paid-up life insurance policy to Bishop García Diego HS. The High School elects to cash in the policy now or to hold the policy. Benefits Make a gift using an asset that you and your family no longer need.  Receive an income tax deduction. In some cases, you can use the cash value in your policy to fund a life-income gift, such as a deferred gift annuity.

Gifts of Real Estate

How It Works You deed your home, your vacation home, undeveloped property or a commercial building to Bishop García Diego HS. The High School may use the property for its own purposes or will sell it and use the proceeds. Benefits You receive an income tax deduction for the fair market value of the real estate. You pay no capital gains tax on the transfer. You can direct the proceeds from your gift to a specific program at Bishop García Diego HS.

Gifts of Personal Property

How It Works You transfer a valuable painting, antiques, or other personal property to Bishop García Diego HS. The High School may hold and display the property or use it in the furtherance of its mission. The High School may sell the property at some point in the future and use the proceeds for its mission. Benefits You receive an immediate income tax deduction for the appraised value of your gift and pay no capital gains tax, so long as the gift can be used by the High School to carry out its mission. In certain cases, you can use personal property to fund a life-income gift that provides you and/or other loved ones with an income now and benefits the High School in the future. Without using cash, you can make a gift that is immediately beneficial to Bishop García Diego HS.