All deferred gift are recognized through the Elm Tree Society. To learn more, please try our online resource or contact the Advancement Office at (413) 529-3075 or by email.
Charitable Gift Annuity
In this option a donor makes a gift to Williston, which enters into an agreement to pay the donor (or a designee) a lifetime annuity (may be payable to one or two individuals, for their lifetime). Your payments are a percentage (based on your age) of the initial value of the gift. Often the rate of return is better than any that can be realized through investments in securities markets. A portion of the annuity payment may be tax-free and you receive a significant charitable deduction. Following the death of the annuity recipient, Williston receives the remainder of the annuity. Depending upon your age, this type of planned gift may or may not be appropriate.
Pooled Life Income Plan
Williston Northampton's pooled income fund appeals to those with sufficient income but no substantial capital, as well as to those with capital who don't feel they can give up the income on the contributed assets.
The pooled income fund commingles your gift with those of other donors. You receive a pro rata share of the fund's dividends and interest, all of which must be paid out each year. Your portion of the income is taxed to you as ordinary income.
Charitable Remainder Trusts (Unitrusts and Annuity Trusts)
A charitable remainder trust is a trust fund established when you transfer assets to a trustee for our benefit. As with other life income plans, you retain an income interest in the property and continue to receive the income from it for as long as you live, for your lifetime and that of another beneficiary, or for a fixed term of up to 20 years. Because we are given a remainder interest, you become eligible for substantial tax benefits. Where a charitable remainder annuity trust provides a fixed amount of income determined at the creation of the trust, the unitrust pays a percentage of the trust assets, as revalued annually.
Charitable Lead Trusts
Charitable lead trusts offer a way for you to support our programs and transfer substantial assets to beneficiaries with the potential for significantly lowered gift and estate taxes. Your heirs may actually receive a larger inheritance than they would through an outright bequest or accumulation trust. The school receives an immediate flow of income. With a charitable lead trust, you transfer property-such as real estate, securities, bonds, partnership interests, oil and gas properties, and the like-to a trust. The trust pays an annual amount (a fixed amount or a percentage of the trust principal as revalued annually) to us for a specified period. After this time, the property returns to you or a non-charitable beneficiary-usually a family member in the next or a succeeding generation. The property generally appreciates and is transferred with significantly reduced gift or estate taxes.
One of the easiest and most common ways for you to make a gift to us is through a bequest in your will. Bequests work particularly well for those who are unable to make an immediate outright gift, but would like to aid us in the future. The school includes testamentary commitments in the campaign as "deferred gifts" where the donor signs a pledge letter documenting the value of the bequest and providing his or her date of birth.
At some time, you may reach a point where life insurance no longer has the financial significance for your family that it once did. In that case, you may wish to make a gift of the policy to us. You may also name us as the beneficiary of your policy. Because the designation is not irrevocable, it cannot be counted for any immediate tax savings. However, at your death, your executor may take a federal estate tax charitable deduction for the entire amount.
Gifts of Other Property
Tangible Personal Property
This includes such items as works of art, antiques, books, gems and the like. You may, of course, give an item whether or not it has increased in value since you obtained it. Perhaps the greatest tax benefits come, however, when the donated object is what the Internal Revenue Service (IRS) considers long-term capital gain property. As mentioned in the section on securities, this simply means that the asset has appreciated in value and you have held it for a certain length of time. Each gift item must be evaluated on an individual basis to determine whether or not it is related to our tax-exempt mission.
Intangible Personal Property
You may also make gifts of personal property that cannot be seen or touched. Such property includes copyrights, securities (discussed earlier), patents, contracts, promissory notes, royalties, trademarks and the like. Unlike tangible property, intangible personal property does not have to be scrutinized - for income tax purposes-for its relevance to our tax-exempt mission.
Almost any type of real property-a personal residence, a farm, a vacation home, a commercial building, or an undeveloped parcel of land-can be a gift. Gifts of real estate can be made either outright or through one of the methods we will discuss later in this booklet. If the property is long-term capital gain property and given outright, you will generally avoid any tax on the gain, reduce your taxable estate by the value of the gift, and receive a charitable contribution deduction for 100 percent of the fair market value of the property.
We Would Like to Hear from You
The Williston Northampton School Advancement Office is happy to answer your questions and send more detailed information about specific projects and ways to make your gift.
Use our online resource:
Director of Development