Planned Giving

In addition to donations to the Holy Cross Fund or establishing scholarships, there are other forms of charitable giving, which you might want to consider in the coming year. Careful planning of your gift to Holy Cross High School can help maximize the benefits to you and to the school. Federal income, estate and gift tax law encourages individuals and their families to make gifts to charity. The following paragraphs summarize some of the ways you can make a significant gift to Holy Cross and take advantage of tax savings.

Outright Gifts

If you make an outright gift of cash, appreciated securities, real estate, or personal property, and your total deductions exceed your maximum permitted federal deductions for one year, you can claim the excess as deductions on your Federal tax returns in the five subsequent years.

A. Cash Gift The full amount of a cash gift up to 50 percent of your adjusted gross income, can be deducted for income tax purposes in the year the gift is made.

B. Gifts of Appreciated Securities If you donate appreciated securities to Holy Cross, you can avoid capital gains tax on the difference between the price you paid for the securities and their current market value the date the gift is made. You can also deduct the current market value of your securities gift, up to 30 percent of your adjusted gross income.

C. Gifts of Real Estate If you make a gift of property to Holy Cross, you would be credited with a contribution valued at the fair market value of the real estate, which is ordinarily ascertained by a real estate appraiser.

Deferred Gifts

You may choose to name Holy Cross as the recipient of a major gift in the future. Such deferred gifts can be tailored to your personal circumstances while helping you achieve important reductions in your current personal income taxes and estate taxes. Some deferred giving methods include the following gifts.

A. Life Income Gifts With a life income gift, you assign cash, securities or other assets irrevocable to Holy Cross. They are then invested to pay a lifetime percentage or fixed amount to you, to succeeding beneficiaries, or to whomever you designate. Income is paid monthly, quarterly, semi-annually, or annually and is taxable to the beneficiary. Upon the death of the last surviving beneficiary, the school may use the assets either as needed or for a specific purpose, which you have designated. The benefits of a life income planned giving program are even more attractive as a result of recent legislation. A life income gift gives you the donor, a substantial charitable deduction against taxable income in the year you make the gift, even though it continues to produce income for you during your lifetime. The most widely used life income plans are the Charitable Remainder Annuity Trust and the Charitable Remainder Unitrust.

B. Bequests Gifts by will, whether in the form of cash, securities or other property, may be fully deducted in determining federal estate taxes and inheritances taxes. The following is suggested phraseology for a gift/bequest to Holy Cross. "I hereby give/bequeath to Holy Cross High School of Waterbury, CT Inc. (state gift or bequest) to be used (or the net income to be used) at the discretion of the School or for the following purpose: ___________."

C. Life Insurance Donors who no longer require the protection of life insurance policies acquired years ago may realize immediate tax savings by transferring them to Holy Cross and naming Holy Cross the irrevocable beneficiary. An alternative is to take out a new policy, naming Holy Cross the owner and irrevocable beneficiary.

Holy Cross High School is not engaged in rendering legal or tax advice. For assistance with specific cases, the services of an attorney or other professional advisor should be obtained.

If you would like additional information on these methods of charitable giving, please call the Advancement Office at (203) 574-5422, ext. 223.