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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.
• 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.
• 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.
• 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.
• 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.
• 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: ___________."
• 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. |
