Planned Giving

A planned gift is a gift you will give at some future date, either a number of years from now or at death. Often referred to as a “deferred” gift, it is a present decision to make a gift in the future and is evidenced by a corresponding document.

Planned gifts can be as simple as naming a charity as a beneficiary to your IRA, will or living trust. Such changes are “revocable” because you have the ability to change your mind and amend the gift.

Irrevocable planned gifts are deferred gifts that provide an income or life estate benefit to the donor (or a designated beneficiary) before the gift is completed to the charity. Examples of irrevocable planned gifts include charitable gift annuities, charitable remainder trusts, or reserved life estates. These gifts may provide tax and income benefits.

A bequest is one of the easiest gifts to make. With the help of an advisor, you can include language in your will or trust specifying a gift to be made to family, friends or Trinity Classical Academy as part of your estate plan.

Benefits of bequests:

• Receive estate tax charitable deduction.
• Lessen the burden of taxes on your family.
• Leave a lasting legacy.

A bequest may be made in several ways:

• Gift of a percentage of your estate.
• Gift of a specific dollar amount or asset.
• Gift from the balance or residue of your estate.

Assets, such as IRA accounts and life insurance policies, make excellent bequests to Trinity Classical Academy. If the IRA were given to your family, much of the value may be lost through estate and income taxes. By designating Trinity Classical Academy as the beneficiary of all or part of your IRA (using a beneficiary designation form provided by your custodian), the full value of the gift is transferred tax-free at your death and your estate receives an estate tax charitable deduction.

Life Income Gifts include but are not limited to: Charitable Remainder Trusts and Charitable Lead Trusts.

Charitable Remainder Trusts are best suited for irrevocable transfers of appreciated property that produces little or no income into a productive asset without paying capital gains tax on the sale of the property. A charitable remainder trust receives cash or property from a donor, makes payments for life, lifetimes or a term of years and then distributes the remainder to charity.

The trust sells the property tax-free and then pays a percentage of its value to the trust beneficiary. The donor receives a current federal income tax deduction.

Charitable Lead Trusts are the opposite of Charitable Remainder Trusts because they pay the income to the charity first and then the asset reverts back to the donor (Grantor Lead Trust) or the asset passes to a designated heir (Non Grantor Lead Trust). With the Grantor Lead Trust, the donor receives a very substantial income tax deduction. This is especially valuable if you sell an asset this year and need a tax deduction to offset a sizeable tax bill.

If you have a desire to endow education for the students of tomorrow, we can work with you to make a meaningful planned gift that will help you leave your legacy at Trinity Classical Academy.

• A partner with a donor’s financial and legal advisors
• A resource for information about Trinity Classical Academy
• An advocate for the wishes of donors making a future gift to Trinity

Donors who have an interest in creating legacy gifts with non-profit organizations can find it very helpful, time-saving, and cost effective to work with the institution’s Planned Giving Officer. Planned gifts include simple bequests from wills and trusts. They provide methods to mediate or avoid taxes such as capital gains tax and estate taxes. They also include gifts that provide income to donors, heirs or loved ones.

What can a Planned Giving Officer do for you?

• Help donors articulate purposes and uses of charitable gifts
• Document donors intentions at Trinity
• Maintain donors privacy and confidentiality
• Recognize donors for their gift intentions
• Enroll planned giving donors in the Trinity Heritage Society

The information shown here is for educational purposes only and not intended as legal advice. For legal or tax advice, Trinity Classical Academy recommends contacting your advisor.