Ways to Give
In most cases, a gift of appreciated securities entitles the donor to an income tax charitable deduction for the fair market value of the securities on the effective date of the gift. The donor avoids the capital gains tax that would be due if he or she sold the stock. In many cases, the Board of Directors of Strake Jesuit College Preparatory will also accept closely-held securities, which may then be sold back to the company. When making a gift of securities, the donor should transfer ownership of the stock to the School. It is imperative that the donor not sell appreciated stocks when their intent is to make a gift of securities. Before you transfer the securities, please contact Colin Matheny at 713-490-8236. Click here to access the Strake Jesuit Letter of Stock Transfer Form.
Gifts of Undivided Interest in Real Estate
Quite often families have real estate for sale which has appreciated significantly in value -- residential property, vacation property, farm land, or commercial property. Such an individual can be approached prior to the sale of the property to give an Undivided Interest in the property to Strake Jesuit College Preparatory. Upon the sale of the property, the School's attorneys would attend the closing proceedings along with the majority owner. The title company will write a check to Strake Jesuit College Preparatory for their share of ownership in the property, and the donor will receive a charitable tax deduction for the current fair market value of the property given to the School. No capital gains tax will be levied on the appreciated value of the property given to the School.
Life Estate Contracts
Many families or individuals are simply unable to consider a significant cash gift to Strake Jesuit College Preparatory. But there are numerous men and women who have an interest in the School and who are willing to express an abiding interest in Strake Jesuit College Preparatory with a Life Estate Contract. For those who desire to create an endowment or have an impact on the full development of the master plan for Strake Jesuit College Preparatory, a Life Estate Contract may be the answer. A family with a personal residence or farm -- preferably one on which there is no existing debt -- can transfer the deed to Strake Jesuit College Preparatory and reserve for themselves the right to live on or use the property for their lifetime. The donor receives a tax benefit for the gift based upon their age and life expectancy. This is an irrevocable gift for which the donor can receive immediate recognition.
Gifts of Tangible Real Property
It is possible to contribute works of art, paintings, stamp and coin collections, rare books and documents, antiques, and other personal property. The charitable deduction depends on the use the School makes of the gift. In the case of the sale of property, the tax benefits depend upon the amount of time that elapses between the receipt and sale of the property.
Individual Retirement Accounts
Many families have accumulated sizable assets in their IRAs, which they plan to pass on to their children. The reality is that ordinary income taxes and estate taxes devour the majority of an IRA's benefits before they ever reach the children. A family can easily indicate Strake Jesuit College Preparatory as the death beneficiary for their IRA. This is a simple transaction which does not require involvement of the donor's attorney.
Bequests Through a Will or Codicil
An effective Bequest is a simple way for an individual to carry out his or her long-term objectives of caring for family and benefiting Strake Jesuit College Preparatory. A bequest through a will can provide a perpetual gift in support of the School, its facilities or programs. There are three types of bequests to consider:
-a Specific Bequest of cash or property;
-a Residuary Bequest which is fulfilled after certain family affairs are resolved; and
-a Contingent Bequest which is made when specif- ically designated conditions have been met.
Gift Acceptance Policies
The Board of Directors of Strake Jesuit College Preparatory has enacted general gift acceptance policies. The following excerpts pertain to asset-based gifts.
Public and privately-held securities must be marketable and convertible to cash within a short-term timeframe. Gifts of publicly traded securities will be valued at the average market value on the date the full interest in the transferred property is received. Gifts of closely held stock will be valued based on a qualified independent appraisal at the time of the transfer. Generally, gifts of privately held securities will be accepted only when conversion into cash within a five- to ten-year timeframe is expected.
Property gifts other than real estate may be accepted in amounts under $5,000 by the President or Chairman of the Board. Property gifts other than real estate valued over $5,000 require approval by the Executive Committee of the Board of Directors.
Land gifts are explicitly excluded from acceptance, except with Board approval. Exceptions in the form of illustrative examples in this document may be considered on an individual basis.
Information concerning gift planning is to be for illustrative purposes only and is not to be relied upon exclusively in individual circumstances. A letter of understanding from a donor of a non-cash gift may be required along with proof of outside advice being rendered before such a gift will be accepted.
All potential or proposed planned gifts or restricted gifts may be individually reviewed by the Treasurer, President and Chairman of the Board. Prospective donors are encouraged to request, and may expect to receive, a letter from the President regarding agreements to restrictions placed upon the proposed gift by the donor.
Although representatives of the School will provide all appropriate assistance, the ultimate responsibility regarding evaluations and/or tax deductibility remain with the donor and such counsel as the donor may wish to secure.
To avoid conflicts of interest, the unauthorized practice of law, the rendering of investment advice, or the dissemination of income or estate tax advice, all donors of non-cash gifts must indicate the professional advisors rendering opinion on the gift.