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Planned Giving
Bequests
A gift made through one’s will is perhaps the most popular form of a planned gift. Such gifts may enable a donor to make a significant contribution to Fayetteville Christian School that was not possible during his or her lifetime. A bequest to the School can be included in the body of a will or in an addition (a codicil). As with lifetime gifts, a bequest may be unrestricted, providing the School with the flexibility to meet its needs as they arise, or a specific gift may be designated for the use of your bequest. Testamentary gifts to Fayetteville Christian School are typically deductible for estate tax purposes and may be made in several ways.
Specific Bequest
You may stipulate that a certain percentage of your estate, or a certain dollar amount, or particular securities, or other assets be given to Fayetteville Christian School.
Residuary Bequest
You may state that a portion of your estate be given to Fayetteville Christian School after specific amounts are distributed to other beneficiaries.
Testamentary Charitable Trust
You may establish a unitrust or annuity trust for the benefit of specific beneficiaries through your will. The trust principal is transferred to Fayetteville Christian School only after the death of the last trust beneficiary.
Gifts of Life Insurance
Life insurance may permit the donor to make a substantial gift for a relatively modest annual outlay. A gift of a fully paid life insurance policy may also be a handsome gift without any immediate out-of-pocket cost. Naming Fayetteville Christian School as owner and beneficiary of a paid-up life insurance policy entitles you to a deduction equal to your cost basis in the policy, or its replacement cost, whichever is less. Naming Fayetteville Christian School as owner and beneficiary of a policy that is not paid-up provides a tax deduction for the premiums paid.
Gifts with Income Retained for Life
Gifts that provide income are excellent vehicles for retirement planning. These gifts allow you to make a significant contribution to Fayetteville Christian School and receive a number of benefits:
income payments for your life or the life of your spouse
the probable elimination of capital gains tax on appreciated property
an income tax deduction
potential investment diversification
professional management
the probable reduction of estate taxes and probate costs
the satisfaction of directing the purpose of your gift
the fulfillment of supporting Fayetteville Christian School during your lifetime
Gift Annuities
The gift annuity, which offers fixed payments for life, is the simplest of life income plans, and it is a contract between you and Fayetteville Christian School. Part of these payments is tax-free, part is ordinary income-and if the annuity is funded with appreciated securities-part of these payments is treated as capital gains income. Your income tax deduction is based on the amount of your gift, the ages of the beneficiaries, and the income received. You may increase your after-tax income, particularly if appreciated stocks are used to fund the gift annuity. A gift annuity may be established with a minimum contribution of $25,000.
Annuity Trust
An annuity trust is separately invested and provides fixed income. An annuity trust is valued when the trust is established and at least five percent of this amount is distributed quarterly to you or to another beneficiary. You may establish an annuity trust for a minimum of $100,000.
Your income tax deduction is based on the amount of the gift, the ages of the beneficiaries, and the percentage of the trust assets received as income. Generally, the more income you receive, the lower your tax deduction.
Unitrusts
A unitrust also is separately invested and provides income that may vary from year to year. The unitrust is valued the first business day of every year, and a percentage of the trust is distributed quarterly to you or another beneficiary. Unitrusts may be established for $100,000, and additional contributions may be made to a unitrust with a minimum of $10,000. As with annuity trusts, your income tax deduction is based on the amount of the gift, the ages of the beneficiaries, and the percentage of the trust received as income.
Gifts That Keep Property in the Family
Another vehicle that keeps property in the family is a lead trust, whereby you make a gift of income to Fayetteville Christian School for a term of years. After the term is over, the principal may be passed on to your children or your estate.
Lead trusts can provide a means of directing assets to children or other heirs in a cost-effective way. Lead trusts do have a number of income and gift tax consequences, however, which should be considered before making a gift.
The Office of Development would be pleased to discuss your interest in giving a gift. You may contact Perry Melton either by e-mail pmelton@fayettevillechristian.com or at 910-476-1260. Please remember Fayetteville Christian School has a planned giving specialist, Warren Hahn who can assist anyone in understanding and explaining planned giving in person. He will be more than happy to set up a private meeting. You can go through the Office of Development or contact Mr. Hahn directly to ask questions or set up a meeting. Office phone 910-323-5700, cell 910-988-6013.
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