Palmer Trinity School

15 WAY S OF GI V I NG There are a variety of ways to make a charitable gift. While cash gifts are the most popular, there are other creative strategies available that may address your interest in supporting Palmer Trinity School, and may also provide you with increased income and tax benefits. Some techniques, such as life income programs, may actually allow you to make a larger gift at a lower cost and receive unexpected benefits for you and your family. CU RRE NT G I F TS • CASH GIFTS Generally, your cash gift may be deducted from your federal income tax return for the year your gift is made as long as you itemize deductions. In most cases, you can deduct an amount up to 50 percent of your adjusted gross income in any one-tax year. The excess can be deducted over the following five years. Actual savings from the deduction depend on your tax rate and other factors. • MATCHING GIFTS Many employers have established matching gift plans that allow an employee's charitable gift to be matched by the employer. • APPRECIATED PROPERTY If the property has increased in value and you have owned it long enough for it to qualify as a long-term capital asset (12 months and a day), the best course will probably be to give it outright. A gift of appreciated property allows you to avoid the capital gains tax due if you were to sell the property. In most cases, you receive a tax deduction for the full value of the gift, subject to a limitation of 30 percent of your adjusted gross income. The excess beyond 30 percent can be carried forward for five years. • PROPERTY THAT HAS LOST VALUE In the case of property that has decreased in value, you would benefit from selling the property, taking the loss for tax purposes, and then contributing the cash. In this way, you would receive a deduction for both the loss and the charitable gift. • REAL ESTATE Gifts of real estate or a bargain sale transaction may be desirable, subject to review and approval of Palmer Trinity School 's Board of Trustees. It is also possible for you make a gift of your personal residence, farm, or vacation home, reserving the right to occupy it for as long as you or your spouse lives. • SECURITIES Stock certificates can be assigned directly to the organization or they may be transferred through your broker. The amount of your contributions is the fair market value on the day of transfer. • CLOSELY HELD STOCK A gift of closely held stock produces a current income tax charitable deduction equal to the fair market value of the stock. Your corporation may then purchase and redeem shares of the stock from the organization. You receive a tax benefit, and the outstanding stock is returned to your business. PL AN N E D G I F TS • CHARITABLE GIFT ANNUITY A gift annuity is a simple agreement between you and Palmer Trinity School to provide a fixed income for the lifetime(s) of one or two annuitants. The annual amount paid is determined by rates recommended by the American Council on Gift Annuities. The older the annuity, the higher the level of income. • DEFERRED GIFT ANNUITY For younger donors, a deferred gift annuity offers increased income tax benefits. All of the features and benefits of a gift annuity are provided with a deferred gift annuity, although income is delayed until a future date you choose, often at retirement. The longer the time between the creation of a deferred gift annuity and the start of the payments, the greater your rate of return and the larger the income tax charitable deduction. • POOLED INCOME FUND A pooled income fund operates much like a mutual fund in that contributions

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