How To Give
Federal and state tax laws traditionally have offered an incentive for private philanthropy by providing income, gift, and estate tax deductions for gifts to qualifying charities. Because Saklan Valley School qualifies as a tax-exempt organization under Internal Revenue Code Section 501(c)(3) and is not a private foundation as defined in Code Section 509(a), gifts to the school may entitle you to charitable deduction. Charitable gifts can be made with various assets – cash, securities, real property – outright or through a number of gift vehicles, such as wills and trusts. This section will provide some general information on gift opportunities. We encourage our supporters to consult with their own advisers to maximize the tax benefit of a contribution, given their individual financial circumstances.
You can make a tax-deductible gift to Saklan Valley School by using one of the following methods.
Gifts of Cash
Checks, made as outright gifts or payments towards pledges, are the most common form of support. Checks should be made payable to Saklan Valley School.
Credit Card
Think airline miles! Please fill out the necessary information on your pledge card and return to the School Office.
Pledge
Extending payments over time offers more flexibility and often allows donors to make a larger gift. Make a pledge and pay in installments, up until June 30, 2010, the end of the School’s fiscal year. If you would like to use a credit card to pay installments, please contact the Business Office to make arrangements.
Matching Gifts
Many employers offer programs that match or even multiply an employee’s charitable contributions. The process is simple and can increase the effect of your gift dramatically.
You may be able to double or even triple your gift if your employer offers a matching gift program. In most cases, all you need to do to initiate the matching donation is to complete a form, available through your employer.
Gifts of Appreciated Securities
Saklan welcomes gifts of appreciated securities. If you intend to give a gift of securities, please contact (or have your broker call) Maria Puckett, Business Manager, at 925-376-7900 x11, about the stock transfer process. Please do not register stock certificates in the School’s name. Please consult your financial adviser to clarify any tax advantages such gifts may have for you.
Gifts of Real Property
Saklan Valley School can benefit from gifts of all types of real property, such as a residence, a vacation home, a farm or commercial property, or undeveloped land. Donation of real property to Saklan can substantially reduce federal and state income tax liability as well as provide an immediate solution to marketing problems, eliminate carrying costs and remove the property from your gross taxable estate. A gift of property to Saklan would entitle you to a charitable deduction for the property's fair market value. Your deduction is limited to 30% of your adjusted gross income, with a five-year carry-over for any excess.
Tribute and Memorial Gifts
Honor a special person by making a memorial or tribute gift in his or her name to Saklan Valley School. With your gift, you may celebrate those whose memories fill your heart or whose presence fills your life. For birthdays, anniversaries, remembrances, or "just because," your donation in someone's honor is a wonderful way to express your admiration while making a difference at Saklan.
Bequest Gifts
Wills and Trusts
The simplest testamentary gift to the school can be made by will or revocable living trust. This type of gift offers a current estate tax charitable deduction. Because Saklan places funds received from wills and living trusts in permanent endowments, they provide a critical base of reliable support for our programs, enabling us to meet future unforeseen challenges.
An individual may bequeath a particular asset, a dollar amount, or a stated percentage of one's estate or residual estate after other debts and other bequests have been paid. It is also possible to name Saklan Valley School as a contingent beneficiary in the event that your named beneficiary is no longer alive at the time of your death.
Bequests are deductible for estate tax purposes. We suggest the following language for inclusion in your estate planning documents for an outright bequest:
I give __________ to Saklan Valley School, a nonprofit corporation, located at 1678 School Street, Moraga, California 94556.
Life Insurance and Retirement Plans
You can name Saklan Valley School as a beneficiary of a life insurance policy or retirement plan asset. Contributions of life insurance policies that have a cash value may entitle the donor to a current income tax charitable deduction, in an amount roughly equivalent to the cash surrender value of the policy at the time of the gift. The gift must be irrevocable and designate the school as both owner and beneficiary under the policy. Consult your tax adviser to see if this type of planning makes sense for you and your loved ones.
Retirement plan designations can be a little more complex, but, simply speaking, designating the school as a beneficiary of an individual retirement account or other qualified retirement plan benefits can offer estate tax benefits. This is because amounts in an IRA are includible in the donor’s gross estate (although sometimes offset by certain deductions) and distributions from most IRAs are subject to income tax. Therefore, in a large estate, where a child or grandchild is the designated beneficiary, only a small portion of the IRA may remain after payment of both estate and income taxes. On the other hand, both the school and the family will benefit if the school is the beneficiary of the IRA and the family receives other assets. Again, if you are philanthropically inclined, your tax adviser can best recommend a course of action for you.
Remainder Gifts
Charitable Remainder Trusts
Many philanthropic taxpayers will try to maximize the benefits to both the school and themselves. The Internal Revenue Code allows a donor or the donor’s estate to create a trust which will provide income for the life of the donor or member(s) of the donor’s family, or for a term of years, as well as a current charitable deduction. The donor may also avoid tax on the appreciation of the securities or real property contributed. Income payments can be made annually or more frequently, and at the death of the last beneficiary or the termination of the trust, the remainder amount would be left to Saklan Valley School to carry out its important mission.
Contact Us
We will be happy to take your pledge amount and credit card information over the phone.
Please call the Office at 925-376-7900 or contact the Annual Giving Fund Chair, Kate Dey at kate@deynet.com.
