Ways To Give

Although many donors to non-profit organizations make their gifts in the form of cash, there are numerous alternative methods to contribute financial resources and assist the school in reaching its fund-raising goal. Since all gifts are tax-deductible, gifts of assets in ways other than cash might work to the donor’s tax advantage and work more effectively for both the donor and the recipient. As you consider your gift to The Capital Campaign at Pine Lake Prep, please evaluate the different approaches outlined below. You may discover your financial situation matches best with one of these ways to make the gift work to you advantage and the School’s.

Gifts of Appreciated Securities
If you hold securities that have appreciated significantly and would create unwelcome tax consequences if sold, they represent a wonderful gift opportunity. In this way you can provide Pine Lake Prep with a substantial resource while perhaps being able to donate more that you might have available in cash. There would be no capital gains tax on the increased value, and if you have owned the securities for more than a year, you might be able to deduct the full appreciated value from your taxes.

Gifts of Life Insurance
There are two ways to use life insurance to benefit Pine Lake Prep. You could purchase a policy and make PLP the beneficiary, or assign a policy already in effect to the School as both owner and beneficiary. We recommend that you check with your life insurance agent for details regarding this method of donating to the Campaign.

Bequests
A bequest is a transfer, by will, of property such as cash, securities (stocks), or tangible property to an individual or a charitable organization. For many donors a bequest offers the opportunity to make a more substantial gift than would be possible during the donor's lifetime. Other donors view a bequest as an opportunity to establish a tradition of giving with a lasting legacy to Pine Lake Prep. Because of the tax advantages associated with a bequest to a charitable institution, assets from your estate that would otherwise be taxed by the government would directly benefit the beneficiary institution.

Life Income Gifts
Tax laws permit donors to place assets into a variety of trusts vehicles that benefit the donor, the donor’s family or heirs, and Pine Lake Prep. The three most popular approaches used at schools and colleges are outlines below. In considering any of these options, we urge you to consult with your attorney or accountant.

• Charitable Remainder Trust - A donor creates and funds an irrevocable trust that provides income to the donor or his/her beneficiaries for life, or a term of years, after which the remainder of the trust is distributed to the Pine Lake Prep. This approach allows the donor to retain income from the gift for his/her lifetime, derive substantial tax benefits, and make a significant gift to PLP.
• Charitable Lead Trust - A lead trust is a vehicle for transferring substantial assets to your children or others with the possibility of gift or estate tax savings by permitting the income from those assets to go to a charitable institution like Pine Lake Prep for a fixed period of time. The income is distributed each year to the charitable institution for a chosen number of years, after which the assets once again become available to you, your heirs, or others.
• Charitable Gift Annuity – To create this increasingly popular gift vehicle, the minimum age is 50 and the minimum gift amount is $10,000. The steps to create the gift agreement are very simple:
  • Donor and/or another designated person contributes cash or marketable securities to Pine Lake Prep
  • Donor and PLP sign a simple contract specifying the terms of the annuity payout to the donor and/or one other person. Contracts vary according to the state in which donor(s) reside.

Gifts of Real Estate
Real estate that may have appreciated over the years and is readily marketable may offer the donor a way to make a gift of greater value than is possible in cash or securities, and, at the same time, avoid capital gains tax on the increased value of the property. The donor receives the full market value of the property as a tax-deductible contribution to PLP. As with other gift approaches mentioned above, it may be possible to structure the gift so that the donor can continue the use of the property during your lifetime.