Charitable Giving
“The gifts you have received, give as a gift.” - Matthew 10:8
Every penny counts! Should you wish to make a monetary donation to our school, please contact the school principal at stmikes@neo.rr.com or 724-588-7050. Additionally, stocks, bonds, insurance policies, annuities, are all most acceptable as contributions to your parish and school. In many cases, your donation may even be tax deductible (please see your tax advisor regarding charitable contributions).
There are many charitable gift-giving solutions just right for you. This information provides details on ways an individual or group may support the activities and programs of Saint Michael School through charitable giving. There are several places a donor may wish to direct his/her contribution - such as the Alumni Legacy Fund, the Endowment Fund, Student Scholarships, Special Programs, or through an Unrestricted Gift. All are dedicated to raising gift support for Saint Michael School.
Be sure to review all our information to get a complete picture of what we do. And thank you for your consideration.
Some want to make a charitable gift now, but concerns about personal and family financial security may make these gifts seem impossible. Is there a charitable gift that can help you meet all of your goals? Some of the most popular gift-giving ideas are listed below.
Gifts of CASH
Gifts of CASH represent the most fundamental and important source of funding for St. Michael School. It is the easiest and most popular form of gift, and offers a tax deduction equal to the full value of the gift.
Gifts of STOCK
In many cases a gift of stock may provide even greater tax benefits than a gift of equal value in cash. Why? A stock (held more than 1 year) that has appreciated in value will generate capital gains tax if it is cashed in. By gifting the appreciated securities directly to Saint Michael School you can avoid paying capital gains tax and take a charitable deduction for the full market value of the securities.
Oftentimes a stock will ‘split’ over the years and provide additional shares for the donor. Gifting part of a stock certificate is also a great way to make a gift to Saint Michael School.
Gift ANNUITIES
Through a charitable gift annuity, you can make a gift to Saint Michael School and receive guaranteed lifetime payments for yourself or designated beneficiaries. The payments are a fixed amount and generally depend on the number (up to 2) and ages of the beneficiaries.
SAINT MICHAEL SCHOOL LEGACY FUND
An annual fund drive is run from July 1st through June 30th of the following year. Any and all donations made to the Legacy Fund are used exclusively for the general operating expenses of the school. Donations can be made at any time. Appeal letters go out to alumni, staff, present parents, past parents and grandparents of alumni giving the opportunity to donate.
LIFE INSURANCE
This gift-giving vehicle allows a donor to make a sizable gift at the time of death that wasn’t possible during a lifetime. Three ways to benefit Saint Michael School with life insurance are:
- Name Saint Michael School as primary or secondary beneficiary of an existing policy.
- Name Saint Michael School as the owner and beneficiary of an existing policy.
- Buy a new policy and contribute it to Saint Michael School.
RETIREMENT PLANS & IRA’s
Both are great examples of deferred gifts (those committed in the present, but received by a charity in the future).
Thanks to great tax advantages, now is the time to consider using IRAs and retirement funds to fund a charitable gift. If these assets are left to heirs, most of the gift will be lost to taxes. The funds from an IRA or retirement plan that you leave to Saint Michael School qualify for an estate-tax deduction and are not subject to income taxes because the School is tax-exempt.
To do this, you will need to name Saint Michael School as beneficiary of a portion of your IRA or qualified retirement fund. It could be a percentage or even the entire amount if you have no heirs to consider. Upon your death, the portion (mentioned above) will be paid to the School in a lump sum, totally tax fee.
NEW TAX INCENTIVES FOR CHARITABLE GIFTS FROM YOUR IRA
The Pension Protection Act allows taxpayers over 70.5 years old to donate money to charity directly from their IRA account. The distributions will be tax-free and avoid the penalty on early withdrawals. Taxpayers are allowed to donate up to $100,000 per year from their IRA. You are eligible for this new tax savings opportunity if:
- You are age 70 ½ or older
- Your gift to Saint Michael School is made on or before December 31, 2011
- You transfer funds directly from an IRA or Rollover IRA to Saint Michael School
Contact your IRA custodian for the forms necessary to transfer your desired gift amount to Saint Michael School.
BEQUESTS
One of the most precious legal rights is the opportunity to dispose of property the way you want. Only through a valid will can you ensure that your wishes will be carried out. For example, a will allows you to make a gift for charitable purposes in the form of a specific amount, a particular property, a percentage of your estate, or a portion of the residue, or “what’s left over” after providing for other heirs.
Sample Language:
“I bequeath to Saint Michael School, Greenville, PA (insert dollar amount, percentage of estate or description of property), to be used for its general purposes.”
A thoughtfully prepared and carefully drafted will can provide peace of mind for both you and your beneficiaries.
You can maintain complete control over assets during your lifetime, while enjoying estate tax savings for amounts transferred at death.
ENDOWMENT
Saint Michael School’s Endowment is its financial foundation – its security. Endowment is the school’s invested capital that generates funds to be used, in perpetuity, to support its mission.
Endowments may be named for donors, loved ones as a memorial, favorite faculty, or program, etc.
The following objectives shall be considered and met when investing the school’s endowment funds: safety of principal; maximum appreciation consistent with safety of principal; yield on investments; need for liquidity.
Funds shall be invested in companies that promote values of Catholic moral and social teachings.