Planned gifts provide creative and flexible strategies for your estate and charitable planning. Some planned gifts provide you with income. Many of them can reduce your taxes. The greatest benefit, however, lies in knowing you are supporting work at The Harley School that is important to you and helpful to others.
What is Planned Giving?
Planned giving allows you to make the most of your charitable donations--often enabling you to make a gift you might have thought was beyond your means. Your planned gift to Harley can give you the personal satisfaction of ensuring that a Harley education will be possible for generations to come. Bequests, Retirement Plan Gifts, Life Insurance Gifts, and Charitable Gift Annuities are just a few ways you can help plan for Harley’s future. Depending on your circumstances, gift planning may also give you state and federal tax advantages. Visit the sections below to learn more.
Planned Giving - What are the benefits to you?
There are a variety of ways to make a planned gift that will benefit both you and future Harley students.
Certain charitable instruments can increase your personal income particularly when money market and CD rates are depressed
Income and capital gains can be reduced or eliminated, especially related to appreciated stocks and real estate
Estate taxes can be reduced
Real estate can be exchanged for lifetime income
Donating retirement plan assets possibly avoids income taxes as well as estate taxes
Your planned gift allows you the personal satisfaction of ensuring a Harley experience will be possible for generations to come
The honor of membership in the Harriet Bentley Society connects you with other leading donors who share similar values
The Importance of a Will
No matter what the size of the estate, it is prudent for each individual and family to have a will. A will allows an individual to control the estate. Without it, costly delays in the distribution of assets are inevitable and state law will dictate how assets are divided. State laws usually distribute assets to natural or adopted relatives while leaving nothing to charities or friends that are important to you. If there are no relatives remaining, your estate will be distributed to the state. Even though some property can pass to others through joint ownership, it is always wise to establish a will.
A "Revocable Living Trust" is different from a Will. Many people elect to establish a Revocable Living Trust during their lifetimes as a substitute for a will. Importantly, a living trust is not part of the public record, thereby providing privacy for the estate. Your attorney will be able to provide the pros and cons of a living trust versus a will.
Making a codicil (change) to your will or adding a gift provision in an existing revocable trust is quite simple. Bequests can be of any amount in cash, real estate, securities or other property. It can be designated for unrestricted or restricted use.
To learn more about your giving options, or to notify us of your intent to make a planned gift, please contact: Debra Weiss Walker '83, Director of Development: email@example.com or (585) 442-1770, ext. 1116.
Planned Giving Using Bequests
Bequests are an important way for The Harley School to continue to touch the hearts and minds of children. For many of our supporters, a bequest has been a favored way to give and ensure a lasting legacy. Donors often find bequests attractive, as they are able to maintain control of the use of their assets during their lifetime.
An individual can use a bequest as a means to transfer ownership of specific assets such as cash, securities, real estate, or other property to Harley. The means to accomplish the transfer is a legal document called a will.
Many people either believe they do not need a will or have not taken the time to have one prepared. If you have not prepared a will, please take a moment to review the importance of a will (above).
For your convenience, should you want to add bequest language to your will, Harley has provided sample language (below) that illustrates different ways a bequest may be made.
A bequest to Harley provides the following:
An estate tax deduction;
Freedom to direct funds to programs of interest to you;
Automatic membership in the Harriet Bentley Society.
Sample Bequest Language
I give ________(describe asset) to The Harley School, Federal ID # 16-0755783, a non-profit organization located at 1981 Clover Street, Rochester, NY 14618 to further the mission and programs offered at the school.
I give __________ (detail amount in U.S. dollars) to The Harley School, Federal ID #16-0755783, a non-profit organization located at 1981 Clover Street, Rochester, NY 14618 to further the mission and programs offered at the school.
Residuary Bequest (bequest made from the remaining assets of the estate after specific cash, taxes, debts and expenses are dispersed)
I give__________ (detail amount in U.S. dollars) to The Harley School, Federal ID #16-0755783, a non-profit organization located at 1981 Clover Street, Rochester, NY 14618 to further the mission and programs offered at the school. NOTE: The gift can be stated as a fraction or percentage of the remaining estate.
The summary bequests provisions offered above are for illustrative purposes only. Prospective donors should consult with and rely on their own legal, tax and/or financial counselors.
To learn more about your giving options, or to notify us of your intent to make a planned gift, please contact the Development Office.
Gifts through Life Insurance
Many Harley supporters purchased life insurance to protect their families in the event of their premature death. As time passes, this need becomes less pressing.
If you have a life insurance policy you no longer need, you might contribute it to a charitable cause in which you believe and receive tax benefits at the same time. Purchasing a new policy and naming Harley as a beneficiary is another possibility.
If you name Harley as a beneficiary and transfer ownership of a whole-life policy to the School, you can keep the life insurance out of your estate and generate an immediate charitable income tax deduction. If the policy is paid-up, your charitable income tax deduction is limited to the net investment in the policy (premiums paid minus dividends received).
If you transfer ownership while premiums are still payable, you can be relieved of your obligation to make further payments. Harley can sell the policy for cash or accept an amount of paid-up insurance. If you continue to pay the premiums, Harley will retain the policy and you can continue to generate charitable income tax deductions in subsequent years.
Transferring ownership of a term insurance policy does not generate a charitable income tax deduction because the policy has no cash value.
Changing the beneficiary or owner of your life insurance policy must be done through your insurance broker. Before doing so, please consult your professional advisors.
To learn more about your giving options, or to notify us of your intent to make a planned gift, please contact: Debra Weiss Walker '83, Director of Development: firstname.lastname@example.org or (585) 442-1770, ext. 1116. Now is the ideal time to explore the many benefits of our gift annuity program. In exchange for your gift of cash or securities, we will pay a specified dollar amount to you and/or your beneficiary, each year for as long as you or your beneficiary live. The annuity payments are based on the age of the donor at the time of the gift.
How does a Charitable Gift Annuity work?
A Charitable Gift Annuity (CGA) is a contract between the donor and The Harley School. Harley agrees to pay a fixed payment to one or two persons for life for the right to receive the remainder interest of the asset upon the demise of the last annuitant.
The donor receives an immediate charitable income tax deduction in the year the gift is made and ongoing tax-favored payments (tax deductions can be carried forward for five years, if necessary).
The donated asset is removed from the owner's estate.
The Harley School's obligation to pay the annuity is secured by its assets.
Annuity payments can begin immediately or can be put off for a specified period of time (at least one year). When annuity payments are put off into the future, such as for retirement, it is called a Deferred Chartable Gift Annuity.
The annuity interest rate is determined by the donor's age, and if elected, the age of the second annuitant.
Ways to fund a Charitable Gift Annuity
Cash - an irrevocable gift of cash may provide an immediate tax benefit. If your CD is about to expire, rather than rolling it over, check to see if a CGA rate is more beneficial to you.
Commercial Annuities - Annuities sold by insurance companies are an excellent gift source. If an old annuity has accumulated substantially over the years, the income tax consequences may be too dramatic to sell outright. If your intention is to leave the annuity to Harley, simply change the beneficiary arrangement irrevocably to The Harley School. At the demise of the annuitant, it will automatically be gifted to Harley. Moreover, the estate will receive an income tax deduction offset, and the asset will be removed from estate taxation.
Appreciated Stock - Many stock values have increased dramatically over the last decade. Investors are concerned that falling prices could reduce their gains. A CGA could be a way for you to lock in your profits and turn them into lifetime income. Consider transferring appreciated stock, often with low-paying dividends, to Harley.
Real property - in certain cases, Harley will accept real property in exchange for lifetime income.
Planned Giving: The Harriet Bentley Society
In 1917, 32-year-old Harriet Bentley gathered together a group of mothers from different social circles to discuss setting up a school for four-year-olds. These parents were very serious about using the best methods for providing a “progressive education” to their children. And so a school was born.
The Harley School established the Harriet Bentley Society in 2004 to carry forward Ms. Bentley’s passionate commitment to the school she founded in 1917. The mission of the Harriet Bentley Society is to ensure a Harley education for future students through deferred gift plans. The society recognizes and thanks those alumni, parents, and friends who have planned a deferred gift for Harley and encourages others to consider making similar plans.
With permission, Harley publishes the names of Harriet Bentley Society members in our annual report and various publications.
Although Harley does not require any documentation in order to recognize a legacy commitment, we would appreciate any specific information you would be willing to provide for our files.