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Chatham Academy
has always relied on the financial support of the
community as a supplement to tuition. Tuition covers
only 85% of our students educational costs. This
financial support—and the income generated from that
which is endowment—will continue to be critical as
the school continues to meet its educational mission
in the face of increasing costs. Your financial
support is tax deductible (as allowed by law) and
you may choose from a variety of giving
opportunities so as to best match your financial and
tax circumstances.
Outright Gifts
Cash/Checks
Appreciated Securities carry two
benefits that cash gifts do not: you eliminate the
capital gains tax when you contribute securities,
and you are entitled to an income tax deduction
based on the fair market value of the securities as
of the date of the gift.
Real Estate, if held long term, has
distinct tax advantages: you pay no capital gains
tax on the appreciation, and you are allowed an
income tax deduction based on the property’s fair
market value on the day it is transferred by deed.
Personal Property or gifts-in-kind,
such as fine art objects, antique furnishings, rare
books, and other items, offer you an immediate
federal income tax deduction provided the items can
be used for Royce Learning Center’s general
purposes. If you have questions as to the
suitability of your gift, please contact the Center.
Planned Gifts
Charitable Remainder Unitrust and
Annuity Trust – These are trusts which pay income
for life and which revert to the Center after the
death of the beneficiaries. The only requirements
are a minimum amount of $50,000 to establish the
trust and a limitation to two beneficiaries with a
minimum age of 55 years.
Charitable Lead Trust – Under these
trusts, donors can make gifts to Royce Learning
Center and preserve their estate for heirs. They are
established by a donor transferring property to a
trust, specifying that the Center receive the income
for a period of years or for the life of
an individual. The remainder interest is either
retained by the donor or given to a non-charitable
beneficiary, usually a family member.
Charitable Gift Annuity – This is a
gift that purchases an annuity. Again, a donation of
funds or property is made to the Center. In return,
Royce Learning Center agrees to pay the donor (and a
second beneficiary, if desired) a guaranteed income
for life. The amount of the annual income is fixed
at the outset and never varies. The donor is
entitled to an income tax charitable deduction. In
addition, a portion of the
annual income received is non-taxable. The minimum
gift for a gift annuity is $5,000, and the donor
must be at least 55 years old.
Bequest – A bequest is the act of naming Royce
Learning Center in your will. It is often done by
those who want to perpetuate their lifetime
giving or by those who just want to “leave
something” to the Center. Many times it allows for a
larger gift than is possible during a lifetime.
A bequest to the Center is not subject to federal
estate or state inheritance taxes. The value of the
bequest is deductible in determining the
taxable estate for state tax purposes and there is
no limit on the amount of the deduction.
Life Insurance – Gifts of life insurance policies
guarantee the payment of a fixed amount at a set
time. A person can purchase a new policy
and donate it to the Center or donate an existing
policy. Royce Learning Center becomes both the owner
and beneficiary of the policy.
When the gift is complete, you may claim a
charitable income tax deduction equal to the cash
value of the policy. Future premium payments
which you pay become deductible as charitable gifts. |
