This information is general in nature and not intended as legal advice. Please talk to your legal or financial advisor about your specific circumstances.
Current Non-Cash Gifts
Appreciated Securities: Buy Low, Give High
By donating stocks, bonds or mutual fund shares you have owned for at least a year, you receive an income tax deduction for the fair market value of the securities, and avoid capital gains tax. Click here for stock transfer instructions to share with your broker.
Gift from your IRA
If you are 701/2 or older and have an IRA or other defined-benefit retirement account, you can make a Qualified Charitable Distribution (QCD) directly from your account to Westtown. Contact your account administrator to arrange your gift. The QCD will count toward your required minimum distribution (RMD), but it will not be included as taxable income on your federal tax return. (The RMD was waived for 2020, but has been reinstated.)
Gifts You Can Make Now That Cost Nothing
Life Insurance Policy
When the kids were small and the mortgage was large, you bought life insurance. But if you no longer need that protection, you can donate your fully paid up policy to Westtown School and receive an income tax deduction for the cash surrender value.
Retained Life Estate
Simply stated, you deed your residence (primary or vacation home) or farm to Westtown, but you (and your spouse) retain the right to continue living in your home for as long as you wish: the rest of your life or a set term of years. It costs you nothing, and you receive an immediate income tax deduction. (It may also reduce your estate tax.)
Future Gifts That Cost Nothing Now
Bequest through your Will or Living Trust
- You retain control over your assets throughout your life and can make changes at any time.
- You can give a variety of assets: cash, securities, real estate, interest in a business, collectibles, etc.
Click here for suggested bequest wording.
● You can designate Westtown School as a beneficiary of your retirement plan, donor-advised fund, life insurance policy, investment account, or bank account. Assets bypass probate and go directly to the school.
● Easy to do and no legal fees: just ask your plan administrator, insurance agent, or account manager for a beneficiary designation form.
● Avoid “double taxation” of retirement plan assets. If left to anyone other than your spouse, these assets will be subject to income tax as well as estate or inheritance taxes. But they will pass to Westtown tax-free.
Gifts That Provide Income
Charitable Gift Annuity
Westtown School offers Charitable Gift Annuities in partnership with Friends Fiduciary Corporation (FFC), a Quaker, non-profit organization providing socially responsible investment management services exclusively to Quaker meetings, churches, schools and organizations.
Here’s how it works: You transfer assets (cash or securities, minimum $10,000) to FFC to fund your charitable gift annuity (CGA). The CGA provides a fixed lifetime income payment to you, or to one or two life income beneficiaries (annuitants) you may designate. (For example, you can establish a CGA to provide lifetime income for an older family member or friend.) After the death of the annuitant(s), the remainder of the gift is transferred to Westtown School.
The annuity rate depends on the age(s) of the annuitant(s); the older the annuitant(s), the higher the rate. If you are still working and don’t need the income now, you can fund a Deferred CGA or Flex CGA to take advantage of the immediate charitable deduction, and start receiving income some time in the future. To learn more about CGAs and to use the Online Gift Calculator, go to Charitable Gift Annuities.
Charitable Remainder Trust
You can establish a Charitable Remainder Trust (CRT) for the benefit of Westtown School with Friends Fiduciary Corporation (FFC), a Quaker, non-profit organization providing socially responsible investment management services exclusively to Quaker meetings, churches, schools and organizations, or with a commercial bank. CRTs provide income for one or more individuals for life or a term of years, and then a substantial gift to charitable organizations at the end of the term or the death of the last beneficiary. They can also provide significant tax savings or avoidance.
To learn more about CRTs, visit Charitable Remainder Trusts.
Director of Planned Giving
975 Westtown Road
West Chester, PA 19382
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