A planned gift is a long term method of supporting the future of the Prep. Annuities, trusts, bequests, life insurance and IRA’s are examples of planned gifts. Planned gifts can provide a tax savings to you and your heirs while supporting the mission of Iona Prep. By giving back to the Prep through a bequest or planned gift you are truly making the ultimate commitment to the Prep-a commitment that truly transcends though time.
A charitable annuity is a simple gift that provides income to the annuitant for life. The rate of the annuity is based on the age and number of annuitants. A deduction for the present value of the gift to Iona Prep may be taken in the year of the gift, and a portion of the income from the annuity is tax-free for a period of years, based on the life expectancy of the annuitant. You can delay the beginning of payments from your gift annuity. The deferral gives you both a higher income rate and a larger charitable deduction than you could receive from an annuity paying you immediately. The deferred gift annuity is especially attractive if you are still in high-income years, and are looking for both tax deductions and additional income during retirement.
One of the simplest ways of creating a planned gift is by including Iona Prep in your will or trust.
Life insurance can make a great gift to Iona Prep. If you are carrying more insurance coverage than your family obligations now require, you may want to consider gifting an unneeded, paid-up policy. If you transfer all rights and incidents of ownership of your policy to the School, you will be eligible for a charitable income tax deduction equal to the policy’s cash surrender value or cost basis, whichever is less. The insurance policy must be whole life, not term insurance. The value of your gift for gift crediting purposes will be the cash surrender value of your policy on the date of transfer.
Honor & Memorial Gifts
You may make a gift in honor or in memory of a family member, classmate, teacher, loved one, or other members of the Iona community. A gift in memory of someone you love or admire can be a particularly meaningful way to contribute to Iona Preparatory School. Upon a special occasion or the loss of a family member or friend, many choose to create a restricted scholarship or an endowed scholarship in their memory.
Gifts of a personal residence can also be made with a retained life estate. The retained life estate allows the donor or a designee of the donor to live in their home for the rest of their life. After that time, the real estate is owned outright by Iona Prep, without the complications of probate proceedings. This gift allows the donor to receive current income tax deductions for the discounted value of the property.
Securities & Stocks
There are many benefits to donating securities instead of cash. Appreciated securities held for more than twelve months benefit a donor in two ways. The donor is able to claim a charitable income tax deduction for the full market value of the securities. The deduction is limited to 30 percent of the donor’s adjusted gross income, but as with outright gifts of cash, the remaining value of the securities donated may be carried over and used for deductions for the next five years. Gifts of stock can yield a tax donation equal to the fair market value of the securities on the day the stock is sold. The donor does not pay the capital gains tax.
Donors specify a particular use for their contribution. Scholarships, endowments and gifts to a specific department of the school are considered restricted gifts.
For additional information about making a gift to Iona Prep, please contact Mark E. Hogan '87, '91, chief advancement officer, at (914) 600-6158 or firstname.lastname@example.org.