endowment gifts
Endowment gifts honor Broadwater Academy’s legacy on the Eastern Shore while helping ensure the school has the critical resources to ensure its inspirational work in the lives of children. As an aggregate, this fund generates annual income for Broadwater that helps support the operations of the school, flexible tuition and scholarships, and solidifies the financial security of our future.
Charitable Remainder Trust
A charitable remainder trust is an individually managed life income arrangement that offers additional flexibility to donors in terms of the funding assets used to establish the trust and the management of the trust assets. One or two income beneficiaries may receive payments over their lifetimes or over a predetermined term of up to 20 years. In addition to cash or marketable securities, charitable remainder trusts can accept a variety of funding assets including real estate, privately held stock, art, antiques, or other collectible items. Donors may choose between a fixed annuity (charitable remainder annuity trust) or a variable trust managed for growth of income (charitable remainder unitrust).
How it works
You transfer cash, securities, or other property to a trust.
You receive an income tax deduction and pay no capital gains tax.
During its term, the trust pays a percentage of its value each year to you, or to anyone you name.
4When the trust ends, its remaining principal passes to Broadwater Academy.
Charitable Lead Trust
A lead trust allows you to provide a stream of income to Broadwater for a term of years, following which trust assets, including any appreciation, are returned to you or passed to your heirs. In the latter case, you can significantly reduce the transfer tax on the gift to your heirs.
Note: The current low government interest rate environment makes some lead trusts particularly tax efficient given the high charitable gift tax deductions they generate.
Please contact your attorney if you are interested in creating a charitable trust.
The charitable IRA rollover is permanent.
What does this mean? A gift from your IRA directly to Broadwater Academy will qualify toward your annual IRA required minimum distribution, allowing you to donate up to $100,000 of the distribution while avoiding taxation on the distribution.
Criteria
A donor must be at least 70.5 years of age when the gift is made.
Transfer must be made directly from the IRA administrator to Broadwater Academy; individuals with check-writing ability for their IRAs may use this feature to complete their gift.
The maximum giving with this vehicle is $100,000 per person ($200,000 for a couple) per year, not $100,000 per charity.
This opportunity applies only to IRAs, not other types of retirement plans.
The charitable IRA distribution can be used to pay a pledge.
Contributions for life income gifts—such as gift annuities or charitable remainder trusts—do not qualify.
No charitable deduction will be realized, since the tax savings are reserved on the avoidance of income tax for the distribution.
how to make a Charitable IRA Rollover gift to Broadwater Academy
Contact your IRA plan administrator for its specific transmittal form or use our form to request a gift transfer from your IRA to Broadwater Academy.
Inform us of your plan to make the designation of your gift. The easiest way to do this is by sending an email to Broadwater Academy with your name, contact information, IRA administrator name, gift amount, and designation information.