Please find sample language and guidance for your bequest so that the gift and bequest can be used as intended by you, the donor.
“I give, devise, and bequeath the sum of $_________ (or ___% or XYZ asset) to The Hill School, Pottstown, Pa….”
An Unrestricted Use:
To be used in such a manner as the Board of Trustees deem most useful for the general purposes of The Hill School, Pottstown, Pa.
A Restricted, Current Use:
To be used for scholarship aid (or faculty salaries, building maintenance, student research) at The Hill School, Pottstown, Pa.
Endowment, Income Unrestricted:
To be added to the endowment fund of The Hill School, Pottstown, Pa., the annual income thereof to be used for the benefit of The Hill School, in such a manner as the Board of Trustees thereof may direct.
Endowment, Income Restricted:
To be added to the endowment of The Hill School, Pottstown, Pa., to establish the (name of scholarship or fund), the income from which shall be used to pay, in full or in part, the tuition of students with financial need and in academic good standing, as determined by the policies of The Hill School.
To establish a charitable gift annuity, you make a gift to The Hill School and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any Hill School program that you choose.
While gift annuities can be funded at a younger age, this type of gift might be especially appealing if you are aged 70 or older, you want to support The Hill School, and you would like to secure an immediate stream of income for yourself or for yourself and your spouse. The amount of the payments is based on the age(s) of the beneficiary(ies). The older an individual is, the higher the payout rate one receives. In addition to the stream of fixed payments, the gift will also generate an immediate charitable income-tax deduction.
Gift Range: $25,000 or more
Example: John, aged 78, gives $25,000 in cash to The Hill School in exchange for a gift annuity. He receives an income-tax deduction of approximately $11,563, based on his age. He will begin receiving income checks of $1,500 each year for the rest of his life. When John passes away, the remaining principal will benefit The Hill School.
Pointer: The charitable gift annuity is especially rewarding if funded with appreciated long-term securities that generate little or no income. If you transfer such securities to The Hill School in exchange for a charitable gift annuity, you will avoid a significant amount of capital-gain taxation and any remaining capital gain will be reported in prorated amounts over the life (or lives) of the beneficiary(ies).
How It Works:
Transfer cash or securities to The Hill School.
The Hill School agrees to make payments for the life of one and up to two annuitants (payments are backed by our entire assets).
The balance of the transfer inures to The Hill School.
Payments for life that are favorably taxed
When a gift is funded with cash, part of the payment will be tax-free.
When a gift is funded with appreciated property, part will be taxed as capital gain, part will be tax-free, and part will be taxed as ordinary income.
Federal income-tax deduction for a portion of your gift.
Your gift will provide generous support for The Hill School.
IRA Charitable Rollover For individuals age 70 ½ or older, the IRA Charitable Rollover is a tax-wise way to support The Hill School. If you are required to make annual withdrawals from an IRA account, these otherwise taxable distributions can satisfy your annual Required Minimum Distribution (RMD), and you can exclude these funds from your taxable income.
Every year, you (and your spouse) can each transfer as much as $100,000 directly from your IRA to The Hill School as a gift for a purpose that you choose, such as student aid, faculty compensation or a capital building initiative.
Transfer tax-free gifts from your IRA directly to The Hill School;
Can be applied toward your annual Required Minimum Distribution (RMD);
Beneficial for individuals who do not itemize deductions on their income tax;
Withdrawals not subject to annual charitable deduction limitations
May be used to satisfy multi-year Hill Fund and/or endowment/capital pledges;
May be used to create an endowed scholarship or other permanent fund.
Contact your IRA administrator to initiate the gift by directing them to send a check payable to “The Hill School.”
A charitable remainder unitrust can help you maintain or increase your income while making a generous gift to The Hill School. If your unitrust grows, your payments will grow too, providing a hedge against inflation. A unitrust provides more flexibility than other life income plans.
A charitable remainder unitrust could be right for you if:
You are considering a gift amount of $100,000 or more to The Hill School.
You want to provide income for yourself or others.
You want the possibility of income growth.
You want to save income taxes or capital gains taxes.
You want to choose the person who administers your gift and guides its investments.
How it Works:
You irrevocably 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.
When the trust ends, its remaining principal passes to The Hill School.
Please direct any questions about how you can support The Hill in perpetuity to Capital and Estate Giving Officer Shaylene Scheib at 610-705-1059 or firstname.lastname@example.org.