Planned Giving FAQ

Frequently Asked Questions

1. What are the three kinds of gifts I can give to Brunswick School?

Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

Upon your death you can make a gift through your will or with a distribution from a retirement plan or life insurance policy.

You also have the option of making a gift that returns lifetime income to you, your spouse, or other individuals, such as a charitable gift annuity, or charitable remainder unitrust or annuity trust.

2. What sort of assets can I use to make a gift?

Almost anything: cash, publicly traded securities, life insurance, the balance of your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by us before we can accept them as gifts: real estate, closely held stock, artwork and collectibles.

3. What tax deduction will I receive for my gift?

It depends on the form your gift takes:

• Outright gifts to Brunswick School generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit!
• Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission. We can advise you on this point.
• Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax, however.
• Similarly, life insurance distributions to Brunswick School are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 5 below).
• The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust is the fair market value of the gift asset minus the present value of the income interest you retain.

4. Can Brunswick School serve as the Executor of my estate?

No. State law, the limitations of our corporate powers, and our internal policies prevent us from taking such a role in your affairs.

5. I want to set up a life insurance policy, name Brunswick School as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?

No. The IRS would not consider that a "completed gift" – they'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. Brunswick School must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

6. I'd like to donate a painting. Will you determine its value for my income tax deduction?

No, we can't. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too -- an insurance appraisal won't suffice. We can assist you on this point.

7. I'm interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my husband?

Your charitable gift annuity will be treated as a general obligation of Brunswick School, backed by all of our assets. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our financial policies.

8. If I create a bequest or life-income gift, will Brunswick School continue to ask me for annual contributions? 

We will, because the commitments address two different needs. Your planned gift is a significant addition to our long-term financial strength -- our ability to meet the challenges and opportunities the future will bring. Today's teaching, however, is supported through your annual gift. We are grateful that you want us to be a force for good both today and in the future.

 

Glossary of Planned Giving Terms

 Cash

This is a good option if: You're considering an outright gift made during your lifetime > You want to maximize your charitable deduction > You want to deliver benefits to Brunswick immediately.

• Gifts of cash can be deducted against a larger portion of your taxable income than can gifts of appreciated assets.
• Cash is the simplest donation and provides us immediate benefits.
• Your gift can be made outright or fund one of our life income arrangements.

The IRS allows you to claim charitable deductions for gifts of cash up to 50 percent of your adjusted gross income ("AGI" -- the figure at the bottom of the first page of Form 1040. See glossary for full definition). Alternately, if you use appreciated property instead of cash to make your gifts, you can claim deductions up to only 30 percent of AGI. Although excess deductions may be claimed over the five years after the gift is made, if you are looking for substantial immediate tax deductions you may be better served giving cash instead of property.

If you are considering a gift of cash, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Securities  

How It Works: You transfer securities to Brunswick. Brunswick sells your securities and uses the proceeds for its programs.

Benefits:

• You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gains tax on the securities you donate.
• You can direct your gift to a specific fund or purpose.
• You can have the satisfaction of making a significant gift now or funding a life-income gift that benefits Brunswick later.

If you are considering a gift of appreciated securities, email us or call us at 203.625.5864 so that we can assist you through every step of the process.

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Real Estate

Brunswick School is happy to consider gifts of residential, commercial and undeveloped real estate. As with donations of other types of appreciated property, gifts of real estate secure a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the transfer to us.

You can deliver real estate to Brunswick in several ways:

• Through an outright donation;
• Through the donation of a fractional interest in the property;
• As the basis for a gift plan that will pay you income, like a unitrust.
• By giving us your home and reserving the right to continue living there for your lifetime (a retained life estate);
• Through a part sale/part gift arrangement with us (a charitable bargain sale).
• When you are considering a gift of real estate, keep two considerations in mind:

First, we will gratefully review your gift offer and evaluate the condition and marketability of the proposed real estate, reserving the final say on acceptance. Second, the IRS requires donors of real estate to secure an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures for this appraisal.

If you are considering a gift of real estate, email us or call us at 203.625.5864 so that we can assist you through every step of the process.

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Personal Property

How It Works: You transfer a valuable painting, antiques, collectibles or other personal property to Brunswick. Brunswick may elect to hold the property and display or use it in the furtherance of its mission. The Foundation may elect to sell the property at some point in the future and use the proceeds for its programs.

Benefits: You receive gift credit and an immediate income tax deduction for the appraised value of your gift and pay no capital gains tax, provided your gift satisfies the "related use" requirements of the IRS. In certain cases, you can use personal property to fund a life-income gift, such as a FLIP Unitrust, that provides you with income now and benefits Brunswick. You can have the satisfaction of making a significant gift now to Brunswick without adversely affecting your cash flow.

Email us or call us at 203.625.5864 so that we can assist you through every step of the process.

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Will

How It Works:

 

• You can provide now for a future gift to Brunswick by including a bequest provision in your will or revocable trust.
• Your will or trust directs assets to your heirs.
• Your will or trust directs a bequest to Brunswick for the purpose(s) you specify.

Benefits:

• Your assets remain in your control during your lifetime.
• You can modify your bequest if your circumstances change.
• You can direct your bequest to a particular purpose (be sure to check with Brunswick to make sure your gift can be used as intended).
• There is no upper limit on the estate tax deductions that can be taken for charitable bequests.
• You can have the satisfaction now of knowing that your bequest will support Brunswick in the way you intended when you are gone.

If you are considering a bequest or revocable trust benefiting us, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Retirement Plan

How It Works:

 

• You name Brunswick as the beneficiary of your IRA, 401(k) or other qualified plan.
• Any residual left in your plan when you die passes to the Foundation tax-free.

Benefits:

• You can escape both income AND estate tax levied on the residual left in your retirement account by leaving it to charity.
• You can continue to take withdrawals during your lifetime.
• You can change your beneficiary if your circumstances change.
• You can elect to leave retirement plan assets to Brunswick through you will or revocable trust instead.
• You can have the satisfaction of knowing that your hard-earned retirement assets will support Brunswick when you are gone.

If you are considering a gift of a retirement plan, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Life Insurance

How It Works:

 

• You transfer ownership of a paid-up life insurance policy to Brunswick.
• Brunswick elects to cash in the policy now or to keep the policy and receive the death benefit later.

Benefits:

• You receive gift credit and an immediate income tax deduction for the cash surrender value of the policy (technically, the “interpolated terminal reserve value” of the policy).
• In some cases, you can use the cash value in your policy to fund a life-income gift, such as a deferred gift annuity.
• You can have the satisfaction of making a significant gift now to Brunswick without adversely affecting your cash flow.

If you are considering a gift of life insurance, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Charitable Gift Annuity

How It Works:

• You transfer cash or securities to Brunswick.
• Brunswick pays you, or up to two annuitants you name, fixed income for life.
• The principal passes to Brunswick when the contract ends.

Benefits

• You receive an immediate income tax deduction for a portion of your gift.
• Your annuity payments are guaranteed for life, backed by a reserve and the assets of Brunswick.
• Your annuity payments are treated as part ordinary income, part capital gains income (15%), and part tax-free income.
• You can have the satisfaction of making a significant gift that benefits you now and Brunswick later.

If you are considering a charitable gift annuity, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Charitable Remainder Unitrust

How It Works:

• You transfer cash, securities or other appreciated property into a trust.
• The trust pays a percentage of the market value of the assets re-valued annually to you or to beneficiaries you name.
• When the trust ends, the principal passes to Brunswick.

Benefits:

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• You pay no capital gains tax on appreciated assets you donate.
• You or your designated beneficiaries receive income for life or a term of years.
• You can make additional gifts to the trust as your circumstances allow, and qualify for additional tax deductions.
• You can have the satisfaction of making a significant gift that benefits you now and Brunswick later.

If you are considering a charitable remainder unitrust, email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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Annuity Trust 

How It Works:

• You transfer cash, securities or other appreciated property into a trust.
• The trust makes fixed annual payments to you or to anyone you name.
• When the trust ends, the principal passes to Brunswick.

Benefits:

• You receive an immediate income tax deduction for a portion of your contribution to the trust.
• You pay no capital gains tax on any appreciated assets you donate.
• You or your designated income beneficiaries receive stable, predictable income for life or a term of years.
• You can have the satisfaction of making a significant gift that benefits you now and Brunswick later.

If you are considering a charitable remainder annuity email us, or call us at 203.625.5864 so that we can assist you through every step of the process.

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