Bequests

The simplest testamentary gift to the school can be made by will or revocable living trust. This type of gift offers a current estate tax charitable deduction. Because Germantown Academy places funds received from wills and living trusts in permanent endowments, they provide a critical base of reliable support for our programs, enabling us to meet future unforeseen challenges.

An individual may bequeath a particular asset, a dollar amount, or a stated percentage of one's estate or residual estate after other debts and other bequests have been paid. It is also possible to name Germantown Academy as a contingent beneficiary in the event that your named beneficiary is no longer alive at the time of your death.

charitable trusts

Gifts can be directed to Germantown Academy through trust agreements, such as a Charitable Remainder Trust (CRT, CRUT or CRAT) which can pay you or a designee life income payments earned from the trust principle and GA would receive that corpus at the trust’s completion.  A Charitable Lead Trust (CLT) inversely makes payments from the principle to GA with that total reverting to heirs at the completion of the trust's term.  

charitable gift annuity

This is a life income agreement made between the donor and GA in which the donor makes a leadership contribution to GA ($10,000 minimum) which is invested and the donor receives guaranteed annual payments earned from those funds for life.

Life Insurance

Life insurance is an often overlooked vehicle for contributing to Germantown Academy. When you name GA as both owner and beneficiary of a policy, the school gains invaluable financial support, while you receive a substantial charitable deduction. The value of a fully paid policy is its cash surrender value. If the school elects to pay premiums, these payments will be considered operating expenses and will not increase the cash surrender value of the gift.

Retirement Plans

You can name Germantown Academy as a beneficiary of a life insurance policy or retirement plan asset. Contributions of life insurance policies that have a cash value may entitle the donor to a current income tax charitable deduction, in an amount roughly equivalent to the cash surrender value of the policy at the time of the gift. The gift must be irrevocable and designate the school as both owner and beneficiary under the policy. Consult your tax adviser to see if this type of planning makes sense for you and your loved ones.

Retirement plan designations can be a little more complex, but, simply speaking, designating the school as a beneficiary of an individual retirement account or other qualified retirement plan benefits can offer estate tax benefits. This is because amounts in an IRA are includible in the donor’s gross estate (although sometimes offset by certain deductions) and distributions from most IRAs are subject to income tax. Therefore, in a large estate, where a child or grandchild is the designated beneficiary, only a small portion of the IRA may remain after payment of both estate and income taxes. On the other hand, both the school and the family will benefit if the school is the beneficiary of the IRA and the family receives other assets. Again, if you are philanthropically inclined, your tax adviser can best recommend a course of action for you.

Appreciated Securities

Gifts of appreciated securities can be particularly beneficial to both you and Germantown Academy. Long-term securities (those held more than a year) earn a deduction on their fair market value on the day of the gift. In addition, neither the school nor the donor is subject to capital gains tax on those securities. Short-term securities earn a deduction on their original cost to you. Gifts of readily marketable securities will be credited at fair market value at the average of the high and low quoted selling price on the date the donor relinquishes control of the asset. We ask that donors making a gift of stock contact the school before the transfer is made, so that we may credit the donor properly.

Gifts of Real Property

Germantown Academy can benefit from gifts of all types of real property, such as a residence, a vacation home, a farm or commercial property, or undeveloped land. Donation of real property to GA can substantially reduce federal and state income tax liability as well as provide an immediate solution to marketing problems, eliminate carrying costs and remove the property from your gross taxable estate. A gift of property to GA would entitle you to a charitable deduction for the property's fair market value. Your deduction is limited to 30% of your adjusted gross income, with a five-year carry-over for any excess.

Tribute and Memorial Gifts

Honor a special person by making a memorial or tribute gift in his or her name to Germantown Academy. With your gift, you may celebrate birthdays, anniversaries, remembrances, or "just because." Your donation in someone's honor or memory is a wonderful way to express your admiration while making a difference at GA.

For more information about Planned Giving to Germantown Academy, contact Martin Dean at martin.dean@germantownacademy.org or 215.646.3300, ext. 458.