Planned Giving

Carlisle_15Become part of the growing circle of Carlisle alums, family and friends that have made lasting commitments to support the future of Carlisle School through planned giving.

Planned Giving is the term we apply to a variety of charitable gift arrangements that offer unique tax and income benefits to the Donor while supporting Carlisle School. Donors can establish these meaningful gifts as a part of an estate plan or financial plan.

Why is Planned Giving Important?

Planned Giving is a vital component in Carlisle School’s long-term financial security. Planned giving helps builds lasting relationships with our supporters, and significant planned giving gifts attract other major contributions to our school.

Leave a Legacy:

Planned giving is an opportunity for the donors to pass down their values and leave a legacy to future generations here at Carlisle.

What Are the Options?

  • Bequests are the simplest and most flexible of the planned gifts. The donor controls and directs assets to Carlisle School through his or her estate and the estate receives a tax deduction as a result. Among other assets, retirement plan assets make an excellent funding source for a bequest. Retirement plan assets and IRA’s which you own at your death and which pass to a beneficiary other than your spouse are subject to taxes at rates approaching 75%. By giving a retirement plan to Carlisle School, donors can avoid all of the tax.
  • Single-Premium Life Insurance- A single-premium life insurance policy is an insurance plan in which a lump sum of cash is paid up front to guarantee payment to beneficiaries. By taking out a single premium life insurance policy from the provider of your choice, and naming Carlisle School as the beneficiary on the policy, you can provide a generous tax-free gift to Carlisle far greater than your initial investment. The cost of this policy is tax-deductible and thus provides an additional benefit to the policyholder.
  • Life Income Gifts are structured contributions that may include cash, appreciated securities or real estate and that provide a current income tax deduction that can be carried over for up to five years. It can provide supplemental income for the life of the donor and designated beneficiaries, part of which is tax-free. The gift is excluded from your estate tax. Additionally, the donor may avoid capital gains taxes while increasing his rate of return on low-yielding investments. The rate of return depends on the age of the donor—the older the donor, the higher the rate.
  • Charitable Remainder Trusts can be cash, marketable securities or real estate donated to Carlisle School to be held and invested while paying the donor and other designated beneficiaries a variable rate (unitrust) or fixed rate (annuity trust). Current rates average between 5% and 7%. The trustee is responsible to the donor for the trust distributions, accounting, administration and tax reporting.
  • Pooled Income Fund is a method where the donation is either cash or marketable securities, and the donor or designated beneficiary receives income at a variable rate, currently 4% to 5%. This gift operates as a form of ‘mutual fund’ and distributes income only on the ‘shares’ held in the fund. The trust/trustee is responsible for funding participants for income distributions, accounting and tax reporting.
  • Charitable Education Trusts allow you to generate institutional funds and make a significant charitable gift. Example: You donate stock with a market value of $100,000 (cost basis of $30,000) to a charitable remainder trust that will continue for eight years. During each of the eight years, the child will receive annual payments of $8,000 for tuition and other expenses. Carlisle School will receive the principal at the end of the eight-year term.
    • Benefits

      • The child receives payments totaling $64,000 for education expenses.
      • The amount the child receives will be taxed at a lower rate than it would have been to you.
      • You receive a charitable income-tax deduction of $52,009 and avoid paying $14,000 tax on $70,000 of gain.
      • Carlisle School eventually receives $100,000, assuming the trust earns a consistent 8% return on investment.

      Caution: If the child-beneficiary is under 14 years old, the trust payments will be taxed at your higher tax rate. Careful funding, such as with growth stock or tax-exempt bonds, can significantly diminish or even eliminate the negative impact of this provision.

    Get Started

    Contact our staff to discuss your wishes and determine the best option(s) for your family. We look forward to learning about your interests and finding ways to ensure that legacy funds support the causes you are interested in at Carlisle.

    For more information on how to invest in Carlisle School please contact:
    Jennifer Doss, Director of Development, at (276) 632-7288 EXT. 231 or jdoss@carlisleschool.org.