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| Options for Planned Giving |
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Life Income Gifts |
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Deerfield Academy Pooled Income Funds
Deerfield Academy's pooled income funds operate somewhat like a mutual fund, except that your
investment ultimately helps to support the school. Your irrevocable contribution is commingled
with the gifts of others who have made similar life income gifts. These are invested by State
Street Global Advisors in a diversified portfolio of stocks and bonds. Unlike a gift annuity,
the pooled income fund pays a variable rate. The quarterly check you receive reflects your
share of the actual earnings of the fund's portfolio. Your income will vary accordingly from
year to year. Upon the death of the beneficiary(ies), the shares pass to Deerfield Academy.
Deerfield has two pooled income funds, each with its own investment objectives:
- Deerfield's Income Fund is designed for donors who wish to receive the highest possible
annual income without any expectation for growth of principal.
- The Deerfield Growth Fund provides a more modest immediate return, with the expectation
of significant long-term capital growth.
Pooled Income Fund gifts can be established with a minimum gift of $10,000 in cash or marketable
securities. The amount of income you receive depends upon the fund's rate of return and value of
the property transferred to the fund. You will receive a charitable deduction for some portion of
your contribution in the year the gift is made. Appreciated securities can be a very effective way
to fund this gift. Giving highly appreciated securities allows you to convert low-yield investments
without incurring tax on appreciation.
Many Deerfield supporters add to their pooled income fund accounts each year. By doing this, they
are increasing their future income as well as building the size of the gifts. You can also make a
pooled income gift through your will, allowing you to provide income for someone you wish to remember
and to make a gift for the ultimate benefit of Deerfield.
Click here to use our Planned
Giving Calculator.
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Gift Annuities
One of our most popular gift vehicles, the gift annuity is a simple contract in which Deerfield promises
to pay a guaranteed amount of income to a donor or to someone else for the rest of their lives. The most
attractive feature of an annuity is that it provides a fixed income for the life of the beneficiaries.
Annuity rates are based upon the ages of the income beneficiaries. Deerfield Academy follows the uniform
gift annuity rates adopted by the American Council on Gift Annuities.
The gift annuity offers a number of benefits. One of the most important is the satisfaction you receive
from making a gift to help Deerfield at the same time that you are protecting your own financial security.
Gift annuities are also attractive because the annual income is fixed in advance and will never vary over
time.
Donors enjoy the comfort of knowing that their annuity contracts are guaranteed in full by the financial
resources of Deerfield Academy. The older you are, the greater the income and tax advantages from a charitable
gift annuity. In addition, in most cases, a portion of the life income will be considered tax-free income.
Since the IRS designates a part of the annuity as a charitable gift, you also receive a charitable income
tax deduction for that portion. If appreciated assets are used to fund the gifts, capital gains tax due can
be spread out over time.
Gift annuities can be established with a minimum gift of $10,000 in cash or marketable securities. |
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Bequests to Deerfield
A bequest may be the simplest and most flexible way to make a deferred commitment to Deerfield. A bequest is
a gift made at death through your will or trust. Over the years, Deerfield has been strengthened by bequests
ranging from relatively small sums (to buy library books, for instance) to larger gifts to bolster financial
aid or faculty salaries.
A bequest to Deerfield can take the form of a specific dollar amount, a percentage or fraction of your estate,
or a part of all of the residue of your estate after all of your specific bequests have been accomplished. A
bequest to Deerfield may also be a gift in trust, providing income to another individual for life, with the
trust principal distributed to the academy upon the death of the income beneficiary. |
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Outright bequests
Most charitable bequests are outright. This means they come
to Deerfield directly upon the death of the donor when the estate is settled. The suggested wording
for your will is the following:
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I hereby give, devise and bequeath to the Trustees of Deerfield Academy, a charitable
corporation organized and existing under the laws of the Commonwealth of Massachusetts, the
sum of $____________________. |
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Contingent bequests
A contingent bequest becomes effective only when the primary heir
or heirs do not survive the donor. In short, it provides first for family and friends and benefits
Deerfield only if the named beneficiaries predecease the donor. The suggested wording for your will
is the following:
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If the above named legatees should predecease me, then I hereby give, devise and bequeath
the same to the Trustees of Deerfield Academy, a charitable corporation organized and existing
under the laws of the Commonwealth of Massachusetts. |
Bequests are usually added to the school's endowment. The principal is invested and a portion of the
income is available for expenditure each year. You may also consider endowing a special named fund with a bequest.
To honor those who have made provisions in their will for Deerfield, the trustees established the Frank L.
and Helen Childs Boyden Society. If you have previously made plans in your will for the school and would like
to join the Boyden Society, please contact Linda Minoff
(413-774-1872), Director of Planned Giving at 413-774-1872 |
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Charitable Remainder Unitrust
A charitable remainder unitrust is a legal agreement between you and Deerfield Academy in which you
make an irrevocable gift of an asset-such as cash, appreciated stock or real estate-to the school for
placement in a trust. In return, the trust agrees to pay you or other beneficiaries a percentage of
the trust assets, revalued annually, for life or for a stated period of years. At the death of the
last beneficiary, the money remaining in the trust will be added to Deerfield's endowment.
The primary reason to create a charitable remainder unitrust is to make a contribution to Deerfield
Academy. A charitable income tax deduction is allowed for a portion of the gift, to be determined
actuarially. The minimum amount necessary to create a unitrust at Deerfield Academy is $100,000. The
charitable remainder unitrust can be used to help you meet your own financial needs, including the
need for retirement income. The unitrust can be structured to provide you with modest income during
your working years, while increasing the trust principal. Upon your retirement, the investments of
the trust can be reallocated to provide you with higher income that you may desire. This feature of
enhanced and growing income at retirement is very attractive to many individuals.
Click here to use our Planned
Giving Calculator.
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Charitable Lead Trust
Charitable lead trusts are designed to provide income to Deerfield Academy immediately for a period of
years, after which the assets inside the trust are distributed to those you designate (typically your
children or grandchildren). These trusts are most often used to transfer assets that are expected to
appreciate in value to your heirs, effectively reducing gift and estate taxes. The fact that these
assets will one day be transferred to another person means that this is a nongrantor trust, meaning
the trust assets are not owned by the person who established the trust. A grantor trust is one in
which the assets will eventually be distributed back to the donor. As a result, the donor is subject
to tax on the assets.
Income-producing assets such as cash, stock or real estate are irrevocably transferred to a trust.
A minimum gift of $250,000 is recommended.
Of all the charitable vehicles, the charitable lead trust is amongst the most complex. If you would
like a personalized illustration of how a charitable lead trust might work for you, please contact
Linda Minoff, Director of Planned Giving at 413-774-1872.
You can also click here to use our Planned
Giving Calculator.
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| Information provided on Deerfield Academy's website is not intended to be tax, investment or legal advice.
For such advice, please consult your attorney, tax professional, or investment professional.
For more information, please contact
Linda Minoff, Director of Planned Giving
Deerfield Academy
Deerfield, MA 01342
413-774-1872 (voice)
413-772-1123 (fax)
plannedgiving@deerfield.edu |
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