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| What Assets to Give |
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Cash
Funding a gift with cash is one of the simplest ways to create a planned gift. A gift of cash entitles you to a
charitable income tax deduction for the full amount of the gift. |
Securities
Funding a gift with appreciated securities, that you have held for a year or longer, is one of the most attractive
and tax-efficient methods of making a planned gift to Deerfield. It will allow you to take an income tax deduction
of up to 30% of your adjusted gross income. The excess can be carried forward for up to five years. In addition,
you can avoid some capital gain taxes that you would have incurred if you sold the stock outright.
Please note that, as a general rule, you should not give securities that have depreciated in value. It is more
advantageous for you to sell these securities and take a loss on your income taxes, and donate the proceeds.
Click here for more information on
transferring securities.
Please be sure to notify us (by contacting Debra Diemand in Alumni
and Development: 413-774-1839 or Jeff Swetland in the Finance Office:
413-774-1597) prior to every stock transfer to ensure we accurately identify and credit your gift! |
Retirement Plan
Retirement plans, if left to anyone other than a spouse, may be subject to very high taxation. In general, these are
the most highly taxed assets in your estate. Retirement accounts are often exposed to income taxes and estate taxes,
at a combined marginal rate that could rise to 65% or even higher, on large, taxable estates. By designating "Trustees
of Deerfield Academy" as recipient of any benefits remaining in your retirement plan, or by using those benefits during
your lifetime to fund a charitable gift, you may effectively reduce the taxes that will otherwise be imposed on those
assets that have grown tax-free, while accomplishing more with other assets.
These plans come in many forms: a defined benefit or contribution pension plan, profit sharing plan, annuity plan,
401(k) or 403(b) plan, stock bonus plan, Employee Stock Ownership Plan, and Keogh or Individual Retirement Accounts
(IRA's). Naming or changing your beneficiary(ies) is very easy. Simply contact your plan administrator for a change
of beneficiary form. The legal designation for Deerfield Academy is "Trustees of Deerfield Academy."
Legal Designation Information
To name Deerfield Academy as a beneficiary of your retirement plan or insurance policy, please use the following
information to complete your beneficiary form
Name: Trustees of Deerfield Academy
Address: 7 Boyden Lane, Deerfield, MA 01342
Tax ID number:04-2103563
Relationship: Non-profit organization
Legal language: Trustees of Deerfield Academy, a charitable corporation organized and existing under the laws of the
Commonwealth of Massachusetts.
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Real Estate
Many people have discovered that their homes have become their most valuable asset. The growth in real estate values
over the past decade have also brought increased property tax burdens. Due to that shift, many Deerfield donors have
been considering gifts of real estate to meet their philanthropic goals of making a gift to Deerfield Academy. Real
property can be given to Deerfield under one of several gift arrangements.
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Outright gift
An outright gift is the simplest way of conveying real estate to Deerfield. In
general, Deerfield will sell the property with the proceeds to be used as you designate. You can transfer
property to Deerfield Academy and receive an income tax deduction equal to the appraised value of the gift.
A minimum value of $100,000 is required for gifts of real estate. The property must be debt-free and readily
marketable. |
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Retained life estate
You can transfer a residence to Deerfield Academy and retain the right to
live there for life or a term of years. You would receive an immediate income tax deduction for a portion
of the value of the property. While you continue to reside in the residence, you are responsible for all expenses
related to maintaining the property, including taxes, insurance and maintenance. |
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Charitable remainder unitrust
You can transfer real estate you own to a trust and receive an
immediate income tax deduction. The unitrust would provide you with income while freeing you from the
responsibility of owning and marketing the property. Because there is often a delay in the sale of the property, you
would receive the net trust income or the stated payout rate, whichever is less. A minimum value of $150,000
is required to fund a unitrust with real estate. |
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| It is important to discuss the proposed gift of real estate with staff at Deerfield to be sure that the
transfer can accommodate any existing encumbrances or legal restrictions. Please contact the
Planned Giving office for more information. |
Life Insurance
Deerfield Academy accepts gifts of life insurance either as a beneficiary of a policy, or as the sole owner and sole
beneficiary. You can name Deerfield Academy as a primary beneficiary of your life insurance policy or as contingent
beneficiary should your other beneficiaries not survive you. After your lifetime, the benefits from your policy pass
to Deerfield free of federal estate tax.
You may own an insurance policy that has a substantial cash surrender value, yet the original purpose for the protection
no longer applies. The policy might have been purchased to provide financial security for a spouse now deceased, or to
educate children now grown. This policy can now be used for philanthropic purposes. For a paid-up policy, the deduction
is the cost of replacing the coverage with a comparable policy.
Naming Deerfield Academy as a beneficiary of your life insurance policy is easy. Simply contact your insurance
representative and request a change of beneficiary form.
Legal Designation Information
To name Deerfield Academy as a beneficiary of your retirement plan or insurance policy, please use the following
information to complete your beneficiary form
Name: Trustees of Deerfield Academy
Address: 7 Boyden Lane, Deerfield, MA 01342
Tax ID number:04-2103563
Relationship: Non-profit organization
Legal language: Trustees of Deerfield Academy, a charitable corporation organized and existing under the laws of the
Commonwealth of Massachusetts. |
Personal Property
Deerfield Academy accepts gifts of personal property, including items such as artwork, antiques, vehicles and jewelry.
For property that is held long-term, and is related to the mission of the school, you can take an income tax deduction
for the full fair market value on the date the property is given. For property held short-term or unrelated to the school's
mission, you can take a deduction for the property's cost basis or fair market value, whichever is less. |
| 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. |
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