Tax Incentives

qualified charitable distribution

A Qualified Charitable Distribution (QCD) is a distribution of funds from your IRA (other than a SEP or simple IRA) directly to a qualified charitable organization, such as The Hoosac School. Because the gift goes directly to the charity without passing through your hands, the dollar amount of the gift may be excluded from your taxable income up to a maximum of $100,000 annually, with some exceptions.  Please consult your tax advisor for information regarding your specific exceptions. 

QCD's can be made by IRA owners who are age 70 1/2 or older. QCD's made prior to the age you are required to take a minimum distribution from your retirement assets (pre-required minimum distribution QCD's) will not reduce or otherwise impact future Required Minimum Distribution. Your tax advisor can provide additional information on your particular situation. Many individuals who are required to take money from their IRA but do not need it for living expenses have chosen to make QCD's from their IRA's to support Hoosac. This may make sense for you, too.

bequests

The easiest and lowest-cost way to make a gift to Hoosac is to include the school in your will or revocable trust. You may designate that the school receives a specific dollar amount, specific asset, or a percentage of your estate. If possible, kindly notify the School of your plans so we may acknowledge your gift and inspire others to make planned gifts. 

charitable gift annuities 

To establish a gift annuity, you contribute funds or assets to Hoosac, and the School in turn makes annuity payments to you from its general assets for the rest of your life. You receive an immediate income tax deduction for a portion of the gift, and a portion of each annuity payment is treated as a tax-free return of capital. The portion of the gift not used for payments benefits Hoosac. 

appreciated securities

Gifts of appreciated stocks, bonds, and/or mutual funds that have been held for one or more years can be great tax savers for donors since the capital gain tax on unrealized appreciation is waived. The full fair market value of gifts of long-term securities or real estate is tax deductible up to 30% of the donor's adjusted gross income. Any amount over the 30% maximum can be carried over for five years.

donor-advised fund transfer

You can send your gift directly to Hoosac from your Donor-Advised Fund or list us as a beneficiary. It's a great way to memorialize, honor or commemorate a loved one or event. You may even designate Hoosac to receive a portion of your account value, leaving the remaining portion for your children or grandchildren to continue your legacy of philanthropy.

charitable trusts

This involves the donation of assets to a specific legal entity, commonly referred to as a split-interest trust, since both the donor and Hoosac School benefit from the trust. The two most common types of trust are Charitable Remainder Trusts (CRT) and Charitable Lead Trusts (CLT), which are described simplistically below. 

A CRT involves a donor placing appreciated assets in the trust, and receiving an annual income stream with the corpus of the trust paid out to Hoosac upon its dissolution. 

A CLT also involves the donor placing assets that may appreciate in value into the trust with Hoosac receiving the annual income throughout its term, with the corpus distributed to the designee named by the trust. There may be some substantial income and estate tax benefits from both vehicles, but either route requires consultation with professionals. 

life insurance

There are several ways to utilize permanent life insurance to benefit Hoosac School. The most straightforward manner is to name Hoosac School as the beneficiary of the policy. You may also gift an existing policy to the School, take an immediate tax deduction, and the School will be responsible for any further premiums due. You can make cash gifts that are equivalent to the premium amount on a new or existing policy as well.

If you are interested in making a Legacy Gift, please contact Director of Advancement, Gary Contessa, at gcontessa@hoosac.org or by phone at 732-620-4422.