Ways to Give - Flexibily, Options, Choices

Contact information for giving stock gifts, cash gifts, and gifts through estate planning:

Firm: Morgan Stanley Smith Barney

A Gift of Cash can be handled many ways.  For example, a gift of $25,000 is payable through five annual contributions of $5,000 in cash securities, real estate, or stock options.  Should the gift be in cash, you could receive a federal tax deduction of up to 50% of adjusted gross income.  Expanding the payment period beyond five years will, of course, reduce the annual contribution accordingly.

A Gift of Appreciated Publicly Traded Securities offers an attractive method of giving for someone with relatively large and varied holdings.  Securities held more than 12 months and transferred to the School avoid capital gain taxes.  In a highly appreciated market, these holdings provide donors with a level of philanthropy they may have never imagined possible.

A Charitable Lead Trust is another creative method of making a leadership gift.  If you placed an income-producing asset in a trust, the income from that investment would be provided to Saint John’s for a designated period of time.  After that time period, the trusted asset is returned to you or your estate or a non-charitable beneficiary named by you or your estate. 

A Charitable Remainder Unitrust is an irrevocable transfer of assets to a trust, naming Saint John’s as the only beneficiary or as one of several qualified charitable beneficiaries.  The donor receives annually a life income of a set amount or a fixed percentage, based on the wishes of the donor and the trust’s value each year.  A donor generally receives an immediate tax deduction and may add to the principal of a Charitable Remainder Unitrust in future years.  If the donated assets consist of a appreciated securities, capital gains taxes also may be avoided.  Gifts made to establish charitable remainder trusts where the remainder is not subject to change or revocation should be credited as future commitments at both the discounted present value of the remainder interest allowable as a deduction by the IRS and at face value.

Matching Gifts are an easy way to double and even triple annual contributions. The donor should contact his/her company personnel office for the appropriate form, which should be submitted with the donation. For specific questions regarding matching gifts please contact your employer.

ESTATE/PLANNED GIFTS & BEQUESTS

Please consult a financial planning professional for specific guidance in regard to the following gift options:

A Current Will
Saint John’s can be designated in a Will through an amount designated by cash, specific Property, or a percentage of an estate.

A Living Trust
A living trust allows the contributor to provide for themselves and their family before and after their death. It also allows for the contributor to have complete control of the assets during their lifetime. Like wills, living trusts are fully revocable.

An Estate or Retirement Plan
By naming Saint John’s Catholic Prep in an estate or retirement plan, the primary beneficiary voids all income and estate taxes. Donating retirement plan assets could be the most cost-effective gift one can make.

GENERAL POLICIES & PROCEDURES REGARDING GIFTS TO SAINT JOHN’S CATHOLIC PREP

I.   ROLE OF THE INSTITUTIONAL ADVANCEMENT COMMITTEE AND GENERAL GIFT ACCEPTANCE GUIDELINES
 In order to center accountability for the acceptance and stewardship of various gifts the Board of Directors will charge the Institutional Advancement Committee with the responsibilities outlined below.

  1. To review the acceptance of gifts to the school other than cash or negotiable securities with a value in excess of $5,000 in order to assess if these gifts should be accepted and to determine the appropriate valuation.  These types of gifts might include real estate, insurance, closely held stock, zero coupon bonds, and gifts in kind such as valuable works of art.

  2. To review the establishment of all endowment funds in order to assure that they fall within acceptable guidelines and to be assured that funds can be stewarded in ways which are consistent with the donor’s intent and also in ways which reinforce the fiscal health and goals of the school.

  3. To bring new endowment gifts tot the attention of the full Board of Directors where they will be considered for acceptance into the endowment.

  4. To oversee the appropriate policies and eventual implementation of a deferred giving program.  Deferred giving instruments which might be subjects of future gifts to the school may include the establishment of a pooled income fund, gift annuities, charitable remainder trusts, life insurance and others that may be deemed appropriate.

  5. Endowment Funds which fall within established guidelines, (outlined in the “Endowment Gifts: Definitions and Guidelines” section on page two), can be accepted by the Advancement Office without prior approval of the Institutional Advancement Committee.  Endowment gifts which fall outside the guidelines must be approved by the committee before an endowment agreement can be signed.  All completed endowment agreements will be transmitted by the committee to the full Board of Directors for formal acceptance.

  6. Naming School Facilities and Buildings:  The naming of a school building or other facility requires the approval of the Board of Directors.  The Institutional Advancement Committee may recommend the naming of a building in recognition of an extraordinary donation.  The naming of any spaces or facilities on campus must be approved the Board of Directors or their designee such as the President or the Executive Director for Institutional Advancement.

  7. The Board of Directors charges the Office of Institutional Advancement with ensuring that the following guidelines are adhered to:

     

    1. All fundraising efforts must be coordinated through the Institutional Advancement Office.

    2. Gifts in kinds should be in good condition or working order.  Exceptions may be made if the Institutional Advancement Committee determines that there is substantial value in the gift “as is”.

    3. Donated property values at over $5,000 must be accompanied by a qualified appraisal done within 90 days of the date of the gift.  The responsibility for acquiring the appraisal generally falls to the donor.

    4. Any costs associated with any gift should be born by the donor subject to the discretion of the President or the Executive Director in consultation with the Chairman of the Institutional Advancements Committee.

    5. Inform the donor that he/she is responsible for establishing the fair market value (FMV) of any donated property.

II. ENDOWMENT GIFTS:  DEFINITIONS & GUIDELINES

  1. Endowment Contract:  In order to create a new endowment fund, an agreement must be signed by both the donor and the school which sets forth:

     
    1. The name of the donor/donors.
    2. The initial amount given or pledged to establish the fund.
    3. The purpose of the fund.
    4. How the funds will be distributed.
    5. An understanding that the fund’s principal can be comingled with other endowments for the purpose of investments.

  2. Endowment Guidelines:

     

    1. Endowment Minimum:  $50,000 will be the minimum level at which a new named endowment fund will be established.  Smaller gifts may be added to existing endowments at anytime.

    2. Restrictions on Endowment Funds:  Due to the enormous responsibility the school undertakes when it agrees to steward an endowment fund, the Board reserved the right to screen each fund for appropriateness and contribution to the schools’ overall mission.

    3. Unrestricted Bequests:  All unrestricted bequests received by Saint John’s Catholic Prep should be added to the school’s capital assets (either endowment or building project).  This serves as a permanent memorial to deceased donors and also adds to the school’s ability to market bequests.

    4. Memorial Gifts:  Will be treated as annual gifts unless the donor desires to establish an endowed memorial fund in which case the minimum threshold to do so is $50,000.

III.   CAPITAL GIFTS
Saint John’s Catholic Prep subscribes to the industry standard for gift reporting as set forth in the Council for Advancement and Support of Education’s (CASE) publication:  “Standard for Annual Giving and Campaigns in Educational Fund Raising”.    The CASE Management and Reporting Standards booklet will serve as a more detailed reference and guidepost.  The following are offered as general guidelines.

  1. Capital Campaign Management

     

    1. The total campaign period, including the advanced or nucleus gift phase, should not exceed seven years.

    2. The pledge payment period should not exceed five years.  Pledges made at any time during the campaign period and payable with five years of the date of the pledge should be counted in full. 


  2. Valuation of Capital Campaign Gifts

     

    1. Outright Gifts – Outright gifts should be reported at fair market value.  Therefore, a gift of cash (including a pledge payable within five years) should be reported at its face amount.  A gift of property should be reported at the mean value on the date of the gift for traded securities and the appraised value or estimated value for a gift of property.

    2. Deferred Gifts – There are two generally recognized standards for counting deferred gifts to campaigns.
     

    • Deferred gifts should be reported to the Board of Directors of the school both at their face value and at their actuarially discounted value.

    • Deferred gifts may be reported to the constituency at large in the same manner.  However, if the school prefers, deferred gifts may be reposted to the constituency solely at their face amount.

    3.
    		 Bequests – Bequest intentions made during a campaign may not be counted toward the campaign goal.  However a bequest maturing anytime during the course of a campaign may be counted towards the campaign goal at its face value.

Note:  The endowment investment and spending policy resides with the school’s Finance/Investment Committee of the Board of Directors.

Prepared:  7/20/10

Saint John’s Catholic Prep
889 Butterfly Lane
Frederick, MD 21703
Phone: 301.662.4210
Saint Johns
 Saint John’s Catholic Prep