Ways to Give
Gifts of cash, usually made by a check, are the most popular form of charitable giving. Cash gifts are attractive because they are simple to make, immediately effective, and easily directed to the greatest needs. Cash contributions may be deducted up to fifty percent (50%) of the donor’s adjusted gross income. Should the gift total exceed this amount for one year, the remaining deduction may be used in succeeding tax years for up to five years.
In addition to checks, the use of a credit card or direct deposit arrangement allows the donor to make a gift with a simple phone call or to make a significant gift through monthly installments. In every instance, meeting the donor’s needs and wishes is our first priority.
Giving Appreciated Assets
Gifts of those assets that have gone up in value since their purchase are particularly attractive to the donor. Consider that:
- Sales of stocks, bonds, mutual funds, and real property that have appreciated in value generate a taxable capital gain.
- Gifts of appreciated assets are deductible at their full fair market value if they have been held longer than twelve months.
- The full fair market value of these assets can be deducted up to thirty (30%) of the donor’s adjusted gross income. The donor may elect to qualify for a fifty percent (50%) adjusted gross income ceiling by reducing the value of the gift by the full amount of its appreciation, deducting only what was originally paid for the asset.
- Excess deductions can be carried forward into as many as five additional tax years.
How to Make a Gift of Stock or Securities
Let your investment firm know that you would like to make a donation of stock to the Academy or directly contact the school for details.
Timothy M. Henry, Director of Development
2635 Oak Hill Road
Mouth of Wilson, VA 24363
Phone – 276-579-2619
Email – email@example.com
Example: Frank Pender inherited a tract of land from his mother in 1980 that has a cost-basis of $25,000. Because of recent development in the area, the land has an appraised fair market value of $300,000. Mr. Pender makes a gift of the land to establish a memorial endowment in his family’s name.
As a result, Oak Hill Academy has the benefit of a $300,000 gift. Mr. Pender has the benefit of a $300,000 income tax deduction, which may be used up to 30% of his adjusted gross income in the year of the gift and, if needed, carried forward into the next five years. Most importantly, Mr. Pender has contributed to his scholarship legacy fund.
Gifts of Property
Almost any type of real property – a personal residence, a farm, a vacation home, a commercial building, or an undeveloped parcel of land – can be gifted. Gifts of real estate can be made either outright or through one of several methods outlined in this guide.
If the property has been held long-term and is given outright, the donors will generally avoid any tax on the gain. They also benefit by reducing their taxable estate and receiving a charitable income tax deduction based on an appraisal of the full fair market value of the property.
Actual income tax savings will depend on the donor’s tax bracket. The donor may deduct the value of the gift up to thirty percent (30%) of adjusted gross income, or elect a fifty percent (50%) of adjusted gross income deduction by reducing the value of the gift to its cost basis. Either way, the charitable deduction may be used in the year the gift is made and over the next five tax years as needed.
Tangible Personal Property
This includes other items of valuable property, which can be put to work for use by the Academy or through its sale. The donor may give an item whether or not it has increased in value. Consult Oak Hill Academy regarding the benefits of this kind of gift.
Intangible Personal Property
Intangible personal property includes copyrights, patents, contracts, promissory notes, royalties, trademarks, and other items that cannot be seen or touched. However, these items can have great value in supporting Oak Hill Academy’s mission. Gift and estate benefits are treated the same as tangible personal property.
Gifts of a Residence or Farm with Retained Right to Use the Property
For some donors, the gift of a personal residence, vacation home, or farm is the perfect solution to meeting today’s needs and arranging a future gift. Through a charitable life estate contract, you deed the property to Oak Hill Academy but retain the right to live in the home or use the farm or property for the remainder of your lifetime, a spouse’s lifetime, or term of years. You also continue to be responsible for the maintenance, upkeep, taxes, insurance, etc.
By making this type of transfer, the donors receives an immediate income tax deduction based on their life expectancy (or term of years) and value of the property. The donor also benefits by avoiding capital gains consequences and excluding the property from inheritance or estate taxes.
Memorial & Honorary Gifts
One of the most meaningful ways to remember loved ones and to honor friends and family members is by making gifts to recognize special events, anniversaries, birthdays, retirements, births, and graduations. Such gifts are appropriately acknowledged to both the donor and the person designated by the donor to receive notification of the gift. Memorial and honor gifts are listed in The Oak Hill Academy Arrow.
Matching gifts are company-donated contributions that match the contributions made by employees of that company. Donors can increase the value of their gift with a matching gift. Ask your employer for more details.
A number of volunteer opportunities are available. Volunteers make a difference! If you are interested in volunteering or belong to a service club that would, please call us.
Named Endowment Funds
Endowment is an investment in sustaining Oak Hill Academy’s unique and urgently needed educational mission. These funds are invested in perpetuity to generate earnings that allow the Academy to grow its programs. Earnings from the endowment are the most desirable source of funding for supporting the Academy’s most important assets – its students and faculty.
Donors may create a named perpetual endowment with gifts of $10,000 or more. We welcome every donor’s plan to make individual or family gifts to create this vital resource.
Scholarship funds provided deserving and talented students with the financial support they need to realize their dreams. As the costs of education continue to rise, the Academy apportions a part of its operating budget in support of tuition assistance. In addition, individuals and families have generously created annual or endowed scholarship accounts.
Donors may create permanent endowed named scholarships with a minimum donation of $10,000.
Oak Hill Academy is blessed with an ideal mountain campus – our environment serves as a living classroom. Equally important, however, are the halls, classrooms, and sports facilities that serve students and faculty in learning and living together. Generous parents, alumni, and friends have faithfully supported the building and renovation of Oak Hill Academy’s historic buildings. We welcome the opportunity to share the campus master plan with donors and discuss together how best to establish a legacy for the Academy’s future.