Donors may choose one or a combination of several different outright and deferred gift vehicles to fulfill commitments to Pallotti. Gifts of cash or liquid securities are the preferred methods of giving. Other forms of giving, such as deferred gifts, when combined with cash, may offer an attractive alternative and enable a donor to significantly increase the level of his or her gift while achieving tax and other benefits. Listed below are brief explanations and benefits of the various ways to give that may be accepted by St. Vincent Pallotti High School. These are meant as a guideline only; please confer with your financial or tax adviser to determine the best vehicle for your individual situation.

Cash
An outright gift of cash, for which the donor receives an income tax deduction as prescribed by current law. Gifts of cash are deductible up to 50% of adjusted gross income. If the gift amount exceeds 50% of adjusted gross income, the remainder of the deduction can be carried over for up to five years.

Appreciated Securities
A gift of stocks or bonds that are (or will be) readily available. The deduction for outright gifts of appreciated long-term publicly traded securities (held more than 12 months) is equal to the fair market value of the securities on the date you relinquish control of the assets to Pallotti High School. None of the appreciation is taxable for capital gains purposes. Please note: Do not sell the stock; you must transfer the securities to the campaign to receive the most advantageous tax treatment.

Gifts of stock of a private corporation receive slightly different treatment. You may avoid capital gains on appreciation of closely held stock while attaining a tax deduction on the stock's fair market value. As with publicly traded stock, you may obtain an immediate tax deduction of up to 30% of adjusted gross income. If the gift amount exceeds 30% of adjusted gross income, the remainder of the deduction generally can be carried over for up to five years.

Bequests/Living Trust
A gift of cash, securities, or real property, made upon the donor’s death through provisions in his/her will or living trust. The amount of the gift is exempt from estate taxes.

Retirement Assets
(Ira, 410(k), Keogh, SEP, or other qualified retirement plans) Designation of St. Vincent Pallotti High School as the beneficiary of the donor’s qualified pension plans, IRA, Keogh, commercial deferred annuities, or employee stock options. Retirement assets are among the most tax burdened assets you can own. This method allows you to use the assets during your and your spouse’s lifetime, while providing the opportunity for you to make a large future gift and reduce your taxable estate.

Charitable Lead Trusts
An income-producing asset placed in a trust, the income of which is contributed to Pallotti High School for a designated period of time, after which the trusted asset is returned to the donor or non-charitable beneficiaries named by the donor. You may gain immediate tax advantages or may reduce gift or estate taxes when assets are passed to children or grandchildren.

Charitable Remainder Unitrusts and Charitable Remainder Annuity Trusts
An irrevocable transfer of assets to a trust, naming St. Vincent Pallotti High School as the only ultimate beneficiary or as one of several qualified charitable beneficiaries. You or someone you designate will maintain an income interest in the trust, and Pallotti receives the remainder interest. A unitrust pays the income beneficiary a variable life income based on a fixed percentage of trust’s value each year. An annuity trust pays the income beneficiary a fixed life income based on a fixed percentage of trust’s value on the date of gift. A current charitable deduction for the present value of either gift is available in the year of gift, and is based on IRS actuarial tables. You may make additional gifts to the principal of the charitable remainder unitrust in future years. An annuity trust however, cannot receive additions. If the donated assets consist of appreciated securities, capital gains taxes may be avoided. Assets gifted to a charitable remainder trust will also reduce your estate tax exposure.

Gifts of Real Estate
Almost any type of real property- from personal or vacation homes and commercial buildings to farms, ranches, or undeveloped lots. The property may be donated outright; serve as the corpus of a trust; or, if it is the donor’s personal residence, the donor and/or spouse may gift the property with the right of lifetime tenancy. An immediate tax deduction is available and capital gains taxes may be avoided. These assets also make intelligent options for bequests and also serve to reduce estate tax exposure.

Gifts of Life Insurance
Designation of St. Vincent Pallotti High School as the owner and beneficiary of a policy. Pallotti encourages the use of fully paid insurance policies as charitable gifts for campaign purposes. The cash surrender value of the paid policy at the time of gift is deductible to the donor.

Corporate Matching Gifts
Will be encouraged and credited to the donor in the proportion designated by the matching gift arrangement. You should supply the necessary forms to the Advancement Office along with your commitment/pledge forms and contributions