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Planned Giving Matrix

Professional Advice & Working with CWS

Cincinnati Waldorf School does not provide tax or legal advice. For all matters concerning estate planning, please consult with your estate and tax advisors. We are happy to work with you and your advisors to facilitate your gift giving.


To discuss any type of gift, please contact
– Kirsten Roberts, Development Director, by phone at (513) 541-0220 ext 202 or via email.

– Send an email to Jeff Brandt (CWS Board President) if interested in helping.

HOW ADVANTAGES FEATURES
Current Gifts
Cash Check or credit card Quick and easy. Receive a tax deduction
Securities Donated Donate appreciated stock Receive an income tax deduction and avoid capital gains tax Must be held for a minimum of one year
Securities Bargain Sale Sell appreciated stock to CWS at a discount Avoid capital gains tax attributable to the gift portion Must be held for a minimum of one year
Charitable Lead Trust Fund a trust that makes payments to CWS during the life of the trust with remainder at end of trust back to donor or heirs No tax consequence on appreciation during period of charitable distributions Useful for high wealth donors in supporting CWS and passing major assets to heirs
Qualified Retirement Plan Liquidate the plan if 70 ½ years of age and donate to CWS Avoids double taxation (income and estate taxes) on unused plan balance at death
Life Insurance Brokered Current life insurance brokered at discount for death benefit May permit larger gift than outright gift with tax deduction for portion contributed Can contribute any portion of the funds and use other funds for other purposes
Real Estate Donated Donate a house, farm or commercial property Preserve cash assets, make a large gift and avoid taxes on appreciated value CWS must be very careful regarding valuing the land and any risk
Real Estate Bargain Sale (See donated securities)
Personal Property Donate property that has been held long term Receive an income tax deduction and avoid capital gains tax Must be carefully assessed to ensure satisfaction of all parties
Deferred Gifts
Qualified Retirement Plan Name CWS as the beneficiary of all or part of the plan The donated funds pass to CWS outside of the estate
Bequest Leave assets to CWS in your will Charitable estate tax deduction at death
Life Insurance CWS named as beneficiary Can leverage insurance to make a larger gift Premiums paid by donor or by CWS with donor contributing a gift to cover payments
Life Estate Agreement Home passes immediately to CWS at death Excluded from probate estate Irrevocable gift. Donor responsible for insurance and maintenance

Cash Gifts

Gifts made by cash, checks, or credit cards of the most common contributions received by CWS. These are often annual gifts made for current areas of need, but they can also be used to endow a fund or for some other purpose.Gifts made by cash, checks, or credit cards are the most common contributions received by CWS. These are often annual gifts made for current areas of need, but they can also be used to endow a fund or for some other purpose.

Cash gifts are an easy way to contribute and earn a charitable deduction for your income taxes. Subject to certain tax limits, you receive the full deduction for your contribution in the year you make your gift. Cash gifts can also be made with a credit card – either a one-time charge or on a regular schedule determined by you.

Cash gifts by credit card require the following information sent to the Business Manager (contact information at the top of this page).

  • Name on the credit card
  • Billing address for the card
  • Card number
  • Expiration date

Matching Gifts. Many companies have matching gift programs for their employees and retirees. Matching gifts from your current employer, or previous employer if you are retired, provide an opportunity for your generosity to be increased. You will need to complete a matching gift form from your company and forward it to CWS.

Please Note. If you are considering a substantial gift, the potential tax benefits might make it more advantageous for you to contribute appreciated securities (stocks, bonds, or mutual funds) that you have held for at least a year and a day.


Donated Securities

Gifts of Securities. Stocks, bonds, and mutual fund shares that have been held long-term (more than a year and a day) and that have appreciated in value can provide a significant gift. With a contribution of securities, you will owe no capital gains taxes and you will be able to claim an income tax deduction for the full fair market value of the asset at the time of the gift.

You can also make a tax-effective gift using securities that have decreased in value. By selling shares and donating the proceeds to the school as a cash gift, you can deduct the loss on your income tax return and get a tax deduction for the charitable gift.

The chart below illustrates the benefits of giving a $10,000 gift of appreciated securities versus $10,000 in cash. For this example the assumption is that the securities have a $2,000 cost basis with a gain of $8,000. Please note the difference in benefit to you between donating the securities directly to CWS vs. selling them and donating the proceeds.

Give Cash Sell Securities
and Give Cash
Give Securities
Amount of Gift $10,000 $10,000 $10,000
Income tax savings at the 28%
tax bracket (28%of $10,000)
$2800 $2800 $2800
Federal capital gains taxes owed
(15% of $8,000)
0 ($1200) 0
Federal capital gains tax avoided
(15% of $8,000)
0 0 $1200
Total tax savings $2800 $1600 $4000
Total cost of gift $7,200 $8,400 $6,000

How Gifts of Securities are Valued. The value of publicly traded securities will be determined on the date of the actual transfer to an account owned by CWS. The high price and low price for that date will be averaged and multiplied by the number of shares or units to arrive at the donated value.

Electronic Transfer of Securities. For electronic transfers, please instruct your broker or mutual fund company (if you own the mutual fund shares directly) to transfer the securities to the Cincinnati Waldorf School account at AG Edwards. Your broker or mutual fund company will need the following information, which you can receive from the school using the contact information listed below:

  • Broker: Wells Fargo
  • DTC: #0141
  • Account Name: Cincinnati Waldorf School
  • Account #: 21096205
  • CWS Tax ID #: 31-0846773
  • Contact Person: Sharon Pollard
  • Contact Phone #: 513-651-6540

Please also provide us, in the form of a signed and dated letter, the following information to ensure that your gift is processed and credited properly:

  • The donor’s name
  • What securities are being donated
  • The number of shares
  • The approximate value of the gift (Please see the information below about how the school values gifts of publicly traded securities.)
  • The name and phone number of the donor’s broker or mutual fund company

Please send this information to the Business Manager (contact information at the top of this page)

Stock or Bond Certificates

  • The stock or bond certificates should be mailed to Cincinnati Waldorf School Business Manager at the address above.
  • The donor must sign the back of the certificates and sign them over to Cincinnati Waldorf School. You will need to have them stamped with a Medallion Guarantee, which can be supplied by a bank or credit union.
  • Include a signed and dated letter stating specifically what is being donated.
  • Please enclose a copy of your driver’s license for identification purposes.
  • Mail the securities, the letter describing the gift and purpose, and the copy of your driver’s license to Business Manager at the address above.

Mutual Fund Certificates

  • Some mutual fund companies issue printed certificates. If this is the case for your mutual fund, ask your broker or the mutual fund company (if you own the shares directly) to make the certificate(s) payable to Cincinnati Waldorf School.
  • Mail the certificate(s) to CWS at the address listed above. Include a signed and dated letter stating specifically what is being donated. Please enclose a copy of your driver’s license for identification purposes.

Gifts of Retirement Plan Assets

  • Gifts through your Individual Retirement Account (IRA), 401(k) plan, Keogh plan, or other qualified retirement savings plan, can be highly advantageous both for you and for CWS. If you intend to leave these assets to anyone other than your spouse when you pass, they could be the most heavily taxed of all your assets through both income and estate taxes.
  • Please Note: The Pension Protection Act of 2006 offers special new incentives for those who are 70 ½ and older to make charitable gifts from regular and Roth IRA accounts. These opportunities will be available only for 2006 and 2007. Starting at age 70 ½, donors can make contributions directly to qualified charitable organizations such as CWS from their IRAs. Each person with an IRA can contribute up to $100,000 per year without declaring the donated amount as income.

Charitable Lead Trust

When you create a charitable lead trust, the initial or “lead” interest is paid out to CWS annually for either a predetermined number of years or for the duration of your life. Thereafter, the assets of the lead trust are either returned to you or passed on to your children, grandchildren, or other loved ones. If the assets are to be returned to you, you receive an income tax deduction when the trust is created. If the assets are passed on to heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated.

A charitable lead trust can be a powerful tool in gift and estate tax planning, but the technical complexities require careful consideration.Types of Lead Trusts.
There are two types of charitable lead trusts:

  • The Grantor Lead Trust specifies that the donor will receive all or part of the principal when the trust period ends. This type of lead trust offers some income tax advantages and is used less frequently for estate and gift tax planning. A grantor lead trust could benefit a donor who will need the trust assets later.
  • The Non-Grantor Lead Trust is the most common type of CLT. The trust distributes a stream of income to CWS, and at the end of the trust term the principal is distributed to beneficiaries such as children, grandchildren, or other heirs. This type of lead trust offers significant estate and gift tax savings and may provide income tax savings in certain cases. It could benefit a donor with ample resources who desires to benefit their family and CWS.

Payment Options
There are two types of payment options for either the grantor or non-grantor lead trusts:

  • The Annuity Option (charitable lead annuity trust) pays a fixed amount to CWS each year for the period of the trust. This amount is set when the trust is established and cannot be changed. The donor cannot add additional future contributions to this type of lead trust.
  • The unitrust option (charitable lead unitrust) pays a fixed percentage of the fair market value of the trust assets as determined at least annually. Because the value of the trust assets will rise and fall, the payments to the school will change accordingly. The donor can make additional future contributions to the charitable lead unitrust.

Which option you choose (annuity trust or unitrust) depends on your own needs and the circumstances of the trust.

Tax Considerations
Charitable lead trusts are not tax exempt. Taxes are owed for any income or capital gains earned by the trust that is in excess of the amount paid to CWS each year. To reduce exposure to capital gains tax, CLTs are often funded with cash or high-basis assets. On the other hand, funding a non-grantor lead trust with closely held stock or another type of asset that will increase in value is especially advantageous, as will be described below.

The Grantor Lead Trust provides the donor with an income tax deduction when the trust is established. This deduction is equal to the value of all the income that will be paid to CWS. Income and capital gains earned by the trust in excess of the amount distributed to charity must be reported on the donor’s personal income tax return each year. One possible solution is to fund the trust with an asset that corresponds to the income requirement for CWS, reducing the donor’s potential income or capital gains tax exposure.

The Non-Grantor Lead Trust offers several tax advantages:

  • The donor receives a charitable estate or gift tax deduction for the present value of the income that will go to CWS. This deduction can greatly reduce the portion of the assets that are subject to gift or estate tax. In fact, many CLTs are designed to “zero out”; in other words, the transfer of assets to heirs will completely avoid estate, gift, and generation-skipping taxes.
  • With reasonably positive investment returns, the amounts transferred to heirs could be significantly larger than the amount placed in the trust. Appreciation of the trust’s assets during the term of the trust will not be subject to a transfer tax. When the trust period ends, the beneficiaries receive the trust’s assets at the trust’s cost basis. This might be especially beneficial for assets that you believe could markedly increase in value over a period of years, such as closely held stock or land undergoing development.
  • Typically, a donation to a non-grantor lead trust does not provide an immediate charitable income tax deduction. However, taxes for the trust’s income and capital gains will not be owed by the donor personally but will be paid by the trust.
  • The assets you transfer to the CLT are removed from your estate, thereby reducing your estate taxes.
  • Through the trust’s income payments, you will provide immediate support for CWS.

Real Estate

A gift of real estate may be a principal residence or vacation residence, a farm, a commercial building, a subdivision lot, or unimproved land. The gift may be the entire property or a fractional interest in the property. You can claim a charitable tax deduction for the full fair market value of the real estate and avoid capital gains taxes on the appreciation.

Retained Life Estate
You may generate a current income tax deduction by giving a home or farm to CWS, while retaining the right to use the property during your lifetime. The property will also be removed from your taxable estate.


Life Insurance

A gift of an old unneeded policy or of a new life insurance policy can help leverage a relatively small outlay on the part of the donor into a very significant gift for CWS.

Three Traditional Life Insurance Gift Options:

  1. Retain ownership of the policy and name CWS as the beneficiary or a contingent beneficiary to receive the death benefit. In this way you retain control of the policy with the ability to borrow against it, cash it in, or change the beneficiary designation any time during your life. With this arrangement, you will not receive any current income tax benefits for the future gift or for the premiums you pay. When you die, your estate can be entitled to a charitable deduction.
  2. Transfer ownership of the policy to CWS with the school as beneficiary. By releasing your control of the policy, you will be entitled to a current income tax deduction for the lower of the policy’s value or cost basis, and you will reduce your taxable estate. By making gifts to the school in the amount of the annual premiums, you will receive income tax deductions for these gifts as well.
  3. Purchase a new policy with CWS as owner and beneficiary, and make gifts to the school in the amount of the annual premiums. The policy will not be included in your taxable estate, and you will receive income tax deductions for the annual gifts.

Wealth Replacement Using Life Insurance
If you wish to make a significant gift to CWS, but are concerned about not having those assets available for your heirs, you can make a current gift and at the same time purchase life insurance. Your heirs can be named as the beneficiaries, and the death benefit will replace the value of the gift (or the inheritance) that your heirs would have received after estate taxes. It is possible that the tax savings you earn from the charitable gift, plus any income you receive if you arrange a life income gift, might defray the cost of the wealth replacement insurance premiums.

NEW – Life Insurance as a Current Gift
In the last few years a new approach to making gifts of life insurance has been gaining favor. Often referred to as a “life settlement,” a life insurance policy can be sold for more than its cash value, but less than its death benefit. The amount of the sale is determined by a number of variables. Specialty firms, like NuevoWealth in Cincinnati, are designed to handle such a sale. The proceeds can be donated to CWS or they can be split between CWS and other needs.


Bequests

A bequest through your will can provide a very important gift in support of the educational mission of CWS. Bequests allow you to retain control of your assets for your own needs. You can change the beneficiary designations in a will, as well as the specific gift amounts and types, at any time during your life. Charitable gifts through your will reduce the size of your estate. This can result in estate tax savings, both at the federal and state levels, if your net worth is above the current estate tax exemption limit.

  • Specific Bequest: A specific bequest is the most popular type of charitable bequest. You designate that CWS shall receive a specific dollar amount or percentage amount or a specific piece of property from your estate.
    Example: “I give to Cincinnati Waldorf School, Cincinnati, Ohio, the sum of $ [or specify a percent of your estate, or describe a specific piece of property] to be used for the school ‘s general purposes.”
  • Residuary Bequest: A residuary bequest is used to give CWS all or a portion of your estate after all debts, taxes, expenses, and other bequests have been paid.
    Example: “I give the residue of my estate [or specify a portion of your estate], both real and personal, to Cincinnati Waldorf School, Cincinnati, Ohio, to be used for the school’s general purposes.”

Special Considerations: If you wish to make a gift to CWS of life insurance or retirement pflan assets please keep in mind that these types of assets do not pass to heirs or charitable organizations through your will. You must specify your beneficiaries on the forms for the insurance policy or the retirement plan. Please contact your insurance company or retirement plan administrator to make these designations. You can change the designation at any time during your life.

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