There are many ways to make a gift or to fulfill a pledge to The Williams School. Some of them have added benefits to you depending on your age, the type of asset contributed, and the form of gift you select. The Williams School is ready to work with you to fashion the most beneficial gift for you, for your family, and for Williams.
Restricted and Unrestricted Gifts
Gifts of any size may be designated for a specific goal of particular interest to the donor or left unrestricted. Unrestricted gifts are particularly valuable, since they give Williams the flexibility to allocate the funds where and when they are most needed.
Pledges to Williams can be paid over three to five years. Pledges in the range of $1-99,000 can be paid over three years. Pledges of over $100,000 or more can be fulfilled up to five years.
Outright Gifts of Cash or by Credit Card
By far, the easiest and most common way to support The Williams School is to make an outright gift of cash. Simply write a check payable to The Williams School and send it to:
The Williams School
182 Mohegan Avenue
New London, CT 06320
To make an outright gift using a credit card (MasterCard, Visa or American Express), use our Online Giving Form.
Alternatively, send a written note to the address above which states your name, address, amount of your gift, gift designation (annual Fund for Williams, capital improvement, endowment, etc.), your credit card number and the expiration date. In general, you are entitled to an income tax deduction for the full amount of the gift; however, the deduction you can claim in any one year is limited to 50% of your adjusted gross income. Any amount exceeding the 50% ceiling can be carried forward and deducted for up to five more years.
Outright Gifts of Appreciated Securities
If you own appreciated securities (held more than 12 months), you can benefit two ways by making a gift of securities to The Williams School. First you will be able to claim a charitable income tax deduction for the full value of the gift. As with outright gifts of cash, any amount exceeding the contribution ceiling can be carried forward and deducted for up to five more years. Second, you will avoid the capital gains tax on the amount of appreciation that would have been due if you sold the shares yourself.
To make a gift of securities to The Williams School, please contact the Advancement Office at 860-439-5474 to alert us about your intended transfer, or for any assistance you might need. Ask your broker to deliver the stock to:
Credit: Williams Memorial Institute
Brokerage acct #16115561
Please also provide the following information to the Advancement Office at the School:
- Your name, the name of the stock you plan to give, and # of shares
- Name of the bank or broker who is transferring the stock
- Approximate date stock will be gifted
- Purpose of the stock gift (annual fund, pledge payment, endowment, etc.)
Bequests, large and small, are a significant source of support for The Williams School. A legal disposition by will, which names The Williams School as the recipient of all, or a portion of, a donor's estate, a bequest not only helps the School but usually reduces the donor's federal estate taxes, and in most cases, state inheritance taxes as well. The donor may specify that the School receive a percentage, an asset, a specific dollar amount, or the remainder of his or her estate. Frequently a donor may set up a charitable arrangement designating the income for life to another person and the principal ultimately to The Williams School.
Charitable Gift Annuity (Minimum $25,000)
The donor, aged 70 or older, transfers cash or securities to Williams and retains a lifetime income from the gift. The annuity rate is based on the age and number of annuitants. For example, the rate for a donor age 80 is 8.8%. The rates go as high as 11% for donors age 90 and older. Payments are made quarterly on the last day of March, June, September, and December. The donor receives a charitable income tax deduction based on the age and number of annuitants (generally, the donor or the donor and donor's spouse). There is no immediate capital gains tax on the transfer of appreciated securities. A major portion of the annuity payment is tax-free for both Sate and Federal purposes for the donor's life expectancy at the time of the gift. The gift annuity is generally appropriate for older or retired donors who want a fixed rate that will never change.
Deferred Gift Annuity (Minimum: $25,000)
The donor transfers cash or securities to Williams and retains a lifetime income from the gift. The payments will begin at a future date determined by the donor at the time of the gift. The annuity rate is based on the age of the donor and the number of years before the first payment. In all cases, the rates are higher than for current gift annuities. The longer the deferral, the higher the rate. The donor receives a charitable income tax deduction in the year of the gift based on the age and deferral period. There is no immediate capital gain tax on the transfer of appreciated securities. Taxation of the annuity payment is mostly ordinary income. The deferred gift annuity is generally appropriate for donors who do not need income currently but who wish to establish an income for retirement while receiving an income tax deduction currently.
Charitable Remainder Trust (Suggested Minimum: $100,000)
If you have fairly illiquid and highly appreciable assets, with a need to generate income and avoid capital gains, this is the vehicle for you. A charitable remainder trust (CRT) is a trust vehicle to which a donor can transfer assets while retaining the right to receive income for life for a term of years. (A CRT can also be established as part of a donor's estate plan and provide an income stream for survivor beneficiaries.) Unlike the other life income plans, the charitable trust is a private account for each donor. The donor may also choose the form of payment (fixed or fluctuating), the rate of payment (generally between 5% and 8%), the payment schedule (quarterly, monthly, etc.) and other features as well. And, unlike the other plans, the trust allows for more than one charity to be included as remaindermen after the death of the income beneficiaries or at the end of the trust term. The Charitable Remainder Trust has many compelling features:
- You may transfer a variety of assets to fund a CRT. Cash and appreciated securities work well; also, a CRT is especially suitable for non-liquid assets such as real estate or closely-held stock.
- Ordinarily, the sale of an appreciated long-term asset would produce a capital gains tax of up to 20%. Due to the tax-exempt nature of a CRT, appreciated property transferred to and subsequently sold by the trust incurs no immediate capital gains tax.
- The creation of a CRT entitles you to an income tax charitable deduction in the year of the transfer. The deduction is based on several factors, including the type of trust, payment frequency, age and number of beneficiaries, pay out rate stated in the trust, and a floating IRS discount rate.
- The property placed in a CRT will be removed from your estate and consequently will not be subject to gift or estate taxes.
- For a CRT funded with long-term assets, the charitable income tax deduction may be claimed up to 30% of adjusted income in the year of the gift, with a 5-year period to carry forward and use any excess over the 30% ceiling.
Although The Williams School can provide guidance throughout the process of creating a charitable remainder trust, the donor must have his or her own attorney to review the documents. Our attorneys can draft a sample trust document for review by the donor's own advisors. A donor has several options for the ongoing management of a charitable remainder trust. The donor may select a bank or trust company, a trusted advisor or financial professional, or, in many cases, the donor can be his own trustee. The person or organization named as trustee will charge fees to the trust account. Fee schedules for trust management varies widely, but there are many options. In short, a charitable remainder trust offers benefits similar to the other programs, but is especially appropriate for donors who wish to create a life income plan that suits their individual needs.
Charitable Lead Trust
This increasingly popular vehicle works particularly well when your children or grandchildren can wait a few years to receive their inheritance. A charitable lead trust is a separately managed trust established by the donor for the purpose of making an irrevocable gift, whereby a percentage of the trust's assets are paid to one or more charitable beneficiaries during the life of the trust, and at the trust's termination the remaining assets pass to members of the donor's family or other beneficiaries. An immediate charitable deduction may be taken by the donor; the resulting reduction in the donor's estate may generate significant capital gains tax savings on appreciated securities.
You may own real estate that is costly and time consuming to maintain. Why not consider a gift of such property to The Williams School? Real estate held more than 12 months can be contributed outright entitling you to an income tax deduction for the current appraised fair market value. The deduction can be claimed up to 30% of your adjusted gross income in the year of the gift. Any amount exceeding the 30% ceiling can be carried forward and deducted for up to five more years. Plus you avoid a potential capital gain tax on the property. Note: Real estate gifts work best when there is no mortgage on the property. You can also transfer real estate to a charitable trust while retaining the income for yourself for the rest of your life. Through such a plan, you can convert a non-income producing asset to a new income, receive an income tax deduction for part of the gift, pay no capital gains tax when the property is sold by the trust, and make a magnificent gift to The Williams School.
Retained Life Estate
This works well if you have a highly appreciated real property that you would like to give to The Williams School, but you wish to maintain full use of the property during your lifetime. The retained life estate gift involves a donor transferring the remainder interest in a personal residence (or farm) to The Williams School while retaining the right to live in and enjoy the property for life. The donor retains all the rights and responsibilities of ownership during his or her lifetime, and receives a current income tax deduction equivalent to the discounted value of the property at the end of the tenant's life expectancy. Thus, the donor is able to make a significant gift to The Williams School during his or her lifetime, continue to enjoy use of the property and receive a current income tax deduction to reduce his or her current tax burden.
Gifts of tangible personal property may offer the donor an immediate tax deduction. Gifts must relate to the educational purposes of the school. The gift may also lessen or eliminate the donor's estate taxes, while benefiting the school.
If you own a life insurance policy that is no longer needed for its original purpose, you can benefit by contributing it to The Williams School. Simple ask your life insurance company for a "Designation of Beneficiary" form. To make an irrevocable transfer that will receive gift credit, you must name The Williams School both beneficiary and owner. Send the originals to the life insurance company and a copy to The Williams School, Advancement Office, 182 Mohegan Avenue, New London, CT 06320. In general, you will receive gift credit for the cash surrender value of the policy and you may claim that value as an income tax deduction in the year of the transfer. Williams' Tax ID Number is 06-0646964.
Many employers match the gifts their employees make to The Williams School. Please check with your employer to see if the company has a charitable contribution matching gifts program. If so, your gift may be doubled or tripled simply by completing a form which will be available from your employer. Matching gifts will be credited to the individual's personal gift record. Note: Federal tax laws applicable to charitable giving are subject to frequent changes.