Making a gift to Bellevue Christian School of appreciated securities that have been held for more than one year provides a two–fold tax benefit to you, which reduces the net cost of the gift.
- First, no capital gains tax is paid on the appreciation of the donated securities.
- Second, the donor establishes a federal income tax charitable deduction equal to the market value of the security on the date of the gift.
Transfer Instructions for Stock Held Electronically
- Contact your broker and request the transfer.
- Provide the following information to your broker:
Firm: Oppenheimer & Co. Inc.
DTC Participation Number: 0571
Account Name: Bellevue Christian School
Account Number: G71-1622261
- Your broker will provide you with any necessary documentation to complete the transfer.
- Contact the Development Office at BCS at email@example.com or 425-454-4402 x210 to inform us when you are transferring the stock, the name of the security and number of shares being transferred.
Transfer Instructions for Stock in Certificate Form
If you have stock or bond certificates, please contact the Bellevue Christian Development Office at firstname.lastname@example.org or 425-454-4402 x. 210 to arrange for delivery.
Depreciated securities, those that have declined in value since acquisition, should generally be sold to establish a tax loss and then the proceeds donated to BCS.
Marketable securities are frequently gifted outright to Bellevue Christian School. At other times, the gift is made in connection with the establishment of life income arrangements. This allows the donor to realize tax benefits and generate life income for up to two designated qualified beneficiaries.
Real estate, either commercial or residential, may be donated to Bellevue Christian School with the approval of the School’s Trust and Investment Committee. The value of the real estate must be substantiated through independent appraisal.
An outright gift of real estate qualifies for a federal income tax charitable deduction equal to the fair market value of the property. This deduction, up to thirty percent of adjusted gross income, may be realized immediately, with any excess over that amount being carried up to five additional years.
Frequently, personal residences are transferred to a charity after a term of years or life. The donor lives on or uses the home or vacation property during the term of years or life. At the end of the donor’s interest, the property passes to Bellevue Christian School.
In such cases, the life tenants would be expected to maintain insurance, pay property taxes, care for typical maintenance and repair items, and permit BCS to assist as appropriate. Also, the federal tax charitable deduction would be actuarially adjusted to equal the fair market value of the property minus the expected benefit of use actuarially determined, based upon the term or the actuarial life expectancy of the life tenants.
Personal property may be donated to Bellevue Christian School. Its value must be substantiated through independent appraisal. Examples of personal property include paintings, coins, jewelry, furniture, cars, stamps, clothes, art, musical instruments, antiques, etc.
Bellevue Christian School must be able to use the asset for educational purposes. If BCS can do this, the donor is entitled to a deduction for the full-appraised market value. If the gift is “unrelated” or will not be used by BCS to further its educational purposes, the donor’s charitable contribution deduction will be reduced to the tax basis of the property.
The federal income tax deduction is equal to the fair market value of the asset on the date of the gift. This deduction, up to thirty percent of adjusted gross income, may be realized immediately, with any excess over that amount being carried up to five additional years.
Life insurance policies may be gifted to Bellevue Christian School in a number of ways. The options include:
Make an outright gift of an existing paid policy to Bellevue Christian School. The federal income tax charitable deduction would be the replacement value, i.e. what it would cost the donor to purchase a similar policy.
Make an outright gift of a policy on which premiums are due to Bellevue Christian School. BCS may redeem the policy if it has cash value, cease premium payments and take a paid-up policy for less than the death benefit, or continue the premium payments from its own cash reserves or contributions from the donor. The donor’s federal income tax charitable deduction is the “interpolated terminal reserve value,” which the insurance company will compute.
Make an outright gift of a new policy to Bellevue Christian School naming Bellevue Christian School the owner and beneficiary.
Premium payments made by the donor subsequent to the gifting are fully deductible as a charitable contribution for federal income tax purposes.