It is important that if you believe in the foundation’s mission that you support its efforts with a regular, annual donation. There are many ways to give to the Foundation, depending on your individual situation.
A gift by check
A gift by check is the most common and convenient way to give to Grosse Ile Educational Foundation. Gifts may be made outright or pledged over a period of up to five years. Checks should be made payable to Grosse Ile Educational Foundation. If you prefer, you may charge your gift through MasterCard or Visa. If you itemize your tax deductions, your gift is fully deductible up to 50% of your adjusted gross income. Any excess may be carried forward for up to five additional years. If you wish to designate the use of your gift, you may do so at the time you make the gift by enclosing a brief note.
A gift of appreciated securities such as stocks, mutual funds, and bonds can provide attractive benefits. An outright gift of long-term appreciated securities (securities held for more than a year) avoids capital gains taxes and in most cases, the donor obtains a charitable income tax deduction equal to the market value of the securities. For gifts of property, your gift is fully deductible for up to 30% of your adjusted gross income and, like gifts of cash, may be carried forward for five additional years.
Gifts of Closely Held Stock
An owner of closely held stock may give the stock to Grosse Ile Educational Foundation and receive important financial benefits. Closely held corporations are corporations whose stock is owned by family members and/or by business associates. The stock is private in that it is not publicly traded, and in most cases there are restrictions on the transfer of the stock to third parties.
Donors considering a gift of closely held stock must not enter into a prior written agreement with either the closely held corporation or a potential third-party purchaser. The transfer should be an arms-length, independent transaction. Donors who make gifts of appreciated assets should consult with their attorneys or tax advisors.
Outright Gift of Closely Held Stock
In an outright gift of closely held stock, the donor typically transfers stock to Grosse Ile Educational Foundation. To determine value, the donor has the stock appraised and obtains a charitable income tax deduction equal to the appraised value of the stock. The appraisal must be conducted by an appraiser who is knowledgeable in establishing the value of closely held stock. The Grosse Ile Educational Foundation then redeems the stock to the corporation and receives a check for the redemption price. It is important that the appraised price reflect the redemption price. If the stock is sold within two years, Grosse Ile Educational Foundation is required to notify the Internal Revenue Service.
Redemption of Closely Held Stock
The stock may also be transferred through a purchase of the stock by the closely held corporation’s Employee Stock Ownership Plan. In this case, the stock is reacquired for redistribution by the corporation to its shareholders or to the Employee Stock Ownership Plan.
Instead of redeeming the stock to the closely held corporation, Grosse Ile Educational Foundation may transfer it to a third-party purchaser as long as there are no restrictions on the ability to transfer the stock.
Gifts of Real Estate
You can make a gift of commercial or residential real estate to Grosse Ile Educational Foundation and receive substantial financial benefits. In some cases you may want to give the property outright to support the purposes of Grosse Ile Educational Foundation and qualify for a charitable income tax deduction based on the appraised value of the property. In other cases you may use a home or land you no longer want or need to fund a life income gift. All gifts of real estate must be approved by the Board of Directors at Grosse Ile Educational Foundation.
There are several ways in which a donor may use life insurance to make a gift to Grosse Ile Educational Foundation:
- Make a gift of an existing life insurance policy.
- Establish a new policy and name Grosse Ile Educational Foundation as the owner and beneficiary of the policy.
- Use life insurance to replace the value of gifts to Grosse Ile Educational Foundation.
The mission of the Planned Giving Committee of the Foundation, is to present donors with financial options that benefit both the donors and Grosse Ile Educational Foundation. Our staff is available to assist you in achieving your tax, estate planning and charitable giving objectives. We are pleased to provide personal financial projections to you and your financial advisors
ABOUT LIFE INCOME GIFTS
A donor may make a gift to Grosse Ile Educational Foundation and receive direct financial benefits. The benefits include an income for life for the donor and/or the donor’s spouse and a charitable income tax deduction, in addition to the good feeling that comes from making a gift.
Life Income Gift Benefits
- A stream of income for the lifetime of the donor and/or the donor’s spouse
- A charitable income tax deduction
- An opportunity to establish an endowed fund in the donor’s name or the name of a loved one
- Possible avoidance of capital gains taxes on gifts of appreciated property
- A higher yield than from current investments
- Membership in the GIEF Founders Club
- A reduction in federal estate taxes
LIFE INCOME GIFTS
Charitable Remainder Trusts
A charitable remainder trust provides a donor with a lifetime income and a charitable income tax deduction. The donor selects the payout rate, usually between 5% and 7%. The higher the payout rate, the lower the charitable income tax deduction. This gives the donor, and perhaps the donor’s spouse, an income every year for life. If the donor funds the trust with appreciated securities, the donor will avoid capital gains taxes. The donor may choose the trustee to manage the trust. The trustee may invest in almost any investment, including tax free bonds. A donor may designate the trust for the benefit of a particular department or program at Grosse Ile Educational Foundation and establish a fund in his or her name at death.
Donors may choose from two types of charitable remainder trusts: the annuity trust and the unitrust. The annuity trust pays a fixed, guaranteed dollar amount regardless of the trust’s investment performance. The income rate is determined at the time the trust is funded. The annuity trust is best for donors who seek a regular, fixed income and prefer to have the satisfaction of knowing the amount of the payment in advance.
Alternatively, the charitable remainder unitrust pays the donor a predetermined percentage of the fair market value of the trust’s assets as revalued annually. If the trust’s assets increase, the donor receives a larger payment, providing a hedge against inflation. Additional contributions may be made to a unitrust.
Summary of Benefits:
- Avoid capital gains taxes on the transfer of appreciated property.
- Increase dividends ranging from 2% to 4% to dividends as much as 6% or more.
- Obtain a charitable income tax deduction.
- Provide income to one or two beneficiaries for life.
- Establish an endowed fund at Grosse Ile Educational Foundation through the trust.
Retained Life Estate
Through a retained life estate, a donor makes a gift of a personal residence to Grosse Ile Educational Foundation and the donor retains the right to live in the home for life. Making a gift of property while retaining a life estate provides the donor with a charitable income tax deduction based on the value of the property, the age of the donor, and his or her life expectancy. For a gift of appreciated property, a donor may claim a charitable income tax deduction for up to 30% of the adjusted gross income.
The donor is responsible for maintenance costs, insurance, and real estate taxes. To substantiate the value of the property, the donor must obtain an appraisal from an independent qualified appraiser; the cost of the appraisal is borne by the donor and is a miscellaneous deduction.
Charitable Lead Trusts
A lead trust is the opposite of a charitable remainder trust. The “lead” income is paid first to Grosse Ile Educational Foundation, and after a number of years (based on a term or a lifetime) the remainder is returned either to the grantor (a grantor lead trust) or to someone other than the grantor, such as the grantor’s beneficiaries (a non-grantor lead trust). In addition, a charitable lead trust is a fully taxable trust, meaning that the trust pays income tax on its income and capital gains, unlike the charitable remainder trust which is a tax-exempt trust.
Grantor Lead Trusts
A grantor lead trust provides income to Grosse Ile Educational Foundation for a term of years. The term may not exceed 20 years. The trust must be either a unitrust or an annuity trust form of grantor lead trust. Unlike a charitable remainder trust, the payout does not need to equal or exceed 5% of the trust assets. There are no estate or gift tax consequences for a grantor lead trust, but there is a charitable income tax deduction available to the grantor. The grantor is able to accelerate, in the first year, the value of the income payments to Grosse Ile Educational Foundation in the form of a charitable income tax deduction, subject to the limitations on deductibility. The grantor is, however, taxed on the income paid to Grosse Ile Educational Foundation, so the charitable income tax deduction is diminished. If, however, the trust is funded with tax-free bonds, the donor obtains a charitable income tax deduction and, because of the tax-free returns, is not taxed on the income.
Non-Grantor Lead Trusts
A non-grantor lead trust provides income to Grosse Ile Educational Foundation for a period of years or a lifetime, and at the end of the term the remainder is transferred to someone other than the grantor. The grantor does not receive a charitable income tax deduction but instead receives estate and gift tax benefits. If the non-grantor trust is an inter vivos trust (established during life) the donor obtains a gift tax charitable deduction. On the other hand, if the non-grantor trust is a testamentary trust (established upon the death of the donor), the estate obtains an estate tax charitable deduction. Grantors are able to use the non-grantor lead trust to help transfer assets to their issue at reduced federal estate or gift tax rates. When combined with generation-skipping provisions, grantors may pass a considerable amount of property to their grandchildren while substantially reducing taxes and benefiting Grosse Ile Educational Foundation.
GIFTS THROUGH YOUR ESTATE
A gift through your estate can provide significant support to Grosse Ile Educational Foundation. The gift can be made through a will or a trust, and both documents enable you to distribute assets to individuals and nonprofit organizations in the amounts or proportions you indicate.
A gift through your estate provides the following benefits:
- The opportunity to make a major gift while preserving assets during life.
- Reduction in federal estate taxes.
All assets including cash, securities, real estate, and tangible personal property, such as works of art, may be transferred to Grosse Ile Educational Foundation through your estate. A gift through your estate can be made in the following ways:
Grosse Ile Educational Foundation receives a specific dollar amount, a specific piece of property, or a stated percentage of the estate. This is one of the most popular forms of bequests.
Grosse Ile Educational Foundation will receive all or a stated percentage of an estate after distribution of specific bequests and payment of debts, taxes, and expenses.
Grosse Ile Educational Foundation will receive part or all of the estate under certain specified circumstances.
Trust Established Under a Will
A trust may be established that provides for both Grosse Ile Educational Foundation and other beneficiaries.
Donor Designated Gifts
In addition to giving for the general purposes of the Foundation, gifts can be made with the designation to be used for a specific purpose. Donors can give to several endowment funds that currently exist with specific designations.
Creating Your Own Endowment Fund
An individual or family can create an endowed fund, which provides a permanent bond between the donor and Grosse Ile Educational Foundation. Through an endowed fund, the donor transfers assets to Grosse Ile Educational Foundation. Those donated funds are then carefully managed and preserved in perpetuity to provide annual income.
There may be no finer way to honor the memory of a loved one than to establish an endowment in his or her name. A named memorial fund becomes a lasting symbol of the bond between Grosse Ile Educational Foundation and those who are permanently honored.
You may specify in writing the purposes that your endowed fund is to serve and how it is to be administered, all within the framework of Grosse Ile Educational Foundation policy. Grosse Ile Educational Foundation then carefully preserves the principal of your endowed fund as an investment, while awarding income each year for the purpose you specify.
A Memorial Gift can be established by selecting the option on the donation form. This is a lovely way to make a donation to the general fund in someone’s memory. The gifts would go towards the entire mission of the foundation. To do so, please choose the ‘Memorial Gift’ option on the donation form and include the name of the of the deceased in the ‘comments’ section of the form. Contact the foundation for more information.
Established Memorial Gifts:
Robert Wojack established December 2004
When Robert Wojack died in December 2004 his family graciously decided that the best memorial would be towards education. Robert was a graduate of the GIHS class of 1976. His mother, Joan, now retired, was a loved teacher at Parke Lane Elementary. His wife, Mary Ann, has always been an active volunteer in the district where their children, Jeffery and Christina attend.
Robert obtained a doctorial degree in pharmacy from Wayne State University and owned Robert’s Sav-Mor Pharmacy in Allen Park.
It is with great appreciation that the Foundation has accepted these gifts in Robert Wojack’s memory.
He is survived by his parents Don and Joan Wojack, wife, Mary Ann, children Jeffery and Christina, and three sisters; Kathleen Wojack, Nancy Wojack, and Diane Womack-Short.
Vivian Overholt Lewis’ Memorial Gift
Vivian Bremer Overholt Lewis was an islander from the inside out. When she was a year old, her parents moved to Grosse Ile and she lived on the island for the rest of her 95 years. She and her 4 sisters attended and graduated from Grosse Ile Schools. After graduation, Vivian worked as a secretary for the school. During that time, she also coached girls’ basketball and served as a class advisor. She had the heart of a true volunteer. She was elected to the GI Board of Education in the 1970’s and served with enthusiasm and commitment. She and her sisters established a college scholarship for Grosse Ile students in her mother’s name. Throughout her life she contributed tirelessly to many, many Grosse Ile organizations, including St. James Episcopal Church, the local branch of the American Field Service, the Community Chest, the Grosse Ile Historical Society, the Grosse Ile Musicale and the Questers. With a number of other island residents, she helped establish the Grosse Ile Educational Foundation and in 1996, the Foundation awarded their first grants. She was on the Board of Directors and then on the Advisory Board until she passed away in January 2009.
She believed that Grosse Ile Schools were simply the best and that the Foundation could help them fulfill their all important educational mission.
Please contact the foundation to make a Memorial Gift in her name.