Planned Giving

One of the biggest tax advantages in charitable giving continues to be the double benefit donors get when donating appreciated assets to Totino-Grace High School instead of cash. By giving appreciated assets (like stocks held for more than one year), you'll get a charitable tax deduction for the full value of the asset and avoid any capital gains tax that would have applied if you had sold the stock and made your gift in cash.

Supporting Totino-Grace High School through life-income gifts can be mutually rewarding.

Life income gifts help you provide meaningful support to Totino-Grace High School while providing you with income for life (or a specified period of years) and leaving the remainder to TG for the purpose you choose.

There are several options for making a charitable gift that pays you income. One of the most popular (and one that does not require an attorney), is a Charitable Gift Annuity (CGA). A CGA is a simple contract between you and TG. You can fund a CGA with cash, transfer appreciated stock that isn't paying a dividend or convert another underperforming asset like a savings account, money market fund or CD bearing little or no interest. You'll receive payments for life and a tax deduction for the year that you make the gift.

There's a CGA option for everyone. If you're still working, you can fund an annuity today and schedule to receive payments when you plan to retire. If you're nearing retirement or already retired, you have the option of deferring your payments a bit longer or receiving them right away.

Immediate gift annuity

You can make your gift, take a deduction, and begin receiving annuity payments right away. This option is available for donors who are age 60 or older.

Deferred gift annuity

Take an immediate deduction and defer payments for retirement; usually advantageous for younger donors. Deferment allows for larger and less taxed payments.

Flexible gift annuity

This is like a deferred gift annuity, with a donor-directed option to delay the payments. The longer you wait to receive payments, the higher the payout rate and the larger your income payments will be.

IRA > CGA Option

CAA 2023 allows for a one-time distribution to create a life-income gift, most commonly a charitable gift annuity (CGA), and charitable remainder unitrusts (CRT) or annuity trusts. This new type of QCD is a one-time maximum transfer of $54,000 to a qualified CRT, or in exchange with a charity for a CGA. 

*Important terms and conditions apply. Please contact our office or your financial advisor.

A current, outright donation of real estate would allow your gift to make a difference at Totino-Grace High School now and could generate significant tax savings. Leaving real estate to TG through your will or living trust is an efficient way to make a meaningful gift in the future without impacting your current lifestyle.

What are the benefits?

• One of the most flexible charitable giving options available, real estate can be used to make a gift that:
  • Provides an immediate charitable deduction for the fair market value of the property while potentially avoiding capital gains taxes.
  • Gives you income for life and an immediate tax deduction, while leaving the remaining assets to TG after your death.
  • Provides TG with income for a few years, then is passed on to your heirs at the time you specify with considerable estate and gift tax savings.
  • Qualifies you for a significant immediate tax deduction, allows you to use the property for your lifetime and leaves the property to TG at your death.
• The real cost of your gift is reduced, since you'll save on income and capital gains taxes by giving appreciated property to TG.

How does it work?

• You deed your home, farm, vacation home, undeveloped land or commercial building to TG.
• TG sells the property and retains the proceeds.

Planning tips

• Gifts of real estate can be made to TG by donating the entire property or a partial interest in the property.
• With all gifts of real estate, TG conducts a due diligence evaluation of the property to determine its acceptability with respect to outstanding mortgages, liens and presence of hazardous substances, as well as the marketability of the property.
• Mortgage-free properties provide you with greater tax benefits than mortgaged properties.
• To meet IRS requirements, you will need to obtain an appraisal from a qualified appraiser.
• The exact tax savings depends on the type of gift and your specific situation.

Because gifts of real estate can be complex and legal restrictions may limit TG's ability to own or sell a parcel of real estate, we will provide you with a Real Estate Worksheet to support and lead you through our due diligence process. Keep in mind: gifts of real estate require a qualified appraisal and can take time to complete—contact TG early in your decision-making process.

Making a gift of life insurance allows you to transfer ownership of a paid-up life insurance policy to Totino-Grace High School. TG elects to cash in the policy now or hold it.

How you benefit from a gift of life insurance

 Make a gift using an asset that you and your family may no longer need.

 Receive an income tax deduction equal to the cash surrender value of the policy.

 You may be able to use the cash value of your policy to fund a gift that delivers income, such as a charitable gift annuity.

Please use the following address for TG:
Totino-Grace High School
Advancement Department
1350 Gardena Avenue NE
Fridley, MN, 55432

The IRA charitable rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To qualify:

• You must be age 70 ½ or older at the time of gift.
• Transfers must be made directly from a traditional IRA account by your IRA administrator to Totino-Grace High School. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
• Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities or to obtain other benefits such as tickets to athletics events, do not qualify.

Benefits—qualified charitable distributions:

• Can total up to $108,000.
• Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (no charitable deduction is available, however).
• Count towards your required minimum distribution, if you have one.

Life Income Gift CAA 2023 allows for a one-time distribution to create a life-income gift, most commonly a charitable gift annuity (CGA), and charitable remainder unitrusts (CRT) or annuity trusts. This new type of QCD is a one-time maximum transfer of $54,000 to a qualified CRT, or in exchange with a charity for a CGA. *Important terms and conditions apply. Please contact our office or your financial advisor.

This type of gift will reduce the value of your IRA, therefore reducing your future RMDs (as they will be based on the lower value). Also, a CGA provides a constant guaranteed lifetime stream of revenue. Using a distribution from your IRA to create an annuity is a savvy way to diversify your holdings and lock in a great return.

As always, we recommend that you consult a qualified advisor before making a new gift commitment.

Example

Jane wants to contribute to Totino-Grace High School. She is 73* and is required to take a minimum distribution of $20,000 from her IRA but does not need the income. She can authorize the administrator of her IRA to transfer $20,000 to TG. The $20,000 distributed to TG will not be subject to federal tax and will be counted toward her annual minimum required distribution.

*Note that under the Secure Act 2.0, the age at which you are required to make minimum distributions (RMD) was raised to age 73 for individuals born between 1951 and 1959, and age 75 for those born in 1960 or later.

Sample letter

See below for a sample letter you can send to your plan provider to initiate a rollover. Make sure that you contact us when you direct the rollover so we can look for the check from your IRA administrator.

Sample letter of instruction from donor to IRA provider

{Date}
{Name of IRA Provider}
{Address}
{City, State, Zip}
(Call your plan provider to determine the most efficient way to send this letter of instruction)

Re: Request for Qualified Charitable Distribution from Individual Retirement Account

Dear Sir or Madam:
Please accept this letter as my request to make a qualified charitable contribution from my Individual Retirement under Sec. 1201 of the Pension Protection Act of 2006 (the PPA) and Sec. 408(d)(8) of the Internal Revenue Code of 1986, and made permanent under the Consolidated Appropriations Act of 2016. My account Number is {Account Number}.

Please issue a check in the amount of $____________ payable to {name of appropriate affiliated foundation} at the following address:

Totino-Grace High School
1350 Gardena Avenue NE
Fridley, MN 55432

In your transmittal, please state my name and address as the donor of record in connection with this transfer, and copy me on your transmittal. It is my intention to have this transfer qualify during the {Year} tax year. Therefore, it is imperative that this distribution be postmarked no later than December 31, {Year}.

If you have any questions or concerns regarding this request, I can be reached at {Phone Number} or {Email Address}.

Thank you for your prompt attention to and assistance with this matter.

Sincerely,
{SIGNATURE OF IRA OWNER}

The benefits of using a donor advised fund are strong and, with the new tax laws, are expected to grow in appeal to strategic donors. They are far easier to establish than a private foundation and allow you to support Totino-Grace High School with relatively small amounts of money.

How does it work?

When you open a donor advised funds (DAF), you are creating a separate entity with the sole purpose of using the assets under management to support qualified charities.

You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.

As advisor to the fund, you can elect to manage the investments personally or choose to have an investment advisor manage the portfolio.

The two primary avenues of supporting TG with your donor advised fund are through a beneficiary designation and recommending grants.

Beneficiary

By assigning TG or other charitable organizations as a beneficiary, you are ensuring that when the DAF ceases to have an advisor the assets in the account get transferred to TG.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support TG or other charitable organizations.

What are the Benefits?

• Receive an immediate deduction on your taxes.
• Assets in the fund grow tax free.
• Easier, and less expensive than establishing a private foundation.
• Allows you to get started with a relatively small amount of money, as low as a $500 gift.
• Tax smart for those using a "lumping" strategy under the new tax laws.

With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact Totino-Grace High School.

Make Totino-Grace High School a part of your personal legacy with a charitable gift from your estate.

Gifts from Wills and Trusts:

When making a charitable gift to a nonprofit organization, it is vital that the charity's legal name, address and other identifying details be used. To name Totino-Grace High School in your will or trust, please use the following suggested language:

Residual Bequest Language
A residual bequest comes to us after your estate expenses and specific bequests are paid:

I give and devise to Totino-Grace High School, Fridley, MN,  (EIN 41-6049228) all (or state a percentage) of the rest, residue and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).

Specific Bequest Language
You can also name Totino-Grace High School as a beneficiary of a specific amount from your estate:

I give and devise to Totino-Grace High School, Fridley, MN,  (EIN 41-6049228) the sum of $ ________________________ (or "____ shares of __________________ stock") to be used for its general support (or for the support of a specific fund or program).

Contingent Bequest Language
Totino-Grace High School can be named as a contingent beneficiary in your will or personal trust if one or more of your specific bequests cannot be fulfilled:

If (insert individual heir's name) is not living at the time of my demise, I give and devise Totino-Grace High School, Fridley, MN,  (EIN 41-6049228) the sum of $ (or "all" or " ___________ percentage of the residue of my estate") to be used for its general support (or for the support of a specific fund or program).

3 Steps to Making a Beneficiary Gift

Did you know that the beneficiaries named on a retirement plan or life insurance policy determine who will receive these funds, even if they are designated differently in your will? Did you also know that funds remaining in your IRA may be subject to multiple taxes if left to your estate?

If you are considering including a gift for Totino-Grace High School in your will, we have a simple solution. Name Totino-Grace High School as a beneficiary or partial beneficiary of your retirement plan and leave other less-taxed assets to your family.

It's Easy as 1, 2, 3!

• 1. Request a "change of beneficiary" form from your plan administrator.
• 2. List Totino-Grace High School as beneficiary at the following address:
  • Totino-Grace High School
  • 1350 Gardena Avenue NE
  • Fridley, MN, 55432
  • EIN: 41-6049228
• 3. Let us know so we can thank you!

This fund is currently being built by Steve and Cindy Johnson, in honor of their son, Parker ‘05, who tragically died in 2018, to provide assistance to financially challenged students who have a love for TG, their fellow students and soccer.

This scholarship will be awarded to four students from families whose parent(s) do not have a four-year college degree, have demonstrated financial need for tuition assistance (TADS application must be on file), and the potential to excel academically.