Tax-Wise gifts

Not all gifts are created equal. Explore some non-cash assets that make excellent outright or planned gifts, and offer significant tax benefits.

Click on the options below to learn more:

STOCKS/APPRECIATED SECURITIES

If you have a choice between making a cash gift or making a gift of appreciated securities that you have held for over a year, appreciated securities may be an option to consider. Neither you or DVFS will pay capital gains tax on these assets. In addition, you can take a federal income tax deduction equal to the securities’ full fair market value on the date of the sale.

To make a gift of stock, wire transfer your stock to DVFS’ account with Wells Fargo Advisors using the following information:

Wells Fargo Advisors
Acct #: 2431-3516
DTC#: 0141

Wells Fargo representative: Earl Maitland, 215-564-8329

Additionally, please advise Esther Nyaga in our Development Office at 610-640-4150, ext. 2151 with the name of the security, number of shares, and date of gift so that the gift may be properly credited to you.

Stocks may be used to fund outright gifts to the DVFS Annual Fund or any current campaign, or may be used as the basis of a planned gift.

RETIREMENT ASSETS: 401(k), 403(b), IRAs

You can gift the full value of any assets remaining in your qualified retirement plan to DVFS, tax-free, by naming the school as a beneficiary. You can continue to take withdrawals during your lifetime, and can change your beneficiaries at any time.

Retirement funds are excellent assets to leave to charity. Not only will DVFS receive the full value of the assets, but donated retirement assets will be excluded from your estate for the purpose of calculating estate tax (if applicable). On the other hand, if you leave the same retirement assets to family members, they will be included as part of your estate for the purpose of calculating estate tax, and your heirs will pay income tax on withdrawals - significantly eroding their value.

To make this gift, complete a Change of Beneficiary form from your retirement plan administrator.

Gifting a remainder of your retirement assets is a type of planned gift. If you intend to make this gift, please contact us so we may thank you now, and include you in our Friends for the Future Society.

IRA CHARITABLE ROLLOVER

If you have reached 70 ½ years of age and do not need all of the income from your IRA for living expenses, consider making gifts to DVFS directly from your IRA. It will help you meet your required minimum distribution for the year, and the distribution is not treated as taxable income for you or DVFS. This allows you to avoid paying income tax on a required distribution that you do not need. You can make gifts of up to $100,000 annually.

This is a great way to give tax-advantaged retirement assets from your IRA during your lifetime. The IRA Charitable Rollover was made permanent in December 2015.

To make this gift, contact your IRA plan administrator. The funds must be transferred directly from your IRA account to DVFS (note: no other retirement plans qualify for this rollover).

OTHER GIFTS

Consider making gifts of personal property or real estate. Depending on how these gifts are structured, they can provide outright income to DVFS or become the basis for a planned gift.

If you have valuable personal property, such as artwork, a piano, or books, you may give them to DVFS, which may choose to keep them for its use, or sell them. If the property meets IRS definitions for “related use” (meaning, DVFS can use the items for its educational purposes), you will receive an income tax deduction for the full appraised value, the property will not be subject to estate tax (if applicable) upon your death, and if the property has increased in value, you will avoid capital gains tax that would have been due had you sold it.

If you own your primary residence, vacation or investment property mortgage-free, and would like to receive the tax benefits of giving real estate while still continuing to use your property, you might consider a Retained Life Estate gift. With this arrangement, you gift your home to DVFS but retain the right to live there or rent it out through the lifetime of one or two persons.

We also welcome gifts of real estate through a bequest in your will.

Gifts of real estate and personal property are subject to our Gift Acceptance Policy.

Please contact Anne-Marie McMahon in our Development Office at 610-640-4150, ext. 2152 to discuss any planned or outright gift in more detail. Or, feel free to share our Advisor FAQ with your attorney or financial advisor.

Delaware Valley Friends School
19 E. Central Avenue, Paoli, Pennsylvania 19301
Phone: 610.640.4150
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