Planned Giving

Bequests are the best-known and most widely understood planned gift arrangement. A gift made through your will is a classic and straightforward way to express your dedication to Durham Academy. 

Types of Bequests:

• Unrestricted: Used for general purposes, this type of bequest is especially appreciated because it can be put to immediate use in the areas of greatest need at DA.
• Restricted Bequest: This is a bequest that instructs Durham Academy to use the gift in a specific manner.

Both restricted and unrestricted bequests are made in the following ways:

• Specific Bequest: A specific asset or collection of assets in the form of cash, securities, or other property is bequeathed to DA. You may designate an amount or a percentage of the property.
• Residuary Bequest: You may bequest all or a percentage of what remains of your estate after all specific legacies have been satisfied and debts and expenses have been paid.
• Contingent Bequest: If a named beneficiary is not alive when you pass away, all or a portion of your estate will go to Durham Academy. This type of bequest can avoid costly litigation or prevent property from reverting to the state for lack of heirs.

In year-end legislation, the Consolidated Appropriations Act of 2016 finally made permanent qualified charitable distributions (QCDs) from individual retirement accounts.  This allows individuals aged 72 (70½ if you reach 70½ before Jan 1, 2020) to make charitable gifts directly from a traditional IRA account to charity without incurring federal income tax on the withdrawal.  The IRA Charitable Rollover provides you with an excellent opportunity to make gifts during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To Qualify:

• Only individuals who have attained age 70½ or older may make the gift.
• Transfers must be made from any IRA or retirement annuity, directly to Durham Academy, but not from a simplified employee pension, a simple retirement account or an inherited IRA.

Benefits – Qualified Charitable Distributions

• Can total up to $100,000 (SECURE Act change: The amount of your qualified charitable distribution will be reduced by the amount of any deductible contributions you make to a traditional IRA for the years in which you were age 70½ or older.
• Are not included in your gross income for federal income tax purposes on your IRS Form 1040 (however, no charitable deduction is available)
• Count toward your minimum required distribution for the year from your IRA
• Gifts must be outright. Distribution to donor-advised funds or life-income arrangements – such as charitable remainder trusts and charitable gift annuities are not allowed.

To Make the Contribution:

To make a contribution, instruct your IRA trustee or custodian to make a transfer from the IRA directly to Durham Academy. Many trustees and custodians already have forms and procedures in place to make this transfer. It won’t qualify if the trustee or custodian makes the mistake of putting IRA money in a non-IRA account of yours as an intermediate step. It won’t qualify if the check is made out to you. The law doesn’t provide a way to correct mistakes. The Internal Revenue Service has said that a check from an IRA may be made payable to a charitable organization described in section 408(d)(8) and delivered by the IRA owner to the charitable organization.
 

A primary or vacation residence or other property may be used to fund a charitable gift. Donors may choose to continue to live in a house or give a home outright. Investment property may be gifted as well.

Many people own outdated or unneeded life insurance policies. One’s circumstances may change. Consider donating an unneeded insurance policy to Durham Academy and receive a charitable tax deduction while you are making a special gift.

A person(s) irrevocably transfers to Durham Academy some cash or other property and DA agrees to pay the donor or other beneficiaries guaranteed payments for life.

A trust that is held for the benefit of Durham Academy in which the principal of the gift is invested, and the income is distributed to DA.

A donor irrevocably transfers assets to Durham Academy and DA receives income payments from the trust for a specified number of years. The trust makes a fixed-dollar payment annually to Durham Academy. At the end of that term, the assets of the trust are returned to the donor.

Durham Academy receives income payments from the trust for a specified number of years. The trust pays a fixed percentage of the market value, determined annually, to DA. At the end of that term, the assets of the trust return to the donor.

An irrevocable trust in which a donor gives cash or assets to the trust, allowing the payment of income to one or more persons for their lives or a term of years. At the end of this time, the trust's assets are given to Durham Academy. The donor receives a fixed income from the trust for the rest of his/her life. The trust assets become the property of DA upon the donor's death or in a pre-established period.

An irrevocable trust in which a donor gives cash or assets to the trust, allowing the payment of income to one or more persons for their lives or a term of years. At the end of this time, the trust's assets are given to Durham Academy. The donor receives variable income from the trust for the rest of his/her life. The trust assets become the property of DA upon the donor's death or in a pre-established period.