New Hampton School Planned Giving

THINKING ABOUT

YOUR CHARITABLE PLANNING

T H E VA L U E O F G I V I N G

When giving is planned, thoughtful and purposeful, it can be an opportunity to embark on a personal journey, to learn more about community, to create a lasting legacy, to steward a community, and to pass values on to future generations. It can be a source of tremendous personal satisfaction.

This booklet is designed to summarize in general terms the range of charitable giving options. It also explains the giving procedures that can increase tax and economic benefits for the donor while providing important financial resources for the future of New Hampton School.

“ We make a living by what we get, but we make a life by what we give.� — Winston Churchill

The Value of Giving

A planned gift is a gift of assets which may involve the assistance of a professional advisor or an estate planner who is retained by the donor.

It can be an outright gift, a life income gift, or a charitable bequest.

It can be made during the donor’s lifetime or at the time of death. A planned gift is frequently motivated by a desire to meet a specific need of the donor, rather than a specific need of the charity. In this sense, it can be described as donor-driven.

made to support New Hampton School, most planned gifts are made as a result of a careful review of the interrelationships between the donor’s discretionary assets, available gift methods, tax consequences, and family considerations.

A planned gift may help address an estate planning objective, a family consideration, or a major tax issue.

In fact, after the decision has been

It is because of these economic and tax benefits that planned giving makes charitable giving attractive and affordable for many.

Multiple Tools for Giving

M U LT I P L E T O O L S F O R G I V I N G

are

available to ensure that your desire to support the needs of future generations of New Hampton School students and the programs of the School are realized.

Donors of all income levels and financial capacities can support the future of New Hampton School with these tools.

There are various giving options from which you can choose—from gifts of life insurance to naming New Hampton School as a beneficiary in your will.

Several planned giving options can be found in the following pages.

B E Q U E S T S The easiest and most common method of charitable planned giving is the bequest through your will. This gift comes directly to New Hampton School upon the death of the donor. A will can be changed at any time with an amendment, which means the donor does not have to rewrite their entire will. A separate document can be written as an addendum to include a specific amount, a specific asset, or a percentage of one’s estate.

Suggested language for an unrestricted bequest provision for New Hampton School is as follows:

“I give, devise, and bequeath to the Trustees of New Hampton School, a corporation duly existing under the laws of the State of New Hampshire, and located in New Hampton in said state, _______ dollars ($_________), or _________ percent (______%) of my residuary estate, whichever is less, to be used for the benefit of New Hampton School as the Trustees thereof may direct.”

R E T I R E M E N T P L A N S Using an IRA or a qualified retirement plan for a charitable bequest can benefit you, your heirs, and New Hampton School. This vehicle may allow you to avoid estate and income taxes entirely.

This can be achieved by contacting your plan administrator and asking for a Change of

Beneficiary Form. Remember that you may have more than one beneficiary of your IRA or qualified retirement plan. You may designate only a portion of the plan to charity and still benefit a loved one; or you may designate all of it.

D O N O R -A D V I S E D F U N D S If you

want an offset for taxable gains and an ongoing chance to influence how your gift dollars are targeted, a donor-advised fund may be the appropriate choice for you. You may donate cash, stock, real estate, or other assets to support New Hampton School, along with other charities. This kind of fund acts like a private foundation but is simple and more cost effective. Donor-advised funds are often provided by community foundations and through financial advisors that serve clients with philanthropic intent.

G I F T A N N U I T Y A charitable gift annuity will provide you with increased lifetime income at rates that compare favorably to current investments. You may give cash or publicly-traded securities to a non-profit organization in exchange for a promise to make fixed annual payments to you, you and your spouse, or someone you designate as a

HOW IT WORKS Giving through a charitable gift annuity

beneficiary. You receive an immediate income tax deduction for a portion of the gift, and a portion of each payment is treated as a tax-free return of capital. New Hampton would receive the remainder of the fund upon the death of the last beneficiary. You can elect to receive payments immediately or you can defer them until a later time you might need them.

R E M A I N D E R T R U S T A charitable remainder trust may accept a variety of assets including appreciated securities, real estate, and other assets. The trust will provide you and/or other beneficiaries with income for your lifetime or for a period of time not to exceed 20 years. You receive an immediate

HOW IT WORKS Giving through a charitable remainder unitrust

income tax deduction. At the end of the trust’s term, the balance is transferred to New Hampton School. You may designate how you would like New Hampton to use the trust once it has terminated. Many choose to add the remainder to the endowment to remain in their name in perpetuity.

A C H A R I TA B L E L E A D T R U S T provides a unique opportunity for individuals to protect their assets for their children and grandchildren from estate and gift taxes. A lead trust is an irrevocable arrangement that provides annual gift income from the lead trust assets to a charitable institution, such as New Hampton School, over a period of years.

At the end of the designated time frame, the remaining lead trust assets are given to noncharitable beneficiaries, usually children or grandchildren. Lead trusts are particularly appropriate for assets that are likely to appreciate substantially over the life of the trust (typically 10-20 years).

H O W I T W O R K S Giving through a charitable lead trust

“Giving of any kind... taking an action... begins the process of change, and moves us to remember that we are part of a much greater universe.”

— Mbali Creazzo Planned gifts to New Hampton School are essential

to our ability to provide an extraordinary education.

For more information, call Sandy Colhoun Director of Advancement 603-677-3413 scolhoun@newhampton.org or visit www.newhampton.org

1821 SOCIETY The strength of New Hampton School depends in large part upon the foresight and support of those alumni, parents, and friends who have chosen to include the School in their estate plans. The 1821 Society serves to acknowledge their confidence and vision.

If you have New Hampton School in your estate plans and have not notified the School or would like more information in doing so, please contact Sandy Colhoun, Director of Advancement, at 603-6773413; scolhoun@newhampton.org

Members of the New Hampton community who have established bequests, life income gifts, and charitable trusts for the ultimate benefit of the School recognize the value of a New Hampton School education and their responsibility to help preserve and ultimately improve the opportunity for future generations.

New Hampton School does not

New Hampton School is most appreciative of the generous commitment made to ensure the School’s future by the Society’s current members.

By indicating your intentions to remember New Hampton School in your estate plans, you earn membership in the 1821 Society.

act as legal counsel or financial advisor to donors, who are encouraged to seek professional advice before making any gift commitment to the School.

New Hampton School 70 Main Street New Hampton, NH 03256 603-677-3413 www.newhampton.org