Planned Giving Brochure

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UNLOCKING THE POTENTIAL NOW... AND IN THE FUTURE


How investing in Pilot School’s endowment program can benefit you and the school


The Director’s Perspective At a certain point in the development of a wellmanaged, non-profit educational institution, that institution’s leaders must take definitive steps to assure their school’s long-term financial viability. Even if there are one or more endowment funds already in place, the most significant action trustees can take is to initiate a serious, proactive plan to increase and diversify those endowed funds. Those special friends of Pilot who want to make a generous investment to increase tuition aid, assist with our operating needs, or support faculty education can do so through Pilot’s professionally managed planned giving program. We are hopeful that the individuals who have supported us for so many years will consider both Pilot’s priority needs as well as the many tax advantages available to them by establishing a planned gift. Alix Kokkoris Director

What is an Endowment Fund? An endowment is a fund that is restricted by a non-profit corporation’s Board of Trustees. Only the fund’s interest income and earnings can be spent, not the principal, as it is the principal which generates the interest on an ongoing annual basis. Usually, only a portion of interest or earnings is spent, ensuring that the fund’s assets can increase over time through reinvestment. Professional money managers oversee the actual investment of Pilot’s endowment funds but these managers are guided and directed by the Board’s Investment Policy and its Investment Committee.


Strengthening its Endowment... For Pilot School, Now is the Time for

Future Generations

n 1957, Mary Kaye Carpenter, the mother of an elementary school student, and educators Doris LeStourgeon and Jo Myers founded Pilot School. These enlightened women shared the belief that consistent, hands-on learning experiences that took advantage of a child’s special strengths and interests would unlock their ability to learn. Today, more than 60 years later, their years of dedicated work have resulted in Pilot School’s recognition as a respected school for intellectually capable youngsters experiencing learning problems. For over six decades, the lives — and the families — of Pilot students have been changed by the foresight and determination of the school’s founders. Pilot School’s mission is to prepare each student for eventual return to a regular educational setting. Serving children ages five through fourteen, Pilot develops an ungraded, individualized education plan for each of its children. Over the last ten years, Pilot School has successfully raised millions of dollars to build the new school while still maintaining a strong annual operating budget. A critically important goal now is to encourage prospective donors to consider Pilot in their long-term charitable giving.

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Why Consider Pilot School in Your Charitable Planning Pilot School is a respected, stable institution with a demonstrated history of responsible financial management and educational quality. Over the years, it has earned the confidence and the generosity of hundreds of donors who have viewed their gifts as a meaningful investment in a successful educational organization.

There are numerous reasons for considering a gift to Pilot’s endowment. ■ You,

your child, or a member of your family may have attended Pilot and benefitted from the school’s individualized, therapeutic programming. You are grateful to Pilot School and want to support it in a special way. ■ Your

child’s life was changed dramatically by his or her relationship with one very special teacher. Now you would like to honor that educator by establishing in their name a scholarship fund for deserving youngsters.

■ You

have an appreciation for Pilot’s mission and how it has improved the quality of life for thousands of children in our area. You now want to create a legacy to help other children and families by establishing a named fund memorializing your family’s appreciation or perhaps honoring a loved one.

■ You

want to assure that one or more of Pilot’s programs that have been especially meaningful to you, such as the tuition aid fund or the athletic program, will have a stable stream of funding in the future.

■ You want to generate reliable, recurring income for your current needs and receive favorable tax considerations while also benefitting Pilot in the future.

You can achieve one or more of these goals through a simple bequest in your will or through a trust agreement. Pilot School’s professional advisors are familiar with planned giving tools and techniques that can: ■ provide current income and a significant charitable gift at a later date ■ reduce income taxes, capital gain taxes and/or estate taxes ■ establish in your name a philanthropic legacy that will continue in perpetuity.

When I think of Pilot School, I remember our son Teddy receiving the Al Wentz Citizenship Award, holding up the trophy, exuding self-confidence, pride and happiness. It’s very fulfilling to know that our planned gift will allow other children to experience this same high quality of learning. Gail Sezna, Parent and Former Trustee

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Key Considerations

Regarding Pilot’s Endowment Fund and its Donors ilot School has four principles by which it manages its endowment funds and the gifts contributed to them. Pilot and its professional advisors will: 1. always consider the best interests of its donors as the first priority in helping to plan or in accepting any prospective gift. 2. adhere to an industry-standards Gift Acceptance Policy that delineates the bases on which the Board will accept or not accept and then value a potential gift. This document is available to any prospective donor and their professional advisors. 3. follow an Investment Policy that protects the interests of its donors and the institution. This document too is available to any prospective donor and their professional advisors. 4. develop the priorities for which it will seek and accept funds. (See following.) While the creation of other funds will certainly be considered, in general, Pilot prefers to accept gifts that will benefit its previously-identified priority programs and projects. It is Pilot’s policy to not accept real estate and personal property (e.g., houses, cars, boats, recreational vehicles) as gifts to an endowment fund. However, special circumstances may be presented to Pilot School’s Director and Board of Trustees for review and determination of acceptance.

We call Pilot “a surprise school.” “Surprise” because we had never envisioned our daughter needing the individualized attention for which the school is so very skilled. While we were able to afford Pilot, we know that many parents do not expect to face the financial challenge for a private school such as Pilot. That’s why we have given to the Tuition Aid Endowment Fund. Coo and Jamie Murray

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A diverse educational foundation is required if Pilot’s children are to learn and prosper as they take on their life’s work. Pilot School provides that foundation but, unfortunately, tuition only covers about 77% of our actual per-child costs, thereby making a strong endowment a prerequisite to a successful and financially viable school. We hope that Pilot’s planned giving program will appeal to those who want to strengthen Pilot’s endowment while also benefitting from the program’s attractive tax considerations. H. Rodney Scott, Board of Trustees

When I brought the circus to town for a Pilot School benefit, my vision was to create an endowment fund for tuition aid. I had a son who was fortunate to be able to attend Pilot. When I saw what Pilot’s devoted faculty had done for him, I wanted to ensure that others less fortunate would be able to receive the same experience. Pilot School is definitely in my planned giving. Tory Kitchell, Parent, Grandparent, and Trustee

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Types of Endowments

That Will Most Benefit Pilot School

he Board of Trustees and School Director have established the following priorities for which they seek endowment gifts. There are already existing general funds for two of the six priorities: Tuition Aid and Campus Stewardship. Contributions in any amount to augment these restricted funds are both needed and welcomed! The Board of Trustees will establish and name restricted funds in recognition of the generous donors who want to help underwrite the ongoing costs of the school’s six most important needs.

While I had approached my retirement with joy and trepidation, the actual day brought the most meaningful gift my husband could have ever honored me with. After 28 years as Pilot’s school psychologist, I know that my husband’s establishment of the Christiane Shields Tuition Aid Endowment Fund will enable the continuation of my caring for the special children with whom I so loved to work. Christiane Shields, Former School Psychologist 6


1. Tuition Aid Endowment Fund $10,000 to establish a named fund $25,000 to begin distributions Pilot’s mission includes a commitment to serve a socio-economic cross-section of children, regardless of their family’s ability to pay. Over the years, Pilot’s leaders have increased the availability of financial aid by successfully securing many generous gifts. Pilot’s leaders welcome charitable investments by additional friends who may want to make Pilot’s education available to other youngsters of families with limited means. These individual/named funds would be included within and invested with Pilot’s existing Tuition Aid Endowment Fund.

4. School Director Chair $1,000,000 (e.g., The John Reed School Director) Establishment of this fund will help the Board of Trustees attract and competitively compensate exceptionally skilled administrators to lead Pilot School. 5. Departmental Chairs $500,000 (e.g., the Mary Hamilton Chair in Media Arts) Endowing a Chair is a prestigious way to demonstrate generous support of a certain aspect of or subject within Pilot’s broader academic model. In the education community, investing in an endowed Chair lends prominence to the named department and reflects the donor’s appreciation for its value to the school’s students.

2. Campus Stewardship Endowment Fund $10,000 to establish a named fund $25,000 to begin distributions This fund generates interest income to help pay for the many expenses of maintaining the school’s 50-acre campus, parts of which — such as the trails and walking paths — are also used by community residents. The almost year-round grooming of Pilot’s expansive and diverse campus is particularly important because so many of Pilot’s classes and class assignments are taught outside and experienced on the campus’ fields, streams, and woods. As with the Tuition Aid Fund, these individual/named funds would be invested within Pilot’s existing Campus Stewardship Endowment Fund. 3. Faculty Professional Development Fund $10,000 to establish a named fund $25,000 to begin distributions Pilot’s mission, reputation and cutting edge therapeutic programming are key motivations for educators who value the opportunity to change students’ lives. Pilot attracts high caliber teachers who regularly seek to further their education. Donations to this fund will allow the School Director to offer professional development opportunities.

The annual interest income generated by the corpus of each restricted endowment fund will allow Pilot’s leaders to attract exceptional educators as Departmental Heads, while also providing additional revenue for every Department Head to create and fund new initiatives. The Chairs for which the trustees are seeking endowed investments are:

■ Therapies: Physical, Occupational, Speech & Language, and Aquatics

■ Language ■ Arts:

Arts

Art, Music and Media Arts

■ STEM: Science, Technology, Engineering, and Mathematics

6. Athletics Fund $10,000 to establish a named fund $25,000 to begin distributions Participation in team sports by students is a vital, year-round part of the Pilot learning experience. But the constant wear and tear on the school’s extensive inventory of equipment by over 150 students every day, ten months a year, make Pilot’s athletic programs an expensive aspect of the school’s programming. A named fund will help to underwrite the ongoing costs of this multifaceted, participatory program. Special circumstances regarding the endowing of other than the aforementioned priority funds may be presented to the School Director and Board of Trustees for review and determination of acceptance.

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Simple, Beneficial Ways to Make a Planned Gift here are a number of ways to contribute that will help you achieve your goals of assisting Pilot School while generating tax advantages for you and your family. While the advice of your financial advisor will help identify the most advantageous way for you to contribute, some of the most popular ways to make a deferred gift include the following:

1. Bequest

Through a bequest in your will, you may contribute to an existing fund at Pilot School or establish your own named fund. Bequests are typically in the form of a fixed dollar amount or a percentage of the estate after taxes.

2. Charitable Remainder Trusts

This type of trust provides for you or your designated beneficiaries — children, parents, or even a friend — to receive income for life. When the trust ends at your death, that of the beneficiaries, or at the end of a term of years, the remainder assets will establish a fund at Pilot School for the purpose you select: tuition aid, faculty development, and so on. You will also receive an immediate income tax deduction in the year the trust is created.

2a. A Charitable Remainder Annuity Trust pays the donor or their beneficiary a fixed dollar amount based on a percentage of the fair market value (at least 5%) of the assets placed in the trust. The payout amount remains constant, regardless of the increase or decrease in the trust’s assets.

2b. A Charitable Remainder Unitrust pays a percentage of the fair market value of the

assets in the trust as revalued annually. If the value of the assets increases, trust payments increase. If the trust value declines, so will the payout.

3. Charitable Lead Annuity Trust

This trust provides interest income to Pilot School for a fixed number of years. At the end of this term, the remaining assets in the trust are returned to you or your heirs.

4. Retirement Accounts

Qualified retirement plan accounts, including IRAs, were long subjected to state and federal income tax as well as estate tax. However, federal law has now made it easier for individuals to use these saved assets to benefit their favorite charities.

5. Life Insurance

You may contribute an existing life insurance policy, take out a new policy, or name Pilot School as a beneficiary of an existing policy. Depending on the arrangement, an immediate tax deduction and/or estate tax deductions may be available. Premium payments may also be tax deductible.

The Board of Trustees has established The Key Society to honor and recognize those individuals or couples

who have finalized a planned gift to Pilot School. Building the membership of the Society is a high priority of

the school’s Trustees as part of their efforts to secure a strong financial foundation for Pilot’s future. We hope you will consider joining with us as we endeavor to build this legacy of excellence for generations to come.

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I found that a Charitable Remainder Unitrust was not only the right vehicle to facilitate a gift to Pilot but to also provide income to persons of my choosing for the life of the trust. This is certainly one very beneficial type of trust for everyone to consider in their estate planning. Charles P. Schutt, Jr., Board of Trustees, 1973 – 2018

Pilot School recognizes the importance of your professional advisor’s expertise. We would welcome the opportunity to work with them to help achieve the goals most important to you and your family. For additional information, please contact School Director Alix Kokkoris at 302.478.1740. 9


After my father died in 2005, our family had strong feelings about establishing a lasting foundation honoring not only his name and his giving nature, but also his pride in his grandsons’ achievements at Pilot School. Our goal in establishing the James M. Quinn Tuition Aid Fund was to provide families who were struggling financially with additional support to lessen the strain so that they could spend more time enjoying their child‌as my father did with his children. Colleen Quinn, Former Parent

208 Woodlawn Road Wilmington DE, 19803 302.478.1740 www.pilotschool.org


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