DESTINY DEFINED A FINANCIAL AND CHARITABLE PLANNING GUIDE FROM HYDE SCHOOLS
WHAT ARE YOUR REASONS FOR HELPING OTHERS? Everyone has different reasons for making charitable donations. No matter why you choose to support Hyde’s mission, you are joined by many others like you who make a big difference in the lives of the families at Hyde. What are your reasons for giving?
Paul Schneider and his son, Alex ’01.
It’s the right thing to do. When you are asked to serve on a fundraising committee or sponsor an activity, you always help out. You give because you’re a responsible person who feels morally obligated to do your part. It’s a family tradition. The charities you support may be the same ones your parents and grandparents supported. Your family taught you the “why” of giving, and you want to perpetuate your family values. Doing so can also teach the next generation about being philanthropic. You want to give something back. Your giving is based on help you have received in the past. Giving back allows you to show your appreciation for that help, and it also allows others to receive that same support. You want to make a difference. You contribute to organizations that
“My son, Alex, attended Hyde School for four and a half years, and we as a family benefited greatly from our Hyde experience. Alex spoke often of Hyde and wished he could return to contribute something to the school. Unfortunately, he died unexpectedly at age 27. In loving memory of Alex, every year on his birthday, I make a contribution to Hyde. I have also made Hyde a beneficiary on my life insurance policy. I feel there is no better tribute to Alex than helping to secure Hyde’s future for students and families.” —Paul Schneider
seek change. By giving to Hyde, you help create a better future for generations to come. You feel called to give based on your values. Your philanthropy is based on principles, and you give to organizations that reflect your ideals. By doing so, you help them fulfill their missions. If you would like to continue to support Hyde, we would be happy to help you plan a gift that helps us continue our mission while meeting your financial goals. For more information contact Carl Young at (207) 386-5205 or by e-mail at firstname.lastname@example.org.
You Can Make a Difference When making a planned gift (e.g., a bequest in your will, trust provisions or beneficiary designations) you can
Inside: Q&A: Supporting Your Favorite Causes When Money Is Tight » Spotlight on Gifts of IRAs » President’s Note
Q&A: SUPPORTING YOUR FAVORITE CAUSES WHEN MONEY IS TIGHT Whether a gift is $100 for an annual appeal or $500,000 to endow a program, all forms of giving are appreciated. But we understand that with all the demands on your time and wallet, it’s sometimes difficult to do as much as you’d like to support our cause.
Following are a couple common questions about providing support when money is tight, along with simple solutions that can help you give no matter your account balance. Q. “If I have children and grandchildren to worry about, and they come first, how can I have enough money left to also support my favorite causes?” A. Having enough money to provide for your loved ones is your primary concern. Just as influential is the fear of outliving your income. Paying for housing, education and health care negates the thought of giving money away. Luckily, estate planning attorneys know many methods of fulfilling your philanthropic desires without jeopardizing your family’s security. The easiest way to remember Hyde Schools is through a gift in your will or living trust for a percentage of your estate after your loved ones receive theirs. This gift supports our work in the future and allows you to alter your gift at any time, should it prove necessary for family needs. Q. “I am not rich—how can I be generous without busting my budget?” A. There is not enough money to support all the charitable requests.
But “money” can also include assets. Many people keep about 7 percent to 10 percent of their money in cash, which is used to meet everyday living expenses. The rest of their wealth is composed of securities, bonds, personal property, real property and business assets; these assets typically make for tax-smart charitable gifts. Contact us to learn about the valuable tax benefits you will receive with a gift using any of the following: • Stocks. For current donations of stocks you’ve owned for more than one year and that are worth more now than when you purchased them, you receive a charitable income tax deduction for their full fair market value— not the price you originally paid.
• Life insurance policies. You can donate a no-longer-needed policy or simply name Hyde Schools as the beneficiary. • Retirement plan assets. Highly taxed, these assets make excellent charitable gifts after your lifetime since, as a tax-exempt charitable organization, we receive the full amount. You can choose to leave your heirs other assets that are less costly to inherit. • Real estate. You can donate your home now, yet live there for the rest of your life.
We Can Help To learn more about these or other ways to support our important mission, please contact Carl Young at (207) 386-5205 or by e-mail at email@example.com today. We would be happy to help you find the form of giving that meets your goals.
VISIT US ON THE WEB AT WWW.HYDE.EDU/GIFTPLANNING
SPOTLIGHT ON GIFTS OF IRAs Finally, after a lifetime of hard work, retirement is here. More than likely, a substantial portion of your savings is in your IRA. And, as you plan your estate, you may be considering how to use those savings to benefit your heirs.
Did you know that IRA assets are subject to income tax when left to your family? Your spouse may be able to defer those taxes, but other loved ones cannot. The income tax bill can reduce your IRA by as much as 35 percent. There is an alternative, however. If you would also like to make a gift to support Hyde Schools, see why your IRA might be the perfect asset to use by reviewing the chart below.
Compare the Tax Consequences $100,000 IRA Left to Your Family vs. Hyde Schools Your Chosen Beneficiary Your IRA Value at Your Death Federal Income Taxes
(Assumed 35 percent marginal income tax bracket)
Net Amount Paid to Beneficiary
Making a gift of your IRA after your
lifetime is simple. Contact us or return the enclosed reply
How to Make a Gift of Your IRA
card for more information
If you’re interested in this tax-efficient form of giving and would like to name Hyde Schools as beneficiary, simply contact your IRA plan administrator for a change of beneficiary form. Decide what percentage you would like us to receive, and name us, along with the percentage you choose, on the beneficiary form. Then return the form to your plan administrator.
THE SECRET TO MAXIMIZING YOUR TAX ADVANTAGES
Learn why your IRA makes an excellent charitable gift—and not such a great inheritance for your heirs—by requesting your FREE copy of Use Your IRA the Smart Way using the enclosed reply card.
about this tax-wise way to support Hyde Schools.
USE YOUR IRA
THE SMART WAY
D109-C © The Stelter Company • The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to income tax apply to federal taxes only. Federal estate tax, state income/ estate taxes or state law may impact your results.
SUMNER HAWLEY SOCIETY The Sumner Hawley Society was named after Sumner Adams Hawley, who co-founded Hyde School in 1966. The society recognizes individuals and families who make a planned gift to Hyde Schools or have included Hyde in their estate plans.
President’s Note Destiny Defined is published periodi cally to provide you with current and useful information about fina and estate planning, along with othe ncial r charitable gift arrangements that can be mu tual ly ben efic ial to both you and Hyde Schools. Our hope is that each issue will spark interest in pro viding for your loved ones as wel for those not-for-profit institutions l as most important to you during you r lifetime. Although each person’s Hyde stor y is unique, there is always a com mon theme of gratitude and belief purpose and mission. Our commit in our ment to an excellent, character-based fam ily edu cati on can only be truly realized through continued generos ity in planning for our long-term futu re. Now is the tim e to take all that we have achieved—both in institut ional momentum and philanthropic investment—to the next level. We encourage you to consider sup porting Hyde’s long-term success by calling Carl Young at (207) 386 or e-mail firstname.lastname@example.org to disc -5205 uss the many different ways to pro vide for Hyde through estate plan and planned giving. ning Thank you for your continued sup port. If you haven’t done so already , I encourage you to find out about becoming a member of the Sumner Hawley Society.
ACTION LIST Thank you for your
Return the reply card to receive our FREE guide, Use Your IRA the Smart Way.
Contact Carl Young at (207) 386-5205 or by e-mail at email@example.com to learn about the many ways you can support us when money is tight.
Meet with your estate planning attorney to update your plans to reflect any changes.
support! Your gift, large or small, helps us carry out
Planning Measures You Can Take Today
our charitable mission.
Carl J. Young, MBA 616 High Street • Bath, ME 04530-5002 (207) 386-5205 • Fax: (207) 386-5201 firstname.lastname@example.org • www.hyde.edu/giftplanning