Give the Gift of Stock or Annuity

One of the basics of good financial stewardship is charitable giving. However, generosity is not limited to cash, checks, and credit cards. In fact, it is possible to be savvy in your financial giving through realizing the efficiency of giving stock. By giving investments, you may deduct the full value of the asset on your taxes, and neither you (the donor) nor The Bridge School (the nonprofit) have to pay a capital gains tax typically associated with the sale of appreciated securities.

Appreciated Stock

If you plan to donate $2,000 to charity, you can donate cash and receive your tax deduction immediately. As a mature investor, you may also have some appreciating shares that you want to sell for profit. Imagine you bought them 10 years ago for $1,000, and now they are worth $2,000. If you simply sell the shares, you have a capital gain of $1,000. If you fall into a tax bracket where you pay the 15 percent capital gains tax rate, you will owe $150 in taxes on that gain. That tax bill will partially offset any benefit you received from donating cash to the charity. But what if, instead of donating cash, you donate the stock? You get to claim the entire $2,000 as a deduction on your taxes, but you don’t have to pay any capital gains tax (and neither does The Bridge School).

Annuity

One of the simplest ways to leave a lasting legacy to benefit our global community is to include specific language in your will or living trust that names The Bridge School as a beneficiary of your estate. Your estate will receive a charitable deduction for the full donation, so your heirs will not pay estate tax on these assets. A charitable bequest may take the form of cash, securities or personal property.

How to give

You can leave a percentage-based, specific, residual, or contingent charitable bequest. To initiate a Bequest application, please leave us a brief message on our online contact form, and your request will be forwarded to our Executive Director, Vicki Casella. A bequest of any amount qualifies you to join The Bridge School Legacy Society, a group of visionary philanthropists dedicated to making a lasting commitment to the future of special education.

Sample Bequest Language

The following four types of bequests direct your major gift to The Bridge School. Please inquire about naming opportunities for gifts of $250,000 and above.

Percentage

Specific

“I give, devise and bequeath to The Bridge School, a California 501(c)3 nonprofit organization (federal tax ID number 95-4068784), located at 545 Eucalyptus Ave, Hillsborough, CA 94010, and its successors and assignees, (the sum of $___________) OR (__________ shares of stock in ________________ company) OR (all my right, title and interest in the following described personal property __________________).”

Residual

“I give, devise and bequeath to The Bridge School, a California 501(c)3 nonprofit organization (federal tax ID number 95-4068784), located at 545 Eucalyptus Ave, Hillsborough, CA 94010, and its successors and assignees, all the rest and residue of my estate, including real and personal property.”

Contingent

“In the event all of the beneficiaries named herein predecease me or are otherwise ineligible to receive a distribution from my estate, I give, devise and bequeath to The Bridge School, a California 501(c)3 nonprofit organization (federal tax ID number 95-4068784), located at 545 Eucalyptus Ave, Hillsborough, CA 94010, and its successors and assignees, (percentage, specific, or residual language as above).”

Putting it All Together

After highlighting the reasons and advantages of planned gifts, we hope that this information will encourage you to take the time to develop and fine-tune your own financial and estate plans. We would like to encourage you to consider The Bridge School in your financial planning.

We understand that each person’s philanthropic expression is unique. For more information and assistance in customizing the sample language to fit your particular goals, please contact us over the phone (650) 696-7295.

Our philanthropy advisor at Merrill Lynch US Trust will work with your financial advisor.