The Salem Educational Foundation and Alumni Association Endowment
Salem Educational Foundation and Alumni Association Endowment Goals
The Salem Educational Foundation and Alumni Association has set goals to significantly increase the endowment fund. The goals include building established and new scholarships, funding the costs of the Andrew Lewis dedication ceremony and scholarship, and increasing the value of the underfunded endowments.
The primary purpose of the foundation is to financially support existing endowments and establish new ones, and award scholarships to deserving graduates from Salem High School. The foundation was incorporated as a charitable organization in 1983 and two scholarships were given in 1984.
A ceremony for the dedication of General Andrew Lewis was celebrated in 2000, and funds are being requested to support the statue cost and other related activities. The endowment will provide a scholarship in the name of Andrew Lewis to a student who plans to major in history, government or serve in the military. All donors who contribute $500 or more will be listed on a permanent plaque near the statue.
The foundation is actively contacting businesses, organizations, and individuals to request financial support for the endowments. There are many students who need financial help with the ever-increasing cost of education.
The foundation is providing a number of gifting options that may be considered for funding the endowments. These include outright gifts, securities, bequest by will, real estate, life insurance and retirement plan. This provides donors with a very flexible means of planning on a short-term or long-term basis to financially support the foundation.
Special attention is being paid to the underfunded endowments because they normally do not produce a scholarship until they have reached a value of $10,000.
Anyone interested in contributing to the endowment program is encouraged to contact a board member of the foundation at P.O. Box 1461, Salem, VA 24153.
Ways to give to the Salem Educational Foundation
GIFTS OF CASH
Gifts of cash are the most common and often the simplest to make. Checks should be made payable to the Salem Educational Foundation & Alumni Association (or SEF&AA ). You may include a note specifying your intent to support a given endowment or scholarship program. Otherwise, your gift will be used wherever it is needed the most. If you designate a specific endowment area or general scholarship program, your gift may remain unrestricted, or it can be targeted for a particular purpose within that educational area.
GIFTS OF SECURITIES
Gift of appreciated stocks, bonds, or mutual funds can provide special tax advantages. These include a charitable deduction for the full fair market value of the gift and avoidance of capital gains taxes. The simplest way to make a gift of any security is to instruct your broker or banker to transfer the stock to the Salem Educational Foundation and Alumni Association. You or your broker may contact the Foundation's Chairman for transfer instructions and brokerage account information. In addition you should notify the Foundation as to the specific endowment or program or purpose of the gift.
Gifts of securitties can often be executed by mail. For example, stock certificates may be mailed, unsigned, to the Foundation. In separate envelope, mail a signed stock power of attorney form, which may be available from your broker or local bank. The Foundation can also assist you in locating the form.
The deduction value of the stock is often determined by taking the average of the high and low value of the stock on the date of the gift. Subchapter S corporate assets rather than stocks make more appropriate charitable gifts.
MEMORIAL GIFTS
A gift may be designated in memory of a friend or loved one. The family of the person honored will be notified of the gifts.
GIFTS IN KIND
Tangible personal property of value may be donated to the foundation. Such items that relate to the "charitable purpose" of the Foundation may be eligible for a deduction in the amount of the full fair market value. Please contact the Foundation's Chairman or the Chairman of the Endowment Committee for further information on such gifts.
CORPORATE MATCHING GIFTS
You may be able to multiply the value of your gift by participating in a matching gift program provided through an employer or board membership. Companies may match charitable contributions at a 1:1 or 2:1 ratio. Your employer's personnel or human
resources office can provide you with information and forms to take advantage of this unique opportunity to greatly benefit the
Foundation and the many students who benefit from it. Gifts from retirees and spouses may even qualify.
GIFTS OF REAL ESTATE
Gifts of homes or other real estate can receive the same tax treatment as gifts of appreciated securities. If the property has
appreciated over time, its sale may result in a substantial amount of capital gains taxes being due. If debt-free property is
transferred to the Foundation, the donor receives a deduction for the appraised value. Donations of real estate are preferred when they are not subject to liens or restrictions that may affect their market value.
PLANNED OR DEFERRED GIFTS
Although outright gifts provide crucial resources for current programs, deferred gifts build the Foundation for the future. Giving
through estate plans or life income gifts is particularly suitable for those who would like to support the Salem Educational
Foundation's efforts and promote academic excellence with a significant gift that may not be possible to make outright.
BEQUESTS BY WILL OR LIVING TRUST
The most common form of deferred or planned gift is a charitable bequest. A will or living trust is a very personal matter and
should be prepared with an attorney. The following language is an example of how a bequest may be worded: "I give, devise and bequeath to the Salem Educational Foundation and Alumni Association, a charitable corporation located in Salem, Virginia, _____ percent of my estate (or $_________ or other personal property appropriately described) to be used for: (specified use is either identified or unrestricted use is identified)".
LIFE INCOME GIFTS
Numerous tax and financial benefits may be realized with a "life income gift" such as charitable gift annuity or charitable remainder trust. The donor makes an irrevocable gift of cash, securities, or property and receives income for him or herself (may include another beneficiary, such as a spouse) for either life or a specified term of (1 to 20) years. When the specified period ends, the remainder goes to support the efforts of the Foundation.
CHARITABLE LEAD TRUSTS
This type of charitable trust pays the charity a fixed amount or percentage of an asset for a term of years. Thereafter, the assets
are passed on to loved ones, and applicable estate, gift and generation skipping taxes on the trust assets may be significantly
reduced.
GIFTS OF LIFE INSURANCE
You may want to consider naming the Salem Educational Foundation and Alumni Association as beneficiary of a life insurance
policy. If the Foundation is named both the sole owner and the beneficiary, the contributor is eligible to receive an immediate
charitable deduction for the policy's fair market value or the net premiums paid, whichever is less. Additional premiums paid may also be tax deductible.
RETIREMENT PLAN GIFTS
Designation of the Foundation as primary or contingent (after the spouse) beneficiary of a private pension fund (such as an IRA,
SEP, 401 (k), profit sharing plan, etc.) can result in the most "taxwise" gift possible. This is because the retirement accounts are
subject to taxes that other estate assets may avoid. Simply designate the SEF&AA as beneficiary on your plans "Beneficiary
Designation" form.
RETAINED LIFE ESTATES
You may generate a current income tax deduction by giving a home or other real extate to the Foundation while retaining the right of occupy, rent or otherwise use the property during your lifetime. The property will also be removed from your taxable estate.
The Foundation wants to highlight underfunded endowments in hopes of making more scholarships available to Salem High School students. A few of these endowments are not far from reaching the $10,000 needed to be fully funded and produce a scholarship. Here is a list of the underfunded endowments:
Chance Crawford Endowment
James Pringel Endowment
John & Lillian Jennings Endowment
Lake Spring Garden Club Memorial Endowment
Poff, Thelma Lee Memorial Endowment
Dr. Lewis Romano Scholarship
Salem-Roanoke County Bar Association Endowment
Mr. & Mrs. Fred Wheeling Endowment
If you are interested in helping any of these underfunded endowments reach scholarship level, please contact a board member of the foundation at P.O. Box 1461, Salem, VA 24153.
