How to Create an Endowment

Ways to Give to the Salem Educational Foundation

The Salem School Division excels in providing academic quality, innovative programs, and academic support for both teachers and students. The Salem Educational Foundation & Alumni Association (SEF&AA) is a nonprofit organization dedicated to funding scholarships and grants to Salem High School students who choose to go on to institutions of higher learning. We invite you to review the following ways that you can assist the Salem Educational Foundation’s pursuit of excellence.

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.

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

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.

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 estate 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.

Deductibility

The methods of gifting are not intended to be a substitute for specific information provided by an attorney, qualified tax advisor, or estate planner. Donors should carefully evaluate their specific situation with a qualified professional Planner. In no case shall SEF&AA be liable for investment or tax information or its applicability to any individual situation.