• You want the easiest way to donate to Episcopal.
• You want the largest possible income tax charitable deduction for your gift.
• You would like to make the gift to Episcopal that has the greatest immediate impact.

How It Works

You make a gift of cash directly to Episcopal and you receive an immediate income tax charitable deduction.

What is an outright gift of cash?

An outright gift of cash is when you transfer funds to Episcopal and get nothing of financial value in return. The most common way for donors to make an outright gift is to write a check payable to Episcopal.

Gift provides immediate support

Unlike some other gift arrangements, your outright gift will provide resources that Episcopal can put to immediate use. If you prefer to restrict our use of your gift in any way, please contact us so that we can be sure that we can carry out your wishes.

Maximum tax savings

You may deduct the full amount of your donation up to 60% of your adjusted gross income, providing tax savings if you itemize. You may carry forward all of your unused deduction for up to five additional years.

Ways to give cash

Most donors make an outright gift by writing a check payable to Episcopal and mailing it to us. You may also make a cash gift using your credit card.

Make a gift of publicly-traded securities to Episcopal and potentially save income tax and capital gains tax, too.

A gift of publicly-traded securities could be right for you if:

• You own publicly-traded securities that you have owned for at least one year.
• Some of these securities have increased in value since you bought them.
• Some of these securities may provide you with little or no income.
• You would like to make a gift to Episcopal .

How It Works:

• You transfer shares of one or more publicly-traded securities, such as stock, bonds, and mutual funds, to Episcopal .
• The two most common ways to give publicly-traded securities are to make an outright gift of your securities or to make a gift of your securities and receive payments for life.

What are Publicly-traded Securities?

Publicly-traded securities are stocks, bonds, and other investment vehicles whose values are readily available from an established securities market. For example, stocks listed on the New York or NASDAQ stock exchanges are publicly-traded securities.

Are Mutual Fund Shares Publicly-traded Securities?

Although mutual funds are sold by individual mutual fund companies rather than on an exchange, the same charitable contribution rules apply to mutual fund shares as to shares of publicly-traded securities. Gifts of mutual funds have the same tax benefits as gifts of individual securities.

Tax Benefits of Contributing Publicly-traded Securities

You can save income tax and capital gains tax when you give shares of a publicly-traded security that you have owned for a year or more.

Income Tax Benefit

If you have held your securities for more than one year, and provided you itemize, you may deduct from your taxable income the full fair market value of your shares as of the date of your donation, regardless of what you paid for them. Your deduction is limited to 30% of your adjusted gross income. You may, however, carry forward any unused portion of your deduction for up to five additional years.

Capital Gains Tax Benefit

When you donate publicly-traded securities that have increased in value, and you have owned the securities for more than one year, you do not have to report any of your capital gain in the securities. If you were to sell these securities yourself, you would owe capital gains tax on the difference between the sale price and the amount you paid for them.

Should I Give My Securities or Sell Them and Give the Proceeds?

You should give your securities directly to Episcopal if you have held them for more than one year and they have appreciated in value. This way, you will avoid paying tax on any capital gain you have in your securities. If you sell your securities first and then give us the proceeds, you will have to pay capital gains tax on all of your capital gain, an unnecessary and potentially substantial cost to you.

What is the Advantage of Giving Appreciated Stock Instead of Cash?

When you make a charitable gift of cash, you get an income tax charitable deduction only. When you make a charitable gift of the same value with appreciated stock, you get the same income tax charitable deduction and you avoid capital gains tax on all of your capital gain. The more highly appreciated your security, the more capital gains tax you will avoid.

Should I Make a Gift of Securities that Have Lost Value?

No! If you sell securities that have lost value, you can net that capital loss against capital gains. Even if you cannot take a deduction for loss securities this year, there is a five-year carry forward. If you want to make a gift of loss securities, sell the securities and take the capital loss. You can then donate the proceeds of your sale to Episcopal and use the capital loss to offset future capital gain.

What Happens if I Give Securities that I Bought Less Than One Year Ago?

The charitable deduction available for property you have owned for 12 months or less, so-called "short-term capital gain" property, is limited to either its current full value or what you paid for it, whichever is less. For example, if you give stock worth $10,000 that you purchased nine months ago for $1,000, your charitable deduction will be $1,000, not $10,000.

When you give short term gain property, your deduction is limited to 60% of your adjusted gross income rather than the usual 30%.

Is it Easy to Make a Gift of Publicly-traded Securities?

Yes. Whether you plan to give one share or one thousand shares, it is easy to give your publicly-traded securities to us.

Give Securities and Receive Payments for Life

Another option for giving securities is through a life income plan. Giving securities through a life income plan such as a charitable gift annuity, charitable remainder trust, or pooled income fund allows you to provide income for yourself or others you care about and then provide support to Episcopal . Here's how it works:

• You transfer securities to the life income plan.
• A gift of appreciated securities to a charitable gift annuity, charitable remainder trust, or pooled income fund will typically defer or in some cases completely avoid capital gain from your gift of securities.
• During the term of the life income plan, you receive payments from the plan each year, typically for life.
• When the life income plan ends, its remaining principal goes to support Episcopal .

Using securities to fund a life income plan typically will reduce your income taxes, providing tax savings if you itemize, and reduce or eliminate your capital gains taxes.

There are several life income plan options to choose from. The one that is right for you will depend on a variety of factors. Please let us know if you would like to learn more.

Make a Gift with a Donor-Advised Fund

The Donor-Advised Fund (DAF) is an increasingly popular way to make a charitable gift. DAFs can provide you with immediate tax benefits while making your charitable giving easier. Here are two simple ways you can make a gift through your DAF:

• Make an outright gift now by recommending a grant to Episcopal.
• Create a succession plan to recommend that Episcopal receive all or a portion of the fund value upon the termination of the fund.

You can select the option that best suits your philanthropic and financial goals to support the Episcopal. Just contact your Donor-Advised Fund administrator to recommend a grant to Episcopal or to discuss a succession plan.

If you include Episcopal in your plans, please let us know and be sure to use our legal name and federal tax ID.

Legal Name: Protestant Episcopal High School in Virginia
Address: 1200 N. Quaker Lane Alexandria, VA 22302
Federal Tax ID Number: 54-0506326

Creating a Donor-Advised Fund

Creating a Donor-Advised Fund can provide you with immediate tax benefits while making your charitable giving easier for years to come.

How It Works

You establish a Donor-Advised Fund at a sponsoring charity. This could be a community foundation, a public charity with a Donor-Advised Fund program, or even one of the well-known financial services companies that sponsor DAFs. Check with the sponsor about the minimum contribution required to start a Donor-Advised Fund, which typically range from $5,000 to $25,000. The sponsor may allow you to give your Donor-Advised Fund a unique name. Then, make an initial contribution to start your Fund. You can contribute cash or appreciated assets such as stocks or mutual funds. You’ll get an immediate income tax charitable deduction for your contribution that could reduce your taxes if you itemize.

Once established and funded, you can recommend that your favorite public charities, such as Episcopal , receive grants from your Donor-Advised Fund. Most DAFs have a minimum grant recommendation, or you can recommend distributing the entire balance of your Donor-Advised Fund for a cause important to you.

You do not get an additional income tax charitable deduction for these grants.

You can also create a succession plan with your Fund sponsor to recommend that some or all of the remaining assets in your fund at your passing go to Episcopal and other charities that are important to you.

Episcopal is grateful for grants that come from Donor-Advised Funds. If you are considering establishing a DAF, we can suggest several sponsors for your review. You should also consult your professional advisor for guidance.

Your IRA can provide a tax-smart way to make an impact with Episcopal now. The Qualified Charitable Distribution or QCD (sometimes called an “IRA Charitable Rollover”) is a great way to make a tax-free gift now to Episcopal and satisfy your Required Minimum Distribution (RMD), too.

How Do I Qualify?

The Qualified Charitable Distribution (QCD) offers multiple benefits for making gifts from your IRA.

• You must be 70½ years or older at the time of the gift.
• Gifts must go directly from your IRA to Episcopal High School.
• For 2026, total QCD gifts cannot exceed $111,000 per donor.

Benefits of Qualified Charitable Distribution

• If you don’t itemize your income tax deductions, a QCD offers all of the benefits of an itemized income tax charitable deduction.
• If you are age 73 or older and must take a Required Minimum Distribution RMD, a QCD gift can satisfy your RMD without increasing your income taxes.
• You may direct your gift to a program or area of your choice.
• It is a wonderful way to create an immediate impact on Episcopal.

How Can I Make an IRA Charitable Rollover?

Contact your IRA administrator to request a Qualified Charitable Distribution from your IRA to Episcopal.

Bitcoin and other virtual currencies

A gift of bitcoin, the computer-driven online money system, can be an excellent way to support Episcopal. In February of 2015, the I.R.S. announced that it would treat bitcoin and other virtual currencies as property rather than a currency thereby putting bitcoin on a track to becoming a true financial asset. This decision makes bitcoin subject to capital gains taxes if held as a capital asset in the donor’s hands. 

A gift of virtual currency may be right for you if:

• You own virtual currency that you bought at least one year ago.
• The virtual currency has grown significantly in value since you bought them.
• You want to save income taxes or capital gains taxes.
• You would like to make a gift to Episcopal.

How It Works

You transfer your virtual currency to Episcopal. We sell and reinvest your virtual currency and put it to use in our mission. 

Tax benefits 

You may save income tax and capital gains tax when you give virtual currency that you have owned for a year or more. The tax ramifications of charitable gifts of virtual currency can be complex. Consult your tax adviser before making a gift of virtual currency. Click here for more information on the IRS web site.

Income tax benefit

If you have held your virtual currency for more than one year and acquired your currency for investment purposes, you may deduct from your taxable income the full fair market value of your virtual currency as of the date of your donation, regardless of what you paid for them. Your deduction is limited to 30% of your adjusted gross income. You may, however, carry forward any unused portion of your deduction for up to five additional years. 

Capital gains tax benefit

The capital gains tax treatment of gifts of virtual currency depends on whether the currency is a capital asset in your hands. If it is considered a capital asset, when you donate virtual currency that have increased in value, and you have owned the virtual currency for more than one year, you do not have to report any of your capital gain. If you were to sell this virtual currency yourself, you would owe capital gains tax on the difference between the sale price and the amount you paid for them.

Should I give my virtual currency or sell them and give the proceeds?

That depends. If your virtual currency has appreciated in value, you may be able to avoid capital gains taxes on a gift to Episcopal. Consult your tax adviser as to whether you would avoid capital gain on a gift of your virtual currency to Episcopal. If your virtual currency has dropped in value, you should convert it to cash and donate the proceeds. 

Is it easy to make a gift of virtual currency?

Yes. Whether you plan to give one virtual currency or one thousand, it is easy to give your virtual currency to us.

Consult with us before making your gift

It is important that you discuss with us the virtual currency you are considering for donation before you make your gift. We want to be sure that we can accept it. Also, we will want to discuss with you what will happen to your property once we receive it. We want to be sure we will be able to carry out your wishes. This discussion will also help you anticipate the likely tax benefits of your gift.

• A gift of artwork, coins, antiques, or other personal property can be an excellent way to support Episcopal.
• A gift of personal property may be right for you if:
• You own artwork, antiques, or a collection of value that you no longer want.
• You own other personal property that would be useful to us.
• You want to save income taxes or capital gains taxes.
• You would like to make a gift to Episcopal.

How It Works:

You give your personal property to Episcopal. Either we put your property to a use related to our mission, or we sell your property and use the proceeds.

Gifts of Artwork, Coins, and Other Collectibles

You can use artwork, coins, and other collectibles to make a generous gift to Episcopal. Depending on the property you give us, we may either keep your property and use it for our charitable purposes or sell it and use the proceeds.

Gifts of Other Personal Property

You may own equipment, supplies, or other personal property that you no longer need and would be useful to us. Please discuss these items with us prior to your donation to determine which ones we will be able to put to productive use.

Relieve Yourself of Responsibility

Maintaining valuable collectibles, such as works of art or antiques, can be a big responsibility. By giving your collectible to Episcopal , you will no longer be responsible for keeping it secure, preventing its deterioration, or paying to insure it against damage or loss. If you are in this situation, consider making a gift of the item or items to us.

Tax Benefits

Your gift of personal property will save you income taxes, provided you itemize, and capital gains taxes.

If we are able to use the item(s) you give us to advance our charitable purpose, you will be eligible for an immediate income tax charitable deduction equal to the full appraised value of your property. If we cannot put your property to a "related use," or you direct us to sell your property immediately for cash, your income tax charitable deduction will be limited to the amount you paid for your property.

Whether or not we are able to put your gift property to a related use, you will avoid all potential capital gains tax on your property. If you were to sell property that is considered a collectible, you would have to pay a special 28% tax on the difference between its current value and what you paid for it, rather than the 15% tax applied to sales of securities.

You may also save estate taxes, as once you give your collectible or other personal property to Episcopal the property will no longer be part of your estate.

Appraisal Requirements

You will need a qualified independent appraisal of your property in order to establish the value of your gift. If you give personal property valued at $5,000 or more and you wish to take an income tax charitable deduction for your gift, you will need to include this appraisal with your federal income tax return.

Consult with Us Before Making Your Gift

It is important that you discuss with us the personal property you are considering for donation before you make your gift. We want to be sure that we can accept the property you have in mind.

Also, we will want to discuss with you what will happen to your property once we receive it. We want to be sure we will be able to carry out your wishes. This discussion will also help you anticipate the likely tax benefits of your gift.

There are many options for donating your home, second home, commercial building, vacant land, farm, or other real estate to Episcopal. There may be a gift plan available that will help you achieve your charitable and financial goals.

A gift of real estate could be right for you if you have any of these goals:

• You own real estate for which you no longer want to be responsible.
• You are willing to donate your home if you can continue to live in it.
• You own real estate that you are willing to sell to us for a bargain price.
• You own real estate that you are willing to donate if you get income in return.
• You want to save income taxes.
• You want to make a generous gift to Episcopal.

How It Works:

Here are some common techniques for making a gift of real estate to Episcopal.

• Give your real estate now.
• Give your home now, but continue to live in it as long as you wish.
• Give your real estate now and receive payments for life.
• Give your real estate through your estate.
• Give a portion of your real estate and keep the rest.
• Sell your real estate to us for less than its appraised value.

The common techniques for making gifts of real estate are each briefly described below. We would be happy to discuss with you which technique might be best for your particular situation and goals.

Transfer Your Real Estate to Us Outright

This is the simplest way for you to give Episcopal a piece of real estate. By giving us all rights to your real estate, you will maximize your support of Episcopal , and you will earn an immediate income tax charitable deduction equal to the full appraised value of your real estate.

Sell Your Real Estate to Us for Less Than Its Appraised Value

When you sell Episcopal your real estate in a “bargain sale” arrangement, you will enjoy several benefits. You will receive an immediate cash payment equal to the sale price and an immediate income tax charitable deduction for the difference between your sale price and the appraised value of your property. You will also avoid tax on some of your capital gain in the property.

Give Your Home to Us, but Continue to Live in It as Long as You Wish 

When you give your home to Episcopal subject to a “retained life estate,” you can continue to live in your home for as long as you wish, for the rest of your life, or for the lives of you and your spouse. You will earn an immediate income tax charitable deduction for a portion of the value of your home. You also can make a retained life estate gift using a second home, farm, or any structure you use as a personal residence, such as a boat.

Give Your Real Estate Now and Receive Variable Payments for Life

Using a gift arrangement called a “flip unitrust,” you can give your real estate now and start receiving payments as soon as your real estate has been sold. Your payments will vary with the value of your flip unitrust. Payments equal to 5% or 6% of trust value are typical. You will also receive a substantial income tax charitable deduction in the year of your gift. In addition, there will be no immediate capital gains tax on the sale of your real estate.

Give Your Real Estate Now and Receive Secure Fixed Payments for Life

Using a gift arrangement called a “deferred gift annuity,” you can give your real estate now and receive payments of a fixed amount starting on the date you choose. The payment amount will depend on your age and how long after your donation payments will begin. Payments are backed by the general resources of Episcopal for life and may be partially tax-free. You also will receive a substantial income tax charitable deduction in the year of your gift and avoid or defer capital gains tax.

Give Us a Portion of Your Real Estate Holding

Rather than give us all of your real estate holding, you can give us an "undivided interest." For example, if you own 100 acres of farm land, you could give us 50 acres. You will receive an immediate income tax charitable deduction for the value of the portion you give. You will, of course, retain complete control of the portion of your real estate that you choose to keep.

Give Your Real Estate Through Your Estate

By making a gift of real estate through your estate, you will retain use of your property during your life. What's more, you can change your gift plan whenever you wish, should your circumstances or priorities change. Putting your gift of real estate into your estate plan now will help assure that your wishes will be carried out later. You may also save estate taxes.

Special Considerations When Giving Real Estate

Giving real estate to our organization requires some extra steps of which you should be aware. These steps include the following:

• You will need to establish the value of your property by obtaining a qualified appraisal. To be valid for claiming your income tax charitable deduction, your appraisal must be conducted no more than 60 days before your donation and no later than the due date, including extensions, of your next tax return.
• We will need to examine your property and conduct our own independent analysis of its value. For example, we will want to know if there are any debts, taxes, or liens owed on your property.
• Once we accept your gift of real estate, we could become responsible for cleaning up any environmental problems your property may have. This sort of cleanup could be very expensive. Therefore, before we accept any gift of real estate, we routinely conduct a review to make sure the property has no environmental issues.

Your IRA, 401(k), 403(b), or other Qualified Retirement Plan can provide a tax-smart way to make an impact onEpiscopaleither now or after the end of your lifetime. The Qualified Charitable Distribution or QCD (sometimes called an “IRA Charitable Rollover”) is a great way to make a tax-free gift now toEpiscopaland satisfy your Required Minimum Distribution (RMD) too.

A gift of retirement plan assets could be right for you if:

• You have an IRA or other Qualified Retirement Plan such as a 401(k) or 403(b).
• You do not expect to need all of your retirement plan assets during your lifetime.
• You have other assets, such as securities and real estate, that you want to pass to heirs.
• You want to provide income or payments to loved ones after you are gone.
• You would like to make a charitable bequest to Episcopal.

Option 1: Make a tax-free gift now with a Qualified Charitable Distribution (an “IRA Charitable Rollover”).

You can make a tax-free gift with a Qualified Charitable Distribution (QCD) from your IRA. (Other Qualified Retirement Plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70½ years old to take advantage of this opportunity. Your QCD must go directly from your IRA administrator to Episcopal. The total of all of your QCD gifts for 2026 cannot exceed $111,000 per person however, your spouse with a separate IRA can also make a QCD of up to $111,000 in 2026 if they otherwise qualify.

The benefits of a QCD gift include:

• If you don’t itemize your income tax deductions, a QCD provides the tax benefits of an itemized income tax charitable deduction.
• If you are age 73 and must take a Required Minimum Distribution (RMD), your QCD gift can satisfy your RMD without increasing your income taxes.
• Your gift provides immediate support for the important work of Episcopalwith a tax-free gift.

Option 2: Designate your remaining Qualified Retirement Plan assets as a contribution to Episcopal.

Another attractive option is to designate Episcopalas the recipient of some or all of what’s left in your IRA, 401(k), 403(b), or other Qualified Retirement Plan at the end of your lifetime.

In addition to having the satisfaction of making a significant future gift to Episcopal, your benefits include:

• Your estate is entitled to an unlimited estate tax charitable deduction for the value of your Qualified Retirement Plan donated to Episcopal.
• Since Episcopalis tax-exempt, there will be no income taxes paid on the distribution to Episcopal.
• A tax-smart estate planning strategy is to contribute taxable Qualified Retirement Plan assets to Episcopaland preserve non-retirement plan assets for your heirs.

Note: Directing your Qualified Retirement Plan to charitable and noncharitable beneficiaries can accelerate the income tax. Always consult with your advisors before naming the beneficiaries of your Qualified Retirement Plan.

Option 3: Designate your remaining Qualified Retirement Plan assets for a life income plan.

Alternatively, you can designate that at the end of your lifetime some or all of the assets remaining in your IRA, 401(k), 403(b), or other Qualified Retirement Plan be used to fund a charitable remainder trust or charitable gift annuity that will make payments to family members or other loved ones for the rest of their lives. When the life income gift arrangement ends, what is left will go to Episcopal.

In addition to having the satisfaction of making a significant future gift to Episcopal, your benefits include:

• A charitable remainder trust or charitable annuity can provide a lifetime of income or payments to your chosen beneficiary.
• The gift portion of your charitable remainder trust or charitable gift annuity provides an estate tax charitable deduction if your estate is subject to estate taxes.
• A tax-smart estate planning strategy is to contribute Qualified Retirement Plan assets for a life income gift and preserve non-retirement plan assets for your heirs.

IRAs and Qualified Retirement Plans

Retirement plan assets are a major source of wealth for many households. For example, you may have hundreds of thousands of dollars invested in your IRA, 401(k), 403(b), or other qualified retirement plan. These plans do not pay tax on the income they earn, or the capital gain realized within the account. This allows the assets to grow faster than if held and invested in these qualified plans.

The primary purpose of your retirement plan is to provide you with income during your retirement, but it can also be an excellent source of funds for making charitable gifts during your life and when your plan ends.

Withdrawals are Taxed as Income

With the exception of the Roth IRA, the money used to fund a qualified retirement plan, such as a traditional IRA, 401(k), or 403(b), has never been taxed. Also, earnings that occur within a qualified retirement plan are not taxed. As a consequence, withdrawals from any of these plans (except for the Roth IRA) are taxed as ordinary income. Your federal income tax alone on a withdrawal from one of these plans could be as high as 37%.

Withdrawals are Required Once You Reach 73 Years Old

You must start taking withdrawals from your qualified retirement plan once you reach 73 years old. The amount you must withdraw each year is a percentage of the value of your retirement plan as of the last day of the previous year. The percentage starts below 4% for someone who is taking their first “required minimum distribution” and increases with age according to a schedule published by the IRS.

Taxes on Remaining Retirement Assets can be Very High

Your family members and other heirs will have to pay income tax on any distributions they receive from your retirement plan after you are gone. In addition, your qualified retirement plan is included in your estate, so if your estate is large enough to owe estate tax, your plan may increase the estate taxes you owe.

Federal income tax alone can be 37%. When you add federal income tax and estate tax together, they can total 62% or more. In states that assess their own taxes on estates, the total taxes on retirement plan assets paid to heirs can be over 62%.

Give Retirement Plan Assets to Episcopal and Save Taxes

In contrast to your retirement plan assets, your estate will not owe income tax on most of its other assets in addition to estate taxes that may be due. As a result, your estate and heirs will pay lower taxes if you pass your less heavily taxed assets to your heirs, and give your retirement plan assets to charity. Paying lower taxes will mean that more assets will reach your heirs. How much more will depend on the size of your estate, where you live, the other assets you own, and the type of gift you make.

How do I Pass Retirement Plan Assets to Episcopal?

You have several good options for passing your retirement plan assets to us.

• Beneficiary Designation: The simplest and most common way to give retirement plan assets is to make our organization a beneficiary of your retirement plan. All you need to do is to file a revised beneficiary designation form with your retirement plan administrator to designate our organization as a beneficiary of your plan and name the percentage of your remaining assets that you want us to receive. The retirement plan assets that you designate for us will avoid all income tax and estate tax. In order for your estate to enjoy both of these tax benefits, it is especially important that you make our organization the designated beneficiary of these retirement plan assets, not your estate. Please identify us on the form with our legal name: Protestant Episcopal High School in Virginia.
• Life Income Plan: Prior to the passage of the SECURE Act in 2020, inherited IRAs could stretch out their taxable distributions over the life expectancy of your heirs. The SECURE Act requires an inherited IRA to distribute all of its assets within 10 years. With the elimination of the stretch IRA, an attractive option for planning so that inherited retirement plan assets can pay income for life is to designate a charitable remainder trust or charitable gift annuity as the beneficiary of your retirement plan. Passing assets to us through a life income plan allows you to provide income to your loved ones after you are gone and then provide support to us. Such a plan strikes a balance between leaving all of your retirement plan assets to loved ones subject to significant taxation and leaving all of these assets to us and eliminating taxes on them altogether. Here's how a life income plan works:
  • Your retirement plan transfers the designated portion of its final balance to a charitable remainder trust or a charitable gift annuity.
  • The heirs you have chosen receive payments from the plan each year, typically for life.
  • When the life income plan ends, its remaining principal goes to support Episcopal.

Using retirement plan assets to fund a life income plan spreads out income tax and reduces estate tax on these assets, if your estate is subject to estate taxes. A typical result is to reduce total taxes on your retirement assets by more than half compared to distributing them to your heirs through your estate.

Life Income Plan Options

There are several life income plan options to choose from. The one that is right for you will depend on a variety of factors. Please contact us if you would like to learn more about funding a life income plan with assets from your retirement plan.

A gift of a life insurance policy, that you no longer need, can be an easy way to provide generous support to Episcopal .

• A gift of life insurance could be right for you if:
• Your life insurance policy is paid up or has substantial cash value.
• You’ve provided for your family and loved ones by other means.
• You would like to make a generous gift to Episcopal .

Your life insurance may find a new purpose

You may have purchased a life insurance policy years ago when you wanted to protect your family from financial hardship in case of your untimely passing. Now that your children are grown and independent, your mortgage is paid off, and you have accumulated sufficient assets in your estate to pass on to your family, you may no longer need your life insurance policy for its financial protection.

If this is your situation, consider making a gift of your life insurance policy to Episcopal . Your policy can provide generous support to our mission without affecting your cash flow.

How It Works

Option 1: Give your policy to Episcopal 

When Episcopal becomes the owner of your policy we can cash it in and use the proceeds. Alternatively, if you continue to pay the premiums, we could maintain the policy until it ends and then receive the full death benefit amount. In addition to the satisfaction of making a generous gift to Episcopal with no immediate cost, you will receive an immediate income tax charitable deduction for the value of your policy (or the total premiums you have paid, whichever is less) and an additional income tax deduction if you continue to pay premiums.

In order to make your gift, you must assign Episcopal all ownership rights to your policy and make Episcopal the irrevocable designated beneficiary of the policy. 

The life is the donors, but the charity owns the policy, and they get the beneficiary rights.

This can be easily accomplished by completing a simple form from your insurance company. Be sure to identify us as: Protestant Episcopal High School in Virginia, 1200 N. Quaker Lane Alexandria, VA 22302, Federal Tax Identification Number: 54-0506326.

Example

Justine Grant bought a $250,000 life insurance policy on her own life shortly after the birth of the first of her four children. They are now in their 40s and 50s and no longer need the financial protection the policy provides. The cash value of her policy is now over $90,000, and she’s paid a total of $75,000 in premiums over the years.

Justine has enjoyed a relationship of many years with Episcopal , and would like to make a significant gift, but is reluctant to use her liquid assets. Justine is delighted to learn that her insurance policy can be put to a new and productive use. She arranges with her insurance agent to donate her policy.

Benefits:

• Justine’s gift will entitle her to an income tax charitable deduction for the lesser of the value of the policy or the total premiums paid, $75,000 in this example.
• She has the satisfaction of making a generous gift to Episcopal without affecting her current income.
• As the policy owner, Episcopal can either cash in the policy and have $90,000 to work with immediately or, if Justine continues to pay premiums, hold the policy and receive $250,000 as a legacy gift from Justine.

Option 2: Designate Episcopal as a beneficiary of your policy

You can designate Episcopal to receive some or all of your policy’s death benefit but retain ownership of the policy. You will have the satisfaction of making a generous gift to Episcopal with no immediate cost to you.

This option allows you to change your mind about your gift should circumstances in your life change. Because your gift is revocable, you do not receive an income tax charitable deduction for your gifts, but your estate will receive an estate tax deduction for the amount your policy distributes to us.

It is very easy to designate Episcopal as a beneficiary of your life insurance policy. Simply contact your insurance agent to make a change in your policy’s beneficiary designation. Be sure to identify us as: Protestant Episcopal High School in Virginia, 1200 N. Quaker Lane Alexandria, VA 22302, Federal Tax Identification Number: 54-0506326.

Other considerations

• Loans against your policy can create taxable income
• If you give a life insurance policy on which you have an outstanding unpaid loan, you may have to declare a portion of the loan as taxable income. Check with your financial advisor; it may be best to pay off the loan prior to making your gift. If you plan to designate Episcopal as a beneficiary of your policy (Option 2), an unpaid loan against your policy will not affect your tax picture.

Give a paid-up life insurance policy

• Sometimes a life insurance policy may be “paid-up” which means it will stay active without any additional premium payments. A paid-up life insurance policy is a valuable asset and makes an excellent gift.
• Some states do not allow you to give a life insurance policy to a charity
• For your gift of life insurance to be valid, your state of residence must consider a charity to have an “insurable interest” in your policy. Most states do but verify that this is true in your state before you make your gift.