Charitable gifts to Davidson Day not only have an immeasurable impact on our school, but they can have a positive tax impact for the donor and his/her family as well. All donations to Davidson Day are tax deductible. And, by gifting appreciated securities, donors can also avoid capital gains taxes on those securities. Some gifts can be structured to help increase a donor’s income, while others can offer estate planning benefits. Below is an overview of some of the most common ways to give.

Gifts of Cash: An outright gift or payments on a multi-year pledge can be made by check. This provides the donor with an income tax charitable deduction in the year each installment of gift is paid. While cash gifts represent the largest number of gifts to the School, there are other methods of giving that may enable donors to give larger amounts of money while reducing income and/or estate tax liabilities.

Gifts of Appreciated Securities: A gift of stock my have a significant tax advantage for a donor. Stocks that have greatly increased in value make ideal gifts to make to the School. The School realizes the full market value of the stock, and the donor receives a charitable deduction for the full fair market value of the stock and avoids all capital gains taxes on that stock. Stock gifts can be used to make installment payments on a multi-year pledge, or can be given as a one-time gift. Stock donations can be from a publicly traded company or from a closely held business.

Gifts of Real Estate: When a residence, vacation home, or undeveloped piece of land appreciates in value, its sale could mean a sizeable capital gains tax for the owner. By gifting the property to Davidson Day School, the owner avoids the capital gains taxes, yet receives a charitable deduction for the full fair market value of the property.

Bequests: Specifying a gift to Davidson Day School in one's will is one of the easiest and most popular forms of planned giving. Such giving often enables a donor to make a significant contribution that would be unachievable during his or her lifetime.

Gifts of Life Insurance: For a relatively modest annual outlay, a donor can make a substantial gift to Davidson Day School. The gift of a fully paid, unneeded life insurance policy is also a wonderful way to make a significant donation without any immediate out-of-pocket costs for the donor.

Life Income Gifts: Donations through a Life Income option can enable the donor to make a significant contribution to the school while achieving retirement planning goals. Life Income gifts provide the donor with benefits such as income payments through the donor or spouse’s life, elimination of the capital gains tax on appreciated property, and an income tax deduction.

Lead Trust Gifts: A lead trust keeps property in the donor’s family when he or she makes a gift of income to Davidson Day School for a specified term of years. After the term is over, the principal may be passed to a donor’s children or estate.

For more information on these and other ways to give to Davidson Day School, please contact the school at 704-237-5200.