Planned Giving

Gifts of appreciated securities

Gifts of appreciated securities held by the donor for more than one year provide two tax benefits: (1) no capital gains tax is imposed on the "long-term" appreciated gift portion, and (2) the donor is entitled to a charitable deduction equal to the fair market value of the securities on the gift date.

You also may make a gift of closely-held stock (owned by you for more than one year). However, to claim a deduction for gifts of other than cash and publicly-traded securities valued in excess of $5,000, the donor must obtain a qualified appraisal by an independent professional and include this appraisal with his or her tax return.

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  • Real Estate

    A gift of real estate such as commercial property, a residence, a farm, timberland, or undeveloped acreage can provide significant benefits to Colorado Academy and the donor. A gift of unmortgaged real estate held for more than one year will generate an income tax deduction based on fair market property value at the gift date. The donor is not required to recognize any gain on the transfer to CA. For gifts of real estate valued at $5,000 or more, the donor must obtain a qualified appraisal.
  • Life Insurance

    Donors who assign ownership of a life insurance policy to Colorado Academy receive an immediate charitable deduction equal to the lesser of the donor’s basis or the policy’s net cash value. If the donor continues to pay premiums, he or she receives an additional deduction for amounts paid. When ownership of a life insurance policy is transferred to CA as the sole beneficiary, gift credit will be given for either the donor’s basis or the cash value of the policy.
  • Oil and mineral interests

    A gift of an oil, gas, or other mineral interest may provide significant benefits to Colorado Academy and the donor. Since such interests normally take the form of partnership interests, this gift involves special considerations such as valuation, partnership indebtedness, and potential recapture of intangible costs that should be investigated before a gift is made.
  • Gifts of tangible property

    You may own works of art, stamps, coins, or jewelry that you wish to donate. If you have owned this property for more than one year, and the property can be used by Colorado Academy to further its exempt purposes, you may claim a deduction for the full fair market value of the property on the date of the gift, deductible up to 30% of your adjusted gross income.
  • Charitable lead trusts

    A lead trust is the mirror image of the life income gifts discussed below. A donor gives assets of $100,000 or more to an irrevocable trust for at least 10 years, during which time CA receives a predetermined percentage of derived income. When the trust is terminated, all of the assets, including any or all appreciation, revert to beneficiaries named by the donor.
  • Retirement plan assets

    Retirement plan assets and assets held in individual retirement accounts are becoming a popular vehicle for charitable gifts at death. The gift is a simple one to make. Designate Colorado Academy as your successor beneficiary on the beneficiary designation/statement you may request from your plan or from the custodian of your IRA.

Gifts that pay income for life

Donors may arrange for a gift that will ultimately come to Colorado Academy and retain the income from the gift for life (or the lives of donor and spouse). This is an ideal way to provide for CA's future without sacrificing investment income and receive significant income, gift and estate tax benefits. Such gifts are usually made in one of the following forms:

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  • Charitable Remainder Trusts

    This separately identified trust may be established with a minimum contribution of $100,000. The donor is entitled to a charitable contribution for the value of Colorado Academy's remainder interest in the trust. Value will depend on the IRS discount rate in effect at the time of the gift, the age of the income beneficiaries, and the frequency of payments. Please contact us for information on the various forms of charitable remainder trusts.
  • Gift Annuities

    A charitable gift annuity is a "bargain sale" of assets to Colorado Academy School, in exchange for a lifetime annuity payment. The amount of the annuity payment (which remains constant during your lifetime) is determined by age(s) of the annuitants at the time the gift is made, the IRS discount rate in effect at the time of the gift, and the amount of the assets given. Establishing a gift annuity requires a minimum gift of $10,000.
  • Pooled Income Funds

    A gift of $50,000 or more in cash or marketable securities held by the donor for more than one year may be made by the donor to Colorado Academy. Each gift is assigned units based on the fair market value of the gift. The donor receives a proportional share of income earned by the Fund annually.

Bequests

A bequest is a gift to Colorado Academy under the donor’s will. It may be made for the general purposes of Colorado Academy or restricted for a specific use. A bequest to Colorado Academy is entitled to a federal estate tax charitable deduction, so it will not be subject to tax in your estate. Suggested forms of bequests:

List of 2 items.

  • Pecuniary Bequest

    I give the sum of ONE THOUSAND DOLLARS ($1000) to Colorado Academy or its predecessor in Denver, Colorado to be used for its general purposes.
  • Residuary Bequest

    • I give and devise the residue of all the property, of whatever kind and wherever located, that I own at the time of my death to Colorado Academy or its predecessor in Denver, Colorado to be used for its general purposes.
    • I give and devise the residue of all the property, of whatever kind and wherever located, that I own at the time of my death (my "Residuary Estate") as follows:
      • One quarter (1/4) of my Residuary Estate to Colorado Academy or its predecessor in Denver, Colorado; or
      • Twenty-five percent (25 percent) of my Residuary Estate Colorado Academy or its predecessor in Denver, Colorado.
      • Life Insurance Policies, Pension Funds and Individual Retirement Accounts--If you would like to name Colorado Academy as the beneficiary of a life insurance policy, a pension fund and/or an IRA, the beneficiary designation form should be completed accordingly. The beneficiary designation should appear on the form as follows:

        Colorado Academy Attn. Development Office
        3800 S. Pierce Street, Denver, CO 80235
To ensure maximum benefit for the donor and CA, we advise that you speak with your attorney or tax advisor and the CA Advacement Office.

The Musil Society

A.J. Musil, a CA teacher and administrator, was a fixture on campus from 1961 until his death in 1991. When he died, Mr. Musil left almost all of his estate to Colorado Academy to establish the A. John Musil Endowment Fund that provides tuition assistance to deserving CA students. In his own quiet way, he was a trailblazer - the first to leave a lasting legacy at CA. In 1992 the Musil Society was created in his honor to recognize those who have included CA in their estate plans.

If you are interested in following in Mr. Musil's footsteps by becoming a member of the Musil Society, please contact Gravely Wilson, Advancment Officer, 303-914-2543.
Colorado Academy
3800 South Pierce Street
Denver, Colorado 80235
303-986-1501
info@coloradoacademy.org
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