Endowment |
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The
Endowment Fund exemplifies our commitment to preserving the values
and goals of the Brookline Education Foundation for generations to come.
Through the Foundation’s annual campaign, donors help to
underwrite ongoing programs and special initiatives on a yearly
basis. The endowment permits donors to create a legacy of support
that will assist in underwriting current programs and help to
ensure the future strength of Brookline public education. Funds
contributed to the endowment are invested prudently, in consultation
with experienced financial advisors, in instruments designed to
yield additional annual income to support Foundation programs. |
Priorities |
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Gifts
may be made to the general endowment fund to be used at the discretion
of the Foundation’s Board of Directors to support the mission
and programs of the Foundation. Donors may also designate their
gifts for support of specific programmatic or operational priorities
consistent with the mission and goals of the Foundation. Some
current priorities include:
- Literacy
initiatives
- Afterschool
enrichment programs
- Science
and mathematics programs
- Use
of technology in education
- Cultural
education (music, dance, voice, theater, art, etc.)
- Student
citizenship and leadership programs
-
Public education forums
- Health
and wellness programs
Both
current and prospective donors can consider funding an “annual
gift” endowment, the income from which will ensure a yearly
gift in the donor’s name to the Foundation in perpetuity.
Prospective
endowment donors are encouraged to discuss other specific educational
interests with the Foundation representatives to determine compatibility
with the Foundation’s mission and goals. |
Types of Endowment Gifts |
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There
are a number of ways to provide support for the Foundation’s
endowment fund, while gaining potential tax benefits. An outright
gift or bequest is a typical means of contributing to the endowment.
Contributions may be in the form of cash, real estate, appreciated
securities (stocks, bonds, mutual funds), or a life insurance policy.
Generally, such gifts afford significant tax benefits for the donor.
Indeed, gifts of appreciated assets can both avoid capital gains
taxes and provide a charitable deduction at the market value. |
Bequests |
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A bequest to
the Brookline Education Foundation is a gift conveyed in a donor’s will
as part of the disposition of his/her estate. It may be a specific
amount or percentage of the estate, real estate, certain types of
tangible property, or the remainder of a trust. A bequest is not
subject to federal estate tax or state inheritance tax. A will is,
of course, essential if one wishes to make a bequest. |
Life Insurance |
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Many
people find that, as their family responsibilities diminish, they
no longer require the protection of life insurance. In such a case,
the Foundation may be made the beneficiary of a donor’s life
insurance policy. The donor receives an immediate charitable income
tax deduction for the “present value” of the policy
(typically the cash surrender value) and saves estate taxes. If
the donor continues to pay the policy premiums to maintain the policy
in force, he/she is entitled to an income tax deduction for each
year the premiums are paid. A donor may also make the Foundation
the beneficiary of a new insurance policy and save on both income
and estate taxes. |
Appreciated
Securities |
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There
are special advantages to donating appreciated securities to the Brookline Education Foundation. If a donor is liable for capital gains taxes
resulting from the sale of appreciated securities, he/she can reduce
the tax liability by contributing them to the Foundation. While
a contribution from current income may provide a charitable deduction
up to as much as 39.6%, depending upon a donor’s tax bracket,
a donation of appreciated securities—e.g., stock or mutual
fund shares—will earn a tax deduction for the full fair market
value of the gift and avoid the capital gains tax. |
Real
Estate |
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Gifts
of real estate are another way to benefit the Foundation, and
can result in significant tax and investment benefits. They may
be made by bequest or lifetime transfer. An outright gift of real
estate will be accepted and subsequently sold, unless there is
a special investment reason for holding it. The transfer to the
Foundation will provide an immediate income tax deduction for
the fair market value and will avoid capital gains tax on the
appreciated value.
A
donor may also choose to transfer to the Foundation real estate,
which will be sold to fund a life income trust to provide income
to the donor and one other beneficiary for life. The donor establishes
a rate at which the trust will pay income. Upon the death of the
last named beneficiary, the remaining principal reverts to the
Foundation.
There
are other types of charitable real estate gifts that can be considered.
It is important to note that all proposed gifts of real estate
are subject to due diligence by the Foundation before final acceptance
can be assured. |
Charitable
Trusts |
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The Foundation
will also permit a donor to establish a charitable remainder trust,
which will provide life income for the donor. The donor receives
an initial charitable deduction for the present value of contributed
asset, as well as an agreed-upon amount of income from the Foundation’s
investment of the asset. There are various types of trusts, and
a prospective donor should consult with a financial advisor to
determine the most appropriate trust plan.
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