Frequently Asked Questions

[Glossary]

1. What are the kinds of gifts I can give to Park School ?

During your lifetime you can make outright gifts of cash, securities, or other property (e.g., real estate, personal property).

Upon your death, you can make a gift through your will or revocable trust, or through a distribution from a retirement plan or life insurance policy.

You also have the option of making a gift that returns lifetime payments to you, your spouse, or other individuals, such as a charitable remainder unitrust or annuity trust.

2. What sort of assets can I use to make a gift?

Almost anything: cash, publicly traded securities, the balance in your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by Park before they can be accepted as gifts: real estate, closely held stock, and, for example, artwork.

3. What tax deduction will I receive for my gift?

It depends on the form your gift takes and your tax status.

• Outright gifts to Park generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains.
• Gifts of personal property, like art, books, and collectibles, may be fully deductible, so long as they are relevant to Park's mission.
• Bequests are exempt from estate tax, however, they do not generate a lifetime income tax deduction.
• Similarly, life insurance distributions to Park are not income-tax deductible, but are exempt from estate tax.
• A lifetime gift of an insurance policy to Park generates a deduction for the value of the policy.
• The charitable deduction for a gift that makes payments to you, such as a charitable remainder unitrust or annuity trust, is the fair market value of the gift asset, minus the present value of the income interest you retain.

4. Can Park School serve as the Executor of my estate?

No. State law, the limitations of Park's corporate powers, and internal policies prevent the school from taking such a role in your affairs.

5. I want to set up a life insurance policy, name Park as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?

The IRS would not consider that a "completed gift" because, as the owner of the policy, you could change the beneficiary designation to a friend or family member. Park must be the irrevocable owner of the policy.

6. Can I transfer my IRA to to set up a life-income gift, and avoid income tax on the transfer?

New legislation gives donors aged 70½ and older an opportunity to direct lifetime distributions from their IRAs to us without incurring income tax liability on the withdrawal. The provision will be in effect 12/31/09. Distributions can total $100,000 per year, and must be made outright — they cannot fund a life-income gift. Just e-mail us and we'll be happy to give you more information about this new charitable incentive.

7. I'd like to donate a painting. Will you determine its value for my income tax deduction?

No, we can't. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too - an insurance appraisal won't suffice.

Main Contact: Roger Seidenman '85
Tel: (410) 339-4146
Fax: (410) 339-4165
e-mail: Roger Seidenman