Charitable Giving at
Plainview Christian Academy

There are many ways in which alumni and friends can make gifts to Plainview Christian Academy. Staff are available to assist donors to structure gifts to provide the greatest positive impact to the school and the donor.

Please remember that when making a financial decision you should always seek the opinion of your professional tax adviser or legal counsel.

 

What Can Be Given

Cash Gifts

The most common gift is a gift of cash. If the donor itemizes income tax deductions, 100 percent of the gift may be deducted, up to 50 percent of the donor’s adjusted gross income for the year. Any excess deduction may be carried over for an additional five years.

 

Pledges

Pledges may be accepted for gifts to be made over a period of three years. Pledges should be in writing and signed by the donor, in order to be officially be recorded by Plainview Christian Academy.

 

Gifts of Securities

Gifts may consist of appreciated marketable securities, including stocks, bonds and mutual funds. Gifts of long-term appreciated securities offer an advantageous way to support the schools. For long-term securities (held more than one year), the tax law permits a charitable deduction of the current full fair market value of the securities, up to 30 percent of adjusted gross income, with a five-year carry-over. In addition, the securities are not subject to a tax on the capital gain.

Short-term securities (held less than one year) are considered to be ordinary income property by the Internal Revenue Service, and a charitable deduction may be taken for the original cost of the securities only.

 

Real Estate

Real estate can be a valuable gift to the school. A residence, a farm, a commercial building, a parcel of land, or an oil and gas producing property may all be given, allowing the donor to take a charitable deduction for the fair market value of the real estate and to avoid any capital gains tax.

 

Gifts in Kind

Gifts of tangible personal property, such as art, antiques, and various collectibles are also acceptable. A corporation may make gifts in kind such as computers and equipment. Such gifts are fully deductible at fair market value only if the property itself will be used in a way related to a normal exempt purpose of the recipient institution.

 

Life Insurance

By naming Plainview Christian Academy as owner and beneficiary of a life insurance policy, donors may make an irrevocable gift that will benefit the schools in the future. By simply naming PCA as a primary or secondary beneficiary, a revocable gift is created.

 

Ways to Give

Outright Gifts

An outright gift is a gift in which all ownership interest in the asset is transferred to the receiving institution at the time of the donation. Most types of assets can be given outright to a component institution.

 

Deferred Gifts

A deferred gift is a gift in which full ownership interest in the asset is not transferred to the receiving institution at the time of the donation, but is delayed to some point in the future. Deferred gifts include:

  • Bequests

By naming Plainview Christian Academy in a will, a donor may make the school the beneficiary of a specific and/or residual bequest. A specific bequest names the school to receive a specific dollar amount or specific asset(s). A residual bequest names the school to receive all or part of the residue of the estate, which is comprised of the estate assets remaining after the payment of any specific bequests.

 

  • Charitable Gift Annuity

A charitable gift annuity pays a fixed income over the period of one or two lifetimes, one of which is often the donor. The donor contributes an asset, usually cash or appreciated marketable securities, to fund the charitable gift annuity.

 

How Gifts Will Be Used

 Unrestricted Gifts

Gifts may be donated for unrestricted use, such as for current expenditures for the general support of a department or project of the schools.

 

Restricted Gifts

Gifts may be designated by the donor for restricted use, such as for current expenditure in support of a specific program or purpose such as student scholarships.

 

Endowment Gifts

A gift of $25,000 or more can be given to create an endowment that may be funded over a three-year period. The terms of the endowment should be set out in writing and signed by the donor. The corpus of an endowment is held and invested and distributions from the earnings are used to benefit the component institution, in accordance with the donor’s wishes. The donor may specify that endowment distributions be for unrestricted use by the component institution, or may designate distributions to support students through scholarships; faculty through fellowships; student activities; and various other specified educational activities of the school.

 

Named Memorial Gifts and Living Tributes

Any gift may be given in honor or in memory of an individual or family.

 

For More Information

For more information, please call the school at (806) 296-6034.