Legacy Society

While a direct donation can provide valuable tax deductions for an individual, there are other ways to support Chesapeake Bay Academy such as gifting your whole life insurance policy. Policy donations provide a much greater benefit to you as well as CBA.

Gifting a life insurance policy can reduce your taxable estate, which can save thousands of dollars in estate taxes for upper-income taxpayers. Donating a policy can also yield a current income tax deduction of the policy’s fair market value—a significant deduction in some cases.  Perhaps most importantly, CBA will receive the entire face value of the policy upon the death of the insured. Naming Chesapeake Bay Academy as the beneficiary of your life insurance policy is a simple process. We recommend that you consult your insurance agent for information.

By either gifting a policy outright or naming CBA as a beneficiary, you can provide CBA with a gift that will provide a lasting legacy that will help students for many years.

Example: Mr. & Mrs. Smith purchased a $250,000 whole life insurance to cover the education of their two children should something happen to either of them. Both children have graduated from college. Now that the children have careers and are living independently, Mr. & Mrs. Smith have asked their insurance agent to add Chesapeake Bay Academy as a beneficiary of $50,000 from their life insurance policy.  Mr. & Mrs. Smith are grateful to CBA for the education their youngest child received, especially because before enrolling their child, the parents were told he might not graduate from high school.  Mr. & Mrs. Smith did not have the means to give such a leadership gift until now.

If you are 70 ½ and older:
Donating IRA funds to CBA through a Qualified Charitable Distribution (QCD) may yield the biggest tax bang for your charitable buck. When you make a QCD, the distribution is instead automatically omitted from your adjusted gross income (AGI).  This means the tax benefit from a QCD can be realized by all individuals – regardless of whether they take the standard deduction or itemize their deductions.  This is GREAT news for anyone over age 70 ½ because many taxpayers in that age bracket take the standard deduction. QCDs may be made from any IRS or individual retirement annuity, but not from a simplified employer pension, a simple retirement account or an inherited. To make a contribution instruct your trustee or custodian to make a transfer from your IRA directly to Chesapeake Bay Academy. Many trustees and custodians already have forms and procedures in place to make this transfer. CBA will send you an acknowledgment letter.

All Individuals Qualify
Chesapeake Bay Academy can be designated as a beneficiary of part or all the remainder of your Individual Retirement Account (IRA) or retirement plan.  Distributions from retirement plans at the death of the survivor of the account-holder can be subject to both income and estate taxes.  By naming CBA as the beneficiary of the remainder of your retirement plan, 100 percent of the plan’s balance is available for CBA to use because charitable organizations avoid both income and estate taxes. You may also designate a specific amount to be paid to CBA.

To make this gift, you must notify your plan’s administrator and complete a “change of beneficiary” form.

Example: The grandfather of a Chesapeake Bay Academy alumni student was diligent about setting aside money for retirement when he first became a father. He now has many assets to pass along to his children and grandchildren. Not wanting to burden his family with taxes they would have to pay by being the beneficiaries of his retirement fund, the grandfather spread the wealth from his retirement fund to charities that he supported. Knowing that CBA transformed the life of his granddaughter and gave her the skills necessary for success after graduation, the grandfather designated $25,000 be paid to CBA in her honor.

One of the most financially sound ways to give is through the transfer of stock. Donors have the capacity to allow stock, bonds or any other securities to be transferred as gifts to CBA. Giving the gift of stock has significant benefits for the contributor. For example, if a security has appreciated in value, the holder may choose to donate it as a gift as part of a tax planning strategy (please consult a tax advisor for advice related to your personal circumstances.

Please contact Cami Best-Jones, Director of Development, if you are interested in including CBA in your estate plan. CBA would be honored to have you become a member of the Legacy Society. [email protected] • 757-497-6200 x1424