Miscellaneous Funds Additional Ways of Funding Your Endowed Scholarship Gifts of Appreciated Property Life Insurance Gift of Undivided Interest Split Interest Gifts Charitable Remainder Trusts Charitable Lead Trusts Life Estate Agreement Single Contribution Bequest Gifts of Appreciated Property One of the most efficient means of giving is that of utilizing appreciated property. The IRS allows a deduction for the full fair market value of assets such as stocks, bonds, and real estate transferred to the SMSA. Such gifts offer a substantial tax savings over gifts of cash based on your individual tax circumstances, are subject to Alternative Minimum Tax consequences, and therefore should not be made without professional tax advice. Life Insurance A Life Insurance Policy provides a unique method of establishing your endowment. You may utilize policies you currently own or you may acquire a new policy specifically structured to fulfill your endowment objective. Gift of Undivided Interest A Gift of Undivided Interest is a contribution of a complete interest in a portion of a property. This gift should be made prior to any firm contract for sale. Split Interest Gifts Split Interest Gifts occur when a contribution is divided and shared by you and the SMSA. Generally, these parts consist of an "income" or "use" interest and a remainder interest. The government only allows a charitable deduction for these gifts when made under specific guidelines. Examples are: Charitable Remainder Trusts A CRT is beneficial if you desire continuing income from your gift, but have no need for the principal attached to the asset. You contribute the asset to a trust and receive an income tax savings. Income from the trust is paid to you or a designated beneficiary for a term of years or for life. At the end of the established income benefit, the principal is transferred to the SMSA. Charitable Lead Trusts A CLT is another beneficial tool if you have income that you temporarily do not need. This trust differs from the CRT in that the income is paid to the SMSA and the principal is returned to you or your beneficiary. The income that the SMSA receives will be used to fund your Endowment Accumulation Account. Life Estate Agreement A Life Estate Agreement is similar to a Charitable Remainder Trust, only you retain "use for life" of the property, in this case your home, instead of an income interest. At your death, the home transfers to the SMSA. Single Contribution If you would like to fund your future endowment with one single contribution you may do so. A discounted amount will be calculated based on the installments that would have normally been made to an Endowment Accumulation Account. Doing so reduces the outlay for your endowment while providing greater tax savings in the year the contribution is made. Bequest A provision in a Last Will and Testament is often used to fund an endowment with assets accumulated over a life time. Endowments created at the time of one's death are usually added to by friends and relatives wishing to make memorial contributions. A bequest may also be used to complete your Endowment Accumulation Account. For example: Last Will and Testament ............ I give and bequeath to the Seabee Memorial Scholarship Association, Inc., Silver Spring, Maryland, the sum of $100,000 for the purpose of establishing the BUILDER CHIEF DONOR ENDOWMENT............ This is only a partial list of the various ways of giving. Please consult a SMSA representative for information on how to pursue your philanthropic wishes. The concepts described are designed to acquaint you with several methods of establishing your "Named" Endowment. Any reference to tax benefits or specific values are offered for illustrative and educational purposes only. Please consult your personal tax and legal counsel. Thank you for your interest in an exciting program designed to guarantee the future of the SMSA.

Updated: 3/8/2002 Site designed by MELE Associates, Inc.