Randolph-Macon Academy is privileged to have numerous alumni and friends who make gifts to support the school while planning for their own future. Their generosity commemorates loved ones, celebrates special times at R-MA, or culminates a life’s work. The gift plans they use to create their legacies are tax-wise tools that yield significant immediate and long-term benefits.
Several of the most common giving vehicles are listed below. For more information, please contact the Advancement Team at (540) 636-5206 or at advancement@RMA.edu.
QUALIFIED CHARITABLE DISTRIBUTION:
A special opportunity for those 70 1/2 years or older!
You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a qualified charity such as Randolph-Macon Academy without having to pay income taxes on the money. Gifts of any value of $100,000 or less are eligible for this benefit and make a difference at R-MA. This popular gift option is commonly called a Qualified Charitable Distribution, but you may also see it referred to as an IRA Charitable Rollover.
Why consider this gift?
- Your gift will be put to use today, allowing you to see the difference your gift is making.
- Beginning the year you turn 72, you can use your gift to satisfy all or part of your required minimum distribution (RMD).
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- Since the gift does not count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
For those 59 1/2 years old or older: You can take a distribution and then make a gift from your IRA without penalty. If you itemize your deductions you can take a charitable deduction for the amount of your gift.
At any age: No matter your age, you can designate Randolph-Macon Academy as the beneficiary of all or a percentage of your IRA and it will pass to us tax-free after your lifetime. It is simple, just requiring that you contact your IRA administrator for a change-of-beneficiary form or download of form from your provider’s website.
Tip: It is crucial to let us know of your gift because many retirement plan administrators assume no obligation to notify a charity of your designation. This administrator also will not monitor whether your gift designations are followed. We would love to talk to you about your intentions to ensure that they are followed.
CHARITABLE GIFT ANNUITIES:
Benefit from your gift to Randolph-Macon Academy!
When you are looking for ways to support Randolph-Macon Academy, you should not feel like you are choosing between your philanthropic goals and financial security. One gift that allows you to support the Academy while receiving fixed payments for life is a charitable gift annuity. This popular gift involves a simple contract between you and Randolph-Macon Academy. In return for a gift of cash or securities, the Academy agrees to pay you, and up to one other individual, a fixed amount of income for life.
Not only does this gift provide you with regular payments, it also allows the Academy to benefit. When you create a charitable gift annuity with R-MA, you can receive a variety of tax benefits, including a federal income tax charitable deduction at the time you make the gift.
At Randolph-Macon Academy, the minimum gift required to establish a charitable gift annuity is $15,000.
Delay your payments: If you are younger than 60 or do not need your payments now, you can set up a deferred gift annuity. This allows you to delay receiving payments until a later date – such as when you reach retirement.
CHARITABLE REMAINDER TRUSTS:
Discover a gift that is truly win-win!
If you are interested in supporting Randolph-Macon Academy with a significant gift and receiving income for life, consider a charitable remainder trust. This gift arrangement enables you to make a gift to R-MA and receive income payments for either your lifetime or a period of years. Charitable remainder trusts can be funded with cash, securities, and in some cases, illiquid assets such as real estate.
Benefits of a charitable remainder trust include:
- Potential for a partial charitable income tax deduction
- Potential for increased income
- Up-front capital gains tax avoidance
There are two ways to receive payments with charitable remainder trusts:
- The annuity trust pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.
- The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.
In both cases, at the end of the trust, the remaining assets go to Randolph-Macon Academy.
- Contact Randolph-Macon Academy’s Advancement Team at (540) 636-5206 or at advancement@RMA.edu to discuss how you can support Randolph-Macon Academy.
- Seek the advice of your financial or legal advisor.
- If you include Randolph-Macon Academy in your plans, please you Randolph-Macon Academy’s legal name and federal tax ID number.
Legal Name: Randolph-Macon Academy
Address: 200 Academy Drive, Front Royal, Virginia 22630
Federal Tax ID Number: 54-0505939