Empower the Future Today
As members of the Gulliver community we are inextricably joined together by the values and mission of our school. We collectively understand the myriad of ways our school delivers upon a mission to ensure that every student realizes the power of potential.
Investing philanthropically in Gulliver enhances what we experience as a school community -- field research, artist master classes, competitions and travel, classroom enhancements, new technology, teacher professional development, student-oriented spaces, service learning, innovation spaces, athletic outfitting designed for safety and performance.
Your financial support is used to upgrade technology and our facilities, enhance program development, attract and retain an excellent faculty and staff, as well as build and plan for the future.
- Outright Gifts
- Gifts of Cash
- Gifts of Publically Traded Stocks or Security
- Gifts of Closely Held Stock
- Gifts of Real Estate
- Gifts of Personal Property
- Deferred Gifts
- Gifts of Life Insurance
- Bequest by Will
- General Bequest
- Percentage Bequest
- Residuary Bequest
- Bequest that Create an Endowment
- Contingent Bequest
- The Codicil
- The Testamentary Trust
- Gifts from Retired Funds
- Life Income Gifts
- Gift Annuity
All outright gifts entitle the donor to an immediate charitable income tax deduction. Other important tax benefits, such as eliminating capital gains, may be available with gifts of appreciated assets, including securities or real estate.
Gulliver employees can make charitable contributions to the school by payroll deduction by filling out and submitting the Payroll Deduction Form.
Cash gifts, the most common and vital form of giving, are immediately available to assist students and improve or implement programs. Cash gifts only require writing a check out to Gulliver Schools and every dollar donated outright is tax-deductible.
The maximum deduction allowable for cash gifts is limited to 50 percent of your adjusted gross income. Any amount that is given in excess of this limitation may be carried over and deducted for up to five subsequent years. Thus, a gift of $1,000 this year actually costs only $690 if you are in the 31 percent tax bracket. Many states allow individual state charitable tax deductions as well, which may make your cash gifts even more economical.
Gifts of appreciated securities are tax deductible at full market value. They also relieve the donor from long-term capital gains tax on the appreciated value of the security. This double tax savings makes it possible for a significant gift to be made at a remarkably low after-tax cost. Therefore, appreciated securities often represent the most economical way to contribute to Gulliver.
For example, suppose you bought stock in company XYZ at a cost of $2,500 in 1980. Today, the stock is worth $10,000 and you have a long-term capital gain of $7,500. Assuming a federal capital gains tax rate of 20 percent, you would owe $1,500 in taxes if you sold the stock. Instead of selling, you contribute the stock to Gulliver Schools. Your $10,000 gift saves $3,100 in income tax (31 percent of the $10,000), plus $1,500 in capital gains taxes, for a total savings of $4,600. Your total gift of $10,000 was made at an after-tax cost of only $5,200.The rules for gifting appreciated securities or other property include the full fair-market value of the property, if you have owned it for more than one year, and is deductible in the year of the gift. If the gift, alone or coupled with other gifts, exceeds 30 percent of your adjusted gross income, the excess can be carried over and deducted for up to five subsequent years. You pay no capital gains tax regardless of how much the property has appreciated in value.
Owners of closely-held corporations may donate shares of their stock to the school, receive a charitable deduction, and retain full control of their business, all without having to claim a stock dividend.For example, suppose you own 80 percent of your corporation and decide to donate $10,000 of your shares in the company to Gulliver Schools. The stock gift still leaves you in full control of your business, and the charitable deduction saves you $3,100 in income taxes (assuming a 31 percent tax bracket). When the shares are redeemed, your corporation retires the stock and gives Gulliver Schools $10,000. As long as the school is not required to return the shares, your corporation is not considered to have received a dividend and therefore, you are not required to pay any additional tax even though $10,000 has been removed from your corporation.
Gifts of appreciated property, such as farms, personal residences, or undeveloped land, are tax-deductible at full market value, and they relieve the donor from capital gains tax on the appreciation.
For example, if you own a farm that you purchased for $50,000 several years ago and its current market value is $150,000, you may donate it to Gulliver Schools and receive a charitable income tax deduction for the full appraised value of $150,000. In addition, you avoid paying tax on the gain. Therefore, your total gift of $150,000 was made at an after tax cost of $83,500 (assuming a 31 percent tax bracket).
Even if your property has a mortgage, it is still possible to donate the property to Gulliver Schools through a "bargain sale" gift process. For example, suppose you own a piece of real estate valued at $200,000, but you still have a sizeable mortgage. Since the property has appreciated, selling it would result in a significant capital gains tax liability. Instead, you sell the property to Gulliver at a "bargain sale" price of $150,000, which covers your mortgage and results in a charitable gift of $50,000. Since you’ve gifted a portion of the asset, you’ve also eliminated a portion of your capital gains and created an income tax deduction based on the value of the gift.
You may also contribute property to the school, receive an immediate income tax deduction, and still continue to use the property for as long as you wish through the use of a "life estate." For example, assume you and your spouse are near retirement and have already paid off the mortgage on the home in which you live. You plan to live in the home for the rest of your lives, but you would also like to leave a significant gift to Gulliver Schools. The "life estate" allows you to donate your home to the school, while retaining the use of the home for the rest of your lifetimes. Based on your age and other factors, you would receive an immediate income tax deduction, and you would also reduce your estate tax liability.
Many other types of personal property, including antiques, artwork, books, collectibles, historical collections, patents, and copyrights may also make excellent charitable gifts to Gulliver Schools and generate tax deductions equal to their full market value. Gifts of personal property of $5,000 or more require a certified appraisal to establish the value of the gift.
Life insurance policies allow donors to make significant future gifts to Gulliver Schools by donating an existing policy that is no longer needed for its original purpose or by purchasing a new policy for the purpose of making a charitable gift. The policy may name Gulliver either as the beneficiary or as the owner of the policy.
Gifting an existing life insurance policy may yield significant tax benefits. For example, assume your family has grown and that you no longer need a $50,000 policy that you purchased many years ago. The policy has a cash value of about $20,000. You can make Gulliver Schools the owner and beneficiary of the policy and continue to pay the premiums. In doing so, you’ll gain an immediate tax savings of $6,200 (based on a $20,000 deduction at an assumed 31 percent tax bracket). You’ll also gain additional tax savings if you continue to pay premiums in future years. If you do not wish to make future gifts (to offset premium payments), you could transfer ownership of the policy to the school, in which case the policy could be redeemed for the full cash value of $50,000 with no reduction for estate tax.
To donate a current life insurance policy, you will need to change the beneficiary and ownership of the policy to Gulliver Schools and then send a letter to the school indicating your intentions.It is also possible to purchase a new life insurance policy naming Gulliver Schools as the owner and beneficiary. This allows for your future premium payments (made as gifts to Gulliver Schools) to be tax deductible. To donate a new life insurance policy to Gulliver, consult the Institutional Advancement Office and your insurance agent.
A bequest is the most traditional way to donate to Gulliver Schools. Because a bequest is a gift made through your will, you retain full use of your gift property during your lifetime. There are several types of bequests, but all may offer significant estate and inheritance tax benefits.
Listed below are several common forms of charitable bequests that will likely fit most individuals’ needs. Included in some of these descriptions is sample language a donor may use when creating the gift. Of course, donors are encouraged to consult their own attorney when redrafting a will document to ensure that it is appropriate for their personal needs.
The most familiar type of bequest is the general bequest, which specifies that Gulliver Schools will receive a designated sum of money. For example, a donor might make a general bequest of $50,000, which is considered a primary charge against the estate.
Sample Language: "I give, devise, and bequeath to Gulliver Schools ________, the principal and income which may be used for such purposes as the Board of Trustees may determine."
The percentage bequest is an excellent alternative to the general bequest. It states that a donor provides Gulliver Schools with a predetermined percentage of his or her estate. By making a percentage bequest of 10, 25, or 50 percent of their estate, for example, donors assure themselves that inflation will not reduce the true value of their bequest intended for Gulliver Schools.
Sample Language: "I give, devise, and bequeath to Gulliver Schools _________ percentage of my entire estate, the principal and income of which may be used for such purposes as the Board of Trustees may determine."
The residuary bequest directs that Gulliver Schools receive either everything remaining in a donor’s estate, or a designated percentage of a donor’s remaining estate, after all necessary costs, all general bequests, and all specific bequests are satisfied. This type of bequest allows donors the flexibility to make several primary bequests, while still giving them the assurance that Gulliver Schools will be a secondary beneficiary of their estate. The residuary bequest has the drawback of uncertainty because Gulliver Schools receives only as much or as little as is left after all primary obligations are satisfied.Sample Language: "I give, devise, and bequeath to Gulliver Schools all the rest, residue, and remainder of my estate, both real and personal, of any kind and description, wherever situated and whether now owned or hereafter acquired, including any power of appointment."
Many individuals, particularly those providing a larger bequest, are interested in creating an endowment fund, whereby only the income generated by the gift is used by the school.
Sample Language: "I give, devise, and bequeath (define bequest as residue or percentage of estate, sum of money, or specific asset) to Gulliver Schools, to create the (insert appropriate name) Endowment Fund. Only the income from this fund shall be used to (insert how the donor wishes the fund to be used)."
A concern that the school encounters when instituting endowment gifts arises when a gift is restricted to some particular area. With passing years and changing circumstances, it may become unwise, unnecessary, or impossible to use the funds for the purpose for which they were originally intended. If donors wish to designate a restricted gift in their estate, the school suggests that they also include the following relief language:"In the future, if there is no longer a need for the funds as specified or if, in the opinion of the Board of Trustees, it is unwise to use the gift for the purposes specified, the Board of Trustees may use the funds for the fulfillment of other designated objectives at Gulliver Schools, always keeping in mind the objectives of the donor and keeping the donor’s name associated with the distribution."
The contingent bequest is a bequest that is contingent on some event. For example, a donor might make a primary bequest for a relative, with the contingency that if that relative is not living at the time the will is probated, the bequest will pass on to Gulliver Schools. The contingent bequest is often used in the case of a husband or wife who stipulates that if his or her spouse is not living when the will is probated, then the bequest specified for the spouse will pass to a contingent charitable beneficiary.
The testamentary trust is an arrangement in a will where either a unitrust or an annuity trust is set up in a donor’s will to take effect after the donor's death. A trust of this type provides a donor with the opportunity to control certain property that might be mismanaged if left outright to the beneficiary. Furthermore, the trust can yield significant estate tax savings for the donor’s estate.For example, suppose in her will, Jane created a charitable remainder unitrust that provides lifetime income to her daughter. Upon Jane’s death, the estate tax due on the value of the trust’s assets is greatly reduced, since Gulliver Schools will eventually receive a significant gift. In doing so, Jane has provided a secure income to her daughter as well as a generous gift to Gulliver Schools.
Making gifts from your retirement fund may offer significant financial benefits. Many retirement assets accumulate on a tax-free basis, and after retirement, when you begin drawing your income, you will have to pay income taxes on any disbursements. In addition, if retirement funds remain in your estate, they are subject to significant reduction by estate and inheritance taxes. These taxes, especially on large retirement funds, could reduce your retirement assets by as much as 80 percent.By making Gulliver Schools a beneficiary of all or part of your retirement funds, your deferred gift will not be reduced by income or estate taxes. Such gifts are ideal ways to maximize the impact of your retirement funds and make a significant charitable gift.
A charitable gift annuity pays you (and another beneficiary, if you so desire) a fixed dollar amount for life in exchange for an irrevocable gift to Gulliver Schools. You receive an immediate tax deduction for the gift portion of the annuity and a portion of each annuity payment is tax-free. The amount of income you receive from the annuity is based on your age (and the age of any other income beneficiaries), using the standard rates recommended by the American Council on Gift Annuities.
Give By Mail
Complete the donation form and send along with credit card information or a check made payable to Gulliver Schools and mail to:
Gulliver Advancement Department
9350 South Dixie Highway
Miami, Florida 33156
Give By Phone
Call 786.709.4005 using a credit card.