Monetary Gifts

Gifts of cash, usually made by a check, are the most popular form of charitable giving.  Cash gifts are attractive because they are simple to make, immediately effective, and easily directed to the greatest needs.  Cash contributions may be deducted up to fifty percent (50%) of the donor’s adjusted gross income.  Should the gift total exceed this amount for one year, the remaining deduction may be used in succeeding tax years for up to five years.

In addition to checks, the use of a credit card or direct deposit arrangement allows the donor to make a gift with a simple phone call or to make a significant gift through monthly installments.  In every instance, meeting the donor’s needs and wishes is our first priority.

Giving Appreciated Assets

Gifts of those assets that have gone up in value since their purchase are particularly attractive to the donor.

Consider that:

  • Sales of stocks, bonds, mutual funds, and real property that have appreciated in value generate a taxable capital gain.
  • Gifts of appreciated assets are deductible at their full fair market value if they have been held longer than twelve months.
  • The full fair market value of these assets can be deducted up to thirty (30%) of the donor’s adjusted gross income.  The donor may elect to qualify for a fifty percent (50%) adjusted gross income ceiling by reducing the value of the gift by the full amount of its appreciation, deducting only what was originally paid for the asset.
  • Excess deductions can be carried forward into as many as five additional tax years.

Gifts of Property

Real Estate

Almost any type of real property – a personal residence, a farm, a vacation home, a commercial building, or an undeveloped parcel of land – can be gifted.  Gifts of real estate can be made either outright or through one of several methods outlined below.

If the property has been held long-term and is given outright, the donors will generally avoid any tax on the gain.  They also benefit by reducing their taxable estate and receiving a charitable income tax deduction based on an appraisal of the full fair market value of the property.

Actual income tax savings will depend on the donor’s tax bracket.  The donor may deduct the value of the gift up to thirty percent (30%) of adjusted gross income or elect a fifty percent (50%) of adjusted gross income deduction by reducing the value of the gift to its cost basis.  Either way, the charitable deduction may be used in the year the gift is made and over the next five tax years as needed.

Tangible Personal Property

This includes other items of valuable property, which can be put to work for use by the Academy or through its sale.  The donor may give an item whether or not it has increased in value.  Consult HA Prep Academy regarding the benefits of this kind of gift.

Intangible Personal Property

Intangible personal property includes copyrights, patents, contracts, promissory notes, royalties, trademarks, and other items that cannot be seen or touched.  However, these items can have great value in supporting HA Prep Academy’s mission.  Gift and estate benefits are treated the same as tangible personal property.

Gifts of a Residence or Farm with Retained Right to Use the Property

For some donors, the gift of a personal residence, vacation home, or farm is the perfect solution to meeting today’s needs and arranging a future gift.  Through a charitable life estate contract, you deed the property to HA Prep Academy but retain the right to live in the home or use the farm or property for the remainder of your lifetime, a spouse’s lifetime, or term of years.  You also continue to be responsible for the maintenance, upkeep, taxes, insurance, etc.

By making this type of transfer, the donors receive an immediate income tax deduction based on their life expectancy (or term of years) and the value of the property.  The donor also benefits by avoiding capital gains consequences and excluding the property from inheritance or estate taxes.

Memorial & Honorary Gifts

One of the most meaningful ways to remember loved ones and to honor friends and family members is by making gifts to recognize special events, anniversaries, birthdays, retirements, births, and graduations.  Such gifts are appropriately acknowledged to both the donor and the person designated by the donor to receive notification of the gift.  Memorial and honor gifts are listed in the HA Prep Academy newsletter.

Matching Gifts

Matching gifts are company-donated contributions that match the contributions made by employees of that company. Donors can increase the value of their gift with a matching gift.  Ask your employer for more details.

Volunteer Opportunities

A number of volunteer opportunities are available.  Volunteers make a difference!  If you are interested in volunteering, please give us a call.

Named Endowment Funds

The endowment is an investment in sustaining HA Prep Academy’s unique and urgently needed educational mission.  These funds are invested in perpetuity to generate earnings that allow the Academy to grow its programs.  Earnings from the endowment are the most desirable source of funding for supporting the Academy’s most important assets – its students and faculty.

Donors may create a named perpetual endowment with gifts of $10,000 or more.  We welcome every donor’s plan to make individual or family gifts to create this vital resource.

Named Scholarships

Scholarship funds provide deserving and talented students with the financial support they need to realize their fullest potential.  As the costs of education continue to rise, the Academy apportions a part of its operating budget in support of tuition assistance.  In addition, individuals and families have generously created annual or endowed scholarship accounts.

Donors may create permanent endowed named scholarships with a minimum donation of $10,000.

Campus Facilities

HA Prep Academy will continue to grow based on the needs of our student body and faculty. Equally important, however, are the halls, classrooms, and sports facilities that currently serve our students and faculty in learning and living together.  Generous parents, alumni, and friends have faithfully supported the building, renovation, and expansion of HA Prep Academy’s buildings.  We welcome the opportunity to share the campus master plan with donors and discuss together how best to establish a legacy for the Academy’s future.