ICS Sharing the Future Introduction > How to Give

A great tradition of Catholic support and philanthropy began in 1914 and continues today. Private gifts from alumni and friends honor past achievements and provide future opportunities at Immaculate Conception School.

Do you know ... the different ways to contribute to Sharing the Future?

The Impact of a Gift A gift helps students fulfill their dreams, talents and abilities. Our students of today will be tomorrow’s business owners and community leaders, lawyers, doctors, artists or members of dozens of other professions. Your gift will assist them in their quest, guided by faith, which is provided by Immaculate Conception teachers and their parents.

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Cash Gifts

Pledges & Installments

Securities

Commodities

Review our Web-page on Planned Gifts

There are many ways in which to support Immaculate Conception School. Cash gifts are generally most convenient. In addition, pledges and installment plans, gifts of commodities, securities, real estate and even deferred gifts that give you immediate tax breaks are just some of the ways you can support us.

Cash Simplicity and ease of delivery make cash the most convenient way to support ICS. For tax purposes, gifts of cash are considered to be complete on the date they are personally delivered or postmarked. You may deduct cash gifts from your income taxes for up to 50 percent of your adjusted gross income. Any excess can be claimed on tax returns for up to five years in the future. Because of the charitable deduction, a cash gift of $1,000 costs a donor in a 41 percent federal and state tax bracket only $590.

Cash gifts include donations of maturing bonds and certificates of deposit, money market accounts and savings accounts. To make a cash gift by mail, send your check payable to:

Immaculate Conception School
115 N B Street
Monmouth, IL 61462-1699

If you have specific questions or need assistance,

Call us at: 309-734-6037 - School Office

 

Write on your check message line: ICS Website.

Pledges & Installments Gifts of cash don't have to be paid all at the same time. A pledge can be broken down into monthly installments.

For a monthly deduction of:	Your annual gift would be:
$20.83	$250
$41.66	$500
$62.50	$750
$83.33	$1,000
$125.00	$1,500
$208.33	$2,500
$416.66	$5,000

Simply inform us of your gift intention and your anticipated length of gift. Your gift will be utilized to the fullest!

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Guide to Gifts of Securities Alumni, parents, and friends can make gifts, other than cash, to Immaculate Conception using appreciated securities -- including publicly traded and privately held stock and mutual funds. The attraction of this method of giving is that the donor is entitled to take a charitable deduction for the full current value of appreciated securities held longer than one year, and is able to avoid paying the capital gains tax that would be due if the donor sold the securities.

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Gifts of Farm Raised Inventory By contributing raised commodities could provide you additional tax advantages. To Immaculate Conception School, there is no tax consequence from the receipt of cash or commodities. However, if you are a cash basis farmer, there can be a substantial difference in the tax consequences.

The tax advantage results from the fact that the farmer does not realize any income from the gift transfer of inventory. The IRS has ruled that gifts of raised farm commodities by a cash basis farmer "represents a transfer of an asset, rather than the assignment of income."

Commodity Gifts Might Save You As Much As 35%!

If Frank Farmer sold corn for $1,950, he would likely have income subject to both income and self-employment tax. Assuming a marginal tax rate of 28%, an effective self-employment tax rate of 14.1% (15.3% x .9235), and a deduction for Adjusted Gross Income (AGI) of one-half of self employment tax, Frank would be left with $1,167 of net proceeds to contribute to Immaculate Conception.

If Frank contributes the corn, Immaculate Conception will realize $1,950 upon its sale, assuming the market value remains steady until the sale. This would represent an equivalent of a $783 tax savings to Frank Farmer. Obviously this savings depends on the individual's personal tax situation, but could result in a significant savings to the farmer.

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For farmers who use the standard deduction instead of itemizing, the charitable contribution of inventory removes this potential income from taxation. Also, whether you use the standard deduction or itemize, if your farm income is less than the self-employment earnings cap, the charitable gift of inventory will also reduce your self-employment tax liability. This gifting reduces your liability on federal and state income taxes and possibly on self-employment taxes. The direct transfer of raised inventory does involve some key factors for effective tax savings. There are a few precautions that must be followed:

• You must be a cash basis farmer; (gifting will not work for a crop-share landlord. A share of a crop received as a rental payment in a non-material participation lease arrangement is considered the equivalent of rental income.)

• The gift must be of material participation inventory (you must have materially participated in the production of the commodity); (the gift should consist of unsold commodity inventory, with no sale commitments made prior to the date of the gift.)

• Gift prior year production (giving current year production reduces the deductibility of certain production costs) make sure that the gift is farm commodities, not warehouse receipts (which could be interpreted as cash equivalent);

• Title and control of the commodity must be transferred to the charitable institution (ICC). The donor should provide no guidance in the retention or disposition of the gifted commodity.

• The charitable institution (donee) must be able to demonstrate control and dominion over the gift commodity. Have a properly executed storage ticket in the donee's name (or a notarized letter of transfer for commodities stored on the farm.) The original sales invoice should also list the donee as the seller. After transfer, the school should assume cost of storage, transportation and marketing and should bear a risk of loss with regard to the commodity, if not sold immediately. The sale proceeds should be deposited in the donee's account.

If you would like to discuss this process of donating commodities or have questions on the deduction, give us a call!

Please consult with your tax consultant and review your options to ensure proper credits.

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kbennett@email.immaculate-conception.net