The Sycamore Farm Legacy Society was founded in 2013 to recognize and honor a distinguished group of individuals who are dedicated to helping The Philadelphia School secure its future by including TPS in their estate plans through bequests, life insurance gifts or designations, or retirement plan beneficiary designations. The name of the society honors the roots of our first country classroom – Sycamore Farm, which was generously provided for our use by the Donner family. The Donners and other early school leaders gave thoughtful and caring support in the creation of the school’s mission. Help us to sustain this mission by helping to ensure the financial viability of The Philadelphia School far into the future.
Planned giving, which typically takes place as part of estate planning, is an effective option for caring people at all income levels. Planned gifts also offer personal, financial and tax benefits to you and your family.
Bequests: A bequest is a provision in your will. It can name The Philadelphia School to receive either a stated dollar amount, a specific item of property, a percentage of your overall estate, or all or part of what’s left after you provide for others. The simplest way of making a gift through one’s will is by adding simple language to your will. The Advancement office can provide you with examples. If your present planning documents are already in place, you may wish to consider adding a brief Codicil or Amendment.
Life Insurance: There are two ways to make a planned gift to The Philadelphia School through life insurance. If you took out a life insurance policy years ago to pay off expenses you no longer face, such as a mortgage or educational expenses, you can make a significant contribution to TPS by naming it as a beneficiary to that policy. Small, older life insurance policies often do not need further premium payments to remain in force and may provide an excellent gift option for you. You can claim an income tax charitable deduction based on the cash value of the gift.
Or, you may choose to purchase life insurance, make TPS the owner and beneficiary of the policy, and allow TPS to bill you for the yearly premium. This type of planned gift allows you to make a gift at a fraction of the face value, and allows you to make yearly premium payments to leverage a much larger gift. Because the gift is not complete at the time of designation, you will not receive a current charitable tax deduction. However, premium payments are fully tax-deductible.
For example: A 30 year-old donor takes out a $100,000 whole life insurance policy and makes TPS the owner and beneficiary. The school holds the policy and bills the donor for ten yearly premium payments of $1,000 for a total cost of $10,000. The donor receives income tax deductions on the premium payments, and eventually TPS receives $100,000.
Retirement Plans: Consider naming The Philadelphia School as a beneficiary of your IRA, 401(k), 403 (b), or other qualified plan. You may designate the school to receive all or a portion of the balance of your plan through your plan administrator. This is a way to give a gift to The Philadelphia School without impacting your current cash flow. IRAs and pension plans may be subject to layers of taxes (estate tax, federal income tax, and state income tax). By donating an IRA, you can avoid taxation and minimize the impact on your savings.
We invite you to become a member of the Sycamore Farm Legacy Society. If you have already made a planned gift to The Philadelphia School, though one of the vehicles above, or though another vehicle, please let us know so we can honor your gift and include you in the Legacy Society.
We encourage you to consult with your financial or legal advisors to fully explore the legal, financial, tax, and personal implications of planned giving.