The Arrow Giving back Year End 2014 —
2014 Year End Giving Ideas
The ROAD LESS TRAVELED “My son is a junior at The Citadel.” I say this at parties and well, pretty much any social event where it can be squeezed into the conversation. Lately, I also try to throw in the fact that he spent this past summer in Washington, DC doing an internship “on the Hill”. Yes, I’m a proud mom. To say it’s been a challenge to get him to this place would be an understatement. To say it would have been possible without Oak Hill Academy would be a falsehood. When we showed up at the door step of OHA in 2010, we knew two things – we had a great kid who was headed down a path that had no good end, and we were at our wits end what more to do for him. Albert Einstein famously gave the definition of insanity as, “doing the same thing over and over and expecting different results.” It was mid-year and we needed an urgent change. The things we had tried to that point had failed, we felt like we were failing our child, and we were running out of time to make a lasting impact. The banner on the Oak Hill Academy website lured us in, “There’s no such thing as an underachieving child, just an unmotivated one.” As we came to experience, it was more than just a slogan. It was a method of teaching – not only scholastics, but life skills – that has made all the difference. The structure provided at Oak Hill in a nurturing but firm atmosphere, allowed Chase to succeed. He began to see the value in himself which he had lost along the way. Besides sports and clubs, he undertook Leadership roles, things he never would have considered at his very large public high school. In the midst of all this, he maintained his position on the honor roll every semester. It was a combination of the academic and non-academic accomplishments that made him attractive to the college of his choice, and gave him the confidence to even apply in the first place. If it were not for the committed and caring staff to drive this consistency of approach – for each child – all day every day, the formula would not work. Here, in the cradle of the Blue Ridge Mountains, a group of kids form a community, become self- reliant and create a support network, a special bond which exists long after they leave this place. How fortunate we were to have the resources to give our son this second chance. Every child is worth saving and should have that same opportunity to succeed. That’s why we continue to support this school, its leadership and its mission. The most heart wrenching decision we ever made as parents was to enroll our child in boarding school. The rightness of our choice in Oak Hill Academy was confirmed by our son one week into the start of his college life. He wrote us a letter (not a text, not an email, but a real, put a stamp on it and mail it, letter) which read, “Thanks for continuing to believe in me, and for giving me this incredible opportunity.” He also asked us to send money, but that’s another story.
Lori Feezor
Students Enjoy Fall on “The Hill”
2014 Year-End Gift Ideas Year-end giving is as easy as (1) making a charitable gift, and (2) saving taxes. We’d like to make it even easier with this primer on some of the best ways to save—and give. The tax laws intentionally encourage charitable giving. Because of the income tax charitable deduction, individuals who make their gifts by December 31 and itemize can significantly reduce their income taxes for 2014. Example: If you make a charitable gift of $10,000 in 2014, you can save $3,300 in taxes if you are in the 33% tax bracket. And the higher your tax bracket, the more money you save with a charitable gift.
time, than by simply writing a check. Make sure your envelope is postmarked by December 31; if it is, your gift will qualify as a 2014 gift even if it is not received by us until the first week of 2015. If you itemize, your outright gifts of cash are fully deductible for federal income tax purposes up to 50% of your adjusted gross income. If your total gifts should exceed this limitation, the excess may be carried forward for tax purposes for up to five additional years. Gifts of Stock Year-end 2014 may be an excellent time to consider a gift of stock.
Giving is, of course, much more than tax brackets and charitable deductions, Philanthropy provides the meaningful difference in what we can do.
Giving long-term appreciated stock offers you a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you receive a tax deduction for the full fair market value of the stock. For income tax purposes the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional five-year carry forward.
This brochure is only a brief introduction to some of the best tax–advantaged methods of giving. We would be pleased to provide you with further information. Also, we urge you to discuss your 2014 year-end tax planning with your accountant or other professional advisor.
Example: If you purchased stock many years ago for $1,000, and it is now worth $10,000, an outright gift of that stock to us would result in a charitable deduction of $10,000. In addition, you permanently avoid paying capital gains tax on the $9,000 of appreciation.
Gifts of Cash
Gifts of Real Estate
There is no easier way to garner a charitable deduction for 2014, and support us at the same
If you have owned your home, a vacation home, acreage, or a farm for many years, charitable
The Arrow is published by the Development Office of Oak Hill Academy and is distributed to alumni and friends of the Academy. Oak Hill Academy 2635 Oak Hill Rd Mouth of Wilson, VA 24363 276-579-2619 www.oak-hill.net
President Dr. Michael D. Groves Board of Trustees Rev. Robert Bailey Mr. Kenny Bowen – ‘78 Ms. Bonnie Burke – P’07 Rev. Danny Collins Mr. Larry Conner Mr. Ralph Davis Mrs. Lisa Dockery
Rev. John Duvall Mrs. Sidney Rose Fant Mr. Marshall Frank – P’08 Mr. Todd Fuller Mr. Dennis Gambill Mrs. Susie Garner Mr. Don Gibson Mr. Rex Halsey – ‘55 Mr. Rodney Halsey Dr. Thomas Harvey Theresa Lazo
Mr. Marty Parks Mr. Carl Rosberg Mr. Jim Tapp Dr. Dennis Throckmorton Mr. Taylor Vaughan Mr. Harold Wingate P - Parent of OHA Alumnus
gift of that real estate can be especially tax– advantageous. The property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax. If given to us instead, you avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the real estate. You may also wish to consider a gift of your personal residence or farm, reserving the right to continue to live in the house or farm the property for life (and, if applicable, the lifetime of your surviving spouse). Through such an arrangement, you will be entitled to a current income tax deduction for a portion of the fair market value. Gifts of Life Insurance If you own a life insurance policy that is no longer needed, consider it as the perfect vehicle for a 2014 year-end charitable gift. To receive a charitable deduction, name us as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year. (It’s easy to contribute a life insurance policy to us. Just check with your life insurance agent for details on which forms to complete.) Life Income Gifts If you are considering a major gift, your gift of cash or stock in the form of a “life income gift” can significantly increase your income. A life income gift allows you to transfer assets now, and
yet continue to receive income from the cash, stock, or other property contributed. A life income gift can allow you to: (1) increase your income for life; (2) receive a generous charitable contribution deduction in 2014; and (3) if you contribute stock, avoid any capital gains tax on the appreciation. A life income gift is often made through a trust arrangement called a “unitrust” or an “annuity trust.” With a unitrust, you and/or your spouse (or another beneficiary) receive annually a fixed percentage of the fair market value of the assets in the trust. The income received will vary from year to year, based upon how the trust’s investments perform. With an annuity trust, you and/ or your spouse (or another beneficiary) receive a fixed amount from the trust each year. This amount is agreed upon when you create the trust; it stays constant, no matter what happens with the stock market or interest rates. If you have already considered a provision for us in your will, please note that a life income gift can often be preferable. Such a gift allows you to accomplish your goals during your lifetime—and in a tax-advantaged way. For Further Information No one publication can tell you everything you need to know about 2014 year-end gift opportunities and which method would be the most advantageous for your particular situation. Be sure to check with your accountant or other tax advisor for additional information on how these general rules apply to your situation. We would be pleased to provide you with additional information on any gifts you may be considering. Thank you for your support at yearend — and throughout the year! Copyright MMXIV by Calder P. Sinclair
Donor Appreciation Dinner On Saturday, November 8, Dr. and Mrs. Michael Groves hosted the ninth annual donor appreciation event. The event began with guests attending the Gold Team game against Capitol Christian Academy. The game was followed by a social time and musical performance by the Oak Hill Choir under the direction of Ms. Jean Callison. The evening concluded with dinner in the Ussery Archives Room. A special thank you is extended to the staff of MeriwetherGodsey for the delicious meal. This special event was created to honor the donors of the academy who are members of the “Oak Club” and “Founders Club.” For more information on becoming a member of these giving circles or any of Oak Hill Academy’s other giving circles, please contact Mr. Tim Henry in the Development Office.
OAK HILL ACADEMY
1 ANNUAL ST
HOMECOMING January 31, 2015 This is a FREE eve but regis nt tration i ensure ts shirt siz required to e and sea ting at the gam e.
Scheduled Eventdse
e para • Campus-wid se food r all (main cour • Tailgating fo r Godsey) by Meriwethe ed d vi ro p s m ite old Team ame - OHA G G ll a tb e sk a B • Academy vs. Prominence during lumni cheers •Class and A half time
ail Watch your m n for registratio r te is g re forms or t: online a t www.oak-hill.ne
CONT ACT T 276-5 IM HENRY thenr y 79-2619
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DORM CAMPAIGN UPDATE TOTAL NEEDED: $1.2 MILLION TOTAL SECURED: $956,252 LEFT TO RAISE: $243,748
$150,000
SECURED BUILDING #2 SECURED
$25,000
RESIDENT MANAGER’S APARTMENT 1 SECURED, 1 AVAILABLE
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REC ROOM/STUDY LOUNGE 2
$10,000
INDIVIDUAL ROOMS 6 SECURED, 8 AVAILABLE
$150,000
BUILDING #1
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