Gifts of Appreciated Securities

Stocks, bonds, and mutual funds that have increased in value and have been held for more than one year are among the most popular assets our donors use when making a gift to the J. Wood Platt Trust, and for very good reason.

When you sell appreciated securities, you owe capital gains tax on the appreciation. But when you donate those same securities directly to the Trust, you avoid the capital gains tax entirely and you receive a charitable income tax deduction for the full fair market value of the gift, not just what you originally paid. It is, in effect, a double tax benefit.

How It Works — An Example

Suppose you purchased stock for $5,000 and it is now worth $20,000. If you sell it and donate the proceeds, you'd owe capital gains tax on $15,000 of gain before writing your check. But if you transfer the stock directly to the Trust, you pay no capital gains tax and receive a $20,000 charitable deduction. The Trust, as a tax-exempt organization, keeps every dollar of the proceeds when it liquidates the shares.

Important Note

Do not sell the securities before donating. Once you sell, you trigger the capital gains tax and lose the primary advantage of this strategy. The transfer must be made directly from your brokerage account to the Trust.

We recommend consulting with your financial advisor or tax professional before making a gift of securities. For assistance with a transfer, please contact us directly.

Contact Us to Initiate a Transfer

Gifts from Retirement Plans

Many of our donors have found that their IRA or qualified retirement account is one of the most powerful and most overlooked tools for charitable giving. Retirement assets can work harder for charity than almost any other asset you own.

Qualified Charitable Distributions (QCDs)

If you are age 70½ or older, you can make a direct gift from your traditional IRA to the J. Wood Platt Caddie Scholarship Trust, completely free of federal income tax, up to $111,000 per person per year (indexed for inflation).

This type of gift, called a Qualified Charitable Distribution, satisfies your Required Minimum Distribution (RMD) for the year without the gift amount ever appearing as taxable income on your return. For donors in higher tax brackets, this is typically far more advantageous than writing a personal check and claiming a deduction.

How to Make a QCD

Contact your IRA custodian (Fidelity, Schwab, Vanguard, etc.) and request a direct distribution to the J. Wood Platt Caddie Scholarship Trust. Provide them with our mailing address and EIN. The check must be made payable to the Trust, not to you, in order to qualify as a QCD.

Naming the Trust as an IRA Beneficiary

Even if you don't wish to make a gift today, naming the J. Wood Platt Trust as the beneficiary of your IRA or 401(k) is one of the simplest and most impactful planned gifts available to you.

Retirement assets distributed to your heirs are subject to income tax. The same assets distributed directly to a charity like the Trust are not taxed at all. This means your retirement account may be the single most tax-efficient asset in your estate to leave to a charitable cause, and you can change the beneficiary designation at any time without altering your will.

To name us as a beneficiary, contact your plan administrator and request a Beneficiary Designation form. List us as a sole or partial beneficiary using the information below.

Questions? Contact Us

Donor Advised Funds

A Donor Advised Fund (DAF) is a giving account maintained at a sponsoring organization, such as Fidelity Charitable, Schwab Charitable, or Vanguard Charitable. If you have one, you can recommend a grant to the J. Wood Platt Caddie Scholarship Trust quickly and easily.

The J. Wood Platt Caddie Scholarship Trust is an approved charitable beneficiary at all major DAF sponsors. Our Federal Tax ID is 23-6296989.

Initiate a Grant Now

Use the links below to recommend a grant from your DAF directly to the Trust. Simply enter our name or EIN to search and initiate the grant from your account.

Naming the Trust as a DAF Beneficiary

You can also name the J. Wood Platt Trust as a successor beneficiary of your DAF account, ensuring that any remaining balance in your fund after your lifetime is distributed to the Trust. Contact your DAF sponsor to update your account's charitable successor designation.

Questions? Contact Us

Gifts of Life Insurance

Life insurance can be a surprisingly effective vehicle for charitable giving, especially for donors who find themselves holding a policy that no longer serves its original purpose.

Policies That May No Longer Be Needed

You may have purchased a life insurance policy years ago to protect children who are now financially independent, to cover estate taxes that may no longer apply to your situation, or to fund an educational plan that has since been completed. If you are still paying premiums on a policy like this, consider whether the J. Wood Platt Trust might benefit from it instead.

How You Can Give Through Life Insurance

• Name the Trust as beneficiary. The simplest option is to designate the Trust as a primary or contingent beneficiary of an existing policy. You retain full ownership of the policy during your lifetime. No immediate tax deduction, but the proceeds pass outside your taxable estate at death.
• Transfer ownership of an existing policy. If you transfer ownership of a paid-up policy to the Trust, you may receive a charitable deduction for its fair market value at the time of transfer.
• Purchase a new policy naming the Trust as owner and beneficiary. Premiums paid on a policy owned by a charity may be deductible as charitable contributions. This approach allows donors to leverage a relatively modest annual premium into a significant future gift.

Life insurance gifts can be structured in many ways depending on your goals and the type of policy involved. We recommend working with your insurance agent and financial advisor to determine the approach that makes most sense for your situation. Our staff is happy to work alongside your advisors.

Contact Us to Learn More

Planned Giving & Bequests

Planned gifts, also called legacy gifts, are contributions made through your will, living trust, beneficiary designation, or other estate planning arrangement. They represent among the most profound expressions of commitment to the J. Wood Platt Caddie Scholarship Trust and its mission.

Your legacy will advance the Trust's mission and create enduring opportunities for the young men and women who work in golf throughout the greater Philadelphia area. A gift in your estate plan costs you nothing today, yet can make an extraordinary difference for future Scholars.

Gifts Through Your Will or Living Trust

When you make or update your will or trust, you may designate a specific dollar amount, a percentage of your estate, or the residue of your estate to the J. Wood Platt Caddie Scholarship Trust. We would be happy to provide suggested bequest language for your attorney to incorporate into your estate planning documents.

Other Planned Gift Vehicles

Beyond outright bequests, there are several other ways to create a planned gift to the Trust:

• IRA or retirement account beneficiary designation — Name the Trust as a full or partial beneficiary. Retirement assets are among the most tax-efficient assets to leave to charity.
• Life insurance beneficiary designation — Name the Trust as the primary or contingent beneficiary of a life insurance policy.
• Charitable Remainder Trust (CRT) — A CRT provides an immediate income tax deduction and can generate income for you or a loved one during your lifetime, with the remainder passing to the Trust at death.
• Charitable Lead Trust (CLT) — A CLT makes distributions to the Trust for a defined period of years, with the remainder passing to heirs, potentially with reduced gift and estate tax exposure.

Request Bequest Language