Endowment & Planned Giving
Endowment plays a critical role in allowing the school to fulfill its mission and ensure long-term financial stability.
An endowment fund can be compared to a long-term investment or savings plan. It is a “permanent” fund in which the principal is invested and the earnings are spent. A strong endowment ensures our long-term strength and stability because the funds help to support dynamic programming, a diverse community of learners, and the operating costs that come with innovative facilities. Endowment relieves pressure on tuition and annual giving, playing a critical role in ensuring the long-term affordability of an Oakwood education.
While endowments are established through sizeable initial gifts, they may grow through smaller, ongoing gifts from other supporters of the school.
The Oakwood School has two restricted and unrestricted endowment and scholarship funds. We are grateful to parents, grandparents, trustees, alumni families, and friends for establishing the funds listed below.
If you have any questions about an existing fund, or you would like to discuss establishing a new endowment fund or scholarship, please contact our Development Office.
One of the most powerful and philanthropic tools available to Oakwood supporters is planned giving. The benefits include tax savings, increased income, and providing for heirs, but it also benefits Oakwood at the same time.
What is planned giving?
Planned giving includes a variety of philanthropic strategies that help you provide for The Oakwood School while also advancing your own financial and personal objectives. Making a planned gift is a special way to support the school, because it allows you to donate assets, yet defer the time when we actually receive them. The best gift plans can improve the donor’s financial and tax situation, often right away. Several planned giving options are available—the simplest one is a bequest in your will. We strongly recommend you consult with your attorney or tax advisor as you research the most appropriate way to remember Oakwood in your will or estate plans.
The Oakwood Society
Oakwood has established The Oak Society to recognize those who include the school in their wills or estate plans. Their gift is an important way to help ensure the future strength of our school and enable the donors to have an impact on Oakwood beyond their lifetimes. We appreciate their foresight and extraordinary generosity.
Membership in The Oak Society is granted the following ways:
- Bequest Intention in your Will
- Life Insurance
- IRA or Other Qualified Plan
- Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA)
- Charitable Lead Trust
- Real Estate
- Personal Property
Donor would like to make a substantial gift to Oakwood but doesn’t have sufficient assets to provide a large gift during their lifetime because of concerns regarding health costs or other potential unknown expenses. A bequest allows the donor to make a substantial gift, often many times their capacity during their lifetime. Please be sure to provide appropriately for your spouse and children first.
An IRA or other qualified plan is a great item to own during one’s life but not ideal to try and pass to family members. Until the Charitable Rollover provision—which has been introduced in Congress every year for over a decade— passes and becomes law, the best asset in an estate to pass to Oakwood is an IRA. It passes to the school tax-free. Any attempt to pass to family member causes substantial tax losses.
Donor owns appreciated assets. The assets are low growth, low dividend, or both. Donor does not wish to pay capital gains tax, but would like to create more current income from assets. A gift to a CRT or CGA avoids capital gains taxes and estate taxes, provides income to designated beneficiaries, and the remainder to Oakwood.
Donor owns substantial assets and would like to pass them to the next generation at low tax cost. A charitable lead trust pays income to Oakwood for a period of years, then the remainder to family members. By paying to a charity, a much lower imputed value is passed to the family members, avoiding tax on the marginal difference in value. This trust is not for the faint of heart since the assets pass from control of both the donor and the other family members for the period of payment to the charities.
Real estate can be a difficult item to resolve within an estate or by family members after it leaves the estate. A gift to Oakwood avoids estate, gift, and capital gains taxes and provides an income tax deduction. If some cash is needed, then a bargain sale can be used to provide cash in part and a gift in part.