OSNAS Guide to High-Impact Stewardship

Read this guide to learn how to make your giving go farther for the people and causes you care about.

Qualified Charitable Distribution (QCD)

A Qualified Charitable Distribution (QCD) allows individuals age 70½ or older to transfer up to $105,000 per year (2024 limit) directly from their IRA to OSNAS, tax-free. The distribution is excluded from your taxable income.

If you withdraw funds from your IRA (Individual Retirement Account) before donating them to OSNAS, the withdrawal will generally be treated as taxable income and may be subject to federal and state income taxes.

Beginning at the age of 73 you are required to take out a certain percentage from most retirement accounts. A QCD can also satisfy all or part of this Required Minimum Distribution (RMD). 

If you have a 401(k) or 403(b) retirement account, you cannot make a QCD directly from those plans. However, you may be able to roll over all or part of those funds into an IRA and then make a QCD from the IRA.

If you are like many people, you may not use all of your retirement assets during your lifetime. Donating unused retirement assets can be a tax-efficient way to further the mission of OSNAS.

Steps

  1. Contact your IRA provider (e.g., Thrivent, Fidelity, Vanguard, etc.) and request a Qualified Charitable Distribution.
  2. Instruct the provider to send the funds directly to Our Savior New American School, 140 Mark Tree Road, Centereach, NY 11720.

If you send a check, it should include your name for identification purposes.
You may be asked for the school’s EIN: 27-0636487.

Beneficiary on a Retirement Account

Retirement assets such as IRAs and 401(k)s are generally taxable to individual heirs, often at ordinary income tax rates. Depending on the heir’s tax bracket and the timing of withdrawals, a significant portion of these assets may be lost to taxes.

In contrast, many non-retirement assets—such as stocks and real estate—receive a step-up in basis at death. This means that any appreciation during the original owner’s lifetime is generally erased for capital gains tax purposes, allowing heirs to sell the asset with little or no capital gains tax.

Because OSNAS is a qualified charitable organization, it can receive IRA and other retirement plan assets income-tax free. For this reason, many donors choose to leave retirement assets to charity and other assets to heirs.

Steps

  1. Request a Beneficiary Designation Form from your IRA custodian or plan administrator.
  2. Complete the form naming Our Savior New American School as beneficiary.
    Address: 140 Mark Tree Road, Centereach, NY 11720
    EIN: 27-0636487
  3. Return the form to your custodian.
  4. Please call 631-588-2757 or email wil.stelzer@osnas.org to let us know of your gift.

Beneficiary on a Life Insurance Policy

You may name OSNAS as a partial or full beneficiary of your life insurance policy.
If you want to make an immediate gift, you may also transfer ownership of a policy to OSNAS. In that case, the donation is generally tax-free, and you may be eligible for an income tax deduction equal to the policy’s cash surrender value.

Steps

  1. Contact your life insurance company.
  2. Complete a Beneficiary Designation Form naming Our Savior New American School.
    EIN: 27-0636487
    Address: 140 Mark Tree Road, Centereach, NY 11720
  3. Call 631-588-2757 or email wil.stelzer@osnas.org to inform us of your gift.

Note on Giving from Retirement Accounts vs. Life Insurance Policies

Since life insurance policies pass to heirs tax-free and retirement funds pass to charities tax-free, many donors choose to have both to maximize the impact of their giving. 

For example, if you have $500,000 in a retirement account and purchase a life insurance policy that ends up costing $100,000 but pays out $500,000 to an heir, this would leave $400,000 in the retirement account that could pass to a charity. The total amount of the two gifts would be $900,000 instead of a single gift of $500,000 that would potentially be reduced by taxes up to 37% (if the heir was in the highest tax bracket).

Donor-Advised Fund (DAF)

A Donor-Advised Fund allows you to make a charitable contribution and receive an immediate tax deduction, while retaining the flexibility to recommend grants to OSNAS now or in future years. Funds in the DAF may be invested for potential growth, and grants to OSNAS are tax-free. You can contribute cash, stocks, bonds, mutual funds, and in some cases other assets.

Steps

  1. Establish a Donor-Advised Fund through a financial institution (e.g., Vanguard, Fidelity, Schwab, Bank of America).
  2. Select an investment option if desired.

When ready, recommend a grant to Our Savior New American School.
EIN: 27-0636487.

Stocks & Bonds

If you donate appreciated stocks or bonds directly to OSNAS, you generally avoid capital gains tax and may receive an income tax deduction equal to the fair market value of the asset. On the other hand, if you sell the asset first and then donate the cash, you may owe capital gains tax on the sale.

Steps

  1. Visit osnas.org/donate and select “Donate with Stock.”
  2. Enter the stock symbol and number of shares.
  3. Complete the form and submit.

Cash & Checks

Cash gifts are a simple way to support OSNAS. A donation by check is deductible in the year it is mailed, even if it is received or deposited later. You can also give online without fee at osnas.org/donate. Another option is to give using Zelle, which allows direct bank-to-bank transfers. If you use Zelle, send donations to donations@osnas.org.

Real Estate

You may donate a portion or all of your real property to OSNAS. The value of your gift is generally based on the property’s fair market value, as determined by a qualified independent appraisal.

Donating real estate may allow both you and OSNAS to avoid capital gains tax on the sale, and you may receive an income tax deduction based on the value of the gift, subject to IRS rules.

Steps

  1. For property valued over $5,000, obtain a qualified appraisal dated no more than 60 days before the donation.
  2. Complete the transfer of the deed or title to:
    Our Savior New American School
    140 Mark Tree Road
    Centereach, NY 11720
    EIN: 27-0636487

Will

A will (Last Will and Testament) is a legal document that specifies how your assets will be distributed at your death. Without a will, state law determines how your estate is divided.

Steps

  1. Create a valid will. In New York, a will must be written, signed by you, and witnessed by at least two individuals who observe you sign or acknowledge your signature and then sign themselves.
  2. Designate a gift to OSNAS (e.g., “I leave ___% of my estate to Our Savior New American School”).

Please call 631-588-2757 or email wil.stelzer@osnas.org to inform us of your gift.

Trust

A trust is a legal arrangement in which assets are managed by a trustee for the benefit of designated beneficiaries. Trusts can avoid probate, provide privacy, and take effect during life or at death.

Steps

  1. Choose a trustee (an individual or corporate trust company).
  2. Designate Our Savior New American School as a beneficiary and specify how and when the gift should be distributed.
    EIN: 27-0636487
  3. Sign and notarize the trust with the assistance of an attorney.
  4. Transfer assets into the trust. A trust only controls assets that have been properly retitled into it.