FREQUENTLY ASKED QUESTIONS

The statements contained herein are not intended to provide specific or definitive advice with respect to tax or law. How gifts will affect a particular situation in these areas should be reviewed with the donor’s attorney and or/ tax advisor.

An Overview of the Tyler Catholic School Foundation
Tyler Catholic School Foundation is a non-profit foundation established in 1983. Its purpose is to receive, administer and distribute donations and bequests for the benefit and enrichment of the quality of private Christian education through the Tyler Catholic School System. This is to he accomplished by:

• Developing a permanent endowment fund.
• Providing an informational service for persons interested in supporting Catholic education at many different levels.
• Providing a focal point for lifetime memorial, philanthropic and testamentary gifts for the benefit of the children it ultimately serves.
• Working closely with the Tyler Catholic School Board and administration to secure, retain and enrich the best possible faculty.
• Constantly assessing changing and emerging needs within the Tyler Catholic School System and developing support strategies to respond to them.

The Tyler Catholic School Foundation is made possible by those individuals and businesses that care about all aspects of the quality of life in the community at large, and its efforts are entirely dedicated to their concerns.

What is TCSF’S Purpose and How Is It to Be Accomplished?
Tyler Catholic School Foundation (hereafter called TCSF) is an independent, publicly supported philanthropic corporation. It was created and designed to receive, manage and distribute gifts, endowments and bequests for the benefit of the Tyler Catholic School System (St. Gregory Elementary and T. K. Gorman Middle and High Schools). Assets held by TCSF are managed by a Board of Directors comprised of talented and successful business and professional persons from the Tyler business community.

The wise distribution of money to the Tyler Catholic School System is the primary purpose of TCSF. These distributions are typically made for (but are not limited to) scholarship assistance, student aid, teacher emoluments, and a number of other general needs. Gifts are received and distributions made from TCSF based on the following principles:

1. Addressing the Greatest Needs First. Based on information provided by the Tyler Catholic School System, TCSF attempts to address the greatest needs first according to the funds available.

2. Guaranteeing Flexibility. Donors may wish to see their gifts restricted to a particular institution or program supported by TCSF. Whenever possible requests of this type will be honored. Should the original purpose for which the gift was made become obsolete, TCSF will adapt the use of the gift to accommodate the changed conditions while still adhering closely to the original spirit and intent of the donor.

3. Creating and Perpetuating Memorials. TCSF presents many opportunities for dignified, lasting memorials to publicly perpetuate the names of beloved individuals, living or deceased. Long after flowers have faded, the children of Tyler will be served through the creation of these memorials, with TCSF providing professional stewardship for their protection and effective use. However, complete anonymity will be honored if requested.

4. Simplicity and Tax Effectiveness. Gifts to TCSF may be made with a minimum of legal complexity, report making, or other entanglements. TCSF will work closely with your tax and legal advisors to devise a plan which will provide the maximum income and estate tax reduction consistent with your charitable intentions and the goals of TCSF.

How Are TCSF’s Operating Costs Paid?
TCSF strives to keep its operating budget extremely low. Necessary expenses are paid partly from investment income and partly from special gifts. Gifts of this type are always welcome.

Who Benefits from TCSF?
The immediate and ultimate beneficiaries of all TCSF activities are, and always will be, the children it serves. However, donors to TCSF are secondary beneficiaries. Through TCSF, persons with large hearts and small pocketbooks as well as those with greater means can have the assurance that their gifts will receive efficient, caring management at minimum cost and with maximum effectiveness as part of a large, professionally-managed fund.

Are My Contributions to TCSF Tax Deductible?
Trusts established or gifts made during a donor’s lifetime qualify in various ways as charitable contributions for Federal Income Tax purposes. In addition, many types of gifts will reduce or eliminate the Federal Estate Tax on larger estates. As always, consultation with your tax and/or legal advisor is strongly advised to ensure that you receive maximum benefit.

What Kinds of Gifts May I Make to TCSF?
A donor wishing to support the Tyler Catholic School System can make a donation in the following ways:

1. Unrestricted Gifts: These are used as determined by the Executive Director and TCSF Board of Directors.

2. Fully Endowed Scholarships: A gift of $25,000 or above becomes a Fully Endowed scholarship. Your gift can he paid as a lump sum or in installments over a period of time. Gifts over $30,000 are classed as Silver, over $35,000 as Gold Endowments.

3. Charitable Trusts: A deferred gift through a trust appeals to many seeking tax relief today but without giving up the full use or benefit of their property until later. Planned giving through the use of trusts can provide income for you and your spouse, with freedom from the worries of investment management. TCSF will be happy to explain the different types of trust vehicles available, which you should then discuss with your tax and or legal advisor.

4. Life Insurance: For many donors, life insurance is an ideal gift to TCSF. A relatively small premium contribution keeps it in force. The benefit to TCSF is usually many times greater than the premiums paid, allowing donors to make large contributions with minimal expense. Premiums paid on policies owned by and payable to TCSF are generally fully deductible if you itemize.

5. Life Estate Contracts: This allows you to donate your residence or farm to TCSF, taking an immediate deduction for a portion of the property value while enjoying full use of the property as long as you live. Your tax and/or legal advisor can help you determine the amount of the deduction and the suitability of this giving tool.

What Types of Gifts Does TCSF Prefer?
TCSF will gladly accept any gift of value from a donor. However, the two types of gifts most often discussed with donors are restricted and unrestricted cash gifts. Of the two, unrestricted cash gifts are most preferred because of their flexibility. These and all other gifts are made with the assurance that the money will be professionally managed and that the TCSF Board of Directors will use the income from the gift for the greatest possible benefit.

Restricted gifts may be established with their own name and purpose. The TCSF Board of Directors will carry out the donor’s instructions for their use to the best of its ability, consistent with the overall purposes of TCSF. Should the specified purpose of a gift become obsolete, TCSF will redirect the gift income to support other funding needs consistent with the donor’s original intentions.

Why Should I Use TCSF to Support the Tyler Catholic School System?
TCSF is equipped to invest and manage endowment funds. In some cases, the nature of the asset gifted requires management by a professional fiduciary in order to retain and enhance its value. By combining the gifts of many donors into a single managed fund, an economy of size can be achieved that increases safety and the likelihood of strong performance.

A gift to TCSF is a lasting one, because only income earned from gifts is used unless TCSF is specifically directed to do otherwise. By making a gift to TCSF, you are benefiting the children it serves today and far into the future.

Can I Leave a Gift in My Will?
Yes bequest can be made by simply stating in one’s Will that he/she wishes to leave a certain amount of funds, or a percentage of the estate’s assets with or without distribution instructions. The following forms are recommended: