Making a charitable gift to the Fulfilling the Promise Campaign is a very important and personal decision.
The answers to questions like these and a
review of the following information may be
helpful as you consider the various ways
you can maximize your investment in the
Fulfilling the Promise Campaign and achieve
the most beneficial tax consequences for
you, your family, and/or your business.
WAYS TO GIVE
Current Gifts
Current gifts can include gifts of cash, credit
card charges, appreciated securities (shares
of stock or mutual funds), or other property.
Current gifts provide immediate financial
assistance for either unrestricted or restricted
purposes.
Pledges
A pledge is a formal Declaration of Intent
to make a gift to the campaign. It may be
followed by an immediate gift, or it may
confirm your intention to make a gift in the
future. You may choose to complete your
pledge by making regular payments over a
period of time, which allows you to maximize
your contribution to the campaign.
Gifts in Honor or Memory
Gifts may be made in honor or memory of a
loved one, friend or colleague, or business,
or to commemorate a special occasion.
Consult the Named Giving Opportunities
brochure for more information.
Endowment
An endowment is a fund that is permanently
invested. Only the annual income
generated from the investment is used
for an unrestricted or restricted purpose.
Establishing an endowment is the best
way to have a permanent impact on the
future of the institution and leave a lasting
legacy for future generations.
Planned Giving
Planned gifts are arrangements that usually
require the assistance of a professional
advisor to determine the specific tax
advantages for you, your family members,
and/or your estate. A planned gift
maximizes your giving potential and can
even allow you to ensure your future
financial security or that of a loved one.
If you are interested in a planned gift,
please contact the Campaign Office for
assistance.
TYPES OF GIFTS
Cash Gifts
A cash gift is usually made by a personal
or business check or currency. Your
income tax deduction is for the full
amount of your gift, assuming no goods
and/or services are received in return for
the gift.
Matching Gifts
More than 1,400 businesses nationwide
match the contributions of their employees.
Check with your employer to determine if
your gift can be matched on a 1:1 ratio or
more and to obtain the proper forms to
direct their matching gift to the Campaign
Office in your name.
Appreciated Securities
A gift of long-term appreciated securities
has two major advantages: (1) it provides
you with an immediate income tax
deduction and (2) eliminates capital gains
taxes to the extent allowed by tax law.
Closely-Held Stock
You may receive a current income tax
deduction and eliminate capital gains
taxes for the fair market value of
closely-held stock, if valued over $10,000,
or at the per-share cash purchase price if
valued at $10,000 or less.
Real and Personal Property
(In-Kind)
You may give a residence, land, or other
real property as an outright gift-in-kind.
The value of the donation is determined
by an appraisal of the fair market value
at the time of the transfer of ownership.
In some cases, you may wish to donate
property in which you retain an interest.
A gift of a remainder interest in a
personal residence or farm provides
you with a current income tax deduction
for the present value of the remainder
interest and also permits you to eliminate
capital gains taxes on the appreciation.
Donations of personal property such
as equipment, books, art, and jewelry,
may also be contributed under special
guidelines established by the IRS.
Life Insurance
The gift of life insurance provides you with
a charitable contribution for the present
cash surrender value. Also, future premium
payments made following the transfer of
ownership and beneficiary status of the
policy are also tax-deductible.
Bequests
A provision in a Will allows for a substantial
contribution without diminishing assets
during your lifetime. Since bequests are
deductible from the estate, significant
tax savings are possible. The Campaign
Office can provide you with sample
wording to include in your Will.
Charitable Gift Annuities
A charitable gift annuity is actually part
gift and part purchase of an irrevocable
lifetime annuity contract. The portion that
represents a gift to the Campaign is
deductible on your federal income tax
return if you itemize your deductions.
The size of the deduction is determined
by the age of the annuitant, the amount
of the gift, and a monthly interest rate
factor provided by the IRS.
Charitable Lead Trust
A charitable lead trust allows you to place
in trust assets that will be left to your
heirs. In making your commitment to the
campaign, you specify a set number of
years during which a guaranteed amount or
a fixed percentage of the value of the assets
in the trust will be paid to us. You pay a
discounted gift tax when transferring assets
to the trust, and the trust's beneficiaries
ultimately receive any remaining trust
assets free of estate taxes.
Charitable Remainder Trust (CRT)
A CRT is an irrevocable, tax-exempt trust in
which you place assets to provide income
for yourself during a specific period of time
(i.e., your lifetime or a period not to exceed
20 years). After that, the remaining assets
are distributed to us as a charitable gift to
be used unrestricted or for the restricted
purpose you designate. The trust can be
funded with an assortment of assets,
including bonds, mutual funds, stocks,
and real estate. There are no capital gains
taxes on assets transferred to and sold
through a charitable trust. It also has the
potential to generate substantial income
while at the same time creating an income
tax deduction.
Exclusions
Generally, the following types of
contributions will not be counted in
the Fulfilling the Promise Campaign:
- Sponsored project funds or grants
- The value of contributed time
or services
- Appraisal fees
- Contributions for which the
donor receives a benefit
- Tuition payments or other
scholarship awards made to
students selected by the donor