Methods of Giving
You may consider any one of the methods of giving below at this time or at any time in the future. Their use will be mainly dependent upon your individual circumstances. Are you making an outright gift to the Annual Fund or to another restricted fund? Then you will most likely give cash, securities, or personal property (gifts-in kind). You may also use stock to fund a planned gift such as a gift annuity, a charitable remainder trust, or through a will bequest.
Outright Gifts Planned Gifts
Outright Gifts:
Cash: Cash gifts are the most common gifts and may be pledged over several
years. A pledge often enables you to contribute a larger gift if it is
spread over a longer period of time. Cash gifts are deductible for federal
income tax purposes, subject to certain limitations. Any amounts exceeding
the limitations can be carried forward for five additional tax years. Itemizers
receive a tax deduction up to 50% of the gross net income.
Stocks: Stocks, bonds, or other forms of securities that have appreciated in value are the next most common form of gift. The tax advantages to the individual make them highly attractive. With securities that are held long-term (more than 12 months), you may make an outright gift of them and receive a significant tax savings. You can deduct the full market value of the securities, subject to certain limitations, and as with gifts of cash excess amounts can be carried forward and deducted in future tax years. You are not required to pay capital gains tax on the appreciated portion of the donated securities, making the net cost to you lower than the value of the gift. See Making Gifts of Securities.
Gifts of Personal Property: Two conditions must be met to ensure that your gift’s full market value is tax deductible:1) the object must actually be used by the university (or you must reasonably believe it will) 2) you must have owned it for more than 12 months. Gifts of $5,000 or more must be appraised for the donor to take a tax deduction. For its own reasons, the university reserves the right to accept or not accept a gift of personal property.
Real Estate: A gift of real estate is another convenient way to contribute. If you are hesitating to sell some real estate due to potentially large capital gains taxes, you may transfer all or a portion of the property to Immaculata University and derive substantial benefits. The value of real estate that has appreciated offers the same kind of deduction as stocks. If the university is to receive only a portion of the real estate, different rules may apply. The university reserves the right to accept or not accept a gift of real estate. Consideration is usually given once environmental and marketability concerns are met.
Planned Gifts FAQs About Planned Gifts
Although you may make a significant gift to the university with an outright gift, “planned” or “deferred” gifts are usually used to make a special gift. As an alternative to an outright gift, a planned gift can help you make a gift larger than you thought possible. What is even more exciting about planned gifts is that they surpass your lifetime if you provide for endowment for the university. Endowment is made up of university investment funds and makes a vital difference in the impact on programs, faculty, student life, and physical facilities.
At certain levels, a planned gift can be named in honor of yourself or another person. These memorials are in perpetuity, forever associating you with the life of the university. Not all gifts need to be named gifts to make a lasting impact.
Planned gifts usually originate from a careful assessment of your life goals through a process known as estate planning. A professional advisor, like an estates attorney, a certified financial planner, and/or an accountant can assist in developing a plan. The over-all goal of estate planning is to reduce the tax burden on your estate.
By including the university in your estate plan, you may become a member of the Immaculata Heritage Society.
Gifts through your Will: By making a bequest to the university you can help ensure the future of Immaculata. For language to provide such a gift in your will, See Bequest Provisions.
Charitable Gift Annuities: In exchange for a gift to the university of $10,000 or more in cash or securities, you will receive income for life, an immediate tax deduction, and future tax benefits. Offered to individuals over age 70 when rates are extremely favorable the charitable gift annuity is a simple contract made with the university. See the Charitable Gift Annuity Program.
Charitable Remainder Trusts: You may establish with a financial institution a charitable remainder trust to provide payments of a certain sum (annuity trust) or a percentage of income to one or more non-charitable beneficiaries for life or for a term not to exceed 20 years, after which the remainder is distributed to the university, or conjointly with other charitable beneficiaries. As an irrevocable gift, the trust gives the trustor (donor) significant tax benefits as the assets are removed from the estate.
Life Insurance: This may provide an easy way to make a substantial gift. The large cash value resulting from a relatively small premium makes it an attractive planned gift. You are entitled to a charitable deduction by assigning a policy to Immaculata University whether it is paid up, partially paid up, or is a new policy in which you name the university both owner and beneficiary. Premiums are sent to the university and are tax deductible.
IRA’s: You may name the university as a beneficiary of an individual retirement account or a portion of a retirement pension fund. Because the distribution to the individual beneficiaries is subject to income tax (IRD) (Income with Respect to a Decedent), leaving this type of asset to the university, (a charitable beneficiary) is a preferred estate planning method. Heirs can then receive other less heavily taxed assets.