18 Ways to Make a Charitable Gift
1. Gift of Cash
Cash gifts can be deducted up to 50 percent of adjusted gross income. On a $10,000 cash gift in a 28 percent tax bracket, you can save $2,800 in taxes. In addition, many corporations match gifts made by employees, retirees and family members. This program is an excellent way to increase your gift.
2. Multiple-Year Cash Pledge
Cash pledged over a period of years can be deducted over a period of years. You can deduct up to 50 percent of adjusted gross income for the portion given each year. On a $50,000 cash gift over five years ($10,000 each year) in a 28-percent bracket, you save $2,800 in taxes that year.
3. Appreciated Stock
Appreciated stock (held more than one year) makes an excellent gift. You avoid all capital gain taxes, will receive a tax deduction and can deduct an amount up to 30 percent of your adjusted gross income.
4. Bonds, Mutual Funds
Bonds and mutual funds are similar to cash in their tax treatment. State, Municipal, and U.S. Government Bonds are welcome.
5. CDs, Saving Accounts, Brokerage Accounts, Checking Accounts with P.O.D. Provisions
The P.O.D. stands for Payable on Death. You retain full ownership and full control during your life. At your death, the account balance is paid to your named beneficiary immediately and without probate.
6. Gift Annuity
In exchange for a gift of cash, stock or securities, the organization will pay you, you and your survivor or another person you name a guaranteed income for life. You receive a substantial tax deduction in the year of the gift and part of the income is tax free. Upon your death, the gift remainder supports the capital campaign.
7. Deferred Gift Annuity
This is similar to a gift annuity except that payments begin at a future date determined by you, retirement for example. Your tax deduction and annual rate of return increase the longer you wait to start payments. This is a super retirement planning vehicle.
8. Charitable Remainder Trusts (Irrevocable) (Annuity and Unitrusts)
Donors can select the rate of return from these income arrangements and also choose a fixed or fluctuating annual payment. Capital gains taxes are completely avoided, and you will receive a tax deduction based on the age of the income recipient and the rate of return.
9. Charitable Lead Trust
In a Charitable Lead Trust, assets (cash or securities) are transferred to a trust that pays income from the fund to the organization for a predetermined number of years. At the end of the time period, the trust terminates and the assets are given back to the persons you name. The income tax deduction is for payments made annually to the organization.
10. Bequest Through Will
One of the simplest ways is to give of your estate. You can make a gift bequest after others have been provided for of a dollar amount, specific property, a percentage of the estate or what is left (remainder) to the organization.
11. Revocable Charitable Living Trust
Gifts should only be made on a permanent basis when it is in your best interest to do so. The revocable trust provides for gifts of cash, property, and/or income now, while retaining the rights to retrieve the property if necessary. There is no tax deduction for the gift but there are savings in estate settlement costs if the trust is not revoked.
12. Gift of Life Insurance
A simple way to make a significant future gift is to name the organization beneficiary to receive all or a portion of the proceeds of an existing life insurance policy. You will receive a tax deduction for the cash surrender value, thus reducing your tax liability in the year of the gift.
13. Purchase a New Life Insurance Policy Naming the Organization Owner and Beneficiary
You receive an income tax deduction for each premium paid. In this way you can provide a major gift to the organization with a modest annual payment.
14. Retirement Accounts
Retirement account funds (IRAs or company plans) beyond the comfortable support of yourself or loved ones may be given (like life insurance proceeds) to the organization by proper beneficiary designation.
15. Personal Property (Collections-Royalty Rights, etc.)
Gifts of personal property are always welcome, including collections, royalty and mineral rights. Charitable tax deductions are available in the year of the gift.
16. Outright Gift of Real Estate
One of the most overlooked gift forms is real estate. We will be happy to discuss the possible gift of land, a house or a vacation home. You will receive a tax deduction for the full fair market value, as well as avoid all capital gain taxes.
17. Real Estate with Life Tenancy
Receive a substantial income tax deduction by giving (deeding) your home or farm to the organization now. You continue to live there, maintain the property as usual, and even receive income it generates. At your death, the organization will sell your property to support the capital campaign.
18. In-Kind Gifts
Gifts of goods or services are accepted by the organization with prior approval. Ordinarily these gifts will be credited toward the campaign at their full fair market values as determined by appraisal or other appropriate valuation techniques.
Office of University Advancement