 |
Outright Gift Opportunities
• Cash • Securities • Personal Property • Real Estate Planned or Deferred Gift Opportunities
Income Producing Gift Opportunities
|
| Outright Gift Opportunities
Whether your gift is designated or unrestricted, there are a number of ways to support the mission of CBU and the students of today and tomorrow. Gifts of Cash... Giving cash is the most popular form of gifting due to its simplicity. Cash gifts may be made by currency, check, money order, bank draft, or credit card. The applicable income tax deduction reduces the actual cost of the gift. TOP OF PAGE ONLINE GIFT FORM Gifts of Securities... Gifts of marketable securities, or stock listed on an exchange, can be an advantageous way to make a substantial contribution to support Christian Brothers University. There would be no taxation on the gain of appreciated stock given directly to CBU. The fair market value on the date of the stock gift is deductible for income tax purposes. Gifts of closely held stock, or securities not traded
on an exchange, may also be accepted. However, such gifts should be discussed
with a professional from the advancement office prior to the time the gift
is made. TOP OF PAGE
Gifts of Personal Property... Gifts of personal property require an independent appraisal of the fair market value before the gift is made. Restrictions by the donor regarding the sale, maintenance, administration, and display of such gifts are possible but subject to review and approval by the CBU Board of Trustees. For a gift of personal property exceeding a value of $5,000,
the Internal Revenue Service requires a qualified appraisal of the market
value for the purpose of determining the income tax deduction. The IRS
also requires the filing of form 8283. Finally, any subsequent sale of
gifted personal property within two years of the gift date must be reported
to the IRS by the University. TOP OF PAGE
Gifts of Real Estate... Gifts of real estate offer great flexibility in financial planning. Whether it is residential property, business property, or farmland, the method by which a donor chooses to make a gift of real estate depends on that person's individual goals and objectives. All proposed gifts of real estate are reviewed by the University before the gift is accepted. An outright gift of appreciated land or other real estate has several immediate benefits for the donor. Those tax benefits include no taxation on the appreciation of the real property; an income tax deduction for 100 percent of the fair market value of the property as of the date of the gift; and a reduction in the donor's taxable estate by the value of the gift less any income tax savings that are retained or reinvested. There are other methods and planning strategies for gifts
of real estate, and the Institutional Advancement office would be happy
to discuss these options in greater detail. Examples of the different methods
and strategies include transferring real estate through a will or trust,
receiving income for life after transferring property to a trust, retaining
the right to use the gifted real estate, and engaging in a "bargain sale"
of real estate. TOP OF PAGE
Planned or Deferred Gift Opportunities Planned giving opportunities offer many advantages to donors, including both current and long-term tax benefits. A planned gift enables you to make a commitment to support the university in a manner and at a time that is best for you. Bequest... A bequest through a will or trust is the most common form of a planned gift because it is a way to make a substantial contribution to support the university without diminishing the assets available to the donor during his or her lifetime. Because a bequest to CBU is deducted entirely, without limit, from the taxable estate for estate tax purposes, important estate tax savings can result from this type of gift. Bequests often reduce or possibly eliminate one's federal estate tax burden. TOP OF PAGE Life Insurance... Gifts of life insurance can offer an attractive way to benefit the University at a relatively low cost. Life insurance may be especially attractive for young alumni due to the relatively low premium expense. For older alumni and friends, the reason for having the policy in place may no longer apply. For example, the children may be grown, there may be no mortgage remaining on the family home, or a spouse may have other assets for his or her support. In these situations, donating the exisiting policy may be a wonderful way to support CBU. To receive income tax benefits, Christian Brothers University
must be named the irrevocable owner and beneficiary of the policy. The
insurance premiums are paid to CBU; the University forwards payment to
the insurance company. This premium is tax deductible for federal returns.
When the University is named owner and beneficiary of an existing policy,
the value of the policy is tax deductible as are the current and future
premiums
paid. On a new policy, the current and future premiums are deductible.
TOP
OF PAGE
Retained Life Estate (Real Estate)... A special provision in the fedral tax law allows an individual to give a personal residence (including a vacation home) or farm to CBU and still retain the full use and enjoyment of the property. The donor would continue to be responsible for the property's maintenance, insurance, and taxes. This retained right to use and live on the property can be for the donor's lifetime or for the donor and a surviving beneficiary's lifetime. A substantial income tax deduction, based on an IRS formula,
is allowed at the time of the irrevocable transfer of ownership to the
foundation. There are also substantial federal estate tax savings with
this type of gift. All proposed gifts of real estate are reviewed by the
University and its Board of Trustees before the gift is accepted. TOP
OF PAGE
Retirement Plan and IRA Designations... Many individuals have amassed large sums of money in their retirement plans and in their IRAs. The federal government's tax structure places a heavy tax burden on these assets at the time of one's death, especially if one wishes to pass these assets to his or her children. If a person names his or her children as beneficiary of his or her qualified retirement plan or IRA, substantial income and estate taxes may be assessed. The total combined tax burden can exceed 80%. In other words, your family would receive only 20% of the retirement plan or IRA. The solution is often to name a charitable remainder trust as the beneficiary of your retirement plan or IRA. Your children can be income beneficiaries of the charitable remainder trust. This type of gift vehicle can leave your children and your estate in a much better financial position. The Institutional Advancement office would be happy to discuss this planning technique with you in greater detail. TOP OF PAGE Charitable Lead Trust... A charitable lead trust allows a donor to contribute assets to a trust for a specified period of time. With this trust arrangement, CBU receives income in support of the university from the trust as a gift. The assets are later returned to the donor or his or her heirs when the trust terminates. The main advantage in creating a lead trust is to reduce federal estate taxes when transferring property to heirs. TOP OF PAGE Income Producing Gift Opportunities Some planned gift opportunities can greatly assist the University in meeting its needs and objectives while also producing an income for you or your loved ones. A life income gift provides a charitable deduction on your income tax return for the year in which the gift is made, and carryover rules apply for an additional five years. There are other tax benefits with these powerful planning tools. A few options are listed below: Charitable Remainder Trust... You may wish to establish a charitable remainder trust that provides substantial income to you during your life, during the life of a named beneficiary, or both. Payout rates are negotiated with the University. After the death of all named beneficiaries, the trust assets are transferred to the University and are allocated for the purpose you designate. These trusts, which have various income tax and estate tax benefits, can be funded with cash, stock, or real property. TOP OF PAGE Charitable Remainder Unitrust... A charitable remainder unitrust provides variable payments to the life income beneficiary or beneficiaries. The annual payments are based upon a percentage (at least 5 percent) of the annually redetermined fair market value of the assets in the trust. TOP OF PAGE Charitable Remainder Annuity Trust... A charitable remainder annuity trust provides the named beneficiary or beneficiaries with a fixed specified sum each year that cannot be less than 5 percent of the initial value of the gift placed in the trust. TOP OF PAGE Establishing a Scholarship Two types of scholarships are available to CBU students: annual and endowed. Donors may fund one or both types of scholarships through gifts of cash, gifts of appreciated property, or bequests. Annual Scholarships are supported by gifts given each year by donors. Endowed Scholarships provide permanent funds for scholarships now and in the future. For more information, see the CBU Scholarship Initiative. TOP OF PAGE Establishing a Named Endowment You may establish an endowed fund in support of any program at the University. Your endowed fund becomes part of the University's permanent endowment. It also maintains a separate identity as a specific account within the endowment. The goal of the University is to invest endowed funds so they will grow and maintain their purchasing power through all economic cycles. The level of spending from endowed funds strikes a balance between providing spendable income and preserving the principal and purchasing power of the endowment base for the future. Your name lives on with the gift. Place your name, the name of a loved one, or a business name on an endowed fund of your own choosing — to provide scholarships, faculty chairs, support for CBU athletics, library resources, computer and lab equipment, or support for capital improvements. These are just a few examples; there are many ways you can bestow a specific and fitting lasting honor and make a difference for the future. To find out how you can establish a named fund at CBU and help us meet the needs of students today and tomorrow, call the Office of Institutional Advancement at 901-321-3270 or 800-283-2925. TOP OF PAGE
 |
|
|