Planned gifts assure the long-term growth of Thomas University and provide you with tax advantages as well as the personal satisfaction of supporting a cause you believe in.
Planned giving refers to any charitable gift that is planned before it is made. These gifts are popular due to the tax benefits and income for life potential that can benefit donors and the university. There are many different gift vehicles available, and we're here to help you design a gift strategy that will meet your financial needs and the mission of Thomas University. Planned gifts can take many forms. It is a matter of personal preference, and the choice of the gift should always be best suited to the needs and desires of the donor.
Planned gifts assure the long-term growth of Thomas University and provide you with tax advantages as well as the personal satisfaction of supporting a cause you believe in.
Potential benefits of planned gifts include:
There are two types of planned gifts: current and future. Each one has its own individual features and benefits.
Current gifts are gifts in which the university's use of the gift is not delayed. Types of current gifts include...
Outright gifts include cash, stock, bonds, securities, real estate, and personal property such as artwork, books, etc.
This option is a part gift, part sale in which the donor sells a valuable asset to the university for less than its fair market value and receives an income tax deduction for the gift portion.
The charitable gift annuity is the most popular, simplest, and among the oldest ways of making a charitable gift. In exchange for a transfer of assets (cash, securities, real estate, etc.) to Thomas University, the university contractually guarantees to pay a specified income for the life of the donor for their beneficiary. It provides a win/win situation for both parties. The donor receives a fixed payment for the life. The annuity can also be established for two lives; i.e. a spouse or family member. A portion of the gift is non-taxable depending on the donor's age. The donor also receives a charitable income tax deduction for a portion of the gift. If highly appreciated assets were used to fund the gift you, can expect a reduced capital gains tax. The fixed payment to the donor is based on the age of the donor at the time of the gift.
The charitable lead trust is not a permanent gift. The donor will transfer property to Thomas University for a term of years. After that designated period, the gift reverts to a child or pre-determined family member, not another charitable organization. There are two types of charitable lead trusst: a grantor lead trust and a non-grantor lead trust. It would be best to talk with your tax advisor to see which applies to your own situation.
A provision in a will allows donors to make a substantial contribution without diminishing the assets available to them during their lifetime. Your will can specifically set forth the portion or actual dollar amount that you wish to donate to Thomas University after your death. It is never too early to produce your will or living trust. Your will may include charitable gifts of cash, personal property, or real estate to the university.
Charitable remainder trusts have become a very popular method of allowing a donor to make a gift that benefits you, or family, and Thomas University. The donor talks with their tax adviser and drafts a trust document. Then assets, which could be cash, real estate, or securities, are transferred irrevocably to the trust to be managed by a trustee. (The trustee can be one of the donor’s choosing or someone the university already uses to administer such documents.) Income from the trust can be distributed monthly, quarterly, or annually from the assets. The income will be paid to you or the other beneficiaries named in the agreement. The payment from the trust will continue until the trust matures. The trust document determines when that time is, so it is crucial to involve your tax advisor in these issues. When the trust matures, the remaining assets are transferred to Thomas University. The donor can also suggest the use of their gift at the time the document is written.
Life insurance is one of the most overlooked giving opportunities available. A donor can transfer the ownership of an existing life insurance policy or establish a new policy with Thomas University as owner and beneficiary. Life insurance can actually be the funding mechanism of the gift, which allows the donor to potentially make a large gift with a modest outlay of cash. There are two distinct ways to use life insurance. In one manner, Thomas University may be the beneficiary; an the other, Thomas University may be the owner of the policy. Each option has a different benefit to the donor.
Your thoughtful acts of kindness promise a bright future for so many.