Making a planned gift is one way you can make a significant contribution to the University of Mount Olive and gain financial and tax benefits for you and your family. Planned gifts enable donors to make larger gifts than they could make from their income.
When it comes to making a planned gift, donors have many options. Our Office of Planned Giving is ready to help you and your estate planning advisors understand these options, which range from simple will bequests to more in-depth gifts, such as annuities or charitable trusts.
Please contact Mrs. Teresa K. Hines, Vice President for Institutional Advancement, at email@example.com or 919-658-7720 to find out more about planned gifts and how you can leave a legacy at University of Mount Olive.
What to Give
A gift of cash is the easiest gift to make and provides the maximum deduction for donors. These gifts also deliver immediate benefits to the University. Gifts can be made to the University of Mount Olive by sending a check, or contributing online.
Stocks and Bonds
Instead of cash, donors can use appreciated stocks, bonds and/or mutual fund shares they have held “long term” (more than one year) to make their gift. They will be able to claim a federal income tax charitable deduction for the full, appreciated value of the securities (not the lesser amount they originally paid for them) and remove taxable assets from their estate. In addition, they will pay no capital gains tax on the transaction. This means the after-tax cost is less than a gift of cash.
Make an extraordinary gift to transfer the burden and expense of managing your property and remove a large asset from your taxable estate at the same time by gifting real estate to the University of Mount Olive. A real estate gift can be made outright or can fund a life income arrangement. Donors can receive immediate tax deductions while eliminating capital gains taxes. If you are interested in gifting real estate to the University, please let us know.
Retained Life Estates
Giving real estate while retaining a life estate allows you to donate the title to a personal residence or farm while maintaining the right to live in or use the property for your lifetime or for a term of years. In exchange, you receive an immediate income tax deduction based on the fair market value of the property minus the present value of the retained life estate. This also removes taxable assets from your estate. If you are interested in gifting real estate with a retained life estate to the University, please let us know.
Gifts can be made by naming the University as the beneficiary of a portion of or the whole retirement account (IRA, 401K, etc.). Withdrawals can continue to be made during your lifetime, and you can change the beneficiary at any time, if circumstances change. Income and estate tax on the remaining balance of your retirement plan will be avoided and by gifting your retirement account (the most-taxed asset of your estate) to the University, you can leave more favorably taxed property to your heirs.
A gift of life insurance can be made by naming the University of Mount Olive the irrevocable owner and beneficiary of a policy. If the College is named the owner of a paid-up policy or a policy with internal cash value on which future payments are owed, the donor may claim a charitable deduction. If the donated policy still requires premium payments, we will need to pay them to keep the policy in force. The donor can make outright gifts to us to pay future premiums as they are due for additional tax deductions.
You may choose to give valuable assets to the University of Mount Olive that you no longer want to insure or maintain. This can be in the form of artwork, collectibles, books, equipment or other items of tangible personal property. With a few exceptions, a completed gift will yield a charitable deduction for the items’ fair market value, with no capital gains liability to you or to the University.
Ways to Make a Planned Gift
For many donors, a bequest is the simplest and most realistic way of making a significant gift to the University of Mount Olive. The bequest may be in the form of cash, securities, real estate, tangible personal property or other assets. You may provide for the University of Mount Olive by creating a new will, adding a codicil to your present will, or including the University of Mount Olive in your revocable trust. To ensure that your exact intentions are carried out, wills, codicils, and trusts should be prepared by or with the assistance of an attorney.
General Bequest Language
“I give, devise and bequeath to the University of Mount Olive, an educational institution incorporated under the laws of the State of North Carolina, located at 634 Henderson Street, Mount Olive, North Carolina 28365 ______ percent of my estate or ______ dollars. This gift may be used to further the educational objectives of University of Mount Olive in such a manner as the Trustees of the College may direct.”
Charitable Gift Annuity
A charitable gift annuity is a life income gift created by a simple contract between you and the University of Mount Olive. You make a gift to the University and in turn, the University promises to pay you a fixed annual income for your lifetime. Charitable gift annuities may be funded with cash, certificates of deposit, publicly traded securities, and similar assets. You will be entitled to an income tax charitable deduction for part of the value of the assets you transfer to the University.
A gift annuity may be especially appealing if you want to supplement your retirement income and make a gift to the University of Mount Olive. It is also an ideal way to fund a college endowment that can bear your name or someone you designate in perpetuity. The University of Mount Olive issues gift annuities in amounts of $5,000 and greater.
Charitable Remainder Trust
A charitable remainder trust is a life income gift that provides you with annual income and substantial tax savings. You can transfer property irrevocably to a charitable remainder trust and specify how the income and principal are to be distributed. The trust can be funded with cash, securities, real estate or other marketable personal property. You avoid capital gains tax on the transfer to the trust, thereby leaving the entire value of the gift available to be reinvested to benefit the named life beneficiary. You can establish a charitable remainder trust at University of Mount Olive with a gift $25,000 or more, and you choose the area or endowment at the University that the trust assets will ultimately support.
There are two types of charitable remainder trusts — the unitrust and the annuity trust. The unitrust pays a set percentage of the current value of the unitrust, determined annually. The payout rate is selected by the donor but must be at least five percent (5%). The annuity trust pays income based on a percentage of the initial value of the trust and never changes. This trust provides a fixed amount each year, regardless of fluctuations in the market.
Charitable Lead Trust
A charitable lead trust can be used to transfer assets to children or others at a significantly reduced tax liability. The trust makes a fixed payment to the University for a specified term, measured either by someone's life or a selected number of years. After the trust term ends, the assets of the trust are either returned to you or passed on to children or other loved ones. If the assets are to be returned to you, you receive an income tax deduction when the trust is created. If the assets are passed on to heirs, applicable estate or gift taxes on the value of the gift are reduced or completely eliminated. The tax savings from a charitable lead trust may allow you to provide significant support for the University of Mount Olive at little or no cost to heirs in terms of ultimate inheritance.
A charitable lead trust can be a powerful tool in gift and estate tax planning, but the technical complexities require careful consideration. The University of Mount Olive’s Office of Gift Planning is glad to work with you and your financial advisors to see if a charitable lead trust is the right plan for you.
Mr. Wayne B. Roberts lives in Raleigh, NC. He grew up in the Beautancus area of Wayne County. His planned gifts include a bequest, a charitable remainder trust, and life insurance policy. Mr. Roberts says:
“I met Dr. Burkette Raper in 1954, and I appreciate what he did for the University of Mount Olive and the community. I’ve been interested in education and helping people, so setting up a planned gift was very important to me. I want to leave a lasting legacy for others at University of Mount Olive.”
Dr. E. Lee Glover lives in Everett, PA. His planned gifts include a bequest, a charitable remainder unitrust, and four charitable gift annuities. Dr. Glover was always indebted to the University of Mount Olive. He says:
“If not for the University of Mount Olive, I would not have gone to college. Times were tough in the 50s, and we had to work hard for our grades. We also had jobs on campus, which made us feel like part of the College. Supporting the University of Mount Olive by making a planned gift is my way of paying back. I have attended other schools, but my loyalty is with University of Mount Olive.”