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The following is an overview of some planned gifts that can benefit both the donor and the University. Please consult with your own legal council, tax advisor or investment consultant about gifts arrangements that are best for you.
BEQUESTS
If you have made provisions in your will to benefit the University, you have utilized the most popular type of planned gift. Your will is the most important method to guarantee that your personal plans are carried out after death. Of course, anything that you leave to Wilkes University will reduce the size of your taxable estate while helping one or more worthy causes of your choice, such as endowed scholarships. You can leave an outright gift of cash, securities or property or a percentage of your estate or a percentage of the residue after making provisions for family and friends.
LIFE INSURANCE
Do you have life insurance policies that are no longer needed? You may either donate the life insurance policy to the University or name us the beneficiary of a life insurance policy. For the gift of a paid-up policy, you will be entitled to an income tax deduction equal to the lesser of the cash value of the policy or the total premiums paid. To qualify for the federal charitable contribution deduction on a gift of an existing policy, you must name the University owner and beneficiary. Even if you are still paying premiums on your policy, you can give it away, and future gifts to us to pay the premiums will be tax deductible. To name the University the beneficiary of a policy will provide no current tax benefits because the arrangement is not irrevocable; however, it will provide a very generous gift with attractive tax benefits upon your death.
CASH GIFTS
Nothing is easier than making a gift of cash to a charitable organization; it is no coincidence, therefore, that most gifts to the University are in the form of cash. All cash donations are deductible if you itemize in the year of contribution and up to a limit of 50 percent of your adjusted gross income. Any excess deductions can be carried forward for the next five years.
GIFTS OF STOCK
Stocks and publicly traded securities are easy to give and offer great tax advantages. You can transfer the stock to us electronically through your broker or mail to us the stock certificate and a signed stock power for each certificate. To protect against possible fraud, the certificates and the stock powers should be mailed separately.
The best stocks to use for charitable giving are those that have increased greatly in value, particularly those producing a low yield. Even if it is stock you wish to keep in your portfolio, by giving us the stock and using cash to buy the same stock through your broker, you will have received the same income tax deduction but will have a new, higher basis in the stock.
Appreciated Securities:Property that has risen in value and that you have held for more than twelve months should be transferred directly to the University. You usually avoid capital gains tax on this transaction and you can deduct the full fair market value, which is calculated using the average of the high and the low share price on the date of the gift.
Depreciated Securities: If you have stock losses, you should sell the stock yourself to realize the loss and take the deduction for tax purposes. Then you could generate a charitable contribution by donating the cash proceeds of the sale to the University.
INSTRUCTIONS FOR TRANSFER OF STOCK BY WIRE
Prior to transfer, please call the University’s Development Office at (570) 408-4309 to inform us of the number of shares and the name of the company whose stock is being transferred, plus the name and the telephone number of your broker.
For Credit to Account of Wilkes University:
Wachovia Securities, Inc.
Account Number: 23567530
DTC Number: #0141
GIFTS OF REAL ESTATE
A gift of real estate offers you the opportunity to make a significant contribution to Wilkes University with a tax-friendly outcome. The following are just several possibilities:
An outright gift: If you own property that is fully paid off, has appreciated in value and that you no longer use, such as a second home or vacation property, an outright gift may be the simplest solution. You can deduct the fair market value of the gift and avoid all capital gains taxes. Plus, you no longer have to worry about the carrying costs of continued ownership, and you have removed that asset from your taxable estate.
A retained life income: Did you know that you can transfer the deed of your personal residence or farm to us now and keep the right to use the property for your lifetime and that of your spouse? You will receive a current charitable deduction in an amount that is based on your life expectancy and the value of the property.
A bargain sale can be used to generate a gift that is less than the full fair market value of the property. In this scenario, you agree to sell the property to us at less than its fair market value. The difference between the sale price and the fair market value is the amount that determines your charitable deduction. While the tax rules concerning a bargain sale are complex, the net result is often more favorable than selling the property at fair market value and making a charitable contribution from the realized capital gain.
OTHER GIFTS
Vacation time-shares also can be used as the basis for a charitable gift. If there is a ready market for your time-share, you can sell it yourself and donate the proceeds to the University. If your time-share sells at a loss, you can deduct the loss and take a charitable contribution deduction for your gift of the proceeds.
Tangible assets, (such as art works, antiques, rare books, etc.) also can make a suitable charitable gift. The available tax deduction depends on whether or not the University will use the property in a way that is related to its tax-exempt purpose. A good example would be books for the Eugene Farley Library.
Bank accounts and CDs: Are you aware that you can name the University the “payable-on-death beneficiary” of your savings and/or checking accounts or on any certificates of deposit? You own the assets for your lifetime and have them available for your use. Upon your death, the assets pass directly to us without going through probate. Just visit your bank and request to name a beneficiary on your accounts or CDs. You can change your beneficiary designation anytime you wish.
Retirement plan assets: Plans that are most appropriate for funding are profit sharing plans, 401 (k) plans, money purchase plans and IRA’s.Because our tax laws often subject retirement plan assets to the highest combined income and estate taxes, charitable donations of these assets may be your most efficient estate planning option. Many of the techniques described above can be used to create generous charitable gifts, usually at your death, from retirement plan assets that otherwise could be subject to tax rates of up to 80 percent. At the same time, you can pass more tax-favored assets to your family. You should, of course, consult an attorney or tax specialist for a strategy best suited to your situation.
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