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Bequest

• You designate ³ÉÈË´óƬas the beneficiary of your asset by will, trust, or beneficiary designation form.

  Benefits of a bequest

  • Receive an estate tax charitable deduction
  • Reduce the burden of taxes on your family
  • Leave a lasting legacy to charity

  How a bequest works

  A bequest is one of the easiest gifts to make. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to family, friends or The ³ÉÈË´óƬ as part of your estate plan.

  Here are some of the ways to leave a bequest to The ³ÉÈË´óƬ

  • Include a bequest to The ³ÉÈË´óƬ in your will or revocable trust
  • Designate The ³ÉÈË´óƬ as a full, partial or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension)
  • Name The ³ÉÈË´óƬ as a beneficiary of your life insurance policy

  A bequest may be made in several ways

  • Percentage bequest - make a gift of a percentage of your estate
  • Specific bequest - make a gift of a specific dollar amount or a specific asset
  • Residual bequest - make a gift from the balance or residue of your estate

  Click here for sample bequest language
  

   

  Additional Information

  The method used to make a bequest will depend on the kind of gift you choose to leave to The ³ÉÈË´óƬ.

  Bequests of real estate, personal property, business interests and cash are typically made by way of a will, revocable trust or even a simple codicil to your current estate plan. Your estate-planning attorney can assist you in preparing the necessary papers for you to complete the bequest.

  Other bequests, such as those involving retirement assets, insurance policies, bank accounts and stocks and bonds, are typically made by completing the appropriate beneficiary designation form. Simply contact your retirement plan administrator, life insurance company, bank or investment broker and ask them to send you the appropriate "beneficiary designation" or "payable on death" form. To complete your bequest, you will need to complete and sign the form and then send it back to the person who originally sent the form to you.

  The last step in leaving any bequest involves the transfer to charity. When you pass away, the bequest property will be transferred to The ³ÉÈË´óƬ. The full value of this gift will be transferred tax-free and your estate will receive an estate tax charitable deduction.

IRA Rollover

• Congress has enacted a permanent IRA charitable rollover. As a result, you can make an IRA rollover gift this year and in future years.

  You may be looking for a way to make a big difference to help further our mission. If you are 70½ or older, you may also be interested in a way to lower the income and taxes from your IRA withdrawals. An IRA charitable rollover is a way you can help continue our work and benefit this year.

  Benefits of an IRA charitable rollover

  • Avoid taxes on transfers of up to $108,000 from your IRA to UNF
  • May satisfy your required minimum distribution (RMD) for the year
  • Reduce your taxable income, even if you do not itemize deductions
  • Make a gift that is not subject to the deduction limits on charitable gifts
  • Help further the work and mission of our organization

  How an IRA charitable rollover gift works

  1. Contact your IRA plan administrator to make a gift from your IRA to us
  2. Your IRA funds will be directly transferred to ³ÉÈË´óƬto help continue our mission
  3. Please note that IRA charitable rollover gifts do not qualify for a charitable deduction
  4. Please contact us if you wish for your gift to be used for a specific purpose

  Gifts from your IRA

  If you are 70½ or older, you can use your IRA to fulfill your charitable goals. Contact your IRA custodian to make a qualified charitable distribution. We will acknowledge your donation as a qualified charitable distribution, which may satisfy your RMD, if applicable.

   

Beneficiary Designation Gifts

• You can designate us as a beneficiary of a retirement, investment or bank account, or your life insurance policy.

  Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension, or other tax-deferred plan, is an excellent way to make a gift to The ³ÉÈË´óƬ.

  If you are like most people, you probably will not use all of your retirement assets during your lifetime. You can make a gift of your unused retirement assets to help students find their True North.

  Benefits of gifts of retirement assets

  • Simplify your planning
  • Support the causes that you care about
  • Continue to use your account as long as you need to
  • Heirs can instead receive tax-advantaged assets from the estate
  • Receive potential estate tax savings from an estate tax deduction

  How to make a gift of retirement assets

  To leave your retirement assets to The ³ÉÈË´óƬ, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate The ³ÉÈË´óƬ as beneficiary, we will benefit from the full value of your gift because your retirement assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.

  Future gifts from your retirement assets

  Did you know that 40%-60% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to The ³ÉÈË´óƬ. As a noon-profit organization, we are not taxed upon receiving an IRA or other retirement plan assets to maximize your contribution. Contact your retirement plan custodian and designate a future gift to The ³ÉÈË´óƬ.

   

Donor Advised Funds (DAF)

• You fund a DAF and make charitable gift recommendations during your lifetime. When you pass away, your children can carry on your legacy of giving.

  A donor advised fund (or DAF) might be a great solution for you. You can use a DAF to distribute gifts to numerous charities. With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children can carry on your legacy of giving.

  You enjoy several benefits with your donor advised fund

  • Establish a flexible vehicle for annual charitable giving
  • Benefit from a more tax and cost efficient alternative to a private foundation
  • Obtain a charitable income tax deduction in the year of your gift

  How a donor advised fund works

  1. You make an initial, irrevocable gift of cash or stock to fund a DAF at a sponsoring organization
  2. The assets in your DAF grow tax-free
  3. You make annual recommendations on gifts to be made from your DAF

  Gifts from your donor advised fund

  Your donor advised fund has several advantages. You can make one larger gift to a DAF and then recommend grants to us and other nonprofits. Contact your DAF provider and make a grant distribution to the ³ÉÈË´óƬ. We will acknowledge your generous gift as a DAF distribution.

   

Charitable Gift Annuity

• You transfer your cash or appreciated property to our organization in exchange for our promise to pay you fixed payments (with rates based on your age) for the rest of your life.

  A charitable gift annuity is a gift made to our organization that can provide you with a secure source of fixed payments for life.

  Benefits of a charitable gift annuity

  • Receive fixed payments to you or another annuitant you designate for life
  • Receive a charitable income tax deduction for the charitable gift portion of the annuity
  • Benefit from payments that may be partially tax-free
  • Further the mission of The ³ÉÈË´óƬ with your gift

  How a charitable gift annuity works

  A charitable gift annuity is a contract between you and The ³ÉÈË´óƬ.

  1. You transfer cash or property to The ³ÉÈË´óƬ.
  2. In exchange, we sign an annuity contract and promise to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
  3. You will receive a charitable income tax deduction for the gift portion of the annuity.
  4. You also receive satisfaction, knowing that you will be helping support students at the ³ÉÈË´óƬ.

  If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.

   

  Types of Gift Annuities

  Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to The ³ÉÈË´óƬ.

  Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.

  Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.

Life Estate Reserved

• You give your property to our organization but retain the right to use the property during your life.
  You may desire to leave your home or farm to The ³ÉÈË´óƬ when you graduate your life but would also like to receive a current charitable income tax deduction. A life estate reserved might offer the solution you need!

  Benefits of a life estate reserved

  • Receive a federal income tax deduction for the value of the remainder interest in your home or farm
  • Preserve your lifetime use and control of your home or farm
  • Create a life estate based on more than one life. This will preserve the use of the property for you and a loved one, such as a spouse or dependent child

  How a life estate works

  1. You deed your home or farm to The ³ÉÈË´óƬ. The deed will include a provision that gives you the right to use your home or farm for the rest of your life and that of any other life estate party named in the deed.
  2. You and The ³ÉÈË´óƬ sign a maintenance, insurance and taxes (MIT) agreement to explain that you will do your best to keep the property in good condition and that you will maintain property insurance and pay the property taxes.
  3. When the owners of the life estate have passed away, your home or farm will belong to The ³ÉÈË´óƬ. We will use or sell the property to further the mission of the ³ÉÈË´óƬ.

   

  Additional Information

  Life Estates Work for Spouses Too - The life estate can last for your life or based on your life and that of another person, such as a spouse or loved one.

  Maintenance Issues - You will be responsible for the maintenance, insurance and taxes on the property, just as you were prior to creating the life estate.

  Life Estates Are Flexible - If, at some point in the future, you are no longer able to live independently in your home, we may be able to help you use your life estate to create a lump sum cash payment (with a joint sale) or create an income stream (using the life estate to fund a charitable remainder trust or charitable gift annuity).

IRA to Gift Annuity Rollover

• You may be looking for a way to help further our mission and enhance your income. If you are 70½ or older, you can make a one-time IRA rollover to fund a charitable gift annuity and receive fixed payments for life.
  You may be looking for a way to help further our mission and enhance your income. If you are 70½ or older, you can make a one-time IRA rollover to fund a charitable gift annuity and receive fixed payments for life.

  Benefits of an IRA to gift annuity rollover

  • Reduce your taxes with a one-time transfer of up to $54,000 from your IRA to a Gift Annuity
  • Receive lifetime fixed payments for you and, if you choose, for your spouse
  • Potentially reduce your required minimum distribution (RMD) this year
  • Help further the work and mission of The ³ÉÈË´óƬ

  How an IRA rollover to gift annuity works

  1. Contact us about creating an IRA rollover to gift annuity with The ³ÉÈË´óƬ.
  2. Contact your IRA plan administrator to make a one-time qualified charitable distribution (QCD) of up to $54,000 from your IRA to The ³ÉÈË´óƬ.
  3. We will use your IRA gift to fund your gift annuity payments.
  4. Please note that IRA gifts do not qualify for a charitable deduction.
  5. After you receive payments for life, there will be a future gift to us.
  6. Please contact us if you wish your future gift to be used for a specific purpose.

Charitable Remainder Unitrust

• You transfer your cash or appreciated property to our organization in exchange for our promise to pay you fixed payments (with rates based on your age) for the rest of your life.

  You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need!

  Benefits of a charitable remainder unitrust

  • Receive income for life, for a term of up to 20 years or life plus a term of up to 20 years
  • Avoid capital gains on the sale of your appreciated assets
  • Receive an immediate charitable income tax deduction for the charitable portion of the trust
  • Establish a future legacy gift to our organization

  How a charitable remainder unitrust works

  1. You transfer cash or assets to fund a charitable remainder unitrust.
  2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
  3. The trust is invested to pay income to you or any other trust beneficiaries you select based on a life, lives, a term of up to 20 years or a life plus a term of up to 20 years.
  4. You receive an income tax deduction in the year you transfer assets to the trust.
  5. Our organization benefits from what remains in the trust after all the trust payments have been made.

  Additional Information

  Charitable remainder unitrust for income. A charitable remainder unitrust pays you income that reflects the value of the trust's assets. Your income has the potential to increase over time as the trust grows in value.

  How to select the right unitrust payout. There are several unitrust payout options to meet your needs. The best payout option may depend on the nature of the asset used to fund the trust. We would be happy to work with you and your tax advisor to determine which payout option is best for you.

Charitable Remainder Annuity Trust

• You transfer your cash or appreciated property to fund a charitable remainder annuity trust. The trust sells your property tax-free and provides you with fixed income for life or a term of years.

  You may be looking for a way to receive fixed income for life or a number of years. You may be concerned about the high cost of capital gains tax with the sale of an appreciated asset. Perhaps you recently sold property and are looking for a way to save on taxes and plan for retirement. A charitable remainder annuity trust may offer the solutions you need.

  Benefits of a charitable remainder annuity trust

  • Receive fixed income for life or a term of up to 20 years
  • Avoid capital gains tax on the sale of your appreciated assets
  • Receive an immediate charitable income tax deduction for the charitable remainder portion of your gift to The ³ÉÈË´óƬ

  How a charitable remainder annuity trust works

  1. You transfer cash or assets to fund a charitable remainder unitrust.
  2. In the case of a trust funded with appreciated assets, the trust will then sell the assets tax-free.
  3. The trust is invested to pay fixed income to you or any other trust beneficiaries you select based on a life, lives or a term of up to 20 years.
  4. You receive an income tax deduction in the year you transfer assets to the trust.
  5. Our organization benefits from what remains in the trust after all the trust payments have been made.

  More on charitable remainder annuity trusts

  If you are tired of the fluctuating stock market and want to receive fixed payments, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays a fixed amount each year based on the value of the property at the time the trust is funded.

   

Charitable Lead Trust

• You fund a trust that makes gifts to us for a number of years. Your family receives the trust remainder at substantial tax savings.
  If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a charitable lead trust is an excellent option.

  Benefits of a charitable lead trust

  • Receive a gift or estate tax charitable income tax deduction
  • Pass inheritance on to family at a reduced or zero cost
  • Establish a vehicle from which you can make annual gifts to charity

  How a charitable lead trust works

  1. You make a contribution of your property to fund a trust that pays The ³ÉÈË´óƬ income for a number of years.
  2. You receive a gift or estate tax deduction at the time of your gift.
  3. After a period of time, your family receives the trust assets plus any additional growth in value.

   

  Additional Information

  Zero Tax Plan - It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to The ³ÉÈË´óƬ over the term of the trust, then the full value of the trust may be transferred to family with zero gift tax.

  FLP/Lead Trust Plan - To discount your gift to family even more, you may consider first transferring your real estate or other assets into a family limited partnership (FLP), which will fund your lead trust. The combination of the FLP, the lead trust and a gift exemption can permit the lead trust to pay income to us for a number of years and potentially transfer substantial assets tax-free to your family.

  Increasing Payment Lead Trust - With increased volatility in the stock market, you may also want to consider creating a lead trust that makes fixed payments of increasing amounts to us over time. Because the payments to us are fixed, your family ultimately benefits from any growth in the trust. Low payouts in early years allow the trust to grow, thus allowing protection should the economy produce below-average returns in the future.

  Grantor Lead Trust - A grantor lead trust permits you to transfer your cash or assets to a trust that will make gifts to charity for a number of years. At the end of the trust term, you receive the assets back from the trust.

Sale and Unitrust

• You give a portion of your property to us to fund a charitable remainder trust, when the property sells you receive cash and income for life.

  Are your appreciated assets, such as stock, bonds or real estate, producing little or no income?

  If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution to avoid capital gains tax.

  Benefits of a sale and unitrust

  • Receive cash from the sale. You can use this cash to purchase another residence, to save for retirement, to travel, to meet your daily needs or to meet some other financial goal
  • Receive income from the unitrust for the rest of your life and future retirement
  • Obtain an income tax deduction that may reduce your tax bill this year
  • Further the work of The ³ÉÈË´óƬ with your gift

  How a sale and unitrust works

  1. You establish a charitable remainder unitrust and transfer a portion of your assets to the trust.
  2. The assets are then sold. You receive cash from the sale, and the rest of the sale's proceeds are paid to the charitable unitrust.
  3. The trust will provide you with income for the rest of your life.
  4. You receive a charitable deduction this year to offset your tax on the cash proceeds that you receive from the sale.

  More on sale and unitrust

  When transferring a portion of your primary residence to fund a unitrust, you may apply your one-time home exclusion to reduce or eliminate capital gains tax that would otherwise be due from the sale. Your tax advisor can assist you to determine if you should utilize this strategy.