Planned Gifts enable you to make a substantial gift to Gardner-Webb University while also providing benefits to you and your family.
Planned gifts include bequests, gifts of real or personal property, retirement plans,insurance policies, and life income gifts such as charitable gift annuities, charitable remainder trust, charitable annuity trusts, and charitable lead trust.
We recommend that you speak with your financial advisor before establishing a planned gift with Gardner-Webb. This ensures your best interest in charitable giving.
Legacy Society
The members of the Legacy Society play a key role in ensuring the future growth and success of Gardner-Webb University. Since the University realizes many of these gifts after the life of the donor, Gardner-Webb established the Legacy Society to honor and thank donors during their lifetimes.
Membership in the Legacy Society includes those persons who are helping to assure the future of Gardner-Webb by including the University in their estate plans or other planned gift. The Legacy Society, originally called the Heritage Society, was established to recognize the commitment all who make charitable planned gifts to the Gardner-Webb. Each of these gifts is a vital and significant investment in the future of Gardner-Webb University.
Members are acknowledged, with their permission in University publications. Individuals become members of the Legacy Society simply by informing the Office of Planned Giving at 704-406-2157 of a planned gift made to Gardner-Webb University. Such gifts include:
* Making a provision for Gardner-Webb University in your will or revocable trust.
* Establishing a charitable remainder trust or a charitable gift annuity to benefit Gardner-Webb University.
* Designating Gardner-Webb University as the beneficiary of an IRA, Keogh, or other qualified retirement plan assets.
* Naming Gardner-Webb University as the owner and beneficiary of a life insurance policy.
To become a member or to learn more about planned giving opportunities tailored to your needs, please call Greg Poe at 704-974-1740 or email gpoe@gardner-webb.edu.
Bequests
The most common and easiest planned gift is a bequest. Bequests are one of Gardner-Webb University’s most important sources donor support. Bequests provide funds for all aspects of education at Gardner-Webb University.
For many donors, a bequest is the best way of making a significant gift to Gardner-Webb. The bequest may be in the form of cash, securities, real estate, tangible personal property, or other assets. You may provide for Gardner-Webb by creating a new will, adding a codicil to your present will, including Gardner-Webb in your revocable trust, or designating Gardner-Webb as a beneficiary of your retirement or life insurance plan.
As with any Planned Gift, you should seek the advice of your attroney to ensure that yoru exact intentions are carried out.
Types of Bequest:
* Cash Bequest: Donor gives a specific dollar amount.
* Specific Bequest: Donor gives specific assets, such as securities (e.g. stocks and bonds, both publically and closely held), real estate, or tangible personal property (e.g., works of art, antiques, etc.).
* Remainder Bequest: Donor gives all or a percentage of the remainder of your estate after the payment of any specific bequests and all estate-related expenses.
* Bequest to a Charitable Remainder Trust: One or more named beneficiaries receive income for life or for a specified term of years, after which time the assets pass to Gardner-Webb.
* Retirement plan: Donor designates Gardner-Webb University as a beneficiary of the remainder of an IRA, Keogh, tax-deferred annuity, or qualified pension or profit-sharing plan.
* Insurance plan: Donor designates Gardner-Webb University as a beneficiary of a life insurance policy, or designates Gardner-Webb University as owner of a life insurance policy
* Gifts of Appreciated Securities
An increasing amount of donors are making their gifts to Gardner-Webb University from their investment portfolios because of the unique tax savings realized when donating appreciated securities. Securities may include stocks, both publicly traded and closely held, and bonds. The most common types of securities gifted are those that have appreciated considerably during the donor’s ownership.
When a gift of appreciated securities is made, the donor will generally not have to pay capital gains tax that would be due if the securities had been sold. The donor receives a charitable tax deduction for the market value of the securities on the date of the gift.
Gifts of Real Estate
If you own appreciated real estate such as commercial property, rental property, land, a farm, or condominium, you can donate this real estate outright to Gardner-Webb University. Gifts of real estate can be made to Gardner-Webb University either through a bequest or by a direct transfer. The University reviews potential gifts of property on a case-by-case basis.
Gifts of Life Insurance
Life insurance is one asset that can be used to make a substantial gift to Gardner-Webb University. Detailed here are some examples:
You can donate a paid-up policy originally purchased to satisfy a need that no longer exists. Typically, you would irrevocably designate Gardner-Webb University as the beneficiary and owner of the policy. You would be entitled to an income tax charitable deduction equal to the “replacement” value or cost basis of the policy, whichever is less.
You can donate a policy that is not fully paid up and take a deduction for the “present value” of the policy – approximately the “cash surrender” value or cost basis, whichever is less. If you then continue to make premium payments, they are deductible for income tax purposes.
A bequest to Gardner-Webb University is not subject to federal estate tax. The value of the bequest is deductible in determining the taxable estate, and there is no limit on the amount of the deduction.
A bequest will reduce the size of the taxable portion of your estate, and thus the size of the federal tax liability. The “cost” to the estate, therefore, is not the full amount of the bequest, but rather the net amount after taking into account the tax savings. Your heirs, accordingly, may benefit from the tax savings, while Gardner-Webb benefits from the full amount of the bequest.
Life Income Gifts
Many donors to make a substantial gift to Gardner-Webb University in the form of appreciated securities or cash, but are hesitant to give up the income they are receiving. A life income plan is an excellent solution to this dilemma. Investing in a life income gift often provides a significant increase in annual income when compared to the income earned in a savings account or from current dividends. Life income gifts also provide an increased benefit through reduced or eliminated capital gains taxes. By planning the form and timing of gifts, you may find that you can make a gift while retaining personal security.
Planned gifts that provide an income to you or a loved one include the following:
Charitable Gift Annuities
A charitable gift annuity is a simple agreement that allows you to make a gift to Gardner-Webb University while receiving income and tax benefits. In return for your gift, you and/or another person will receive fixed payments from Gardner-Webb University for your lifetime(s). The income payments are based upon the age(s) of the income recipients and IRS discount rate at the time the gift is made.
As a gift annuity donor, you will receive:
* A guaranteed income stream for life
* Partial tax-free income
* A significant charitable deduction
* A reduction in capital gains tax, if applicable
* Assurance that you are advancing the goals and ideals of Gardner-Webb University
Charitable Trusts
Charitable Trusts allow you to provide a gift to Gardner-Webb University while meeting your specific needs. These types of Trusts combine charitable giving with other financial goals. Income is paid to you or your spouse for life or to another beneficiary. When the Trust term ends, the principal remaining in the Trust (the charitable remainder) becomes a gift to the University. Charitable Trusts also bring tax benefits because they result in gifts – exact tax deductions depend on a variety of factors, including length of Trust and the amount of income paid to beneficiaries.
Charitable Remainder Trusts
In a charitable remainder trust, the donor makes an irrevocable contribution of cash, securities, or real estate (dependent upon University approval) to a certain type of trust. In exchange, the trust will pay you and/or other designees an income stream for life, or for a period not to exceed twenty years. At the end of the trust, the remainder will be used by Gardner-Webb University in accordance with the donor's wishes. Gardner-Webb University offers two types of Charitable Remainder Trust
* Charitable Remainder Unitrust (CRUT)
* Charitable Remainder Annuity Trust (CRAT)
Charitable Lead Trusts
A Charitable Lead Trust is accomplished when you irrevocably transfer property to a trust that presently pays an income stream to Gardner-Webb for a period of years or for the lifetime of named individuals or for a combination of the two, with the remainder interest of the trust passing to any non-charitable beneficiary you choose. Usually, the non-charitable beneficiary is a younger family member. This is an excellent way to transfer property to a family member without realizing the full implications of the inheritance tax.
There are different kinds of charitable lead trusts that a donor can establish. Two of these trusts, charitable lead annuity trust and the charitable lead unitrust, will provide an income tax deduction if properly established.
All charitable lead trusts provide an estate or gift tax deduction as well. Charitable lead trusts are often used to transfer significant assets to family members at a future date with the intent of avoiding large estate or gift tax consequences. Charitable lead trusts may also be appropriate for reducing income taxes in years that you might have unusually high income that places you in a higher tax bracket.
To receive a sample projection of how any of the planned gifts may be beneficial to you, or to discuss your estate plans, please call Greg Poe at 704-974-1740 or email gpoe@gardner-webb.edu.