Private philanthropic gifts are made in myriad ways and are particular to each donor’s financial and tax requirements. Your financial advisor is often the best resource to help you determine the method that will provide the maximum benefit as it relates to your individual financial goals.
The simplest gift you can make is an outright gift of cash that can be put to use immediately, either by providing funding for current programs or creating a reliable source of future income through a permanent endowment. This tax-deductible donation may come in the form of cash, check or credit card charge.
Giving appreciated stocks and bonds are, next to cash, also a fairly simple and easy process. Working with a broker to transfer appreciated stock or other securities, donors receive the benefit of an income-tax deduction, avoid the capital gains tax, and possibly save on estate taxes.
Donors often find that by pledging their gift over a set period of time, they are able to make a more substantial contribution designated for their particular area of interest. Donors may tailor their pledge payments to adjust the timing and amount of each payment to achieve the most beneficial tax treatment.
Through gifts-in-kind, a donor can help UHCO strengthen its programs and improve its facilities so that we can continue to offer the best possible educational experience to our students. An in-kind contribution is a tangible item or product, which once donated, can be used by the College. Examples of in-kind gifts include new of gently used optometric equipment for examination rooms, office furniture, computers, low vision aides, lens blanks, frames and pharmaceutical items for patients.
A charitable bequest affords a way for an individual to express specific philanthropic wishes upon the donor’s death. Through a bequest, you can reduce federal estate taxes and applicable state inheritance taxes, while also leaving a lasting legacy to UHCO. Donors may choose to name UHCO as the beneficiary of their will or living trust. At the time of this designation, your financial advisor can prepare a letter stating your intent, which will then be sent to the College. Upon notification, the donor then becomes a member of prestigious 1927 Society.
Retirement plans are often the largest asset in the portfolio of most families but when Individual Retirement Accounts (IRAs) and other plans are left to heirs through an estate, they are subject to multiple layers of taxation which reduces the benefits to designated family members. This can be overcome by designating either a portion of, or all of, the funds in a qualified plan as the estate assets to use for a charitable bequest.
One of the most tax-advantaged gifts is the Charitable Remainder Trust (CRT). When an appreciated asset is transferred into a CRT, the donor receive an immediate income tax deduction, is able to bypass potential capital gains tax as well avoid the donation being subject to gift or estate taxes in the future. In return, the College agrees to pay the donor an income for life, often amounting to more than the value of the original donation. The CRT can save current and future tax dollars, generate an increase in current income, and result in a substantial gift to UHCO.
The Charitable Gift Annuity (CGA) enables donors to be philanthropic while also securing an income. Like a charitable trust (CRT), the gift annuity contract transfers an asset to UHCO, and in return, donors receive payments every year for the duration of the contract.
Corporate matching gifts provide a unique way to increase a donor’s gift, sometimes doubling or even tripling the original contribution. As a benefit to its employees, some companies “match” charitable donations to certain types of organizations, such as higher education. To determine if you or your spouse works for a company that provides matching gifts, check with your human resources department.