Guide to Effective Giving
So you want to support Miles College, but the amount you wish to give exceeds the amount convenient for you to give from your current cash resources?
In that situation, you might follow the lead of others who have chosen to make larger gifts utilizing some other form of property, such as low-yielding securities, real estate and collectibles. A gift of such an asset would allow you to give with little or no affect on your spendable income.
Another reason to make your gift in the form of a non-cash asset is the tax savings. When you give an asset that you have owned for more than one year and a day which has increased in value since you acquired it, you are usually entitled to an income tax deduction for the full current value of the asset, not just the amount you paid. And, you bypass any capital gains tax that would have been due if you had sold the asset.
There are even ways to support Miles without reducing your current assets, including the use of charitable lead trusts, charitable remainder trusts, traditional wills, revocable living wills, life insurance and giving through retirement plans.
For more information on any of these options call 1-205-929-1448, or consult with your personal financial, tax or insurance advisor.
Different Ways of Giving
Cash and Pledges
The simplest and most common type of gift is made through a one-time payment of cash, often by means of a personal check. Another popular option is a pledge, a gift made over a period of time with regular payments. Pledges to the “Miles Ahead” campaign can be made up to a maximum of five years duration.
Gifts of Securities
Many donors make a gift through the donation of assets such as stocks or bonds. A gift of securities may allow a donor to realize an immediate income tax deduction on the appreciated value of the donated securities. While these gifts can be made quickly and easily, please contact the Office of Institutional Planning and Development to receive specific instructions on how to execute the gift.
Matching Gifts
A gift to Miles may be matched by an equal amount, or perhaps even doubled or tripled, if the donor’s employer participates in a matching gift program. Check with your Human Resources Department or call the Office of Institutional Planning and Development to see if your employer qualifies.
Planned Gifts
Many donors can have a greater impact by utilizing a planned giving vehicle to make a larger gift. In some cases, tax advantages might be obtained for the donor. In order to determine which vehicle might work best for you, discuss the options with your financial adviser or call a member of the Miles Institutional Planning and Development Office. We will be happy to assist you with any of the types of gifts listed below:
Bequests: Leaving a charitable gift to Miles as a part of your estate planning can be the “ultimate” gift. Contact Miles for specific bequest language to make sure that your intent is carried out exactly as you wish it to be. Bequest can be made in three different ways: by naming a specific dollar amount to go to the College, by giving Miles a percentage of the total estate, or by leaving the remainder of the estate to Miles after all other specific bequest intentions are paid out.
Life Income Plans: Many planned gifts vehicles, such as annuities, can provide a regular income to you, your spouse, or your designee for a number of years. At the end of the payout period the funds remaining become a gift to Miles.
Charitable Trusts: Some estate planning vehicles, such as charitable lead trusts, can help you pass assets to children or grandchildren while providing an income stream for Miles over a period of time. Others, such as a remainder trust, can provide income to you or your spouse during your lifetime, with the remainder passing to Miles at the end of the trust period. There may be tax advantages to the donor, depending on the assets and the vehicle selected.
Gifts of Life Insurance: Donors can designate Miles as the beneficiary of a life insurance plan, thus providing the College with resources beyond their lifespan.
Gifts of Real Estate: Donations of real estate, whether residential, commercial, or income producing, can support Miles needs. A gift of appreciated real estate may offer tax advantages for the donor. Miles performs an administrative review of all real estate donations to determine such factors as environmental quality and marketability.
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