Thoughtful Gift Planning is the Key Advantage.

 

The planning of charitable gifts provides a donor with the benefit of creative and time-honored ways to express a sincere commitment to James Madison University. 

 

For some donors, it may be possible to make a major gift to the University by an outright payment of cash.  But, this sometimes is not an option because of other financial commitments.  Therefore, for many donors, a creative and strategic design can be the key to a gift plan that can work for the donor a way to fit a gift for Madison into the donor's overall financial and estate plan. 

 

A carefully structured gift plan offers efficient, effective, and tax-wise ways to make a significant gift for the University and at the same time minimize the current and long-term impact of federal and state taxes.  In a carefully designed plan, it may be possible to make a gift commitment and still maximize the resources available for the donor and the donor's family now and in the future.

 

For a prospective donor of a major gift to the University's Endowment, or a gift to fulfill a significant personal goal, or a gift to create a lasting legacy at the University, the value of a thoughtful strategic gift plan is based on the way such a gift would be funded.  That is, such a gift likely would come from the donor's assets rather than annual income. 

 

Through the Office of Planned Giving, the University can work with the donor and the donor's advisors (if so requested) to adds something of great value a way for the donor to use the flexibility of a comprehensive estate plan to maintain control over the timing of asset distributions and the selection of documents best suited to meet both current and future needs of the donor and the donor's family. 

 

Individuals and families who use planned giving strategies in designing their gifts enable themselves to enjoy lifetime income and other benefits while also enjoying the satisfaction of seeing their philanthropic generosity making a real difference at the University during their lifetimes. 

 

Planning is Vitally Important

       For Your Family Finances, Your Estate. . .

And For Your Charitable Gifts.

 

While the process of designing a gift plan that brings to life a donor's dreams and aspirations may originate in the heart of the donor, the process eventually leads to a thoughtful consideration of the tax-related advantages and outcomes associated with the charitable financial & estate planning. 

 

Planned gifts make it possible to create a larger gift than otherwise might be possible.  One key reason is the tax advantages available when a planned gift strategy is used.

 

The federal tax code provides the way to establish the tax-related benefits of gift strategies for the donor and, perhaps, the donor's family both now and in the future.  The tax-related advantages may create a substantial and favorable impact on the donor's present and future liabilities regarding income, capital gains, gift, and estate taxation.

 

Because there is a great flexibility inherent in the design of a strategic gift plan, the gifts that result from such planning take many forms.  They may be designed strictly as deferred gifts, where the University benefits from a remainder interest, or as outright gifts that provide immediate resources either for current needs or the University's endowment.  In some cases, such a gift may be a combination of the two. 

 

Examples of strategically planned gifts:

 

An outright gift to the University with assets other than cash in the same year as an outright sale of assets for the donor's personal use, with the two transactions balanced to reduce the tax liability of the donor to zero.

 

Building into a comprehensive financial and estate plan a specific or residual testamentary gift via the donor's Will, or a Living Trust.

 

Increasing retirement income by converting under performing assets into a fixed rate income-producing gift that provides increased income to the donor (and, perhaps, other named beneficiaries) for life and, a remainder interest for the University.

 

Disposing of valuable real estate by making a current gift of the donor's farm or home, with the donor retaining the right to lifetime possession of the real property.

 

Designing a creative plan for both your family and the University a special kind of gift that provides the University with a certain amount each year for a certain period, after which the principal would pass to the donor's heirs free of gift and estate taxes.

 

Strategically planned gifts provide a way to receive very favorable tax treatment upon the transfer of assets both during one's lifetime and at the time of one's death. 

 

And they do more. 

 

When a potential donor's capacity to make a significant charitable gift is limited by current obligations and expenses (such as college tuition costs or the care of an older relative), a thoughtfully structured deferred gift can provide an effective and desirable solution for the donor who wants to make a commitment now.

 

 

 

The information provided here is not intended as legal, tax, or investment counsel. 

For such advice, please consult with an attorney, tax professional, or investment professional.

 

© 2003 James Madison University.  All Rights Reserved.