Ways to Give
A Guide to Supporting the Arts at IllinoisFine and Applied Arts is nurtured by the thoughtful gifts from generous individuals, groups and organizations. These gifts make it possible for generations of students to pursue their education, their careers, and, most importantly, their dreams. Giving may be done in any number of ways: from online giving to including the University in your estate plans. Whichever method you choose, you may give an unrestricted gift to be used for an area of greatest need, or support a specific program or unit within the college. We welcome the opportunity to visit with you as you consider a gift. We recommend you consult your personal financial advisor to determine how these examples may relate to your own personal and financial situation.
Giving can take the following forms:
Gifts of cash Gifts of stock or securities Matching gifts have the ability to double – or even triple – the impact of your gift. Planned gifts Planned gifts allow you to support the Arts at Illinois in perpetuity. The gift that gives forever. Gifts of property Questions about giving? Check our online FAQs, or contact us. And thank you for helping the Arts at Illinois continue to inspire change in our world. Helpful details . . .Outright Gifts
CashBy making an outright gift of cash, donors put their financial investment to support the college into effect immediately. Gifts of cash are most frequently made by via check. However, gifts of cash may also be made by credit card, by electronic funds transfer, or through our online gift acceptance system. In addition, donors may wish to establish a pledge to support the College or one of its units. Pledges can be established for up to a five-year pledge period. TOP
Publicly-traded SecuritiesThis form of giving is particularly advantageous if the donor has a low basis in an asset with long-term capital gain. Such gifts are deductible at the full market value and the unrealized gain is not taxable to the donor or to the Foundation. Publicly-traded securities will be receipted at the average of the high and low market value on the date the donor relinquishes control of the assets in favor of the University of Illinois Foundation. Once the stocks have been sold, the assets are then made available to the College or the unit specified by the donor.
Closely-held StockA gift of stock in a privately-held corporation will also result in a sizeable income tax deduction for the donor and avoidance of capital gain tax. This type of stock gift works well if the company has retained earnings and if other shares of stock are held by the donor’s children or grandchildren. An appraisal by a qualified independent appraiser is required to establish fair market value for receipting and tax purposes. TOP
Tangible Personal PropertyGifts of tangible personal property (including, but not limited to works of art, manuscripts, literary works, jewelry, antiques, or collectibles) work well if the asset has appreciated significantly and if it is related to the tax-exempt purposes of the College of Fine and Applied Arts. Gifts exceeding $5,000.00 require an appraisal to determine the fair market value for receipting and tax purposes.
Real Estate Gifted Outright or at a Bargain SaleA parcel of real estate may be gifted to the University of Illinois Foundation, pending approval of the acceptance of the gift, generating a current income tax deduction for the fair-market value of the property as established by qualified appraisal. The Foundation will determine the marketability of the property and any environmental or legal restrictions before acceptance. The donor will be receipted for the fair market value of the property less any encumbrances. A donor may also wish to sell real estate to the Foundation at a substantially discounted price. The charitable gift equals the difference in the fair market value and the selling price. Life Insurance Policies - It is possible to make a gift of an existing life insurance policy (whole, variable or universal) by transferring all rights of ownership to the University of Illinois Foundation. TOP
Charitable Lead TrustCash and securities may be placed into a charitable lead trust that provides income to the University of Illinois Foundation for a specified number of years. At the end of the term, the assets in the trust revert to the donor or to a beneficiary designated by the donor. This type of gift works well if the donor’s estate is significant and if the donor wishes to transfer assets to his/her heirs at a lowered tax rate.
Gifts from Retirement AccountsSome people find that they may not need all of the funds in their retirement plan, and could accelerate the withdrawal of assets. Thanks to the Pension Protection Act of 2006, if you are 70½ or older you have the opportunity until December 31, 2007 to use your IRA funds to make charitable gifts without the amount of the gift counting as a taxable distribution. This opportunity is set to expire this year and is subject to certain conditions: You must be 70½ or older; you must transfer your funds directly from your IRA accounts to the University of Illinois Foundation; qualifying gifts are limited to $100,000 a year; donors must make an outright gift (life-income gifts such as charitable gift annuities or remainder trusts do not qualify); and gifts do not generate a federal income-tax deduction. Another tremendous benefit with gifting excess retirement account assets is the removal of the asset from the taxable estate, and avoidance of possible income taxes as well as estate taxes at the death of the owner of the retirement plan. Matching GiftsLooking for a way to grow your contribution—without actually giving more? The solution may be simpler than you think. Many companies have matching gift programs, meaning they match (or even double) their employees’ contributions to qualifying charitable organizations. To find out if your company runs a matching gift program, search our online database or ask your company's HR department. Then get a matching gift form from your company, complete it, and mail it to:
University of Illinois Foundation You can learn more about matching gifts by contacting the U of I Foundation at (217) 333-0675 or by e-mail at stewardship@UIF.uillinois.edu. TOP
Planned Gifts - The Rewards of Creative GivingAs the College of Fine and Applied Arts confronts the fiscal challenges of the future, we know the generosity of those who embrace our mission and our goals will strive to assist the College in attaining success. Knowing this future support is established through planned giving methods will allow the College to flourish and is why we seek your investment. There are many ways that your philanthropic giving can blend with your own financial needs and still result in major financial support for the College and its units. With your legal and tax advisors, we can help you plan for tomorrow and receive maximum benefits today.
Bequests and Living TrustsThe most common method of deferred charitable giving is that of a bequest through ones will. This can be in the form of property, a specific dollar amount, a percentage of the remainder value, or a contingency on survivorship of a spouse or other beneficiary. The sample language illustrates how a bequest or a gift through a living trust can be accomplished, and is intended to be used for educational purposes rather than as advice.
Specific BequestA specific bequest gives a specific item or specific piece of property. Such bequests are fulfilled first, before cash and residuary bequests. I give ________________ (describe asset) to the University of Illinois Foundation, a not-for-profit corporation, located in Urbana, Illinois, to further the objectives and purposes of the College of Fine and Applied Arts (or one of its units).
Cash BequestA cash bequest provides a specified sum of money from a donor's estate. These bequests are fulfilled second, after specific and before residuary bequests. I give _____ Dollars ($_____) to the University of Illinois Foundation, a not-for-profit corporation, located in Urbana, Illinois, to further the objectives and purposes of the College of Fine and Applied Arts (or one of its units).
Residuary BequestA residuary bequest is made from the residue, or what remains in a donor's estate after specific and cash bequests, taxes, settlement costs and debts are satisfied. I give the residue (or _____ percent of the residue) of my estate to the University of Illinois Foundation, a not-for-profit corporation, located in Urbana, Illinois, to further the objectives and purposes of the College of Fine and Applied Arts (or one of its units).
Charitable Gift AnnuityAn attractive - income generating - gift often considered by donors is a charitable gift annuity. It is a contract between you and the University of Illinois Foundation whereby the Foundation agrees to pay a fixed annuity to a maximum of two beneficiaries (immediately or deferred) in exchange for the irrevocable transfer of assets by you to the Foundation. A portion of the annuity payment may be income tax-free, and an income tax deduction may be allowed for the difference between the value of the gift and the present value of the annuity. The remainder amount is then available to the College (or one of it units) as initially described by the donor.
Deferred Gift AnnuitySimilar to a Charitable Gift Annuity in that a donor makes a gift now and receives an immediate income tax deduction, however, in the case of a Deferred Gift Annuity the donor will begin receiving the annuity payments at a future pre-determined date. Due to the compounding of the gift's income, the amount of the annuity payments can be significantly greater than the annuity payments under the Charitable Gift Annuity. In both cases, financial support of the College of Fine and Applied Arts is the eventual outcome.
Estate NoteAn estate note is an irrevocable pledge that is legally binding against the donor’s estate. Individual Retirement Account/Other Pension Plan - A donor may designate the College of Fine and Applied Arts or one of its units as the specific or contingent beneficiary of an IRA through the University of Illinois Foundation. At the death of the donor, all or a portion of the unused funds in the account pass to the Foundation and, as such, will be exempt from any applicable federal estate taxes. Charitable Bequests of Pension, Keogh and IRA Death Benefits - Because death benefits payable to an individual beneficiary of a qualified retirement plan may have income tax as well as estate tax consequences, it often is best to name the College of Fine and Applied Arts through the University of Illinois Foundation as the death beneficiary.
Life InsuranceThe University of Illinois Foundation may be designated as the owner and beneficiary of a life insurance policy to support the College of Fine and Applied Arts. Subsequent premium payments made by the donor are tax deductible.
Retained Life EstateDonors may wish to gift their home, or farmland, and retain a “lifetime interest” so they can live there after ownership has been transferred to the University of Illinois Foundation. An income tax deduction based on the property’s current market value and the life expectancy of the donor is allowed. However, while living on the property the donor is responsible for real estate taxes, maintenance and improvements.
Charitable Remainder TrustCash and marketable securities may be placed into a charitable remainder trust. When the trust is created, the donor determines either a fixed percentage of assets payout (unitrust) or a fixed dollar amount payout (annuity). When the trust matures either at the death of the donor or the last beneficiary or at the end of a specified term, the University of Illinois Foundation receives the remainder, which then would be used to support the College of Fine and Applied Arts or one of its units.
Testamentary Transfers to Charitable TrustsThe IRS has also approved the transfer of qualified plan assets to charitable remainder trusts. The income beneficiary may begin withdrawal from the trust immediately, and if the beneficiary is other than a spouse, there would be significant estate tax savings. There also would be no immediate income tax on a charitable remainder trust funded with assets from a retirement account. The University of Illinois Foundation gift planning staff will provide advice and assistance to those wishing to support the College of Fine and Applied Arts through a future gift. TOP
For additional information on how to support the College of Fine and Applied Arts or any of its units, please contact:
Roger Laramee Assistant Dean for Development College of Fine and Applied Arts Phone: 217.333.1661 FAX: 217.333.8381 TOP
DisclaimerThe information contained on this site is for educational purposes only, it is not intended to be professional tax or legal advice; consult a tax advisor about your specific situation. We encourage donors to share this information with their legal counsel, and recommend that anyone undertaking estate planning do so with the consultation of an attorney. Please consult your personal financial advisor if you have any questions about these examples and how they relate to your own personal financial situation. |
|
