Ways to Make a Creative Gift
Charitable Gift Annuity
You give the WCC Educational Foundation a gift of money, stocks, bonds or other liquid assets, and the WCC Educational Foundation will pay you or a beneficiary a fixed amount on a regular basis until death. A large part of this income is tax free, and you also receive a charitable deduction for part of the gift. This is appropriate for gifts in the $5,000 to $50,000 range.
Charitable Remainder Trusts
By transferring assets to the WCC Educational Foundation to establish a trust, you or a beneficiary receives a lifetime income. Eventually, the remaining assets of the trust pass on to the WCC Educational Foundation. This gift works well if you need income now. This is appropriate for gifts of $50,000 or more.
Charitable Lead Trusts
You may transfer assets to a trust for a fixed number of years. The interest earned will go to the WCC Educational Foundation, and later the principal will go back to you or your beneficiaries. The gift works well if you do not need current income and want the asset to go to a beneficiary. You may claim a tax deduction for making a lead trust gift.
Retained Life Estate
If you deed a house, summer house, etc. to the WCC Educational Foundation, you and/or your spouse retain the right to live in the house for the remainder of your life. You also receive an immediate income tax deduction for the gift. The foundation will most likely sell the property when you or your spouse no longer needs it.
Ways to Make a Difference Today
Cash and Gift Pledge
The advantage of this method is that the actual cost of the gift (to you) is less than the total dollar amount given to the WCC Educational Foundation. You can deduct up to 50 percent of your adjusted gross income in the year you make the gift. Any excess over 50 percent can be deducted over the next five years. Future cash pledges should be made either in writing or by means of a pledge card. Pledges can not be claimed until the gift is made.
Check to see if your employer (or spouse’s employer) matches employee donations to qualified non-profit organizations like the WCC Educational Foundation. Some even double or triple employee gifts.
Stocks and Bonds
Speak to your broker or financial advisor. Many donors use this convenient way to donate highly appreciated stocks to benefit the college and to provide substantial capital gains tax savings.
You can give private, commercial, or agricultural property to the WCC Educational Foundation. If your property has decreased in value, you should consider selling it and contributing the proceeds to receive both capital loss and charitable gift deductions. We encourage you to contact us during the early stages of your planning so we can work together to decide the best use of the property by the WCC Educational Foundation.
Ways to Make a Difference in the Future
Your will can include gifts in the form of
- Cash, stocks, bonds, real estate or personal property
- A specified percentage of your estate
- The balance of your estate after family members have been taken care of. Be sure to work closely with your attorney if you want the WCC Educational Foundation to be the recipient of a future gift.
Talk with your life insurance agent to discuss the types of insurance gifts you can make. Insurance gifts can benefit you and WCC in many ways. You can make a substantial gift with modest premium payments, or it’s a good use of paid-up policies that are no longer needed for family members. You may also give stock to the WCC Educational Foundation, and with the substantial tax deduction funds purchase a life insurance policy to benefit your family.
Naming the WCC Educational Foundation as a beneficiary of a portion of your retirement funds is another option. Be sure to contact the administrator or person in charge of your IRA Profit Sharing Account or other retirement plan to list the WCC Educational Foundation.
Establishing a Named Endowment
An endowment in memory or in honor of an individual may be established with a tax-deductible gift. With a scholarship or educational endowment, the donor may designate a name for the fund and set the eligibility criteria for the award of the funds made available from the investment of the endowment. As always, the endowment principal remains untouched while the investment earnings are used in the manner specified by the donor. Some examples of scholarship eligibility criteria include financial need, geographic area of residence, major area of study, and minimum grade point average. Other criteria exist for individual scholarships and can be discussed with the donor. Educational endowments, such as a professional development fund, can be created to assist faculty across the campus or in specific departments.
Funding a Scholarship or Educational Endowment
WCC welcomes gifts of all types and can work with you and your financial advisor to maximize the tax benefits for you.