Ways to Give

Gifts of Cash

Charitable gifts are most often made in the form of cash and checks and may be made in one transaction or as a pledge, in several installments. They can even be made via credit card. Cash is the simplest donation and provides immediate benefits.

First, you are entitled to a charitable income tax deduction. The IRS allows you to claim up to 50% of your adjusted gross income for cash gifts. If necessary, you may carry forward your donation for five more years.

Gifts of Securities

Making gifts of stocks, bonds, and mutual funds can bring even more tax savings. Gifts of appreciated property that have increased in value can reduce taxes on up to 30% of your adjusted gross income and can help you avoid the capital gains tax you would have owed if you had sold them.

When owned for more than one year, you may deduct the full market value of your holdings, not just the original cost. Remember, if you have investments that have decreased in value, it would likely be better to sell them to create the loss that is deductible from your taxable income before making a gift of their proceeds.

You may contribute works of art, antiques, rare books, and similar property to the Shawnee State University Development Foundation. Should you choose this kind of support for the University, you may need to secure an independent appraisal for tax purposes.

Shawnee State University has also created the Luther Community Collection, to showcase your collection or favorite treasures. We invite you to talk with us about donating them or any other property so we can help you avoid possible pitfalls.

Real estate may provide a convenient way to support the University. Gifts of appreciated real estate are like gifts of appreciated stock. In many cases, you may deduct the full fair market value while avoiding capital gains taxes. You may contribute real estate as an outright or deferred gift. For example, with a life estate agreement, a donor can make a gift of a home or farm while retaining the right to live there throughout life.

You may leave provisions for Shawnee State in the body of your will or in a codicil (an addendum to it). You may designate either a dollar amount or a percentage of your estate to the Development Foundation. Whatever the amount, bequests to Shawnee State University are entirely free from federal estate tax and the estate and inheritance taxes of most states. Your attorney can help you with your estate gifts.

Shawnee State is eager to know now about your planned gift through a bequest. Even though we will likely not have use of the funds for many years, it is helpful in our planning if we are aware of future gifts. We would also like to be able to thank you for your commitment.

You may assign the Shawnee State University Development Foundation as the owner and beneficiary or a secondary, remainder, or residual beneficiary of your life insurance policy. When the Foundation is named as owner of a policy and/or the irrevocable beneficiary, the cash value of the policy may be deducted on your income tax return, and the premiums you pay thereafter also are income tax deductible.

Charitable remainder unitrusts and annuity trusts pay you income for life and can also provide for a successor beneficiary for life. At the same time, they provide an immediate tax deduction and freedom from estate taxes. When the beneficial interest in the trust ends, the principal goes to the Shawnee State University Development Foundation to accomplish your expressed wishes. There are different rules inherent in the establishment of the two types of trusts, so it is wise to seek advice from your financial advisors. In both cases, the higher the rate of return, the smaller the charitable deduction. You and Shawnee State will reap the benefits of your planning. Trusts are especially appealing if funded with appreciated stocks because you will likely avoid capital gains taxes. They can also afford you guaranteed income in a time of a fluctuating stock market.

For those donors who wish to preserve their inheritance for their children, there is even a way to combine a charitable remainder trust with a wealth replacement life insurance trust so that your children will get the full inheritance you intended.

A gift annuity is an extraordinary way for you to make a gift to the Shawnee State University Development Foundation while you increase your income and lower your taxes.

It is a simple arrangement, via a contract between you and the Foundation, that guarantees you a fixed income for the rest of your life. Gift annuities may be especially valuable during a low interest rate environment, because your payment is generally higher and is always guaranteed. We will happily share with you the payment schedule for your gift.

Recent federal tax law changes and proposals are designed to make giving through your IRA or other retirement plan both easier and more attractive. In fact, a gift of an IRA, or other IRD assets like savings bonds, may save your heirs significant taxes. (Did you know that your heirs will need to pay income tax on your IRA or savings bonds when you pass away?) Your most tax burdened assets make the best gifts to charity while freeing other assets for your family. Note: New tax law passed in 2006, allows donors age 70 or older to make gifts to qualified charities directly from their IRA, with positive tax benefits.

So many of our friends gift their time and talents to Shawnee State as volunteers, and we are most appreciative. If you would like to help Shawnee State University, please give us a call. We’ll gladly discuss with you the avenues: from stuffing invitations to mentoring children, your help is very valuable.

Do you know that you can double, triple, or even quadruple your contribution to Shawnee State? If you work for a company that has a matching gift program, it’s easy. Here’s how it works:

Under a corporate matching gift program, gifts made by eligible employees or retirees to Shawnee State University are matched with company or corporate foundation funds.

To discuss these or other gift opportunities, please contact Mandy Hart, associate director of development for major and planned gifts at 740.351.3364. She is happy to help you formulate the right plan that fulfills your goals for the University, while taking advantage of benefits to you. President Rita Rice Morris would also be pleased to talk with you at 740.351.3208.