There are a variety of planned giving options which can result in a larger inheritance for heirs, the benefit of income to the donor during their lifetime, and the ability for donors to see the positive results of their generosity.
Planned Giving Options
Charitable Gift Annuities
A charitable gift annuity is one of the most popular planned gift options. A gift annuity is a contract between the donor and the Cecil College Foundation, which provides for the payment of life income to the donor at a fixed rate. The donor receives an income tax deduction in the year of the gift, subject to the current tax rules.
A gift annuity has an attractive provision for the taxation of the income as follows:
- a portion of each payment is treated by the IRS as the nontaxable return of a donor’s principal;
- another portion is taxed as a capital gain to the donor if appreciated assets are contributed;
- the balance is taxed as ordinary income.
Call the Foundation today at (410) 287-1146 to discuss the benefits of creating a charitable gift annuity.
Gifts of Real Estate
There are a variety of options for donating real estate to the Cecil College Foundation, Inc. Real estate can be contributed in several ways:
- Outright gift: The entire property is donated to the Cecil College Foundation.
- Gift Subject to Life Income: The property is conveyed to a life income trust for the ultimate benefit of the Cecil College Foundation. The income of the trust is paid for life to the donor and/or to another beneficiary named by the donor. As with an outright gift, you can alleviate capital gains tax liability on the appreciation in a life income gift of appreciated real estate.
- Bargain Sale: A charitable gift of mortgaged real estate under which the donor is considered to have sold the property to the Cecil College Foundation for the amount of the outstanding mortgage. Your deductible gift is the difference between the mortgage and the market value of the property. There will be a partial capital gains tax on your appreciation in the property attributable to the amount of the mortgage, but not on the gift portion of the transaction.
- Giving real estate by bequest.
To be certain that your goals align with the Foundation’s for the donation of any real estate, please contact the Foundation at (410) 287-1146 in advance of finalizing your gift.
Gifts of Life Insurance
A gift of life insurance may be made in one of three ways:
- Donate a fully paid policy, naming the Cecil College Foundation, Inc., the irrevocable owner and beneficiary. The donor is entitled to an income tax deduction for an amount equal to the cash value of the policy.
- Donate a policy on which premiums are still being paid, naming the Cecil College Foundation, Inc., the irrevocable owner and beneficiary. The donor is entitled to an income tax deduction for an amount equivalent to the cash value of the policy and for any additional gifts to fund premium payments.
- Purchase a new policy, naming the Cecil College Foundation, Inc., the irrevocable owner and beneficiary. You are entitled to an income tax deduction for gifts made to the Cecil College Foundation that are designated for premium payments.
Make a Bequest in Your Will
Sample Bequest Language – Unrestricted Gift
I give to the Cecil College Foundation, Inc., a public charity located at One Seahawk Drive, North East, MD 21901, and incorporated under the laws of the state of Maryland, federal tax identification number 23-7345298, the sum of (dollar amount) (or (percentage) of my estate; or the property described herein) for its general purposes.
If you choose to make a bequest to the Cecil College Foundation we hope that you will contact us at (410) 287-1146 to let us know that you have included the Foundation in your estate plans so that we may acknowledge your generosity.
Request a Donation in Your Obituary
Memorial gift language for an obituary:
In memory of (deceased), the family requests that a donation be made to the Cecil College Foundation, One Seahawk Drive, North East, MD 21901, or online at www.cecil.edu/donate.
Your estate planner or the Cecil College Foundation can assist in preparing a planned gift. Call the Foundation today at (410) 287-1146 to discuss the benefits of creating a planned gift.