For many donors, an outright gift is not the best means of achieving their philanthropic or estate-planning goals. Carefully planned gifts can offer significant estate-tax and income benefits, while at the same time allowing donors to make larger gifts to the University than would otherwise be possible. To learn more about SC State University's gift-planning strategies, please explore the information below.
From the beginning, SC State University's tradition of excellence has relied greatly on alumni and friends who have provided for the University in their wills. Whether you wish to memorialize a loved one, provide financial support for qualified students, or underwrite research, a bequest can achieve your goals and associate you with the University forever. Bequests can take various forms and may be restricted or unrestricted.
Specific bequests designate that SC State is to receive a specific dollar amount or a specific piece of property. A residuary bequest is used to give SC State all or a portion of an owner's property, after all debts, taxes, expenses, and other bequests have been paid. A bequest can be expressed as a percentage of the estate or of the residuary estate.
Contingent bequest will ensure that property passes to SC State if the donor's primary beneficiaries do not survive him or her.
Charitable bequest can also be arranged to provide income for a beneficiary by directing that the bequest be used to establish a charitable remainder trust, a charitable gift annuity, or be invested in a pooled income fund. If such a gift is made by will, the principal will pass to SC State only after the donor and the life income beneficiary have died. For further information, including samples of testamentary language, contact the Office of Development.
The insurance gift, with the University being named as primary or contingent beneficiary, is a popular gift. There are many ways in which life insurance policies can be used to make a gift to SC State. All provide an immediate income tax deduction and may enable the donor to make a much larger gift than might otherwise be possible.
The most direct and simple way of making a gift of life insurance is to name the University owner and beneficiary of the existing policy. A donor receives an income tax deduction for the full cash surrender or paid up value of the policy. Any further premiums paid on such a policy which has been given to SC State are fully deductible.
Life insurance may also be used to replace the value of an asset which has been given to SC State. A donor may use the tax savings produced by the charitable deduction to pay the premiums on a life insurance policy. Such an arrangement can assure that the financial security of the donor's heirs will be preserved.
Charitable Remainder Trusts
Charitable remainder unitrusts and charitable remainder annuity trusts may be created during one's lifetime or by will.
A donor irrevocably transfers property (cash, securities, real estate) to SC State Foundation as trustee. The University will then, in turn, pay to you and/or another named beneficiary either a percentage of the trust principal or a fixed dollar amount for life or a term of years.
Unitrust income will fluctuate with ordinary conditions. Annuity trust income is fixed at the date of the gift and never changes. At the death of the income beneficiaries or at the end of the term, the trust ends and the principal is made available to for purposes that the donor had previously determined. A contribution to establish a unitrust or annuity trust provides an immediate charitable contribution deduction for federal and state income tax purposes. A gift of long-term appreciated property avoids capital gains tax, and there are also estate tax advantages. Because of the various tax benefits and the possibility of reinvestment of assets at a higher yield, spendable income may be more than before the gift was made.
Deferred Payment Gift Annuity
The deferred payment gift annuity involves the current transfer of cash, marketable securities, or other assets to SC State Foundation. In exchange, SC State Foundation agrees to pay the donor an annuity starting at a future date, usually at the donor's retirement. The gift can consist of a single transfer, a series of transfers, or periodic transfers to the plan in high-income years.
The deferred payment gift annuity allows the donor to save income taxes now, provide for income in later years, and make an important contribution to the University. Since you postpone your guaranteed payments until a date you choose, the interest on the fund will compound, and the amount you receive will reflect this.
For further information about items mentioned above contact the Development Office at (803)536-8742