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How People Give

Individuals give to Clarion in many ways. The following list provides an outline of various giving options and the attractiveness of each.  We offer it in hope that you discover an opportunity to make a gift that makes a difference:

Gifts of Cash

  • Simple, easy to deliver.
  • $1,000 cash gift for individual in 28% tax bracket has a net cost of $720.
  • Cash gifts are deductible up to 50% of AGI (Adjusted Gross Income) and can be carried over for up to five years.

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Gifts of Property *

* Long Term Capital Gain Securities (held one year or longer)

  • Include common and preferred stock, corporate bonds and mutual funds.
  • Donor escapes any potential capital gains tax on the gift property.
  • Donor escapes any sales commissions payable upon the sale.
  • The full fair market value of the asset is deductible up to 30% of AGI (Adjusted Gross Income) and can be carried over for up to five years.
  • Rules governing the process are not complicated, but are strict.

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Real Estate

 

  • Gifts could include a residence, land or other real property.
  • Potential gift property must have use or fits needs of the charity.
  • Appraisal is required.
  • Generally the full fair market value of the property is deductible up to 30% of AGI (Adjusted Gross Income) and can be carried over for up to five years.
  • Property must have clean title and no environmental concerns.

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Personal Property

 

  • Gifts could include items such as art, books, paintings, antiques, coins, stamps, etc.
  • Potential gift property must have use or fits needs of the charity.
  • Appraisal may be required.
  • Generally the full fair market value of the property is deductible up to 30% of AGI (Adjusted Gross Income) and can be carried over for up to five years.
  • It would be more beneficial for donors considering gifts of property that have declined in value to sell the  property, realize a deductible loss and then contribute proceeds to charity.

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Life Insurance

  • As a deferred gift, a donor can name Clarion University Foundation, Inc. as the primary or the successor beneficiary of a life insurance policy.
  • A donor can transfer ownership of an existing policy and receive a charitable deduction based on fair market value of the policy or the cost basis (paid premiums), which ever is less, at date of transfer.
  • Ownership of a policy is transferred upon endorsement by the donor on forms supplied by the insurance company.
  • Donors can also claim charitable deductions by continuing to pay premiums on policies that are not paid up in full.
  • Life Insurance can be used as a wealth replacement plan, to replace other contributed assets and ensure wealth is passed to family.


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Wills & Bequests

  • The most traditional way to accomplish a gift objective, not possible during a donor’s lifetime.
  • Bequests are not included when determining the value of an estate and may lower estate taxes.
  • Options include a specified amount, a percentage, or a portion of the residual after specified amounts to other beneficiaries.
  • If a will has already been completed and is up to date, a codicil can be used to make additional bequests.

A Heritage Society was established to recognize those who make bequests.  

          Click here for more information on the Heritage Society.

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Life Income Gifts

  • Allow donors to make a substantial gift while still providing for personal financial needs.

Unitrust

  • Payments to beneficiaries vary as they equal a fixed percentage (at least 5%) of the value of the trusts assets calculated annually.
  • Percentage is agreed upon by donor, charity, legal and financial advisors.
  • Make up provisions can be included.
  • Lower rate - achieves a higher charitable deduction, a higher rate - a lower charitable deduction.
  • Funding with appreciated assets can increase tax benefits.
  • Term can be for life or a specified number of years, not to exceed 20.
  • One or more beneficiaries
  • Additions to the trust can be made.

Annuity Trust

  • Different from Unitrust in that payment to beneficiaries is a fixed amount for the term of the trust offering a more secure income.

Charitable Gift Annuities

  • A simple contract between donor and charity.
  • Provides a guaranteed life income for one or two people.
  • A portion of income is tax free.
  • Generates a return significantly greater than traditional investments.
  • Income is determined by the age of the beneficiaries receiving income.
  • Provides income tax deductions.
  • Funding with appreciated assets can increase tax benefits.
  • A deferred gift annuity offers the deferral of income to achieve a higher rate or return.

Click here for more information on Charitable Gift Annuities

***States vary in requirements for organizations offering gift annuities to residents; therefore, we are not able to offer this opportunity to all of our constituents.

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