          |
| A
New Vision of Excellence
Future Giving Opportunities Future gifts
fit into three basic categories: Testamentary Testamentary
gifts make up more than 80 percent of all future gifts, due
primarily to the fact that they are revocable. This ability to
change a will is very important to mature adults because of four
primary fears: 1) unexpected emergencies without enough savings or
insurance; 2) dying too soon and not having enough accumulated for
surviving loved ones; 3) living too long and running out of assets;
and 4) catastrophic illness.
Income
generatin These
gifts allow donors the opportunity to receive income from their
investment while knowing that their asset will support Central
Michigan University later. Other Many future
giving opportunities are available, including: Testamentary gifts The most common
method of deferred charitable giving is the bequest – a gift
through one’s will. Cash, securities, real property, or personal
property can be left to CMU for our use. Bequests can be
given for general purposes, or they may be designated for some
specific area of CMU. Several common
formats for bequests include: - The
specific bequest “I give and
bequeath the (sum or description) of my estate to Central Michigan
University, a body corporate established by the constitution and the
statutes of the State of Michigan, for its general educational and
charitable purposes.” - The
residuary bequest “I give and
bequeath (all or percent of the rest, remainder, and residue) of my
estate to Central Michigan University, a body corporate established
by the constitution and the statutes of the State of Michigan, for
its general educational and charitable purposes.” - The
contingent bequest “In the event
that (my spouse or my children) shall not survive me, then I give
and bequeath (sum or description of property) of my estate to
Central Michigan University, a body corporate established by the
constitution and the statutes of the State of Michigan, for its
general educational and charitable purposes.” The donor
should be encouraged to notify the development office at CMU of such
a bequest of his/her intention either by providing to CMU a copy of
the appropriate section of his/her will or by completing a
“bequest intention commitment.” An estate note
is an irrevocable pledge, which is legally binding against the
donor’s estate. The donor provides CMU with a designated sum or a
specified percentage of his/her estate at the time of death. The
donor has the option to reduce the estate note with outright gifts
during his/her lifetime or with some other irrevocable future gift
commitment. Income-generating
gifts Cash,
marketable securities, or real estate may be placed into a
charitable remainder trust. The trust can be established during the
lifetime of the donor or through the donor’s estate plan. When the
trust is created, the donor determines a fixed payout percentage of
trust assets as valued annually (unitrust), or a fixed payout dollar
amount (annuity trust). When the trust matures, either at the death
of the last non-charitable income beneficiary(ies), or at the end of
a specified term not to exceed 20 years, CMU becomes the ultimate
beneficiary, and the remainder value is used where the donor has
designated its use. Annual trust
payments to the income beneficiary will vary, depending on the value
of the trust assets. An immediate charitable deduction is available
to the donor, based on the rate of return and the length of time the
trust is projected to be in existence. A charitable
gift annuity is a contract. In return for a gift of cash, marketable
securities, or real estate, a donor and/or another beneficiary(ies)
receive income for life guaranteed by specific assets of CMU. The
donor receives an immediate charitable contribution deduction. The amount of
the annuity income is based on the age of the beneficiary(ies), and
a portion of that income is tax-free. At the death of the
beneficiary(ies), the remainder passes to CMU. At the time of the
initial gift, the donor(s) may designate how the gift ultimately
will be used by CMU. Other forms
of gifts Individual retirement accounts or other retirement plans An individual
may designate CMU as the specific or contingent beneficiary of an
individual retirement account. Other types of pension plans also may
permit beneficiary designation. The donor
retains the right to funds in these accounts. Thus, no federal
income tax savings are allowed. At the death of
the donor, all or a portion of the unused funds in the account pass
to CMU and are exempt from any applicable federal estate taxes. Note: Retirement
property is one of the most desirable ways to make a gift to CMU
after the death of both spouses, and it is probably the least
desirable gift to leave to children because so much is lost to
taxes. A new life
insurance policy may be gifted to CMU. When this occurs, CMU becomes
both owner and beneficiary of the policy. Subsequent premium
payments made by the donor are tax deductible. Existing
policies also make excellent gifts, particularly if the policies are
no longer needed. This occurs for many reasons. As an individual’s
children mature, family protection may no longer be needed. When the
mortgage is paid off, mortgage insurance is no longer needed. When a
business interest is sold, life insurance held for business reasons
no longer needs to be held. And, if adequate assets have been
accumulated for retirement, life insurance may not be needed. If a person finds him or herself in one of these situations, he or she can direct that CMU be named as the first, second, or last beneficiary
of a life insurance policy. Donors may
choose to gift their residence, recreational home, or farmland, and
retain a lifetime interest in the property. Ownership of the
property is transferred to CMU, but the donor retains full use and
control of the property. An income tax deduction, based on the
property’s current market value and the life expectancy of the
donor(s), is allowed. Back to Top |
 |
| requires quicktime |
|
|