Carroll College - Helena, MT

giving

Centennial History of Carroll College 1 9 0 9 – 2 0 0 9

By Robert Swartout, Ph.D., Professor of History

Published by Carroll College Press

A beautiful account of Carroll's first one hundred years is being published by the College. This 9.6" x 13" full color history and picture hardcover book will be available in time for the kick-off of our Centennial Celebration in May 2009.

Bound in purple leatherette with gold embossing, the 157-page book provides highlights of five time periods of Carroll's history.

The Centennial History pre-order price is $35 plus shipping and handling-pre-order price valid until 2-28-09.

Regular price is $45 plus shipping and handling-available May 1, 2009.

Order online to reserve your copy and save $10 at www.carroll.edu/about/history/book.cc

Charitable Giving Opportunities

Thank you for your interest in supporting Carroll College. As the College moves forward to meet new challenges and opportunities, your gifts, of all sizes, provide crucial support to the students and mission of the campus. Your gifts can be designated to benefit a particular scholarship, department or program. Alternatively, your gift can be undesignated and used toward Carroll’s greatest needs. For information on ways to support Carroll College through planned or deferred giving, click visit our charitable planned giving website.

CURRENT GIFTS

Gifts are always appreciated for general funding needs or you may designate to fund specific programs. For example, at Carroll College donors often choose to fund scholarships, new programs and academic development.

1. Cash - Gifts of cash given by check, money transfers and credit cards enable the donor to claim an income tax deduction for the full value of the gift.
2. Securities - Stocks, bonds, and mutual funds, owned for a minimum of one year, may be donated by contacting your fund manager to make the transfer.
   
   1. Appreciated Stock - transfer stock directly to the non-profit at current market value and avoid capital gains. Example; stock cost basis $2,000 with a current market value of $4000. Your gift and tax deduction is $4,000.
   2. Depreciated Stock - sell stock, take a capital loss, donate funds and receive a deduction.
3. Real Estate - A primary or secondary residence, farm, vacation home, commercial building or undeveloped parcel of land are welcome gifts. The real estate may be used by the non-profit or they may sell it and utilize the funds. Donated appreciated real estate allows a deduction at the current market value and avoidance of a capital gain tax.
4. Tangible Personal Property - Collections, art, automobiles, recreation vehicles, equipment, patents, copyrights, etc. may be charitable gifts. Tax deductions are dependent on the related use for the non-profit.
5. Charitable IRA Rollover - Traditional IRAs and Roth IRAs may now be donated directly to qualified non-profits. You must be 70½ or older on the day of the gift. The amount is excluded from Federal income taxes meaning that the IRA distribution is not included as taxable income. Donating your annual IRA payment satisfies the required minimum distribution. Up to $100,000 per person, per year is allowed for 2006 and 2007 only. For this type of gift more than the standard 50% of income may be donated.

PLANNED GIFTS

These gifts are made from current assets through a contract or trust, and usually provide annual income for life to the donor and a secondary beneficiary. At the death of the last income beneficiary, the remaining amount of the gift is distributed to the non-profit. Planned gifts are irrevocable, they are permanent.

Planned giving is the integration of personal, financial, and estate plans with a person's goals for lifetime or legacy giving. It is a process of making plans now for a future gift.

• A donor generally makes a contribution from their assets or estate.
• A donor generally receives current income and tax benefits.

Charitable Bequests

This is a gift at the time of estate distribution. This is the simplest type of planned gift and one of the easiest to implement.

• A donor can leave gifts to their favorite non-profits by including a bequest in their Will or Living Trust and designating the organization as a beneficiary.
• Bequests are revocable, they can be amended whenever desired and at any point of life.
• Existing bequests can be easily modified with a codicil that specifies a dollar amount, percentage or remaining amount of an estate, or specific property to be donated.

Charitable Gift Annuity

A legal contract for which a donor transfer assets, usually cash or stock, and in return receives annual fixed payments for the rest of their life. At the completion of payments the remainder goes to the designated non-profit.

• Fixed payments for life - a gift annuity contract provides fixed payments to one or two individuals for life.
• Rates are determined by age - annual gift annuity payouts are based on donor's age (rates are higher for older donors). The American Council of Gift Annuities set the rates.
• Avoid capital gains when funding with appreciated stock.
• A portion of each gift annuity payment to the donor is tax-free.
• Donor receives a current federal income tax deduction and may utilize the Montana Tax Credit if they itemize.
• Example payout rates:

Age Rate
65 6.0%
70 6.5%
75 7.1%
80 8.0%

Deferred Charitable Gift Annuity

The deferred charitable gift annuity is similar to a charitable gift annuity, but with payments deferred to begin at a future date and at a higher interest rate.

• Example payout rate:
  Annuitant age at time of making gift: 55
  Annuitant age at time of first payment: 70
  Annuity rate: 12.5%

Paid-up Life Insurance Policy

A life insurance policy for which all premiums have been paid may be a charitable gift. This usually entitles the donor to a current deduction equal to the cost of replacing the policy with a single premium life insurance policy at the donor's current age. Upon distribution the full face value goes to the designated non-profit as beneficiary.

Charitable Life Estate Agreement

A donor has a deed executed which transfers a primary or secondary home, cabin, ranch or farm to the non-profit. The donor retains a "life estate", which is the right to live in the home and enjoy the full use of the property or income for the rest of their life. At the time of the gift, the donor and non-profit enter into a maintenance, insurance and tax agreement specifying the donor's responsibilities with respect to the property. Payment of maintenance, insurance and taxes for the years of the life estate is the donor's responsibility.

Pooled Income Fund

This is a fund which pools donor assets of cash or securities for investment with other contributors. The fund provides an annual income to the donor for life. When the donor passes away, the remaining fund shares are distributed to designated non-profit.

Charitable Remainder Trust

A trust is established with assets from a donor. The trust provides payments for a life, lifetimes or term of years, and then distributes the remainder to the non-profit.

Options:

• Charitable Remainder Annuity Trust - donor receives an annual fixed payment of the trust's fair market value, determined annually.
• Charitable Remainder Unitrust - donor receives an annual predetermined fixed percentage of the trust's fair market value. Payments are adjusted with the investment performance of the fund.

Charitable Lead Trust

A trust is established by assets transferred by the donor, and are invested by a trustee. Each year the trust pays an amount to the charity for a term of years or lifetime(s), thus the lead gift. The remainder interest then transfers to private beneficiaries named by the donor, usually family.

Options:

• Charitable Lead Annuity Trust - provides a fixed dollar amount each year to the non-profit. The amount is determined when the trust is established, and continues to the term of the trust.
• Charitable Lead Unitrust - provides a fixed percentage of the unitrust's value, and is revalued annually, to the non-profit.

Montana Tax Credit

Montana law allows you to pay less on Montana state income taxes when you give a qualifying planned gift to a Montana charitable endowment fund.

• The tax incentive is an income tax credit rather than a charitable gift deduction.
• Individuals are allowed a tax credit against state taxes in an amount equal to 40% of the present value of a planned gift made by a Montana tax payer to a qualified Montana endowment.
• Corporations may receive a 20% tax credit on outright gifts (planned gift not required).
• The maximum credit is $10,000

Tax Credit Forms: MT QEC-07

This information is provided as an educational service. Your financial advisors should always be consulted regarding your plans.