For more information, please contact
Complimentary Planning Tools and Consultation
The Things that Matter Most Challenging economic times compel us to consider what is important. What are the things that matter most to us? What can we do to make a difference for the people and organizations we care about? Have we overlooked opportu nities or ideas that could prove helpful to others?
We hope these planning tips are useful to you and your advisors. We also have two complimentary publications available. The Taxpayer’s Home Companion for 2009 is a valuable compendium of important guidelines and d ata, including a helpful new feature – a tax preparation checklist.
You are invited to take a few moments to review this inaugural issue of Pathways. It’s designed to help you explore and evaluate planning ideas that can increase the effectiveness of your philanthropy and provide you greater personal satisfaction. If you agree that Bradley University makes a difference in the lives of our students, remember that your per sonal philanthropy helps make our work possible. Gifts of all types and amounts have an impact. So, as you take a moment to consider the things that matter most to you, we hope this newsletter provides ideas about steps you can take right now to reach your philanthropic goals.
The IRA Charitable Rollover: Still an Option explains the unique rollover option for qualifying donors. Use the enclosed reply card, or contact us by phone or e-mail, to r equest a brochure or to let us know how we may assist you.
Charitable Gift Annuities: A Wise Choice Today
Please let us know if you would like to explore further any of the ideas presented in this newsletter. We deeply appreciate our friends and supporters, and it is our privilege to be of service.
Low interest rates are often seen as a good thing – a lower interest rate can mean a lower cost to borrow money . But in a low interest rate environment, it can be difficult to find safe ways to generate a suitable fixed income.
Pathways A charitable planning guide for Bradley alumni and friends
Jerry D. Heller, CFRE Executive Director of Gift Planning jdheller@bradley.edu
PHONE: (309) 677-3661 TOLL-FREE: (800) 327-7886 THE CAMPAIGN FOR A BRADLEY RENAISSANCE 1501 W. BRADLEY AVE. PEORIA, IL 61625 The information in this publication is not intended as legal advice. For legal advice, please consult an attor ney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.
65
5.3%
70
5.7%
75
6.3%
80
7.1%
85
8.1%
90
9.5%
• Retirement plan assets • Charitable remainder trusts
The IRA Charitable Rollover – Still an Option
PEORIA, IL 61625
Rates as of Feb. 1, 2009.
1501 W. BRADLEY AVE.
Please contact our office to verify rates.
THE CAMPAIGN FOR A BRADLEY RENAISSANCE
These payout rates are fixed and will not change r egardless of prevailing interest rates or what happens in the markets. W e can provide an illustration specifically for you (or you and your spouse, or anyone else – though payout rates are lower for two lives). Contact us for mor e information.
RATE
• Your will
• Year-end options
Current Gift Annuity Rate s AGE
In this issue ...
• Beneficiary designations
There is an attractive option, though, for donors who want to make a positive contribution to Bradley University – the charitable gift annuity. Gift annuities are both a gift from you and an income to you. The gift por tion of the gift annuity generates an income tax charitable deduction, and the annuity portion provides a lifetime income. Here’s how the charitable gift annuity works. In exchange for your gift of cash or appreciated property (usually securities), we agree to pay a fixed income for the rest of your life. The payout rates are based on the annuitant’s age at the time the gift annuity is established: generally, the higher the age, the higher the payout rate.
FALL 2009
In 2009, for those age 70 1/2 and over it’s still possible to make a tax-free transfer from your IRA directly to our organization. It’s a convenient and smart option for supporting our work. To learn more, use the enclosed card to request a complimentary brochure, or contact us by phone or e-mail.
Norm and Nellie Porch, St. Louis, Missouri, have supported Bradley for 47 years, but beyond their annual gifts they had one more gift they wanted to make to the University . The couple decided they wanted to add to their lifetime donations by designating a gift through their estate. This eventual gift will be added to the Norm and Nellie Porch Endowed Scholarship, increasing the principal in the fund. Norm , who graduated in 1952 with a degree in Business Administration, did not receive a scholarship when he attended Bradley; his education was financed by the federal government’s G.I. Bill when he returned fr om military service in 1947. “Because of the G.I. Bill, I was able to r eceive a great education at Bradley,” said Mr. Porch, a former division manager for Laclede Gas Company in St. Louis. “Getting a college degree was something that I wanted to try to pass along to other young men and women. I wanted to see them r eceive the same great education I did, which is why we established the scholarship in the first place.” Norm, who met Nellie while he was attending Bradley , said the couple has thoroughly enjoyed getting to know the recipients of their scholarship. Nellie is a graduate of the OSF College of Nursing in Peoria. They are pictured here with the most recent recipient of their scholarship, David Bornfleth, a senior Economics major from St. Louis, Missouri. “We’ve received so many nice cards over the years and it’ s really great to hear from the young people who have benefited fr om the scholarship,” Mr. Porch said. “In fact, about 10 or 15 years ago, we received a letter from a former r ecipient. He wanted us to know that the scholarship was still paying off because he had just made partner at his accounting firm.” Norm and Nellie understand the value of a college education and their suppor t both during their lifetimes and through their estate will touch the lives of many Bradley University students.
Visit us online at campaign.bradley.edu
5
Planning Tips for Today’s Economy During a time of economic change, it is wise to review your financial plan to consider potential adjustments and improvements. A small investment of time might yield meaningful benefits for you, your loved ones, and your favorite charities.
Tip #1: Review your estate plan
and your will
Estate planning is often described as a process dedicated to the preservation, management, and distribution of assets. The key component of an effective estate plan is an up-to-date will. If you don’t have a will, meet with your attor ney to prepare one. Or if you have a will and it has not been reviewed within the past 24 months, conduct a review a s soon as possible. There’s a good reason for the above r eminder. The simple fact is, many who understand the importance of a will nonetheless fail to prepare a will and keep it up-to-date. Your will helps
Potential Estate Tax Changes: Plan When You Can
make certain your intentions are understood with regard to providing for loved ones and favorite charitable organizations. And since preparing or updating a will (with the help of your attorney) is generally an easy and affordable process, you’ll want to make certain you have a will that meets your current needs and objectives. Key points to consider. As you review your will and your estate plan, be sure your attorney knows where you hold property (if out side of your state of residence). Discuss who is to be the executor of your estate, and why . Wise planning can help you better provide for your loved ones and favorite charitable organizations. Following are some additional points to consider:
other assets, such as securities, to children or other heirs. Here’s why. Since we are a qualified charitable organization, when we receive the retirement plan assets, we pay no tax and the full amount is immediately available to continue our work. If your children or other heirs receive the securities, no ordinary income tax is due, and any future capital gains tax due on the securities is based only on the growth that occurs after the inheritance takes place.
GIFT TYPE
BENEFITS TO DONOR
Outright gift of cash or property
Easy to complete, income tax charitable deduction for 2009, avoid capital gains tax on a gift of appreciated property.
Life income gift — charitable gift annuity or charitable remainder trust
Income tax charitable deduction for 2009, attractive payout rates, potential tax advantages for capital gains and individual payouts.
IRA Charitable Rollover
Supporters age 70 1/2 and over can direct a distribution from an IRA (up to $100,000) to us and exclude the entire amount from their taxable income.
Tip #3: Consider whether it’s time
for a trust
• See if any recent changes in tax laws could affect provisions in your will and your estate plan. • Discuss the need to fine-tune your overall estate plan in view of continuing market volatility and changes in your 401(k) plan. • Inquire about using a codicil – a simple amendment to your will – to provide a charitable bequest to help continue our work.
Tip #2: Evaluate the plans for your
retirement plan assets
Those who have assets in a qualified retirement plan, such as a traditional IRA or 401(k) plan, should be aware of what happens to those assets when a plan participant dies. The short story is that these assets ar e taxable income to any individual who receives them, and the tax impact can be substantial. Because of this hard tax reality, it may make sense in your gift planning to leave r etirement plan assets to a qualified charitable organization such as Bradley University, and designate
After steadily rising for eight years, the estate tax exemption is $3.5 million for 2009. Under current law, the estate tax will cease to exist in 2010, and then be reinstated in 2011 at the higher rates that were in place in 2001. Congress is almost certain to address estate taxes and close this “no tax” loophole that exists for 2010. Estate tax rates could be continued at the 2009 levels, or substantial changes could occur. In any event, your estate plan could be affected, and it’s imperative that you pay attention to this issue and adjust your estate plan in relation to any legislative changes.
GIFT SNAPSHOT
Trusts are special planning tools that can provide tax advantages and play an important role in the disposition of property. Trusts can be used to achieve both personal and philanthropic goals simultaneously – a real benefit in estate planning. There are many differ ent types of trusts, and your financial advisor(s) can help you determine whether a charitable trust might be a helpful component in your estate plan. Two ideas you might want to explore in the current economic environment are the charitable remainder trust (CR T) and the charitable lead trust (CLT). Please feel free to contact us for detailed infor mation.
Tip #4: Make use of opportunities
to name beneficiaries
Naming a beneficiary of a life insurance poli cy or retirement plan is a simple but often overlooked opportunity for charitable giving. Beneficiary designations are gifts that leave your current financial position completely undisturbed – a real advantage during challenging economic times. Such gifts ar e
Things that Matter Most — Reaching Philanthropic Goals We hope you have found useful ideas in this issue of Pathways. To further aid your planning, send for a complimentary copy of the brochures listed below, with no obligation. Simply fill out this tear-off card, fold, tape it on the open end, and drop it in the mail to us. W e’ll pick up the postage. Please send a copy of the 2009 Taxpayers Home Companion, which includes the new tax preparation checklist. Please send a copy of the IRA Charitable Rollover: Still an Option. I’m interested in a no-cost, no obligation illustration of the benefits of a life-income charitable gift annuity.
Bradley University has been a significant part of the Davis family’s lives over the past four decades.
extremely “donor-friendly” because you can change the designation any time you choose. Example: Two of Karl’s key assets are a retir ement plan and a substantial life insurance poli cy. After discussing his objectives with a finan cial advisor, Karl names his niece (his sole heir) as primary beneficiary of his life insurance policy, and Bradley University as the primar y beneficiary of the retirement plan. By taking these savvy, tax-wise steps, Karl knows that the person and organization that mean the most to him will ultimately r eceive these assets and be able to use them right away. Just as important, the assets remain entir ely under his control and available to him.
Dr. James L. Davis, a Peoria dentist, graduated in 1972 with a degree in Biology. His wife, Susan (Edwards) Davis, graduated in 1973 from the College of Education, certified as a kindergarten-primary teacher. The Davis family’s Bradley connection includes sons Ryan and Greg. Ryan is a 2003 graduate in Cell and Molecular Biology, and Greg completed a degree in Business Management and Administration in 2007. When Jim and Susan decided they no longer needed the campus home they owned at 836 Cooper Street (where both Ryan and Greg lived during their time at Bradley), they donated it to the University.
Tip #5: Know the benefits of year-end
In exchange for their generous gift, they contracted with Bradley for a Charitable Gift Annuity, which allowed them to claim a significant tax deduction. It also guaranteed Jim and Susan an income at a fixed rate which is based on their ages, for as long as either of them lives. An added bonus is that a portion of that income is also tax-free.
gift options
Traditionally, year-end is the time when many, many donors consider philanthropic goals and make gifts. If you ar e thinking about how you might support us before the close of 2009, the Gift Snapshot chart on this page shows three gift ideas and how you might benefit as you support our work. Please contact us if you would like more information about these or other gift options.
“When the boys both left Bradley, there was really no reason to keep the house,” Jim said. “W e knew we didn’t really want to be in the college r ental business,
I’m interested in discussing the various ways to support Bradley University. Please contact me ____ by phone ____ by e-mail to talk about these possibilities. I/We have already included Bradley University in our estate plans. so when we discovered the option of giving the house to Bradley, it really seemed like a win-win situation –– Bradley gets the house and we get the annuity .” Giving back to Bradley has been about relationships for Jim and Susan. Jim r ecalls being recruited to Bradley by Orville Nothdurft, the Dean of Admissions, and the impression he made on him as such a helpful, caring person. He and Susan found that to be tr ue with many more of the Bradley faculty and staff they would encounter in their years on the “ Hilltop”. That and the scholarships they received have motivated them to do something for future Bradley students. Jim and Susan have also included Bradley in their wills as further demonstration of their commitment to the University.
NAME
ADDRESS
CITY
STATE, ZIP
TELEPHONE
Bradley University PATHWAYS
2
3
Visit us online at campaign.bradley.edu 4
Planning Tips for Today’s Economy During a time of economic change, it is wise to review your financial plan to consider potential adjustments and improvements. A small investment of time might yield meaningful benefits for you, your loved ones, and your favorite charities.
Tip #1: Review your estate plan
and your will
Estate planning is often described as a process dedicated to the preservation, management, and distribution of assets. The key component of an effective estate plan is an up-to-date will. If you don’t have a will, meet with your attor ney to prepare one. Or if you have a will and it has not been reviewed within the past 24 months, conduct a review a s soon as possible. There’s a good reason for the above r eminder. The simple fact is, many who understand the importance of a will nonetheless fail to prepare a will and keep it up-to-date. Your will helps
Potential Estate Tax Changes: Plan When You Can
make certain your intentions are understood with regard to providing for loved ones and favorite charitable organizations. And since preparing or updating a will (with the help of your attorney) is generally an easy and affordable process, you’ll want to make certain you have a will that meets your current needs and objectives. Key points to consider. As you review your will and your estate plan, be sure your attorney knows where you hold property (if out side of your state of residence). Discuss who is to be the executor of your estate, and why . Wise planning can help you better provide for your loved ones and favorite charitable organizations. Following are some additional points to consider:
other assets, such as securities, to children or other heirs. Here’s why. Since we are a qualified charitable organization, when we receive the retirement plan assets, we pay no tax and the full amount is immediately available to continue our work. If your children or other heirs receive the securities, no ordinary income tax is due, and any future capital gains tax due on the securities is based only on the growth that occurs after the inheritance takes place.
GIFT TYPE
BENEFITS TO DONOR
Outright gift of cash or property
Easy to complete, income tax charitable deduction for 2009, avoid capital gains tax on a gift of appreciated property.
Life income gift — charitable gift annuity or charitable remainder trust
Income tax charitable deduction for 2009, attractive payout rates, potential tax advantages for capital gains and individual payouts.
IRA Charitable Rollover
Supporters age 70 1/2 and over can direct a distribution from an IRA (up to $100,000) to us and exclude the entire amount from their taxable income.
Tip #3: Consider whether it’s time
for a trust
• See if any recent changes in tax laws could affect provisions in your will and your estate plan. • Discuss the need to fine-tune your overall estate plan in view of continuing market volatility and changes in your 401(k) plan. • Inquire about using a codicil – a simple amendment to your will – to provide a charitable bequest to help continue our work.
Tip #2: Evaluate the plans for your
retirement plan assets
Those who have assets in a qualified retirement plan, such as a traditional IRA or 401(k) plan, should be aware of what happens to those assets when a plan participant dies. The short story is that these assets ar e taxable income to any individual who receives them, and the tax impact can be substantial. Because of this hard tax reality, it may make sense in your gift planning to leave r etirement plan assets to a qualified charitable organization such as Bradley University, and designate
After steadily rising for eight years, the estate tax exemption is $3.5 million for 2009. Under current law, the estate tax will cease to exist in 2010, and then be reinstated in 2011 at the higher rates that were in place in 2001. Congress is almost certain to address estate taxes and close this “no tax” loophole that exists for 2010. Estate tax rates could be continued at the 2009 levels, or substantial changes could occur. In any event, your estate plan could be affected, and it’s imperative that you pay attention to this issue and adjust your estate plan in relation to any legislative changes.
GIFT SNAPSHOT
Trusts are special planning tools that can provide tax advantages and play an important role in the disposition of property. Trusts can be used to achieve both personal and philanthropic goals simultaneously – a real benefit in estate planning. There are many differ ent types of trusts, and your financial advisor(s) can help you determine whether a charitable trust might be a helpful component in your estate plan. Two ideas you might want to explore in the current economic environment are the charitable remainder trust (CR T) and the charitable lead trust (CLT). Please feel free to contact us for detailed infor mation.
Tip #4: Make use of opportunities
to name beneficiaries
Naming a beneficiary of a life insurance poli cy or retirement plan is a simple but often overlooked opportunity for charitable giving. Beneficiary designations are gifts that leave your current financial position completely undisturbed – a real advantage during challenging economic times. Such gifts ar e
Things that Matter Most — Reaching Philanthropic Goals We hope you have found useful ideas in this issue of Pathways. To further aid your planning, send for a complimentary copy of the brochures listed below, with no obligation. Simply fill out this tear-off card, fold, tape it on the open end, and drop it in the mail to us. W e’ll pick up the postage. Please send a copy of the 2009 Taxpayers Home Companion, which includes the new tax preparation checklist. Please send a copy of the IRA Charitable Rollover: Still an Option. I’m interested in a no-cost, no obligation illustration of the benefits of a life-income charitable gift annuity.
Bradley University has been a significant part of the Davis family’s lives over the past four decades.
extremely “donor-friendly” because you can change the designation any time you choose. Example: Two of Karl’s key assets are a retir ement plan and a substantial life insurance poli cy. After discussing his objectives with a finan cial advisor, Karl names his niece (his sole heir) as primary beneficiary of his life insurance policy, and Bradley University as the primar y beneficiary of the retirement plan. By taking these savvy, tax-wise steps, Karl knows that the person and organization that mean the most to him will ultimately r eceive these assets and be able to use them right away. Just as important, the assets remain entir ely under his control and available to him.
Dr. James L. Davis, a Peoria dentist, graduated in 1972 with a degree in Biology. His wife, Susan (Edwards) Davis, graduated in 1973 from the College of Education, certified as a kindergarten-primary teacher. The Davis family’s Bradley connection includes sons Ryan and Greg. Ryan is a 2003 graduate in Cell and Molecular Biology, and Greg completed a degree in Business Management and Administration in 2007. When Jim and Susan decided they no longer needed the campus home they owned at 836 Cooper Street (where both Ryan and Greg lived during their time at Bradley), they donated it to the University.
Tip #5: Know the benefits of year-end
In exchange for their generous gift, they contracted with Bradley for a Charitable Gift Annuity, which allowed them to claim a significant tax deduction. It also guaranteed Jim and Susan an income at a fixed rate which is based on their ages, for as long as either of them lives. An added bonus is that a portion of that income is also tax-free.
gift options
Traditionally, year-end is the time when many, many donors consider philanthropic goals and make gifts. If you ar e thinking about how you might support us before the close of 2009, the Gift Snapshot chart on this page shows three gift ideas and how you might benefit as you support our work. Please contact us if you would like more information about these or other gift options.
“When the boys both left Bradley, there was really no reason to keep the house,” Jim said. “W e knew we didn’t really want to be in the college r ental business,
I’m interested in discussing the various ways to support Bradley University. Please contact me ____ by phone ____ by e-mail to talk about these possibilities. I/We have already included Bradley University in our estate plans. so when we discovered the option of giving the house to Bradley, it really seemed like a win-win situation –– Bradley gets the house and we get the annuity .” Giving back to Bradley has been about relationships for Jim and Susan. Jim r ecalls being recruited to Bradley by Orville Nothdurft, the Dean of Admissions, and the impression he made on him as such a helpful, caring person. He and Susan found that to be tr ue with many more of the Bradley faculty and staff they would encounter in their years on the “ Hilltop”. That and the scholarships they received have motivated them to do something for future Bradley students. Jim and Susan have also included Bradley in their wills as further demonstration of their commitment to the University.
NAME
ADDRESS
CITY
STATE, ZIP
TELEPHONE
Bradley University PATHWAYS
2
3
Visit us online at campaign.bradley.edu 4
Planning Tips for Today’s Economy During a time of economic change, it is wise to review your financial plan to consider potential adjustments and improvements. A small investment of time might yield meaningful benefits for you, your loved ones, and your favorite charities.
Tip #1: Review your estate plan
and your will
Estate planning is often described as a process dedicated to the preservation, management, and distribution of assets. The key component of an effective estate plan is an up-to-date will. If you don’t have a will, meet with your attor ney to prepare one. Or if you have a will and it has not been reviewed within the past 24 months, conduct a review a s soon as possible. There’s a good reason for the above r eminder. The simple fact is, many who understand the importance of a will nonetheless fail to prepare a will and keep it up-to-date. Your will helps
Potential Estate Tax Changes: Plan When You Can
make certain your intentions are understood with regard to providing for loved ones and favorite charitable organizations. And since preparing or updating a will (with the help of your attorney) is generally an easy and affordable process, you’ll want to make certain you have a will that meets your current needs and objectives. Key points to consider. As you review your will and your estate plan, be sure your attorney knows where you hold property (if out side of your state of residence). Discuss who is to be the executor of your estate, and why . Wise planning can help you better provide for your loved ones and favorite charitable organizations. Following are some additional points to consider:
other assets, such as securities, to children or other heirs. Here’s why. Since we are a qualified charitable organization, when we receive the retirement plan assets, we pay no tax and the full amount is immediately available to continue our work. If your children or other heirs receive the securities, no ordinary income tax is due, and any future capital gains tax due on the securities is based only on the growth that occurs after the inheritance takes place.
GIFT TYPE
BENEFITS TO DONOR
Outright gift of cash or property
Easy to complete, income tax charitable deduction for 2009, avoid capital gains tax on a gift of appreciated property.
Life income gift — charitable gift annuity or charitable remainder trust
Income tax charitable deduction for 2009, attractive payout rates, potential tax advantages for capital gains and individual payouts.
IRA Charitable Rollover
Supporters age 70 1/2 and over can direct a distribution from an IRA (up to $100,000) to us and exclude the entire amount from their taxable income.
Tip #3: Consider whether it’s time
for a trust
• See if any recent changes in tax laws could affect provisions in your will and your estate plan. • Discuss the need to fine-tune your overall estate plan in view of continuing market volatility and changes in your 401(k) plan. • Inquire about using a codicil – a simple amendment to your will – to provide a charitable bequest to help continue our work.
Tip #2: Evaluate the plans for your
retirement plan assets
Those who have assets in a qualified retirement plan, such as a traditional IRA or 401(k) plan, should be aware of what happens to those assets when a plan participant dies. The short story is that these assets ar e taxable income to any individual who receives them, and the tax impact can be substantial. Because of this hard tax reality, it may make sense in your gift planning to leave r etirement plan assets to a qualified charitable organization such as Bradley University, and designate
After steadily rising for eight years, the estate tax exemption is $3.5 million for 2009. Under current law, the estate tax will cease to exist in 2010, and then be reinstated in 2011 at the higher rates that were in place in 2001. Congress is almost certain to address estate taxes and close this “no tax” loophole that exists for 2010. Estate tax rates could be continued at the 2009 levels, or substantial changes could occur. In any event, your estate plan could be affected, and it’s imperative that you pay attention to this issue and adjust your estate plan in relation to any legislative changes.
GIFT SNAPSHOT
Trusts are special planning tools that can provide tax advantages and play an important role in the disposition of property. Trusts can be used to achieve both personal and philanthropic goals simultaneously – a real benefit in estate planning. There are many differ ent types of trusts, and your financial advisor(s) can help you determine whether a charitable trust might be a helpful component in your estate plan. Two ideas you might want to explore in the current economic environment are the charitable remainder trust (CR T) and the charitable lead trust (CLT). Please feel free to contact us for detailed infor mation.
Tip #4: Make use of opportunities
to name beneficiaries
Naming a beneficiary of a life insurance poli cy or retirement plan is a simple but often overlooked opportunity for charitable giving. Beneficiary designations are gifts that leave your current financial position completely undisturbed – a real advantage during challenging economic times. Such gifts ar e
Things that Matter Most — Reaching Philanthropic Goals We hope you have found useful ideas in this issue of Pathways. To further aid your planning, send for a complimentary copy of the brochures listed below, with no obligation. Simply fill out this tear-off card, fold, tape it on the open end, and drop it in the mail to us. W e’ll pick up the postage. Please send a copy of the 2009 Taxpayers Home Companion, which includes the new tax preparation checklist. Please send a copy of the IRA Charitable Rollover: Still an Option. I’m interested in a no-cost, no obligation illustration of the benefits of a life-income charitable gift annuity.
Bradley University has been a significant part of the Davis family’s lives over the past four decades.
extremely “donor-friendly” because you can change the designation any time you choose. Example: Two of Karl’s key assets are a retir ement plan and a substantial life insurance poli cy. After discussing his objectives with a finan cial advisor, Karl names his niece (his sole heir) as primary beneficiary of his life insurance policy, and Bradley University as the primar y beneficiary of the retirement plan. By taking these savvy, tax-wise steps, Karl knows that the person and organization that mean the most to him will ultimately r eceive these assets and be able to use them right away. Just as important, the assets remain entir ely under his control and available to him.
Dr. James L. Davis, a Peoria dentist, graduated in 1972 with a degree in Biology. His wife, Susan (Edwards) Davis, graduated in 1973 from the College of Education, certified as a kindergarten-primary teacher. The Davis family’s Bradley connection includes sons Ryan and Greg. Ryan is a 2003 graduate in Cell and Molecular Biology, and Greg completed a degree in Business Management and Administration in 2007. When Jim and Susan decided they no longer needed the campus home they owned at 836 Cooper Street (where both Ryan and Greg lived during their time at Bradley), they donated it to the University.
Tip #5: Know the benefits of year-end
In exchange for their generous gift, they contracted with Bradley for a Charitable Gift Annuity, which allowed them to claim a significant tax deduction. It also guaranteed Jim and Susan an income at a fixed rate which is based on their ages, for as long as either of them lives. An added bonus is that a portion of that income is also tax-free.
gift options
Traditionally, year-end is the time when many, many donors consider philanthropic goals and make gifts. If you ar e thinking about how you might support us before the close of 2009, the Gift Snapshot chart on this page shows three gift ideas and how you might benefit as you support our work. Please contact us if you would like more information about these or other gift options.
“When the boys both left Bradley, there was really no reason to keep the house,” Jim said. “W e knew we didn’t really want to be in the college r ental business,
I’m interested in discussing the various ways to support Bradley University. Please contact me ____ by phone ____ by e-mail to talk about these possibilities. I/We have already included Bradley University in our estate plans. so when we discovered the option of giving the house to Bradley, it really seemed like a win-win situation –– Bradley gets the house and we get the annuity .” Giving back to Bradley has been about relationships for Jim and Susan. Jim r ecalls being recruited to Bradley by Orville Nothdurft, the Dean of Admissions, and the impression he made on him as such a helpful, caring person. He and Susan found that to be tr ue with many more of the Bradley faculty and staff they would encounter in their years on the “ Hilltop”. That and the scholarships they received have motivated them to do something for future Bradley students. Jim and Susan have also included Bradley in their wills as further demonstration of their commitment to the University.
NAME
ADDRESS
CITY
STATE, ZIP
TELEPHONE
Bradley University PATHWAYS
2
3
Visit us online at campaign.bradley.edu 4
For more information, please contact
Complimentary Planning Tools and Consultation
The Things that Matter Most Challenging economic times compel us to consider what is important. What are the things that matter most to us? What can we do to make a difference for the people and organizations we care about? Have we overlooked opportu nities or ideas that could prove helpful to others?
We hope these planning tips are useful to you and your advisors. We also have two complimentary publications available. The Taxpayer’s Home Companion for 2009 is a valuable compendium of important guidelines and d ata, including a helpful new feature – a tax preparation checklist.
You are invited to take a few moments to review this inaugural issue of Pathways. It’s designed to help you explore and evaluate planning ideas that can increase the effectiveness of your philanthropy and provide you greater personal satisfaction. If you agree that Bradley University makes a difference in the lives of our students, remember that your per sonal philanthropy helps make our work possible. Gifts of all types and amounts have an impact. So, as you take a moment to consider the things that matter most to you, we hope this newsletter provides ideas about steps you can take right now to reach your philanthropic goals.
The IRA Charitable Rollover: Still an Option explains the unique rollover option for qualifying donors. Use the enclosed reply card, or contact us by phone or e-mail, to r equest a brochure or to let us know how we may assist you.
Charitable Gift Annuities: A Wise Choice Today
Please let us know if you would like to explore further any of the ideas presented in this newsletter. We deeply appreciate our friends and supporters, and it is our privilege to be of service.
Low interest rates are often seen as a good thing – a lower interest rate can mean a lower cost to borrow money . But in a low interest rate environment, it can be difficult to find safe ways to generate a suitable fixed income.
Pathways A charitable planning guide for Bradley alumni and friends
Jerry D. Heller, CFRE Executive Director of Gift Planning jdheller@bradley.edu
PHONE: (309) 677-3661 TOLL-FREE: (800) 327-7886 THE CAMPAIGN FOR A BRADLEY RENAISSANCE 1501 W. BRADLEY AVE. PEORIA, IL 61625 The information in this publication is not intended as legal advice. For legal advice, please consult an attor ney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.
65
5.3%
70
5.7%
75
6.3%
80
7.1%
85
8.1%
90
9.5%
• Retirement plan assets • Charitable remainder trusts
The IRA Charitable Rollover – Still an Option
PEORIA, IL 61625
Rates as of Feb. 1, 2009.
1501 W. BRADLEY AVE.
Please contact our office to verify rates.
THE CAMPAIGN FOR A BRADLEY RENAISSANCE
These payout rates are fixed and will not change r egardless of prevailing interest rates or what happens in the markets. W e can provide an illustration specifically for you (or you and your spouse, or anyone else – though payout rates are lower for two lives). Contact us for mor e information.
RATE
• Your will
• Year-end options
Current Gift Annuity Rate s AGE
In this issue ...
• Beneficiary designations
There is an attractive option, though, for donors who want to make a positive contribution to Bradley University – the charitable gift annuity. Gift annuities are both a gift from you and an income to you. The gift por tion of the gift annuity generates an income tax charitable deduction, and the annuity portion provides a lifetime income. Here’s how the charitable gift annuity works. In exchange for your gift of cash or appreciated property (usually securities), we agree to pay a fixed income for the rest of your life. The payout rates are based on the annuitant’s age at the time the gift annuity is established: generally, the higher the age, the higher the payout rate.
FALL 2009
In 2009, for those age 70 1/2 and over it’s still possible to make a tax-free transfer from your IRA directly to our organization. It’s a convenient and smart option for supporting our work. To learn more, use the enclosed card to request a complimentary brochure, or contact us by phone or e-mail.
Norm and Nellie Porch, St. Louis, Missouri, have supported Bradley for 47 years, but beyond their annual gifts they had one more gift they wanted to make to the University . The couple decided they wanted to add to their lifetime donations by designating a gift through their estate. This eventual gift will be added to the Norm and Nellie Porch Endowed Scholarship, increasing the principal in the fund. Norm , who graduated in 1952 with a degree in Business Administration, did not receive a scholarship when he attended Bradley; his education was financed by the federal government’s G.I. Bill when he returned fr om military service in 1947. “Because of the G.I. Bill, I was able to r eceive a great education at Bradley,” said Mr. Porch, a former division manager for Laclede Gas Company in St. Louis. “Getting a college degree was something that I wanted to try to pass along to other young men and women. I wanted to see them r eceive the same great education I did, which is why we established the scholarship in the first place.” Norm, who met Nellie while he was attending Bradley , said the couple has thoroughly enjoyed getting to know the recipients of their scholarship. Nellie is a graduate of the OSF College of Nursing in Peoria. They are pictured here with the most recent recipient of their scholarship, David Bornfleth, a senior Economics major from St. Louis, Missouri. “We’ve received so many nice cards over the years and it’ s really great to hear from the young people who have benefited fr om the scholarship,” Mr. Porch said. “In fact, about 10 or 15 years ago, we received a letter from a former r ecipient. He wanted us to know that the scholarship was still paying off because he had just made partner at his accounting firm.” Norm and Nellie understand the value of a college education and their suppor t both during their lifetimes and through their estate will touch the lives of many Bradley University students.
Visit us online at campaign.bradley.edu
5
For more information, please contact
Complimentary Planning Tools and Consultation
The Things that Matter Most Challenging economic times compel us to consider what is important. What are the things that matter most to us? What can we do to make a difference for the people and organizations we care about? Have we overlooked opportu nities or ideas that could prove helpful to others?
We hope these planning tips are useful to you and your advisors. We also have two complimentary publications available. The Taxpayer’s Home Companion for 2009 is a valuable compendium of important guidelines and d ata, including a helpful new feature – a tax preparation checklist.
You are invited to take a few moments to review this inaugural issue of Pathways. It’s designed to help you explore and evaluate planning ideas that can increase the effectiveness of your philanthropy and provide you greater personal satisfaction. If you agree that Bradley University makes a difference in the lives of our students, remember that your per sonal philanthropy helps make our work possible. Gifts of all types and amounts have an impact. So, as you take a moment to consider the things that matter most to you, we hope this newsletter provides ideas about steps you can take right now to reach your philanthropic goals.
The IRA Charitable Rollover: Still an Option explains the unique rollover option for qualifying donors. Use the enclosed reply card, or contact us by phone or e-mail, to r equest a brochure or to let us know how we may assist you.
Charitable Gift Annuities: A Wise Choice Today
Please let us know if you would like to explore further any of the ideas presented in this newsletter. We deeply appreciate our friends and supporters, and it is our privilege to be of service.
Low interest rates are often seen as a good thing – a lower interest rate can mean a lower cost to borrow money . But in a low interest rate environment, it can be difficult to find safe ways to generate a suitable fixed income.
Pathways A charitable planning guide for Bradley alumni and friends
Jerry D. Heller, CFRE Executive Director of Gift Planning jdheller@bradley.edu
PHONE: (309) 677-3661 TOLL-FREE: (800) 327-7886 THE CAMPAIGN FOR A BRADLEY RENAISSANCE 1501 W. BRADLEY AVE. PEORIA, IL 61625 The information in this publication is not intended as legal advice. For legal advice, please consult an attor ney. Figures cited in examples are based on rates current at the time of printing and are subject to change. References to estate and income tax include federal taxes only; individual state taxes may further impact results.
65
5.3%
70
5.7%
75
6.3%
80
7.1%
85
8.1%
90
9.5%
• Retirement plan assets • Charitable remainder trusts
The IRA Charitable Rollover – Still an Option
PEORIA, IL 61625
Rates as of Feb. 1, 2009.
1501 W. BRADLEY AVE.
Please contact our office to verify rates.
THE CAMPAIGN FOR A BRADLEY RENAISSANCE
These payout rates are fixed and will not change r egardless of prevailing interest rates or what happens in the markets. W e can provide an illustration specifically for you (or you and your spouse, or anyone else – though payout rates are lower for two lives). Contact us for mor e information.
RATE
• Your will
• Year-end options
Current Gift Annuity Rate s AGE
In this issue ...
• Beneficiary designations
There is an attractive option, though, for donors who want to make a positive contribution to Bradley University – the charitable gift annuity. Gift annuities are both a gift from you and an income to you. The gift por tion of the gift annuity generates an income tax charitable deduction, and the annuity portion provides a lifetime income. Here’s how the charitable gift annuity works. In exchange for your gift of cash or appreciated property (usually securities), we agree to pay a fixed income for the rest of your life. The payout rates are based on the annuitant’s age at the time the gift annuity is established: generally, the higher the age, the higher the payout rate.
FALL 2009
In 2009, for those age 70 1/2 and over it’s still possible to make a tax-free transfer from your IRA directly to our organization. It’s a convenient and smart option for supporting our work. To learn more, use the enclosed card to request a complimentary brochure, or contact us by phone or e-mail.
Norm and Nellie Porch, St. Louis, Missouri, have supported Bradley for 47 years, but beyond their annual gifts they had one more gift they wanted to make to the University . The couple decided they wanted to add to their lifetime donations by designating a gift through their estate. This eventual gift will be added to the Norm and Nellie Porch Endowed Scholarship, increasing the principal in the fund. Norm , who graduated in 1952 with a degree in Business Administration, did not receive a scholarship when he attended Bradley; his education was financed by the federal government’s G.I. Bill when he returned fr om military service in 1947. “Because of the G.I. Bill, I was able to r eceive a great education at Bradley,” said Mr. Porch, a former division manager for Laclede Gas Company in St. Louis. “Getting a college degree was something that I wanted to try to pass along to other young men and women. I wanted to see them r eceive the same great education I did, which is why we established the scholarship in the first place.” Norm, who met Nellie while he was attending Bradley , said the couple has thoroughly enjoyed getting to know the recipients of their scholarship. Nellie is a graduate of the OSF College of Nursing in Peoria. They are pictured here with the most recent recipient of their scholarship, David Bornfleth, a senior Economics major from St. Louis, Missouri. “We’ve received so many nice cards over the years and it’ s really great to hear from the young people who have benefited fr om the scholarship,” Mr. Porch said. “In fact, about 10 or 15 years ago, we received a letter from a former r ecipient. He wanted us to know that the scholarship was still paying off because he had just made partner at his accounting firm.” Norm and Nellie understand the value of a college education and their suppor t both during their lifetimes and through their estate will touch the lives of many Bradley University students.
Visit us online at campaign.bradley.edu
5