A Financial and Charitable Planning Guide
The
Legacy of Psi Upsilon
Leaving a Psi Upsilon Legacy
C
harles S. P. Hodge may not have clearly
Continuing His Commitment
seen all of the events that happened
Although the sun set on Charlie’s
during his years in Amherst’s Gamma
undergraduate Psi Upsilon experience
chapter of Psi Upsilon, but after more
when he went on to Harvard to earn his
than 40 years, he can still paint a vivid word picture of his
law degree, his support of the fraternity
favorite memories. “The Friday night of homecoming
continued. Charlie stayed connected
weekend in the fall of ’65, I was initiated just before
with Psi Upsilon through serving on the
the Wesleyan football game,” Charlie recounts. “The
Executive Council for 15 years, and he
brother who pinned on my fraternity pin was the father
received an honorary life membership to
of John Sanders, one of my classmates at the Perkins
the Executive Council in 1988.
School for the Blind.”
During his time as a member of the Executive
You see, when Charlie joined Psi Upsilon, he had
Council, Charlie decided to include The Psi
some usable vision in his right eye but was legally blind.
Upsilon Foundation in his will. “I think our long,
But that didn’t prevent him from participating in the life
solid tradition is worth preserving,” Charlie says.
of the brotherhood.
“Psi U brothers should seriously consider giving
“The pledging program drew our class closer
a planned gift to continue the things our fraternity
together,” Charlie says. “We had a real sense of
stands for that are good and right and just and
camaraderie about the house, did a lot of community
needed in today’s society.”
work, and many a Saturday night, we stayed up until the sun was rising.”
How You Can Help Psi U can only improve important programs like Commitment to Excellence, which helps chapters identify strengths and weaknesses and formulate a plan of action,
“Psi U brothers should seriously consider giving a planned gift to continue the things our fraternity stands for that are good and right and just and needed in today’s society.” —Charles S. P. Hodge, retired attorney, Solicitor’s Office of the U.S. Department of Labor
WHAT’S INSIDE? > See the World as You’ve Always Pictured It
through your contributions. Call Mark Williams at (800) 394-1833, Ext. 27, or visit
> Using Stock as a Charitable Gift
www.psiu.org today to learn how you can make a difference for future Psi U brothers.
> Maximize Your Benefits
See the World as You’ve Always Pictured It
Planning a Gift Is a Good Option for You If…
>>
You want the flexibility to give back without affecting your
the world as wonderful as it could be—yet. That’s why you’ve spent a good portion of your life doing what you could to help your favorite charities.
Thankfully, you’re not the only one: About 90 percent of Americans over
current income.
>>
W
ith apologies to Louis Armstrong, you may not see
40 make a contribution to at least one nonprofit each year.* That takes care of the here and now, but what happens after you’re
You want to make a difference
gone? Do you ever get the nagging sense that you could do more, despite
in our work that lasts for years
the obligations you already have?
to come, possibly even beyond your lifetime.
Through a form of charitable giving called “gift planning,” you can use resources other than cash to continue the support you offer today—or even extend it beyond your lifetime.
>>
You want to balance your support for loved ones with
How Do I Plan a Gift?
support for Psi Upsilon.
By taking a look at your long-term estate and financial plans with your professional advisors, you can determine what resources you need to feel secure about your future and what you hope to give to loved ones. Then, if you would like to make sure your favorite causes, like Psi Upsilon, are provided for as well, your advisors can suggest charitable giving strategies
Time Is Running Out!
that are a good fit for you. Popular gift planning options include leaving us a percentage of your
If you’re 70½ or older,
estate in your will, designating a portion of your retirement plan assets or life
your chance to make tax-free
insurance to us, or using assets such as stock to fund a gift now—all options
gifts from your IRA for 2011 ends Dec. 31.
that don’t affect your income today and that can offer tax benefits to you or
You can transfer up to $100,000 directly
your heirs.
from your IRA to a qualified charity like Psi Upsilon. The transfer generates
Learn More
neither
tax
By planning a gift that will serve as a lasting testament to your values, your
deduction, so you don’t have to itemize
support can be invested so it’s available when our needs are greatest,
to take advantage of this opportunity.
to make a bigger difference than you ever thought possible. Contact
Contact us to learn more or to make
Mark Williams, executive director, at (800) 394-1833, Ext. 27, or visit
your gift.
www.psiu.org to learn more about the many ways you can extend the
taxable
income
nor
a
reach of your philanthropy. Recycled Paper
© The Psi Upsilon Foundation and The Stelter Company The information in this publication is not intended as legal advice. For legal advice, lease consult an attorney. Figures cited in examples are for hypothetical purposes only. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
*Source: “2009 Stelter Donor Insight Report”
Using Stock as a Charitable Gift An Option With Double the Tax Benefits
D
espite any market uncertainty of late, many of
And now is a particularly appealing time to give because if you
your investments are likely still worth more today
make your gift by Dec. 31, your tax benefits could be effective
than what you originally paid for them. And if
on this year’s tax return, if you itemize.
you sell, you would pay capital gains taxes at a
maximum rate of 15 percent. But by using appreciated securities
Case Study
you’ve owned for more than one year as a charitable gift, you
Cash vs. Stock: Which Gets More Bang for Your Buck?
will receive two tax benefits:
Throughout his working years, Tim saved and invested diligently
1. You are entitled to a federal income tax deduction based on
to prepare for retirement. Now that he is 65, he is ready to
the current fair market value of the securities, regardless
diversify his portfolio and wants to use $100,000 in stock (which
of their lower original cost.
he originally purchased for $10,000, resulting in a $90,000 gain)
2. You will be exempt from paying capital gains taxes on any
to fund a gift to Psi Upsilon. Take a look at the chart below to
increase in value—taxes you would pay if you were to sell
see how Tim will benefit from giving his stock directly to us as
the securities.
opposed to selling it and donating the proceeds.
>> Is A Gift Of Stock Better Than A Gift Of Cash? If Tim Sells His Stock and Donates the $100,000
Tim’s Gift Options Tim’s income tax savings ($100,000 x 28% tax bracket) Federal capital gains tax owed ($90,000 x 15%)*
If Tim Gives His $100,000 in Stock Directly to Us
$28,000
$28,000
– $13,500
$0
$0
+$13,500
Federal capital gains tax savings Total tax savings
$14,500
$41,500
Net cost of gift
$85,500
$58,500
In both scenarios, we receive $100,000 to support our work.
A gift of stock costs Tim $27,000 less than a gift of cash!
*$10,000 cost basis
Let Us Help To learn more, feel free to give Executive Director Mark Williams a call at (800) 394-1833, Ext. 27, at no obligation. Together with your advisor, we can help you fulfill your charitable goals while avoiding worries over tax consequences or market conditions.
Q&A: 4
I
Maximize Your Benefits How to Deduct Your Charitable Gifts
f you made a gift to Psi Upsilon this year, you can take advantage of a charitable deduction on your taxes, if you itemize. Following are helpful answers to a few of the questions
you may have about getting the most from your charitable efforts.
Quick Tax Tip When filing your taxes, be sure to claim your charitable
What am I eligible to deduct if I choose to itemize my tax deductions? A. If you itemize, you can deduct cash,
Q
property and stock donations made to charitable
deductions in
organizations. You cannot deduct the value of any
the same year
time or services spent on charitable work, but you
you made the
can deduct mileage and vehicle expenses if used
gifts. Also,
for charitable purposes.
keep track of all your receipts, cancelled checks,
Q
Are there any limitations when itemizing?
Q
Where can I find more help? A. Your professional tax advisor is the best
appraisals and
A. Yes. Your cash gifts are generally deductible
person from which to seek advice on specific
acknowledgment
up to 50 percent of your adjusted gross income
tax issues. Feel free to contact Mark Williams at
(AGI), and noncash gifts, such as property or
(800) 394-1833, Ext. 27, or visit www.psiu.org for
stock owned for more than one year, are generally
answers to any questions you might have about
deductible up to 30 percent of your AGI.
contributing to Psi Upsilon, with no obligation.
letters from the charitable organizations.
For more information, call or write: Mark A. Williams, Phi ’76 • Executive Director The Psi Upsilon Foundation • 3003 East 96th Street Indianapolis, Indiana 46240-1357 • (800) 394-1833, Ext. 27 Visit our website at www.psiu.org.