Planned giving, or charitable gift planning, is a way for individuals to provide financial support to Shaw University during their lifetime and beyond. Many planned giving arrangements are typically made known in a will or trust that goes into effect after an individual’s death. Other planned gifts allow donors to continue their loyal support beyond their lifetime and realize substantial benefits for themselves today. These benefits can include significant savings on income and estate taxes, lifetime income streams and, in some instances, a greater amount of wealth passed on to family members with less federal estate tax.
BEQUESTS
A will is a statement about what matters most in your life. By making a will, you can ensure that your intentions are clearly expressed, and that they will be followed by those administering your estate. Including Shaw University as a beneficiary of your will is one of the easiest ways to provide for future generations of Shaw Bears and faculty. To include Shaw in your will, simply inform your estate attorney.
LIFE INCOME PLANS
Many alumni and friends wish to make a substantial deductible gift during their lifetime, but still want to receive an income stream from the cash, securities or property donated. This can be accomplished through several life income plan gifts.
CHARITABLE REMAINDER TRUST
A Charitable Remainder Trust is an instrument which provides an income stream for the life of the donor and/or a designated income beneficiary. At the termination of the trust, the principal of the trust is distributed to Shaw University. There are two types of charitable remainder trusts: unitrusts and annuity trusts.
CHARITABLE LEAD TRUST
The charitable lead trust is essentially the opposite of the charitable remainder trust. It pays income to Shaw University for a period of years and later returns the principal of the trust to the donor or other loved ones. The lead trust can be one of the few ways to reduce taxes that would otherwise be due on assets left to succeeding generations.
GIFTS OF LIFE INSURANCE Naming Shaw University as a beneficiary of your life insurance policy or its proceeds is another easy way to make a planned gift to the institution. There are several ways you can provide for Shaw University through a life insurance gift: ■■ N ame Shaw University as a beneficiary, partial beneficiary or contingent beneficiary of any policy on your life, including policies through your employment. ■■ N ame Shaw University as the owner and beneficiary of a paid-up policy or an existing paid-up policy that is no longer needed by you or your family. ■■ N ame Shaw University as the owner and beneficiary of a policy that is not fully paid-up while the donor continues to pay the annual premiums.
CHARITABLE GIFT ANNUITIES ■■ Current Gift Annuity: The Charitable Gift Annuity requires only a basic contract between a donor and Shaw University, whereby a donor irrevocably transfers assets to the University. In return, the University agrees to pay the designated annuitant(s) fixed payments for life, at rates approved by the American Council on Gift Annuities. The transfer is part charitable gift (which often qualifies for a substantial current income tax deduction) and part purchase of an annuity. ■■ Deferred Gift Annuity: Instead of securing an immediate payment under a gift annuity, you can have it deferred until a later date, such as your retirement. You make the contribution now, securing a current income tax charitable deduction, and we agree to pay you a guaranteed life income starting any date you select. ■■ College Gift Annuity: Various IRS private letter rulings have outlines of deferred gift annuity agreements in which a donor exchanges lifetime payments for a lump-sum payment or for larger payments over a shorter time period. Commuting payments from a deferred gift annuity is especially popular for donors who wish to use the deferred gift annuity to help fund college tuition.
SHAW U NIVER SIT Y 1865
Office of Institutional Advancement www.shawu.edu/PlannedGiving n 919.546.8260
For more information on how you can leave a legacy through gift planning, contact: Clarenda Stanley-Anderson, M.Ed., CFRE Vice President for Institutional Advancement csanderson@shawu.edu n 919.546.8529