GIFT PLANNING IDEAS FROM THE UNIVERSITY OF ILLINOIS FOUNDATION
FALL 2021 | ISSUE 97
A Memorial Bequest to Elevate Black Studies In her 22 years as a University of Illinois Chicago (UIC) professor, Grace Holt pioneered the view of Black English as a dialect of standard English, organized UIC’s first Black History Month activities, founded the Black History Month Planning Committee, and chaired it for many years. In 1971 she was appointed to establish the Black Studies Department in the College of Liberal Arts & Sciences and in 1974 was appointed its first director. Today select Black Studies students are supported by the Grace Holt Memorial Endowment, which was established after Grace’s death in 1991 by her daughter, Colette Holt, to honor her legacy. Colette, principal at Colette Holt & Associates, contributes to the fund regularly, encourages her loved ones to do the same, and is providing a gift to the endowment in her will. The fund supports students enrolled in the Black Studies department who demonstrate a commitment to racial justice. Grace Holt
“My mother was the first black woman to earn tenure at UIC,” said Colette. “In 1991, when we set up the fund, there was a constant need to explain why African American studies was important, and I wanted to elevate its stature, gravitas, and structure within the University. Today it’s established as a discipline, and I’m proud to support its students.” Colette reflected that her mother was a force of nature who loved teaching and her students, many of whom attended her funeral to describe how influential she was. Grace Holt saw potential in people when others didn’t and spent her time in academia fighting the myth that poor Black children can’t learn. “Establishing a bequest in her honor allowed me to make a significant contribution, worthy of my mom, when I was young and broke and just starting my law practice,” said Colette. “We need to support Black scholars today as much as we did in 1970. Gifts like mine can create systematic, generational change we may not live to see, just like the fruits of the work my mother did 50 years ago.”
INSIDE • 4 Year-End Financial and Charitable Opportunities • Are You a Non-Itemizer? • Student Spotlight • Create Your Legacy
4 YEAR-END FINANCIAL AND CH YOU DON’T WANT TO PASS UP As 2021 draws to a close, you might ask yourself how your circumstances have changed during the past year and what actions you are taking in response.
Your changes may include: Family status, such as marriage or divorce or the addition of grandchildren or other family members. Health, including yours and the health of loved ones. Employment, such as retirement, a change in your job, or starting or ending a business. Living circumstances, such as selling a home and/or moving to another state. Investment, including gains and losses. Income, which may have increased or decreased. Inheritance, which may have significantly increased your assets. New tax laws, recently passed or anticipated, that may affect your financial situation. Involvement with charities such as the University of Illinois Chicago. Such changes often present opportunities to meet your financial, charitable, and personal objectives. Four of those opportunities are discussed here; for a comprehensive discussion of 14 opportunities, request our complimentary guide, 14 Strategic Year-End Charitable Opportunities for the Smart Donor.
OPPORTUNITY 1 Save taxes now with a gift of stock
Although stock values tumbled in the few months immediately after COVID-19 appeared in the United States, they quickly recovered—and indices reached record highs in 2021. Home values have also risen sharply, especially in certain markets. Consequently, your financial net worth may well be higher than it has ever been. If you have long considered a significant charitable gift as part of your legacy, this could be the time to make it—particularly if you have been thinking of selling some of your highly appreciated securities to harvest your gain and rebalance your portfolio. The net cost of the gift could be lower than you think because you not only receive a charitable deduction for market value but also avoid taxation of the gain.
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HARITABLE OPPORTUNITIES OPPORTUNITY 2 Build your retirement funds Three recent law changes were designed to increase retirement security. The first was increasing from 70½ to 72 the age at which a person with an IRA or certain other plans must start mandatory distributions. The second was, for the year 2020, waiving the required minimum distributions. The third, which becomes effective in 2022, is reducing the percentage of the account balance that has to be withdrawn each year beginning at the age of 72. All of these changes enable more money to be invested in a tax-free account for a longer time. Consequently, your retirement funds will last longer and the balance at the end of your life is likely to be larger.
OPPORTUNITY 3 Save taxes in your estate with a gift of retirement assets
If you want to make end-of-life gifts both to loved ones and to charity, it is better from a tax standpoint to make charitable gifts with retirement funds and to give other assets to your loved ones. The reason is that your loved ones will be taxed on retirement funds (unless from a Roth IRA) whereas a charity will not. Pre-death gain in other property, such as securities and real estate, will not be taxed to loved ones.
OPPORTUNITY 4 Save taxes with the IRA rollover If you are 70½ or older, you can authorize your IRA administrator to make a qualified transfer of up to $100,000 cumulatively to one or more public charities (other than a donor-advised fund or supporting foundation). This is popularly known as the IRA charitable rollover. The amount you transfer within this limit will not be subject to income tax, resulting in tax savings. If you are 72 or older and your required minimum distributions have begun, the amount transferred—within the same $100,000 limit—counts toward the required minimum distribution. The information contained herein is offered for general informational and educational purposes. The figures cited in the examples and illustrations are accurate at the time of writing and are based on federal law as well as IRS discount rates that change monthly. State law may affect the results illustrated. You should seek the advice of an attorney for applicability to your own situation. Copyright © by Pentera, Inc. All rights reserved.
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Are You a Non-Itemizer?
If so, and you made cash contributions to public charities (other than a donor-advised fund or supporting organization), remember that you can claim a deduction on your 2021 return. The limit is $300 for a single filer and $600DO forNOT a married couple IMPORTANT: ENLARGE, REDUCE OR MOVE the FIM and POSTNET barcodes. The Special care must be taken to ensure FIM and POSTNET barcode are actual size AND placed filing jointly. The non-itemizer to meet both USPS regulations and automation compatibility standards. deduction will not be allowed after 2021 unless it is renewed.
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STUDENT SPOTLIGHT Artwork for User Defined (3.75" x 5") Layout: sample BRM Env with IMB.lyt April 29, 2011
“I’m grateful to Ann and Rachel Reynolds. The Reynolds Dissertation Fellowship is a huge boon to the research process; it saves me from having to teach during my dissertation’s completion, frees up a tremendous amount of time, and keeps me from having to find supplementary funding.” ——Justin Raden, Ph.D. candidate in English W. Ann and Rachel Reynolds Dissertation Fellowship
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CREATE YOUR ILLINOIS LEGACY
Use this language to benefit the University through your will or living trust: I leave [$x/x%/residue] to the University of Illinois Foundation, a nonprofit corporation (Tax ID 37-6006007) located in the State of Illinois, to support the University of Illinois Chicago [optional—program/department/college]. Use this language for an account controlled by a beneficiary-designation form: University of Illinois Foundation fbo University of Illinois Chicago [program/ department/college] Tax ID#: 37-6006007 Attn: Gift Planning and Trust Services 1305 W. Green Street Urbana, IL 61801 Contact us to ensure your specific language can be honored as you intend.
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Please send me a complimentary copy of your new guide(s): n 14 Strategic Year-End Charitable Opportunities for the Smart Donor n Planning Your Will for All It’s Worth n Please send me information about making a gift that would also provide income for me and/or others. n I already have included, or am considering including, the University of Illinois in my estate plan and would like to discuss my options. You can also download these materials at uic.giftplans.org/guides
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We appreciate support for our students and would be pleased to help you create the kind of impact you would like at UIC! For more information contact us at (217) 244-0473 or e-mail GPinfo@uif.uillinois.edu.
Please know that we are here for you as you pursue your financial, charitable, and personal objectives.
In this issue of Generations, you will learn how one donor is honoring her mother with a gift to UIC through her estate. You’ll also find some tax-saving gift opportunities.
We know it has been an unusual year for you, too, and perhaps it motivated you to plan for the future for both your family and causes important to you.
There is great excitement on campus this fall as the school year unfolds. Students are grateful to be back in person and connecting with friends and faculty.
GREETINGS FROM THE UNIVERSITY OF ILLINOIS CHICAGO!
Office of Gift Planning and Trust Services University of Illinois Foundation 1305 W. Green St., Rm. 214 Urbana, IL 61801-2962
uif.giftplans.org
Geoffrey Hammond, J.D. Associate Director of Gift Planning (217) 332-5714 gh15@uif.uillinois.edu
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You may also request your complimentary guides online at uif.giftplans.org/guides.