at the University of Illinois Urbana-Champaign GIFT PLANNING IDEAS FROM THE UNIVERSITY OF ILLINOIS FOUNDATION
FALL 2021 | ISSUE 97
Grateful Alums Create Fellowship and Scholarship for Architecture Students Cynthia Faw, ’75 B.S., ’77 M.A., knew in fifth grade she wanted to be an architect. Without the help of another’s generosity, she would not have been able to start her journey at the University of Illinois.
Cynthia Faw and husband Edward Sweetnam
Marrying an architect was not part of Cynthia’s plan. But while working in St. Louis, she met alum and accomplished architect Edward Sweetnam, B.S. ’51. The two built a life together around common interests, values, and adventure.
Their central Illinois roots and U of I experiences inspired them to remember the School of Architecture in their living trust. The Cynthia Faw and Edward Sweetnam Architecture Fellowship and Scholarship will provide opportunities to retain and recruit exceptional students while also increasing diversity. “You think of the young people coming up, and you want to give them a hand,” says Cynthia. After U.S. Army service, Ed, who passed in 2017, attended Illinois on the GI bill. For the next 53 years he managed the design and construction of hundreds of buildings including General Motors Technical Center, Rend Lake College, and Missouri-Synod Lutheran Headquarters. He enjoyed mentoring young professionals along the way and returned to Illinois to teach undergraduate design. Cynthia also had a gift for teaching and was selected as a design teaching assistant while earning her master’s degree. Her work included directing large, complex projects for corporate and developer clients. She excelled in conceptualizing office and mixed-use projects including the Wells Fargo East Coast Headquarters, Microsoft Research, Boeing WHQ, and Phoenix’s CityScape. Beyond the careers they loved, Cynthia and Ed enjoyed traveling to some 50 countries—spending time with friends and family and sailing, which Cynthia continues today. “Because both of us received our degrees and financial help to get a good start, we were able to have a great life together,” she says.
INSIDE • 4 Year-End Financial and Charitable Opportunities • Are You a Non-Itemizer? • Student Spotlight • Create Your Legacy • Announcing The Illinois Legacy Challenge
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 Urbana-Champaign. 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 $600DO forNOT a married couple IMPORTANT: ENLARGE, REDUCE OR MOVE the FIM and POSTNET barcodes. The Special care must be taken to ensure FIM and POSTNET barcode are actual size AND placed filing jointly. The non-itemizer to meet both USPS regulations and automation compatibility standards. deduction will not be allowed after 2021 unless it is renewed.
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UNIVERSITY OF ILLINOIS FOUNDATION GIFT PLANNING AND TRUST SERVICES HARKER HALL MC-386 HARKER HALL MC-386 UNIVERSITY OF ILLINOIS FOUNDATION 1305 W W GREEN GREEN ST ST 1305 URBANA IL 61801-9934 URBANA IL 61801-9934
STUDENT SPOTLIGHT Artwork for User Defined (3.75" x 5") Layout: sample BRM Env with IMB.lyt April 29, 2011
“Little moments like studying with friends or walking through the quad are blissful for me. This scholarship allows me to enjoy these college moments and not worry about student loans. I’m extremely grateful for this and cannot express my thanks enough!” —Livia Pereira Architectural Studies, Class of 2022
Recipient of the Louise Brown Osborn and Lane Boyd Osborn Memorial Scholarship
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CREATE YOUR ILLINOIS LEGACY
Use this language to benefit the University through your will or living trust: I leave [$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 Urbana-Champaign [optional—program/department/college]. Use this language for an account controlled by a beneficiary-designation form: University of Illinois Foundation fbo University of Illinois Urbana-Champaign [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.
PLEASE SEPARATE THE CARD BELOW AND RETURN!
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. n I would like information about recording my new planned gift as part of the Illinois Legacy Challenge!
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You can also download these materials at uif.giftplans.org/guides
(217) 244-0473 or gpinfo@uif.uillinois.edu or visit with.illinois.edu/ways-to-give/legacy-challenge/.
and return the attached card or contact UIF’s Office of Gift Planning and Trust Services at
To learn more about how you can participate in the Illinois Legacy Challenge, please complete
The UIUC College or Unit Unrestricted Fund of Your Choice
UIUC Health Sciences Priority Fund
UIUC Diversity, Equity, and Inclusion Support Fund
UIUC Chancellor’s Fund
Illinois Commitment Scholarship Fund
value to immediately benefit one of these funds:
the ability to tap the matching pool to direct 10% (up to $10,000) of your new planned gift’s
with the University of Illinois Foundation (“UIF”) benefiting any Illinois purpose, you will have
matching funds to create the Illinois Legacy Challenge. If you document a new planned gift
In honor of the With Illinois campaign, a generous alumnus has donated $1,000,000 in
ANNOUNCING THE ILLINOIS LEGACY CHALLENGE! Office of Gift Planning and Trust Services University of Illinois Foundation 1305 W. Green St., Rm. 214 Urbana, IL 61801-2962
uif.giftplans.org
Judy Schneider Director of Gift Planning (217) 244-3351 judiths@uif.uillinois.edu
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