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In-kind and Planned Gifts
Gifts-in-kind make available to the College artifacts, documents, equipment, services, and other resources that are needed to achieve our academic and programmatic goals. They can include appreciated securities, real estate, and personal property. At Ohio State they are treated and credited like cash gifts.
A few of many forms of planned gifts are featured below. For more specifics about and/or examples of how these programs work, please contact the College of Veterinary Medicine Chief Advancement Officer liesa [dot] stone [at] cvm [dot] osu [dot] edu">Dr. Liesa Stone at (614) 688-8433. Some of the more popular planned gift vehicles include the following:
- Gift of residence or farm with a retained right to use the property - because of special provisions in the tax laws, you can give the College your personal residence or farm, yet continue to live there for the remainder of your life. Further, you can provide that your spouse may live there for his/her lifetime; or you may continue to live on the property for a set number of years. Either way, you will receive an immediate income tax deduction for the contribution.
- Gift of undivided interest in property - You are allowed a charitable deduction for the value of an undivided portion of your entire interest in a property. This consists of a fraction or a percentage of each substantial right or interest in the property. The donated interest must extend over the entire term of your interest.
- Bargain Sale - In this instance, you would transfer an appreciated asset (real estate, securities or the like) to the College. In return, we would pay you an agreed-upon amount that is less than the full fair market value -- usually your original cost. Essentially, you are selling your asset to us for less than its fair market value, so the transaction is part gift and part sale. You might want to consider this method if the current value of the property exceeds the amount you wish to give, or if it is not practical or economical to divide the property. You are entitled to a charitable deduction based on the difference between the sale price to us and the full fair market value. You incur tax only on the part of the appreciation attributable to the sale.
- Life Income Gifts - Life income gifts allow you to give and receive at the same time. Such a gift can often make it possible for you to give what you would like to give, rather than what you feel you can afford, because you actually receive income from the gift. Life income gifts include gift annuities, annuity trusts, unitrusts and pooled income funds.
- Bequests Included in Wills - One of the easiest ways for you to make a gift to the College is through a bequest in your will. Bequests work particularly well for those who are unable to make an immediate outright gift, but would like to aid us in the future. Additionally, tax laws encourage bequests. When you make a bequest to the College, your taxable estate is reduced by a 100% estate tax deduction for the amount of a cash bequest, or the fair market value of property. There are three basic categories of bequests:
- Specific bequests take the form of an outright gift of securities, a specific fund of money, or other property. In your will, you describe one item and you give that item to an individual or the College.
- General bequests do not provide for the specific source of payment of the bequest from your estate. Your executor may honor the bequest from any available source in your estate.
- With a residuary bequest, you take care of what remains of your estate after all expenses, debts and taxes have been paid and all specific and general bequests have been honored.
- Life Insurance - You may reach a point at some time where life insurance no longer has the financial significance for your family that it once did. In that case, you may wish to make a gift of the policy to the College.
There are two ways to do this. You may make us the owner of the policy. This allows you an immediate income tax deduction. Second, you also may name us as the beneficiary of your policy. Because the designation is not irrevocable, it cannot be counted for any immediate tax savings. However, at your death, your executor may take a federal estate tax charitable deduction for the entire amount. Life insurance interacts well with other gift mechanisms. For instance, you can use all or part of your trust or annuity income to establish an irrevocable life insurance trust. The trust could purchase insurance on your life -- perhaps in an amount equal to the charitable gift -- and you could name a spouse or a child as the beneficiary. This way, you can make a charitable gift and replace the assets with life insurance for the benefit of a loved one. Alternatively, you could take all or a portion of the income for a set term of years and purchase a life insurance policy naming a family member as beneficiary. This is another excellent way to replace the wealth transferred to the College.
Note: This information is offered with the understanding that the editor and contributors are not engaged in rendering legal, accounting or other professional service. Therefore, the contents should not be applied as legal or financial advice.
For more information about specific projects, liesa [dot] stone [at] cvm [dot] osu [dot] edu">Dr. Liesa Stone.