Planned Giving
Planned Giving is a method of supporting Barry University with a pre-established plan usually through a legal document and in conjunction with the estate planning process. Through an annuity, will, trust, etc., your gift benefits both you and the University. Tax laws favor charitable giving by providing benefits such as tax savings, increased income, retention, or even enhancement of wealth to your family, friends, and Barry University. Charitable giving is good business.
While most charitable gifts are made in the form of cash, important advantages can be possible when gifts are made using non-cash property that has increased in value. When stocks, bonds, mutual funds, real estate, and other appreciated assets are sold, tax is due on any capital gain.
One of the only ways to avoid or delay the capital gains tax is to make a charitable gift of the property. When you give appreciated property that has been held at least 12 months, you may take a deduction based on the current value of the property rather than just its cost. It is usually best to donate property that would be subject to the highest rate of tax if sold.
The combined benefits of bypassing tax on the capital gain, receiving an income tax reduction, possible increased income for life, and making a charitable gift can be gratifying indeed.
The Board of Trustees of Barry University has established the Covenant Society to honor those donors who have made a planned gift to Barry. We would enjoy adding your name to the list of Covenant Society members. For more information on the Covenant Society, please contact Cheryl Lawko, Director of Development for Major and Planned Gifts at 305-899-3070 (toll-free: 1-800-756-6000, ext. 3030) or e-mail clawko@mail.barry.edu.
The purpose of this information is to provide you with the specifics on planned giving, not legal advice. You should consult your attorney and/or financial advisor about the applicability of the legal and financial principles to your own situation.
|
Way of Giving |
Suggested Assets for Funding |
Method of Effecting Gift |
Disposition of Income |
Taxation of Income |
Benefit to Donor |
|
Outright Gift |
Cash, stocks, bonds, real estate, tangible personal property (gift-in-kind) |
You transfer assets to Barry University. |
Not applicable |
Not applicable |
1. Tax deduction based on value of gift
2. Avoidance of tax on capital gains |
|
Pledge |
Gift made over one or multiple years |
Written agreement with the University. |
Not applicable |
Not applicable |
No tax deduction until gift is made |
|
Matching Corporate Gift |
Any negotiable gift such as cash, stocks, bonds |
Send in company's matching gift form with your gift. |
Not applicable |
Not applicable |
Tax deduction of individual gift |
|
Bequest |
Cash, stocks, bonds, real estate, tangible personal property (gift-in-kind) |
You provide in will for transfer of assets to Barry University. |
Not applicable |
Not applicable |
1. Distribution of estate as intended by donor
2. Avoidance of estate and inheritance taxes |
|
Life Insurance |
Life insurance policy |
You name Barry University as owner and beneficiary of policy. |
Not applicable |
Not applicable |
1. Tax deduction for premiums paid by donor
2. Avoid estate taxes and probate costs |
|
Charitable Gift Annuity |
Cash, stocks Minimum amount of $5,000 |
You and Barry University enter into contract agreement. |
Fixed income based on age(s) of income recipients for lifetime(s) |
Based on your age; Partially untaxed based on actuarial data; Capital gains also taxed on actuarial life of donor |
1. Secure income
2. Partially untaxed
3. Tax deduction based on age |
|
Charitable Remainder Annuity Trust |
Cash, stocks, bonds |
You and your trustee enter into written trust agreement. You transfer assets to trustee. |
Your and/or other beneficiary(ies) are paid a fixed income (based on initial value of trust assets) for life |
Beneficiary taxed on income received (may include ordinary income or capital gain) |
1. Tax deduction based on value of assets transferred to trustee
2. Avoidance of tax on capital gains |
|
Charitable Remainder Unitrust |
Cash, stocks, bonds, real estate |
You and your trustee enter into written trust agreement. You transfer assets to trustee. |
You and/or beneficiary(ies) are paid a variable income (based on annual value of trust assets) for life |
Beneficiary taxed on income received (may include ordinary income or capital gain) |
1. Tax deduction based on value of assets transferred to trustee
2. Avoidance of tax on capital gains |
|
Charitable Lead Trust |
Cash, stocks, bonds, revenue producing real estate |
You and your trustee enter into written trust agreement. You transfer assets to trustee. |
Income paid to Barry University for term of trust |
No taxation of income |
1. Trust income not taxed to donor
2. Possible estate and gift tax savings |
|
Revocable Trust |
All types of property |
You and your trustee enter into written trust agreement. You transfer assets to trustee. |
You and/or other beneficiary(ies) receive the net income for life |
Beneficiary taxed on income received (may include ordinary income or capital gain) |
1. Principal available to donor upon demand
2. Estate tax deduction |
|
Life Estate |
Your residence or farm |
You transfer property by deed to Barry University reserving life estate for yourself and/or another. |
Life tenant(s) entitled to use of property (including income, if any) for life |
Beneficiary taxed on income, if any |
1. Tax deduction based on value of property
2. Avoidance of tax on capital gains |
|
Gift-in-Kind |
Works of art, rare books, stamp or coin collection, etc. |
You transfer assets to Barry University. |
Not applicable |
Not applicable |
1. If use related to Barry Univ., tax deduction based on value of gift; if use unrelated, tax deduction limited to cost basis
2. Avoidance of tax on capital gains |
|
Retirement Plans |
Funds from IRA and other plans |
You list Barry University as your designated beneficiary. |
Not applicable |
Not applicable |
Tax deduction based on value of gift and possible estate tax deduction |
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