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There are numerous ways that you can make a gift in support of NC State. Everything from simply writing a check for your annual gift in support of NC State's current needs to a major or planned gift for endowment or a capital project. The numerous options available are divided between outright gifts and planned gifts.
Outright Gifts
Gifts of Cash
Gifts of cash are the easiest and most direct way to make a gift to NC State. The most recognizable form of a cash gift is your yearly contribution to the Annual Fund. Cash gifts can also provide programmatic support or fund endowment opportunities such as scholarships, fellowship or support for professorships.
Cash gifts can be made by the simple act of writing a check payable to NC State or one of the university-related foundations. Another option would be providing a gift through your will/living trust in the form of a cash bequest. Please include a note telling us which program(s) you want to support with your gift. Your charitable deduction will be the value of the gift you make.
You can also use your credit card to make an on-line donation to NC State. Click on the "online giving icon" and that will take you to the Annual Fund online giving site. Just follow the directions on the site and see how easy it is to make your gift. If you would prefer to talk to a person please call the NC State Annual Fund Office at 1-800-627-2586 or the Gift Planning Office at (919) 515-5106 or the development professional in the area you wish to support.
Gifts of Securities
Using appreciated securities, (stock and bonds) is a popular method of making a gift to NC State. A gift of appreciated securities provides a double tax savings: you can deduct the average of the high/low value of the securities on the date of the gift and totally avoid capital gains on the appreciation.
A gift of appreciated securities, held for more than one year, entitles you to a charitable income tax deduction in the year you complete the gift. You can use the deduction to offset up to 30% of your adjusted gross income. Any deduction exceeding the 30% limit is carried forward for up to five additional years. You may also donated securities you have held for less than one year, but your deduction will typically be based on what you paid for the securities.
Publicly traded securities can fund all types of gifts---everything from annual gifts for current operations to major gifts or even to fund a life income gift. More and more donors are transferring publicly traded shares to NC State electronically. Mutual funds are also transferable as well, but can take much longer to complete as the transfer requirements vary significantly from fund to fund.
For more information on how to transfer securities, please contact Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Gifts-in-Kind
Gifts of property such as equipment, paintings or other art objects can be donated to NC State and entitle you to an income tax deduction. Because items of this nature are subject to estate tax, a donation, either during your lifetime or as a bequest under your will, may also produce estate tax savings.
For gifts made during your lifetime, the amount of the deduction depends on whether the gift relates directly to NC State's educational activities and purposes. This "related-use" restriction does not apply to gifts made through a bequest under your will or living trust. The donor can deduct the full fair market value of the property provided they owned the assets for at least one year and the gift satisfies the "related-use" requirement. With property owned for less than twelve months, the deduction is limited to the price paid for the property.
To learn more about donating gifts-in-kind, please contact the development officer for the area at NC State you wish to support.
Gifts of Real Estate
A gift of real estate can include a gift of a principal or vacation residence, farm, timberland, commercial buildings or unimproved land and can be for the entire property or a fractional interest. Gifts of real estate entitle you to the same tax benefits as gifts of appreciated securities, provided you have owned the real estate for more than one year and there are no liens on the property. The donor is entitled to a charitable income tax deduction of the full fair market value of the real estate, valued at the time of the gift. Additionally, the donor will avoid capital gains tax on the transfer. Gifts of real estate can also generate substantial estate tax savings by removing a high-value asset from your estate. Appreciated real property is also an excellent asset to use to establish a charitable remainder trust.
Since your home or property may be your most valuable asset, you may want to consider a gift of a remainder interest in your property instead of an outright gift. A gift of a remainder interest allows you to continue to enjoy your home for your lifetime, and the lifetime of your spouse, while providing a current charitable income tax deduction and potentially lower estate tax costs. See the retained life estate topic under deferred gifts.
Because the ability to market the property is a major consideration in the University's acceptance of a gift of real estate, we invite you or your advisor to call us to discuss such a transfer.
To discuss a potential gift of real estate, please contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Gifts of Life Insurance
Naming NC State or a university-related foundation as owner and irrevocable beneficiary of the policy will generate an income tax deduction for the donor. The charitable deduction will depend on several factors including what, if any, premiums are still to be paid. This can be a cost efficient way to provide a significant gift in support of NC State.
You may also designate NC State as the beneficiary, or contingent beneficiary of your group term life insurance through your employer. This method of giving will not generate a current income tax deduction, but it will remove the value of the insurance from your estate. Your human resources division can assist you with making such a designation on your group term policy.
Contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu to discuss the various options.
Matching Gifts
An excellent way to leverage your gift to NC State is to ask your human resources department if your employer will match your gift through their matching gift program. By following the guidelines established by your employer, your gift could be doubled or even more. This benefit is often available to the spouse of the employee as well as to retirees and board members.
Gift credit is given to both the donor and the company when a matching gift is received. These gifts are also factored into the calculation for the donor's placement in Chancellor's Circle and the Lifetime Giving Societies. For more information, contact the NC State Annual Fund at 1-888-383-0324 or the Gift Planning Office at (919) 515-5106.
Memorial or Honorary Gifts
A gift made in memory of an alumnus, student, friend,
faculty or staff member of the university is a
generous tribute to an individual's life, accomplishments
and association with NC State. Gifts made in honor
of family and friends are a great way to observe
milestone events - wedding anniversaries, birthdays,
retirements and class reunions.
As a memorial to a loved one who has passed away,
you can direct gifts to NC State.
To designate gifts to go to NC State University in
general, you can use this language:
"In lieu of flowers, the family requests that gifts
be designated to the NC State University Foundation in
______'s memory to NC State University, Office of Gift
Planning, Campus Box 7501, Raleigh, NC 27695-7501.”
Please provide the contact information for the family/honoree
so we can notify them of the gift and send with your
check made payable to NC State University Foundation
to:
NC State University, Office of Gift Planning, Campus
Box 7501, Raleigh, NC 27695-7501. Donors will receive
a gift receipt with a thank you message, and we will
send the family/honoree a list of the donors and their
addresses for their personal acknowledgements.
Unless otherwise stated, gifts will be applied to
the NC State General Scholarship Fund. Memorial or
honorary gifts may also be directed to an existing
fund or scholarship, college, department or program
- please call the Office of Gift Planning at (919) 515-5106.
Planned Giving
A planned gift requires careful consideration of the financial, personal, and charitable objectives of the donors and frequently involves input from their financial and legal advisors. Many planned gifts are outright gifts. Other planned gifts are deferred where the donor retains some level of control over the assets for either one or more lifetimes or a term of years. A life income gift, such as a charitable gift annuity or a charitable remainder trust, pays income to the named beneficiary for life or a term of years. Only after the life income terminates are the funds available to NC State for the purpose designated by the donor. The reserve of the life income gift is the charitable lead trust which provides income to the charity for a period of time and then the trust assets revert to the donor or other beneficiary.
Click on any of the following planned gift options to learn more about these types of gifts:
Bequests from Wills or Living Trusts
Life Insurance Gifts
Life Income Gifts:
Charitable Lead Trusts
Retained Life Estates
Retirement Plan Gifts
Each of these gift options provides the donor with various advantages depending on the type of gift and the assets used to fund the gift. Possible benefits may include:
- the ability to totally designate how the gift will be used at NC State
- Pullen Society membership and possible credits toward placement in the Lifetime Giving Societies
- income tax deduction or avoidance
- preferential capital gains tax treatment
- income for life or a term of years
- removal of the value of the asset from your taxable estate
- reduction in estate and gift taxes
- personal satisfaction of making a gift in support of NC State
For more information on making a planned gift and the benefits you and your family might enjoy please contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Will or Living Trust Bequests
A bequest is the easiest and most common form of planned giving. You may make provisions for NC State or one of the university-related foundations in your will or living trust by designating either a specific dollar amount or a percentage of your estate. By so doing, you:
- may change the amount and natures of your gift in support of NC State anytime prior to your passing;
- can direct how your bequest be used;
- retain control over the assets for the duration of your life;
- you can delay the gift to NC State until after the occurrence of a specific event such as the death of your spouse or children;
- may provide for the care of your loved ones before NC State receives any portion of your estate.
Bequests under your will or living trust provide estate tax relief to your estate and may enable you to provide larger benefits to your loved ones since charitable gifts are not taxable.
Please consider sharing your plans to benefit NC State via your will or living trust with us. Doing so allows us the opportunity to express our appreciation for your support of the University and qualifies you for membership in the R. Stanhope Pullen Society.
We will be glad to assist your estate planning advisors by providing the appropriate foundation name and language to assure that your gift will be used according to your wishes. If you are planning to make a bequest to NC State, the following language may be helpful to you and your legal advisor:
Unrestricted Bequest:
"I give to North Carolina State University {OR a particular college, program or college-related foundation} of Raleigh, North Carolina, the sum of $____ {OR ______ percent of my estate, OR the following property _____, OR the remainder of my estate}. This gift may be used for the general enhancement of North Carolina State University {where appropriate, you may designate a particular college, program or foundation at NC State}".
Endowed Bequest:
"I give to North Carolina State University {OR a college-related foundation} of Raleigh, North Carolina the sum of $_____, {OR _____percent of my estate, OR the following property _____, OR the remainder of my estate}. The gift shall be known forever as The _____ Endowment. The income from this gift, but not the principal, shall be used to {state purpose}. The principal of this Endowment may be merged with other investment assets of the University {or a college-related foundation} and shall be subject to the income and spending policies of the University {or a college-related foundation}."
Steve Watt, Senior Director of Gift Planning or Marybeth Schotzinger, Assistant Director of Gift Planning will be happy to provide additional information for you or your advisors. Steve Watt can be reached at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger can be reached at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Gifts of Life Insurance
Life insurance may be used in several ways to make a gift in support of NC State by assigning the ownership to the University or a university-related foundation. The charitable deduction for gifts of life insurance depends on the type of policy, the status of the premiums and ownership of the policy.
Naming NC State or a university-related foundation as owner and the irrevocable beneficiary of the policy will generate an income tax deduction for the donor. Paid-up policies will generally result in an income tax deduction equal to the cash surrender value of the policy.
For policies with premiums remaining to be paid, the deduction is approximately equal to the cash surrender value plus a portion of the last premium payment. If you continue to make future premium payments, you can also receive an income tax deduction for them.
You may also designate NC State or a university-related foundation as the beneficiary, or contingent beneficiary, of your group term life insurance through your employer. This method of giving will not generate a current income tax deduction, but it will remove the value of the insurance from your estate. Your human resources division can assist you with making such a designation on your group term policy.
If you prefer to retain ownership of the policy, you can name NC State or a university-related foundation as the beneficiary and the value of the policy will not be taxable in your estate. In this case, there will not be any current income tax deduction.
For further information contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Life Income Gifts
Life income gifts involve the irrevocable transfer of assets in exchange for income for life (or a term of years in some cases) for one or more beneficiaries. Only after the passing of the last beneficiary are the remaining proceeds used for the purpose the donor designated. NC State offers two types of charitable remainder trusts (the annuity trust and the unitrust) and two types of charitable gift annuities (one with payments that start now and a deferred option with payments starting in the future). All of these gifts share several common characteristics:
- an immediate income tax deduction for the remainder value of the gift;
- estate tax savings;
- income for life or a terms of years;
- relief or total avoidance of capital gains tax on the transfer;
- the satisfaction of making a significant gift in support of whatever areas you choose at NC State.
For more information or a personalized projection of the benefits you or your family could receive from a life income gift please contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Charitable Gift Annuity
The easiest and simplest form of a life income gift is the charitable gift annuity. This is a simple contract between the donor and a NC State related foundation, whereby the foundation guarantees to pay the donor, the donor and their spouse,or another beneficiary, a set sum yearly for life. The payments remain the same over the lifetimes of the income beneficiaries, and often a portion of the income received is tax exempt. The interest rate paid depends on the age, or ages, of the income beneficiaries and whether the payments are to start at once or be deferred to some point in the future. Charitable gift annuities can be funded with cash or securities. Additions are not permitted to a charitable gift annuity or a deferred annuity, instead a new contract is drawn.
Deferred Gift Annuity
Deferred gift annuities can be an excellent retirement income or IRA substitute. Since the payments are deferred for at least one year, the interest rate paid will be substantially higher than for an immediate payment annuity and the charitable deduction will be larger. In certain circumstances, real estate can be used to fund a deferred charitable gift annuity.
Requirements to establish a charitable gift annuity or deferred gift annuity with NC State
- Minimum amount of $10,000
- Minimum age of 55 for a standard annuity. Minimum age for a deferred annuity of 40 with a 15 year deferral
- One or two lives only
Charitable Remainder Trusts
This type of irrevocable gifts can provide significant future support to NC State while potentially increasing the income of the beneficiary or beneficiaries. Payments will be made to the beneficary(ies) for either their lifetimes or for a term of years (20 is the maximum allowed by law). The donor directs how the charity or charities named will use the ultimate proceeds. Only at the conclusion of the trust does NC State use any of the gift for the intended purpose. There are two types of charitable remainder trusts-the annuity trust and the unitrust.
The Unitrust
If your goal is to provide an income stream to yourself, your spouse or other beneficiaries and provide a hedge again inflation, then you should consider a charitable remainder unitrust. This type of charitable trust allows you to make additions to the trust principal at any time, and pays income based on a fixed percentage of the trust assets as valued each year. As the value of the trust increases, you share in that appreciation by receiving a larger income distribution.
This type of trust can be funded with cash, securities, real estate or other personal property. The donor totally avoids capital gains tax on the transfer to the trust thereby leaving the entire value of the gift available to be reinvested to benefit the named life beneficiary. The assets placed in the trust will not be taxable in the donor's estate as long as the beneficiaries are limited to the donor or the donor and their spouse.
Requirements to establish a charitable remainder trust at NC State:
- Minimum amount of $50,000
- One or two lives only unless a term-of-years trust used
- Beneficiary 50 years of age or older unless a term-of-years trust
The Annuity Trust
If you would prefer to receive constant payments from your life income gift, you might consider a charitable remainder annuity trust. Like a charitable remainder unitrust, the annuity trust provides the donor with capital gains tax avoidance, immediate income tax deduction and the ability to designate how the funds will ultimately be used by NC State. However, unlike the unitrust, the payment from an annuity trust is based on a percentage of the market value of the trust assets at the time it is funded and the payment amount never changes. Additions to the annuity trust are not allowed
Requirements to establish a charitable remainder trust at NC State:
- Minimum amount of $50,000
- One or two lives only unless a term-of-years trust used
- Beneficiary 50 years of age or older unless a term-of-years trust
Testamentary Life Income Options
You may establish a charitable remainder trust, a charitable lead trust or a charitable gift annuity through your will. Because it does not come into existence until after your death, it will not provide any income tax savings during your lifetime. However, it will provide income for a spouse or other loved one for their lifetime and will reduce your exposure to estate taxes.
Charitable Lead Trust
The charitable lead trust is essentially the reverse of a charitable remainder trust. Rather than receiving the trust's remainder value, NC State or a university-related foundation will receive the trust's income for a specified period of time. At the conclusion of the trust, the property either reverts to the donor or to a non-charitable beneficiary designated by the donor. Established during the donor's lifetime or through a will, charitable lead trusts are best for donors who can forego the income generated by the property for the trust's period of existence. The tax benefits for this type of a trust are complicated but can be highly beneficial depending on the tax situation of the donor and his/her family.
Retained Life Estate
A provision of the tax law allows you to give your personal residence, or farm, to NC State and allow you, and your spouse or other beneficiary, to continue to live there for life. During your lifetimes, you retain the full use of the property and continue to pay all expenses related to the property. At the death of the survivor, the property passes to NC State.
In addition, your vacation or second home qualifies for this treatment as long as it is used as a personal residence and not a rental property. The immediate charitable deduction allowed for this future gift is the present value of our right to receive the property at some later time. This present value, and the resulting charitable deduction, is determined, primarily, by the age of the life tenants. If the lifetime enjoyment of the property is limited to the donor and his/her spouse, the property will not be taxed in either estate.
Giving With Retirement Plans
Frequently, people reach retirement age with significant wealth accumulation in retirement plan accounts. Unfortunately, assets in these types of plans are included in the owner's taxable estate at death and can be subject to as much as 70% combined estate and income taxes.
Rather than see such a large percentage of your remaining retirement assets eaten up by taxes, you might consider directing that part or all of these excess retirement assets be used to make charitable gifts. While the value of these accounts is still included in your taxable estate, your estate will receive a full charitable deduction for all gifts designated to charity.
For additional information on making a gift via an IRA or similar retirement asset please contact Steve Watt, Senior Director of Gift Planning at (919) 515-5106 or via e-mail at steve_watt@ncsu.edu or Marybeth Schotzinger, Assistant Director of Gift Planning at (919) 515-9089 or via e-mail at marybeth_schotzinger@ncsu.edu.
Tax Benefits from Charitable Gifts
Gifts to North Carolina State University or to one of the university-related foundations qualified for any applicable deductions on income, gift or estate tax returns.
Cash
These gifts qualify for a deduction equal to the amount transferred.
Property held for one year or longer
-
Publicly
traded securities qualify for a deduction based
on the average of the high and low trading prices
for the date the stocks were either mailed or received
by NC State. For mutual fund shares, the value is
usually based on the closing selling price for the
date of the gift.
-
Using
appreciated assets to make a gift allows the donor
to totally avoid capital gains tax on the asset
transferred. If the property has actually declined
in value since purchase, the donor should sell the
property so that they may use the capital loss on
their own income tax returns.
-
Gifts
of real estate, privately held securities, or other
capital assets having a value of $5,000 or more
(the limit is $10,000 for privately held stock)
require an appraisal of the fair market value of
the asset and an IRS form 8283. These requirements
must be met if the donor wished to qualify for a
charitable deduction.
Property held for less than one year
-
This
includes all types of securities, tangible personal
property, real estate, and other specialized gifts
will receive an income tax deduction equal only
to the donor's cost basis. Typically, the cost basis
is what the donor actually paid for the asset.
Gifts to Wolfpack Athletics
-
Under
IRS rules, gifts in support of athletics may be
deductible for only 80% of the value of the gift,
unless the donor renounces any points and ticket/parking
privileges before the completion of the gift.
Deductions for Life Income Gifts
-
Donors
will receive a deduction based on the remainder
value that will come to NC State or other charities
at the conclusion of the life interest of the beneficiaries.
-
The
calculation of the deduction is based on the ages
of the beneficiaries, the rate of income to be paid,
the fair market value of the gift and the federal
discount rate in effect for the month the gift is
made or either two of the previous months.
Carry Forward and Deduction Limits on Charitable Gifts
-
Taxpayers
are limited as to the amount of charitable deduction
that can be used each tax year.
-
The
charitable income tax deduction for gifts of cash
to NC State or other public charities may be used
to offset up to 50% of the donor's adjusted gross
income for the year of the gift. This limit also
applies to those instances when a donor either chooses
or must deduct the cost basis of an asset.
-
For
gifts of appreciated property held for more than
one year, the deduction can be used to offset up
to 30% of the donor's adjusted gross income for
the year.
-
Any
excess deduction that can not be utilized in
the year in which the gift is made, can be
carried forward for up to five additional tax
years. The donor must use the deduction up
as quickly as possible and can not "pick and choose" which
years to use it.
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Raleigh,
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