In-kind and Planned Gifts
Gifts-In-Kind
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.
Planned 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 Director of Development Karen
Longbrake at (614) 688-8160) or longbrake.1@osu.edu. 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, contact Jeff Heston.
