Ways of Giving
For more than a century, St. Andrews Presbyterian College and its founding colleges--Flora Macdonald College and Presbyterian Junior College for Men--have been committed to providing students with an exceptional church--related liberal arts and sciences education. To sustain this commitment for future generations of students, the continued support of alumni and friends is essential. By planning your gift today, you can help secure the future for St. Andrews.
There are a wide variety of ways to make a gift to St. Andrews. You can choose to make a tax-deductible contribution as an outright gift or in a deferred manner, which can be structured to provide income for you and your beneficiaries during your lifetime. The way you can choose to make a gift will depend on your situation in life, your financial goals and how you want to help St. Andrews.
Current Gifts: Gifts of cash, stock, tangible personal property or real estate given directly and without limitation to St. Andrews are considered unrestricted, outright gifts.
Cash: A gift of cash (either by currency, check or credit card transaction) is the most common form of charitable giving. Because of the income tax charitable contribution deduction, the net cost to you of a cash gift is typically less than the face amount of the gift.
Stock: If you contribute stock, you are allowed an income tax deduction for the fair market value of the stock on the date of the gift. You may also avoid paying capital gains tax on the appreciation in the value of the stock that occurred during your ownership of it. If any of your investments have decreased in value, consider selling them first, thereby creating a loss that you may be able to deduct, and then give the cash proceeds. In this way you may be able to deduct more than the current value of the investment, while minimizing the impact of the loss.
Closely held stock: Closely held stock in a company that is not publicly traded on one of the national stock exchanges. Many family-owned businesses are closely held. Often stock in a closely held business is highly appreciated, but not easily sellable. A great deal of wealth can be tied up in closely held companies. Gifts of closely held stock can be very beneficial to St. Andrews and provide you with very favorable tax advantages.
Property: An outright gift of real estate can involve any type of property--a personal or recreational residence, farm or ranch, commercial building, a subdivision lot or an underdeveloped parcel of land. You can give either all of you interest in a piece of property or an undivided fractional interest in it.
Life Insurance: There are many ways you can turn your life insurance policy into support for St. Andrews. You may donate a whole life policy to St. Andrews that you no longer need for family protection, and the proceeds will benefit the College. You may give St. Andrews a policy that is not fully paid and take a deduction for the present value of the policy. Or, you may use insurance to replace for your family assets that you contributed to a charitable trust.
Life-Income Gifts: Deferred gifts that provide income for life: You may wish to make a substantial gift to St. Andrews but feel you cannot immediately afford to give up the annual income produced by your assets. Several options are available to you.
Charitable Remainder Trusts: A charitable remainder trust is similar to other types of trusts, except it has a charitable beneficiary. You transfer assets irrevocably to a trust and then specify who is to receive trust income during the term of the trust. You and/or your spouse may be income beneficiaries or you may name a family member or friend. You designate St. Andrews (and you may include other charities) to receive the principle when the trust comes to an end. The trust may be established either during your lifetime, or at the time of your death in your will. When you establish the remainder trust, you are eligible for an immediate charitable income tax deduction and may avoid capital gains tax if you fund the trust with appreciated assets. Charitable remainder trusts are more cost effective for gifts in excess of $100,000. There are several types of charitable remainder trusts.
Annuity Trust: A charitable annuity trust pays one or more beneficiaries a fixed amount of money each year. During the term of the trust, payments of at least 5% of the initial fair market value of all assets placed in the trust must be paid annually to you or individuals you designate as income beneficiaries. When the trust terminates, the remaining principal is transferred to St. Andrews, and any other charitable beneficiaries you may have designated.
Unitrust: A charitable unitrust is similar to a charitable annuity trust, except the trust pays an annual fixed percentage (of at least 5%) of the current fair market value of the trust to one or more income recipients. The fair market value of the trust, and therefore the income payments, are revalued each year on the anniversary date the trust was established. After the trust terminates, the remaining principal in the trust is transferred to St. Andrews.
Charitable Remainder Education Trust: Like the unitrust, the charitable remainder education trust pays a percentage of the fair market value of the assets to a college-bound family member, but only for the duration of the student's education. During the trust term, the student uses the income to pay college expenses wherever the student is enrolled. At the end of that time period, the trust principal is transferred to St. Andrews. This allows you to make a significant charitable gift while at the same time generating educational funds for a family member at a much lower cost.
Charitable Lead Trust: A charitable lead trust is in many ways the opposite of a charitable remainder trust. A lead trust pays to St. Andrews income generated from the trust for a fixed period of years, after which time, the principal in the trust returns to you or is transferred to family members or heirs who you designate to receive the funds. You are eligible for income tax deductions for the stream of income that is distributed to St. Andrews, and you may avoid taxation on any appreciation to the trust principal during the term of the trust.
Charitable Gift Annuity: A charitable gift annuity is partly a gift and partly the purchase of an annuity and is ideally suited to donors who wish to make gifts in the $1,000 to $10,000 range. You established a gift annuity by entering into a contract with a charitable organization. The terms of the contract obligate the charitable organization to pay you an annuity amount for the remainder of your life, or the life of a family member designated by you. The amount you receive is determined by your age, or the age of the family member who is the beneficiary, and the amount of the gift. At the end of the contract term, the remainder in the account is transferred to St. Andrews. St. Andrews works with the Presbyterian Church (USA) Foundation to issue gift annuities to its supporters.
Deferred Gift Annuity: A series of deferred gift annuities can serve as an excellent retirement program. A deferred gift annuity makes it possible for you to claim an immediate tax deduction during higher income years, yet defer receipt of the income, ideally until the time of your retirement when your earned income declines. You determine the date the annuity payments start. Again, when the annuity matures, the principal is transferred to St. Andrews and can be designated to benefit a specific area at the college.
Pooled Income Fund: A pooled income fund operates much like a mutual fund: your contributions are "pooled" for investment purposes. In return, the net income is distributed to you on the basis of the number and value of shares held by each contributor. You are entitled to a tax deduction at the time you contribute to the Pooled Income Fund, and the deduction is calculated based on your age and the recent performance of the fund. Quarterly payments are taxed as ordinary income. At your death, the value of your interest in the pooled funds is transferred to St. Andrews for the particular program, endowment or other use that you directed at the time you made the gift. St. Andrews works closely with the Presbyterian organizations like St. Andrews and their donors.
Wills and Bequests: No matter what your age, it is important to make a will and regularly update it. Not only does it provide for your family by distributing your assets as you wish, it provides an opportunity for you to extend your stewardship for generations by including St. Andrews as a beneficiary. There are a variety of ways to provide for St. Andrews in your will. Some of the more common ways are:
Specific Bequest- directs your executor to give a specific amount of money or a particular asset to St. Andrews. This may be in the form of cash, securities, real property, or specific personal property.
Residuary Bequest- directs your executor to give all or a percentage of your estate to St. Andrews after other specific bequests have been fulfilled.
Contingent Bequest- directs your executor to give a certain amount of money or specific property to St. Andrews, if and only if certain primary beneficiaries predecease you. Naming St. Andrews as a contingent beneficiary may prevent assets in your estate from going to the state if you have no legal heirs.
Testamentary Trust- directs your executor to transfer assets from your estate to a trust that is created to provide income to your beneficiaries and the principal to St. Andrews at the time the beneficiaries die.
If you have questions about Ways to Give to St. Andrews or would like more detailed information about the giving opportunities described above, the staff of the Office of Institutional Advancement is available to assist you and your financial and legal advisers in establishing planned gifts that will maximize benefits for St. Andrews and for you. For more information, or to arrange an appointment, please contact:
Paul Baldasare, `77
Vice President for Institutional Advancement
St. Andrews Presbyterian College
1700 Dogwood Mile
Laurinburg, NC 28352
(910) 277-5660 (office)
(910) 277-5663 (fax)