Gifts of cash provide you with the maximum allowable charitable deduction – more than gifts made using assets other than cash. The IRS allows you to claim a charitable deduction for gifts of cash up to 50% of your adjusted gross income each year.
Gifts made using checks and credit cards are considered gifts of cash and receive the same tax benefit.
Any excess deduction can be carried forward for up to 5 additional tax years if needed.
By using an asset other than cash to make a gift, you can double your benefit.
Avoid or delay capital gains if the asset has appreciated.
Receive a deduction for the full value up to 30% of adjusted gross income. Any excess deduction can be carried forward for up to 5 additional tax years if needed.
Did you know you could set aside a portion of your estate for charity while leaving the bulk to heirs? Many people decide to leave a percentage of their estate (such as 10%) to charity and the rest to family.
Or, you can provide for family and friends first, then leave the rest of your estate -- known as the "residue" -- to charity. Either of these methods can be established through a bequest in your will or living trust.
You place assets in trust for a number of years. You select the time frame.
During that period, we receive income from the trust. You select the payout percentage. You receive a gift tax deduction (note: you may owe gift taxes).
At the end of the trust, your named heirs receive the trust assets.
No additional gift or estate taxes are due when your heirs receive the trust assets. The value of the assets were “frozen” when they were originally transferred into the trust.
This arrangement may be right for you if:
You would like to pass assets to heirs in a tax-efficient manner.
The assets in question are expected to appreciate substantially over time.
Did you know you could set aside a portion of your estate for charity while leaving the bulk to heirs? Many people decide to leave a percentage of their estate (such as 10%) to charity and the rest to family.
Or, you can provide for family and friends first, then leave the rest of your estate -- known as the "residue" -- to charity. Either of these methods can be established through a bequest in your will or living trust.
1. What assets can I use to make a gift to Fordham University?
Generally speaking, during your lifetime you can make an outright
gift of cash, securities or
other property (e.g., real estate, personal
property).
Through your will or living trust or
with a distribution from a retirement
plan ,
you can designate a gift to the University.
2. What sort of gift plans also return income
to me?
You have the option of making a gift that returns income to you,
your spouse or other individuals, such as a charitable
gift annuity, or a charitable remainder unitrust or annuity
trust.
3. What tax deduction will I receive for
my gift?
Your tax benefits will depend on several factors: the type of gift,
the time at which it is made, whether it is outright or deferred, and whether it includes income payments. In general, though, here are some guidelines:
Outright gifts to Fordham generate
a full income-tax charitable deduction. Outright gifts of appreciated
securities are deductible at fair market value, with no recognition
of capital gains.
Gifts of personal property, like art, books and collectibles,
are fully deductible so long as they are relevant to the University's mission.
We can advise you on this point. Click
here for contact information.
Bequests do not generate
a lifetime income tax deduction. However, they are exempt from estate
tax.
The charitable deduction for a gift that returns
income to you, such as a charitable gift annuity or a charitable
remainder trust, is the fair market value of the gift asset minus
the present value of the income interest you retain.
4. I want to set up a life insurance policy,
name Fordham University as beneficiary, but retain ownership
of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift"–they'd
say that, as the owner of the policy, you could change the beneficiary
designation to a friend or family member. We must be made the irrevocable
owner of the policy for gifts offsetting premium payments to be
deductible.
5. I’ve heard that transferring gifts
of IRA assets to charity is advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b) and Keoghs
allow individuals to defer paying taxes on a portion of their income
until the assets are withdrawn during retirement years. However,
after a person's death, these accounts are exposed to income
and in some cases estate taxes, at a combined rate that could rise to 75 percent or
even higher on large taxable estates. The only way to avoid both income and estate tax on your retirement plan is to give those assets to a charity. By designating Fordham as your beneficiary, you will ensure 100 percent of the value of your account benefits the University.
6. I'd like to donate a painting. Would the University
determine its value for my income tax deduction?
The IRS requires that donors of artwork
and collectibles secure an independent appraisal of the items
to establish fair market value. The appraisal has to be related
to the gift, too–an insurance appraisal won't suffice.
We can assist you on this point.
7. I'm interested in establishing a charitable
gift annuity. What financial provisions will Fordham make for the
income payments to me and my spouse? Your charitable gift annuity will be treated as a general obligation
of Fordham University, backed by all of its assets. Fordham
has an unbroken record in making timely payments to our annuitants,
and that ongoing responsibility is a key element in its financial
policies.
8. If I create a bequest or life-income gift,
would Fordham continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial
strength and our ability to meet the challenges and opportunities
the future will bring. However, today's efforts are supported through
annual gifts and we greatly appreciate and encourage any annual
support you may want to consider.
