When you include Endicott College in your estate plan, your generosity makes an Endicott education possible for deserving Gulls. We welcome the opportunity to work with you and your advisors to evaluate your charitable giving strategy to help students achieve their dreams well into the future.
Together we can begin the process, determine what works best for you, choose what will help you realize your objectives, and establish your Endicott Legacy. Below you can learn more about the many giving options available, each with certain tax benefits and some with income potential. Since everyone’s charitable goals, lifetime income needs, and family situation differ, we encourage you to speak with your accountant or adviser about what option best works for you.
Many alumni are using the below steps to create their Endicott Legacy. Click here to read their stories.
For more information, contact Bruce Paolozzi, Ph.D., Director of Planned Giving, 978-232-2373 or email@example.com. Paolozzi has nearly a decade of experience helping donors navigate the many ways to establish their legacy gift.
Charitable Bequests—A Gift in Your Will
A popular and enduring way to leave a legacy is through a simple charitable bequest, which is a gift made through your will. Bequests are popular because they are well understood. Anyone can create a will and leave a gift, regardless of your income level. When you make a charitable bequest, you retain full use of your property during life, so there is no disruption of your lifestyle and no immediate out-of-pocket cost.
To make a bequest, simply communicate that part of your estate will pass directly to Endicott. Since a charitable bequest can take many forms, you have remarkable flexibility in how you make this designation. For example, you can leave:
- a specific asset, such as your house, valuable art, gold coins, etc.;
- a specific sum of money;
- a percentage of your estate; or
- what remains of your estate after you have provided for all of your other beneficiaries, such as your children or grandchildren.
You can also designate exactly how you want your bequest to be put to use. We can help you by identifying specific Endicott College needs and writing up the details now so that your gift goes where you want at the right time. Or, you can provide an unrestricted bequest that can be used wherever it's needed most. Most importantly, you can change your bequest whenever you choose—you remain in complete control of the planning process.
Gifts of Retirement Account Assets
More and more donors use qualified retirement account assets in their charitable gift planning. The reason: retirement account assets left to loved ones may be subject to higher taxation than other types of assets. This is especially the case since Congress eliminated the ‘stretch’ IRA for non-spousal beneficiaries.
By using retirement account assets to make a gift (and selecting alternative assets to leave to family members) you may be able to reduce taxes that otherwise would be imposed on those assets and leave more to your intended beneficiaries. In other words, careful planning of which assets to leave to your children and grandchildren can reduce their tax burden.
Charitable Gift Annuity—Make a Gift, Receive Payments for Life
A gift annuity is a relatively simple agreement between you and Endicott College. When a charitable gift annuity is in place, we agree to pay you fixed payments for your life (and/or the life of your chosen beneficiary, such as your spouse). The amount of the annuity is based on the gift amount and age of the annuitant(s) at the time of the gift.
A gift annuity can be established with a modest contribution and it provides a number of very attractive benefits.
- You may fund your annuity with cash or marketable securities.
- You may qualify for an immediate income tax charitable deduction for the gift (subject to certain income limitations).
- You can potentially spread out any capital gains tax liability.
What's more, part of your annuity payment may be federal income tax-free for a number of years. As a donor, you can select the payment intervals (usually quarterly) and name the annuitant(s)—one or two persons.
Professionals and other highly compensated employees who frequently "max out" their annual retirement plan contributions because of restrictive rules and regulations may want to consider a deferred gift annuity strategy. Deferred gift annuities offer three important benefits.
- They can be used to supplement qualified retirement plan savings.
- You qualify for a current income tax deduction now during your high income years.
- You can postpone the start of annuity payments until later—usually after retirement begins.
Charitable Remainder Trust
One method of making a gift with a retained right to income is a charitable remainder trust. A charitable remainder trust can provide numerous benefits, including:
- an income for you and/or your beneficiaries for life or a period of up to 20 years;
- an immediate and substantial income tax charitable deduction (subject to certain income limitations) for itemizers;
- potential avoidance of current capital gains taxes when the trust is funded with long-term appreciated property;
- reduction of your estate to avoid or reduce death taxes; and
- a substantial reduction of probate costs, taxes, and other estate transfer expenses.
An Immediate Charitable Deduction
A gift to a charitable remainder trust qualifies for an immediate income tax deduction, even though income is to be paid to the donor (and/or other beneficiaries) for life. The exact amount of the charitable deduction depends on the value of the property transferred to the trust, the amount of income benefits that are payable each year to individual beneficiaries, approximate length of time the income benefits will be paid, and the interest rates prevailing at the time the gift is made.
Despite the tax and financial benefits of a charitable remainder trust, you should consider this kind of arrangement only if you and your advisors determine it is compatible with your overall estate, tax, and financial plan.
Make a Qualified Charitable Distribution from Your IRA
A qualified charitable distribution from an individual retirement account (IRA) is a good way for IRA owners age 70½ and over to support Endicott. It’s easy to do and your gift will make an immediate impact. Simply instruct your IRA custodian to make a distribution directly to Endicott College.
Although there is no tax deduction, the distribution is excluded from your income for federal tax purposes—no tax is due! Up to $100,000 of your gift (annual aggregate limit) qualifies for this favorable tax treatment. This is a tax advantaged way to fund an endowed scholarship for your Endicott Legacy.
A qualified charitable distribution from an IRA counts toward a donor's Required Minimum Distribution (RMD) if one is due. Federal legislation passed in 2019 and 2020 had an impact on RMD rules for IRAs, and RMDs are waived for most donors in 2020. Nonetheless, the option to make a tax-free distribution from your IRA to us remains available if you are 70½ or over. Contributions to your IRA can impact the amount eligible for a tax-free transfer.
Gifts of Stock
Gifts of long term, highly appreciated securities are the most common type of outright property gift. Typically, individual stocks are given, however, bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly* and these gifts extend financial possibilities because of the very attractive tax benefits.
For appreciated property held long term, the full fair market value of securities given to charity is generally deductible for itemizers. For example, if you give shares of stock that are now worth $10,000, you can deduct the full amount of the gift on your income tax return (subject to certain income limitations), even though you may have bought the stock for $1,000.
A charitable gift of securities held long term is not considered a sale of the securities and does not generate any capital gains tax, no matter the amount of the gain! This is a valuable tax incentive provided by Congress to encourage gifts of appreciated property. The result: a charitable deduction is allowed for capital gains that would have been taxed. And, if Endicott were to sell the securities, we would keep every penny of the proceeds since the College is tax-exempt.
*Some bonds and mutual funds cannot be transferred quickly; please contact our office to find out how to transfer your appreciated securities.
Gifts of Real Estate
When appreciated real estate is given to Endicott, capital gains taxes can be completely avoided and the full fair market value of the property is generally deductible for itemizers as a charitable contribution.
Gift of a Remainder Interest in a Personal Residence or Farm
A special provision of the tax law allows an immediate income tax charitable deduction for a gift of a remainder interest in your home or farm. With a remainder interest gift, you retain an absolute right to occupy or rent out the home or farm for your life (or the life of a family member). The property passes to Endicott only after termination of the life estate(s).
The charitable deduction allowable for this future gift is the present value of the property. The age of the life tenant is the primary factor in determining the present value of our deferred interest and the charitable deduction. The gift is deductible in the year of the transfer (subject to certain income limitations and assuming the donor itemizes).
Gift of a Fractional Interest in Real Estate
Federal tax laws let donors take a charitable deduction for gifts of fractional interests in real estate. This type of gift can be especially rewarding when you own a vacation home that you use only part of the year.
Example: Mary and Jim own a $300,000 vacation home that they use for only two months of the year. They can give our institution a 50% interest in the property, qualify for a tax deduction for the value of our interest in the property, and still have a right to use and occupy the property for up to half the year.
Gifts of Life Insurance
Life insurance is also an excellent tool for accomplishing philanthropic goals while realizing other important financial objectives. Indeed, life insurance can empower individuals to make charitable gifts they never would have dreamed possible.
Making a gift of life insurance is quite simple. If you are the insured policy owner you simply transfer physical possession of your policy to us and file an absolute assignment or transfer of ownership form with your insurance company. Your company then will send a letter to us showing that we are the sole owner of the policy.
Example: Emmett owns a $100,000 life insurance policy with a cash value of $40,000. No further premiums are due and he no longer needs the coverage. He can assure that Endicott will receive $100,000 at his death by making the College the beneficiary, or he can transfer ownership of the policy now. When he transfers ownership, Emmett receives an itemized charitable deduction equal to the lesser of his cost basis or the policy's replacement value.
Make an irrevocable gift to a fund maintained by a charitable organization and enjoy an income tax charitable deduction for the full amount of the gift. As the name implies, the donor can advise the fund regarding distribution; however, donors may not place material restrictions on the fund.
Revocable Living Trust
Create a trust that can be revoked or changed during your lifetime, which directs the disposition of your assets including charitable gifts. A revocable living trust can minimize the cost and delays associated with probate, facilitate asset transfer, provide privacy, and, unlike a will, assure asset management continuity in the event of disability.
Retained Life Estate
Donate a home and retain the right to live in the property for the rest of your life. Qualify for a current income tax charitable deduction on the value of our remainder interest in the home.
Charitable Lead Trust
Create a charitable lead trust that benefits us for a number of years, returns assets to your beneficiaries, and minimizes taxes.
Closely Held Stock
Donate closely held stock. You enjoy a charitable deduction equal to the appraised value of the stock with no capital gains tax due.
Tangible Personal PropertyDonate gift property that can be used for our exempt purposes, and qualify for an income tax deduction for the full fair market value.
We hold webinars on different estate planning topics. Check back regularly to find out about the schedule for the next session.
Myrt Harper Rose ’56
Endicott College Trustee
Endicott College has always held a special place in my heart, and I have returned to campus many times since my days as a student. I have watched with pride as Endicott has grown into the distinguished institution it is today, and have had the pleasure of meeting dedicated, passionate students who enjoy all that Endicott offers. After learning that over 90% of Endicott students require some form of financial aid, I was inspired to bequest a scholarship to Endicott. I am gratified knowing that future Endicott students will have the opportunity to thrive and receive their degrees from my wonderful alma mater.
I encourage everyone to bequest a gift to Endicott in their will. Your gift will help build a solid and lasting legacy of caring alumni making a difference in the lives of exceptional students fulfilling their dreams at Endicott.
Judith Dodge Chamberlin ’66
When I celebrated my 50th reunion at Endicott, I felt that a great level of excitement and pride permeated the entire weekend. After this wonderful experience, I knew the time was right for me to make a philanthropic commitment to my alma mater.
I informed Endicott that I have committed a portion of my estate to the College, enrolling me as a new member of the Legacy Society. Endicott is where it all began for me, and I could not be more grateful to my alma mater for giving me the confidence and skills that enabled me to have such a rewarding career.
It gives me great pride to know that my planned gift will be part of Endicott’s future endeavors. I feel my bequest gift will help ensure that Endicott will continue to thrive and grow its reputation as a leading institution of higher learning.
Please consider joining me with a planned gift to secure Endicott’s great continued success for today’s and tomorrow’s students.