Reflections Planned Giving Society

A gift by will is the easiest and most popular way to support the University of Southern Indiana without parting with assets during an individual’s lifetime. Gifts can take several forms: specific bequests of property, bequests of stated dollar amount, bequests of a percentage of an estate, or bequests of the remainder of the estate after individuals have provided for their loved ones.

Important estate tax savings can result from such contributions since bequests to the USI Foundation may be deducted entirely from the taxable estate in determining estate taxes. Often such bequests will place the estate in a lower tax bracket.

Several USI alumni and friends have found life insurance to be the least costly and the most flexible deferred gift available. By purchasing a life insurance policy that names the University of Southern Indiana Foundation as the owner and beneficiary, individuals receive a charitable gift deduction for each premium payment. By donating an existing, paid-up life insurance policy, a donor receives a charitable gift deduction approximately equal to the cash surrender value.

For individuals who prefer the certainty of a fixed income amount paid on a predetermined schedule for life, an annuity may be the best choice. The rate paid is determined at the time the gift is made and is based on the annuitant’s age.

Annuity assets are commingled with the USI Foundation endowment, and the program is backed by the total assets of the University. Payments are generally made each quarter, and a portion of each payment received is a tax free.

Gift annuities generate an immediate charitable income tax deduction. A substantial portion of capital gains is eliminated and the balance can be spread over the donor’s life expectancy.

Deferred payments also are available for individuals at any age who want an immediate federal income tax deduction but do not need to income at the present time. A deferred-payment gift annuity pays a higher rate of return due to the deferral of payments.

The most recent gift annuities rates can be found here.

A charitable remainder trust provides a donor with the flexibility to designate a gift for the University of Southern Indiana today, to retain an attractive income during their lifetime or the lifetime of another, and to secure an immediate federal income tax deduction for the gift.

The gift asset is transferred into a trust, which then pays a specified income to the donor or family member(s) during their lives before distributing the trust assets to benefit the University. The trust department of the bank often serves as the trustee, offering both trust (fixed income) or unitrust (variable income). Or, if the individual prefers, the USI Foundation may serve as trustee, providing responsible management services.

The transfer of long-term appreciated property such a securities or real estate to a charitable remainder trust avoids capital gains tax at the time the gift is made. Gains on sales made by the trustee also are not taxed to the trust. Income to the beneficiary is taxed preliminary at the rates of ordinary income.

Charitable lead trusts can effectively produce dramatic gift and estate tax savings for individuals and their families or other heirs, while preserving important family assets. Under these trusts, income from your income-producing assets, such as cash or securities, goes to the USI Foundation for a fixed period of years. At the end of the specified period of time, the assets are returned to the donor or other named beneficiaries.

The gift of a residence, farm or vacation home can be made today without giving up the use and enjoyment of the property during the donor’s lifetime.

This type of gift is easy to complete and generates a significant federal income tax deduction. The donor and spouse or other family members may continue to live in, maintain, and enjoy the property as long as they wish. Upon the death of the last beneficiary, the property will transfer to the USI Foundation.

Tangible personal property such as art, music or library collections can be valuable assets for giving. Not only does the donor have the satisfaction of sharing their collections, but they will receive valuable tax benefits as well. If the gift is of long-term personal property (property which has been owned for more than one year) and is related to a purpose or function of the University, individuals are entitled to a federal income tax deduction for the full fair marker value of the property at the time it is transferred. Generally, “related use” means the gift must be used by the University and not sold at the time of the gift.

If a donor donates short-term personal property which has been owned for less than one year, they will receive a federal income tax deduction only for the cost of the property regardless of its present fair market value.