Planned gifts may benefit Springfield College, you, and your family by helping to save taxes while increasing your income.
The Office of Development can help you with everything from simple bequests to gifts of retirement plan assets, real property, appreciated securities, and the complete range of life income gifts, including charitable remainder trusts, and gift annuities.
If you have a question regarding bequests or other deferred gifts, their tax consequences, and their use at Springfield College, or if you think you qualify for membership in the 1885 Society, please contact Al Carrano at (800) 622-6072.
You also may use our Planned Gift Calculator, that can be an invaluable tool in helping you to determine the variety of financial and tax consequences in making your best financial plan. It is easy to use. Just follow the prompts. If you have questions or need assistance in using this software, please call us on our toll free number (800) 622-6072.
As a life income gift donor, there are various options for your consideration:
- Restricted gifts support ongoing College needs such as faculty salaries, undergraduate scholarships, and library needs. They can also be used to build and maintain facilities.
- Unrestricted gifts are, in a sense, most valuable, as they allow the College to cope flexibly and imaginatively with future needs and organizational changes.
- Endowed funds provide income every year in perpetuity to carry out the designated purpose of the gift.
- Expendable funds spend both the principal and the income on the designated purpose of the gift.
- Naming the fund: funds may be named in honor of the donor or to memorialize another person or persons. Named funds remain visible in the Springfield College community because of the people and activities they support. As a result, they also encourage others to give.
Types of Life Income Gifts
There are several principal types of life income gifts, giving you a range of choice in your investment and estate planning. They typically provide an attractive annual income for life, while offering tax benefits as well. One of them may be ideally suited to your particular circumstances. These gifts are described briefly below.
Charitable Remainder Unitrust--Percentage Unitrust
- The annual income is not fixed to a specific dollar amount, but rather is a percentage of the asset value, usually between five and seven percent.
- Provides for income growth as the trust assets appreciate.
- If required payments exceed income, a portion of the principal (including accumulated gain) will be distributed.
- Counters the effects of future inflation on a fixed dollar income.
- If the trust income exceeds the required payment, the excess is added to the principal.
Charitable Remainder Unitrust--Net Income Unitrust
- Provides greater income flexibility as it provides for payments of either: (1) a fixed percentage (at least five percent) of the trust's annual value or (2) the net income of the trust, whichever is less.
- Particularly suited to the younger donor who does not need large income payments now but who wants a means of building a fund for later years.
- Avoids the necessity of distributing principal while the property is held and builds up income credits for the future.
Charitable Remainder Annuity Trust
- Provides you a fixed income for life and then supports the Springfield College educational program of your choice.
- You and Springfield mutually agree upon the annual dollar amount paid when the trust is established. It usually varies between five and seven percent of the initial fair market value of the property transferred to the trust.
- Payments of the stated amount are made each year regardless of the income earned by the trust, and they are backed by the total amount of the assets in your trust.
In exchange for a gift of money or property to the College, Springfield promises to pay a fixed amount each year to you or your designated beneficiary for life.
Gift annuity contracts can be thought of as consisting of two parts:
- A current tax deductible gift to Springfield.
- The right to receive a fixed dollar amount of income each year for the life of one or two beneficiaries.
- The annuity distributed will depend upon the beneficiary's age at the time of the gift and the value of the property donated.
- If the gift is funded with cash, a substantial part of the annual payments may be entirely tax-free.
- Springfield College is responsible for managing the annuity.
Deferred Gift Annuity
- This is an excellent way to plan for definite retirement income.
- In addition to the benefits of a gift annuity, described above, deferring the date on which annuity payments begin, allows you to receive a larger income tax charitable deduction in the year of the transfer.
For more information about Springfield College's life income gift plans, please send an e-mail to the Office of Development. You can also call the Office of Development at 1.800.622.6072.
Contact the Office of DevelopmentCall the Office of Development at 800.622.6072.