We are grateful to each of our generous donors for their investment in Sauk Valley Community College. Planned giving provides a vehicle for you to ensure the financial well-being of SVCC. Your planned gift will provide the largest benefit to the College while reducing the income tax, estate and gift tax burden upon your estate and heirs.
With the guidance of your tax and legal counsel, SVCC Foundation can assist you in your philanthropic goals.
Gifts by Will
Cash, securities, real estate or personal property can all be given to charity through a well-planned will. Such a provision creates an unrestricted bequest, which assures that your gift will be used where it is most needed at the time it is received.
In addition to the unrestricted bequest, a gift by will may be designated for a specific program or purpose within the scope of our mission.
Charitable remainder annuity trust and Charitable remainder unitrust
Both of these plans are irrevocable trusts that feature income based on the value of the property donated. The annuity trust pays a fixed income based on the value of assets at the time the trust is created, while the unitrust provides a fluctuating income based on a fixed percentage of the trust's annual value.
When the trust is created, capital gains tax can be avoided or postponed, and an income tax deduction is available for a portion of the value of the property. In addition, capital gain and/or dividend income from the charitable remainder trust may be taxed more favorably than other income. Gifts made in this manner can result in tax savings as well.
Gift annuity agreement
Through a charitable gift annuity, one can make a gift to a charitable interest and receive fixed annual payment for life. Payment rates are based on the age(s) of payment recipient(s) when the gift is completed. Rates are generally higher for older persons.
An income tax deduction is allowed for a portion of the amount transferred. For a period of time based on life expectancy, only part of the payments will be taxed as income. If stocks or other property that have risen in value are given for a gift annuity that pays income to you and/or your spouse, a portion of the capital gain is never taxed, and the remainder may be gradually reported over a period of time. If you and/or your spouse are the only payment beneficiaries, the amount used to fund a gift annuity is generally not subject to estate taxes that might otherwise be due.
Whether it's an employer-sponsored retirement plan, a private fund such as an Individual Retirement Account (IRA), or a combination of the two, you can designate a charity as the final beneficiary of any remaining funds which you or your loved ones do not use.
This gift can be designated when the fund is first established, or it can be added later. The plan administrator will provide a change of beneficiary form upon request and you can indicate the amount you wish to allocate to charity.
Giving in this way can help maximize estate and income tax savings for your heirs.
For those over age 70 ½ it may also be possible to make immediate tax-free charitable gifts directly from an IRA. Check with your administrator for more information.
Charitable lead trust
A charitable lead trust can be created to provide income for charitable purposes for a designated period of time-typically 5, 10, 15, 20, or more than 20 years. Through the use of this plan, it can be possible to transfer assets to heirs while paying little or no gift or estate tax. This plan is especially attractive for those who believe they may still be subject to such taxes.
Revocable living trust
Just as in the case of a gift by will, through the use of a revocable living trust you can provide for eventual gifts or real estate, cash or other property, knowing that all or part of the assets may be returned upon request during your lifetime.
Since the property may be returned, there are no current tax advantages. Title to the property ultimately passes to charity under the terms of the trust agreement. It does not pass through the will, and may thus avoid the possible costs and delays of probate. Property passing to charity in this way is also free from the possible burden of estate taxes.
The income from the trust during lifetime can be paid to the donor, another person or a charitable interest as directed.