Bethany University Capital Campaign

There are a variety of ways to make a charitable gift to the Bethany University Capital Campaign. While pledges and cash gifts are the most popular, there are other creative and exciting strategies available which may not only address your interest in supporting Bethany, but also provide you with increased income and tax benefits. Some of these possibilities, especially with life income programs, may actually allow you to make a larger gift at a lower cost and receive unexpected benefits for you and your family.

The following is a summary of the more common ways in which you could support the Bethany University Growing by Faith Capital Campaign:

Cash Gifts

• Tax deductible if you itemize deductions.
• Deductible up to 50 percent of your adjusted gross income in any one tax year.
• Excess can be deducted over the next five years.
• Actual savings from the deduction depend on your tax rate and other factors. Generally, the higher your tax rate, the greater your savings.

Commitments

• Customarily made payable over a three year/36 month period.
• Payments are deductible in the year they are paid.
• Commitments are desired in a campaign since many donors find it possible to make a larger gift than current resources might allow.

Appreciated Property (Real Estate, Securities, Closely Held Stock)

• If qualified as a long-term capital asset (12 months and one day), give property outright.
• A gift of property avoids capital gains tax due if you were to sell the property yourself.
• Receive a deduction for full value of gift, limited to 30% of your adjusted gross income.
• Excess beyond 30% can be carried forward for five years.

Property That Has Lost Value

• Sell the property, take the loss for tax purposes, then contribute the cash.
• Receive a deduction for both the loss and the charitable gift.

Real Estate

• Real estate can be given outright.
• Possible to make a gift of residence, farm or vacation home, reserving the right to occupy it for as long as you or your spouse live.
• If gift is irrevocable, qualifies for an immediate tax deduction for the present value of the remainder interest in the property.

Securities

• Assign directly to Bethany University or transfer through your broker.
• Amount of your contribution is the fair market value on the day of the transfer.
• Consider selling depreciated stock and donating proceeds to Bethany University. The gift of proceeds is deductible as is the loss on the stock.
• Consider donating appreciated stock to Bethany University.

Closely Held Stock

• Produces a current tax deduction equal to the fair market value of the stock.
• Corporation may then purchase and redeem shares of the stock from Bethany.
• Receive a tax benefit and the outstanding stock is returned to your business.
• If a corporation is concerned with an accumulated earnings tax assessment, a gift could reduce this liability.

Gifts-In-Kind

• Acceptable if it meets the requirements and specifications of the project and the architect.
• Normally, these represent materials and/or services that would normally be performed by a contractor/sub-contractor.
• The donor must establish a “fair market value” for the materials and/or services being given.
• Any gift-in-kind must be approved by the Bethany University Board before it is accepted.

Charitable Gift Annuity

• Provides a fixed income for the lifetime(s) of one or two annuitants.
• Amount paid is determined by rates recommended by the American Council on Gift Annuities.
• The older the annuitant, the higher the level of income.
• Portion of gift and income are tax deductible.

Deferred Gift Annuity

• Offers increased income and tax benefits.
• Basically all the features and benefits of a gift annuity.
• Income is delayed until a future date you choose, often at retirement.
• Rate of return and the tax deduction depend on length of annuity income deferred.

Charitable Lead Trust

• Set aside assets for charitable use for a limited period.
• Gift is invested to provide income to Bethany University.
• Assets in the trust are returned to you or your family at a date you specify.
• Can fulfill a gift pledge while reducing estate and gift taxes which might otherwise be due on assets given outright to heirs.

Life Insurance

• For paid up policy, consider making Bethany University the sole owner and beneficiary of the policy.
• Receive an income tax deduction for roughly the cash surrender value of the policy.
• If policy is not fully paid, continue to pay premiums. Receive a tax deduction for the annual premium amount.
• Life insurance may also be used to benefit heirs by replacing the value of assets gifted to Bethany University.

Bequests

• Outright bequests, as well as certain bequests in trust, are not subject to estate taxation.
• Actual cost is less than the face value of your gift because of the tax benefits realized through charitable contributions.
• Bequest can take any of the following forms:
  1. Bequest of a dollar amount or of particular securities or other property.
  2. Residuary Bequest of all or a portion of your estate, after the payment of specific amounts to other beneficiaries.
  3. A Contingent Bequest to take effect only in the event that the primary beneficiaries under your will die before you.
  4. A Testamentary Trust, which takes the form of a charitable remainder annuity trust or uni-trust, the corpus of which will be paid to Bethany University upon the death of the trust’s income beneficiary.
• Often a bequest can be arranged simply with the addition of a codicil amending an existing will.
• Bequests are not ordinarily counted in the campaign although these legacies are most welcomed and gratefully received by Bethany University.