This will ensure that your wishes are honored while your personal tax and income situation is taken into account and that all this is done within a legal framework that complies with all applicable state and federal laws.
You can select the most appropriate way to make your contribution to the University of Aberdeen Foundation from a variety of methods that take into consideration your wishes, the size and duration of your gift, and your personal financial circumstances.
You can donate online or make a donation by check made payable to the 'University of Aberdeen Foundation' and mailed to the University of Aberdeen Foundation office. Or below are some further suggestions which you may wish to consider.
- Gifts of Securities
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By gifting substantially appreciated securities (including mutual fund shares that have been held for at least 12 months) to the University of Aberdeen Foundation you realise a dual benefit. You avoid paying capital gains tax that would have applied to the appreciation when the securities were sold, and you may qualify for a charitable deduction on the market value of the gifted securities. Here it is very important that the securities be transferred directly to the Trust and not sold first, so as to avoid paying any capital gains tax.
- Charitable Remainder Trusts
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A charitable remainder trust provides a stream of income to you or someone you designate for life or a term of years (up to 20). At the end of the trust term, the assets are distributed to the University of Aberdeen Foundation. There are two kinds of charitable remainder trusts: the more popular unitrust (CRUT), which pays a variable amount from year to year based upon annual valuation of the trust principal, and the annuity trust (CRAT), which pays a fixed dollar amount annually.
- Charitable Lead Trusts
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This kind of trust pays income to the University of Aberdeen Foundation for a specified period of years, after which time the assets in the trust can either revert to you, or pass to beneficiaries you designate. It is typically funded with income producing assets that are expected to appreciate in value.
A Charitable Lead Trust might be the most appropriate when dealing with closely held stock and where maintenance of family ownership and control is a major consideration.
- Charitable Bequests
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For those who want to make a meaningful contribution to the University of Aberdeen Foundation, but do not want to relinquish the control and use of your assets and income during your lifetime, the inclusion of a bequest in your will or codicil, designating the Foundation as a beneficiary, is an excellent way to accomplish this goal, and may also result in tax savings for both your estate and its heirs. This method can also be used with retirement plans, life insurance policies, and trusts (including the charitable trust described above).
- Other Methods of Giving
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In addition to the methods outlined previously, there are other ways to make tax beneficial gifts to the University of Aberdeen Foundation:
- Charitable Gift Annuities
- Gifts of Real Estate and Personal Property
- Life Insurance
- Retirement Accounts
- Please contact us for more information on these.
- Important Note
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With all tax-effective gifting methods, there are many variables to consider. While we are happy to discuss these with you, we strongly urge you to contact your tax advisor, as they may be aware of factors affecting your particular situation that could affect the tax treatment of your gift.
Contact us for more information on any of these methods of gifting to the University of Aberdeen Foundation, including our free brochure on Tax Effective Giving.