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How to Give
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Thank you for your consideration of the WIBA Scholarship program. It’s never been easier to donate. Here are some ways you can give:
Outright Charitable Gift
This gift is used in order to meet critical current needs of the WIBA Scholarship Fund or to fund an important project. Benefits of this type of gift are income tax deduction, capital gains tax avoidance, and federal estate tax reduction. These gifts may be made in the form of a check, a gift of marketable securities, a gift of a closely held stock, a gift of real estate, life insurance as gift or replacement, gift oftangible personal property, or the bargain sale as an outright gift.
Charitable Remainder Trust
A charitable remainder trust is established for the life of the donor (also trustor or grantor) and/or for the life of any beneficiary (-ies) and is irrevocable. Once established, it cannot be changed. If it is desired, the income period of the trust can be established for a specified period of time not to exceed 20 years. The 20-year maximum does not apply if the trust life is based on the life expectancy of the incomebeneficiary (-ies).
Because the income is paid to one or more parties and, at the end of the trust's life, the principal and any undistributed interest is paid to a different party, a charitable remainder trust is called a split interesttrust. The income portion of the trust may be either an annuity income or a unitrust income.
An annuity income is calculated at the time the trust is established in the trust agreement. It is a fixed amount of dollars based on the then market value of the trust. If the assets of the trust go up in value, the income portion does not change. With a unitrust, the assets of the trust are revalued annually and the percentage rate established in the trust agreement determines the dollar amount of the unitrust interest. If the value of the principal in theunitrust declined, the value of the interest portion of the unitrust would decline as well. The unitrust interest value would increase if the value of the trust assets increased.
A charitable remainder trust is an attractive planning tool for the disposal of highly appreciated assets. While the assets revert to the charity rather than the heirs of the estate, the use of an irrevocable lifeinsurance trust in conjunction with a charitable remainder trust could replace the asset's value for the heirs.
Charitable Gift Annuities
A gift annuity is an agreement between a donor and a charitable organization in which a donor transfers an asset to a charitable organization, and the charitable organization returns to the donor a percentage of the value. The annuity can be set up over a period of one or two lifetimes - one of which is often the donor's - at a percentage rate established at the start. This type of gift is an excellent way to help the charitable organization fulfill its mission and ensure a fixed income for life.
Making a Gift in your Will
There are several ways to leave behind a legacy in your will. An outright bequest means you can leave asum of money, specified personal or real property, or a share of your estate's residue. A contingent bequest provides that the money, property or share is to go to some individual if that person survives you; otherwise, it is to be distributed to the WIBA Scholarship Program. A restricted gift directs WIBA how you want it used or by allowing WIBA to expend only the income earned on the principal. A memorial gift can be bequest in memory of you or a loved one.
Matching Gifts
Financial support is provided by companies through employee matching gift programs. These companies match their employees' donations to nonprofit organizations, enabling their employees to multiply their support by doubling, or in some cases tripling, employee gifts. Suggested assets for funding include: cash, stocks, mutual funds or pledge.
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Gifts-in-Kind
Gift of physical item(s) intended for use by WIBA in its scholarship programs. Suggested assets forfunding include: art works, books, equipment, antiques, coin collections, historical documents and furnishings. Fill out gift-in-kind form. In-kind gift in excess of $5,000 requires donor to complete IRS form 8283. Tax deduction based on the value of the gift. You can avoid capital gain tax when an appreciated asset is donated and WIBA can use the item for scholarship purposes.
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Real Estate
Commercial, residential and business real estate, including farms and vacation homes can be used. Tax benefits: If you've owned the property for more than one year, its fair market value (determined by the appraisal) is the amount of your charitable deduction when you donate the property outright. If you've owned the property for less than one year, the cost basis is your tax deduction when an outright donation is made.
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Life Insurance
The suggested assets for funding: a life insurance policy you currently own or purchase specifically for the gift. Also, employment-related policies can be good gifts. Option 1: Make the WIBA Scholarship Program the owner of the policy. Option 2: Make the WIBA Scholarship Program the beneficiary of the policy.
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Securities
These include publicly traded securities and mutual funds. The suggested assets for funding are stocks or mutual funds, which have appreciated in value. A letter to your stockbroker from you may be necessary to make the transfer. This donation allows a donor to make a significant gift that involves less out-of-pocket cost. Stocks, which have appreciated in value, provide the most tax benefits. Charitable deduction for market value if stock owned more than one year. There is a charitable deduction for cost basis if owned less than one year.
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If you have any questions, please call 316-267-8987 or 1-800-279-9422 or email us at
admin@wiba.org.
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