Ways to Make Your Gift
Types of Gifts Accepted by the University of Redlands
IRA Charitable Rollover-update Dec. 19, 2014
President Obama has just reinstated a law that allows you to make a tax-free gift to Redlands from your IRA. If you have already made this type of gift in 2014, you’re in luck! But if you’ve been waiting to make your IRA transfer, you must act right now to take advantage of this opportunity. Under the recently reinstated law, you may move up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money. Known as the IRA charitable rollover, this law has been extended only to the end of 2014.
How It Works:
- If you are 70½ or older, you can give up to $100,000 directly from your IRA to charities such as Redlands.
- The transfer generates neither taxable income nor a tax deduction, so you still benefit even if you do not itemize your tax deductions.
- If you have not taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
- The transfer may be made in addition to any other charitable giving you have planned.
- If you made a gift of up to $100,000 from your IRA in 2014, your gift will qualify under the new law.
- To aid you in requesting a transfer, use the sample letter requesting a direct charitable distribution from an individual retirement account.
- If you have already made a qualifying gift in 2014, contact your advisor to make sure your gift is properly reported on your 2014 income tax returns.
If you are interested in this unique opportunity to help current students, or if you have any questions, please contact Ray Watts (909-748-8358 or firstname.lastname@example.org) right away.
Cash gifts, which can be made using a check or credit card, are the most common and simple type of gift. Cash gifts allow the University to put your contribution to work right away, helping to improve the student experience at the University of Redlands. They are also fully tax deductible for federal income tax purposes.
Gifts of appreciated securities—stocks and bonds—provide important tax advantages to the donor. The full fair market value of the donated appreciated securities is fully deductible as a charitable contribution for federal income tax purposes.
Setting up an endowment to benefit Redlands students in your family’s name, by means of a bequest in your will or living trust, is a wonderful way to support your philanthropic priorities in perpetuity.
Gifting a residence, vacation home, commercial building, land or vacant property can provide many tax advantages. It can also provide lifetime income.
Retained Life Estates
Donors can contribute a residence, vacation home or farm while retaining the right to live in and use the property. Donors may receive an income tax deduction.
Retirement Plan Assets
Using retirement plan assets to make a charitable contribution gives donors financial and tax advantages. Naming the University of Redlands as a beneficiary of a retirement plan—including IRAs, 401(k)s and profit-sharing plans—may eliminate estate and income taxes.
By assigning ownership of life insurance to Redlands, donors can receive tax deductions for the cash value of the policy and the yearly premiums.
Please contact your personal tax advisor for details on potential tax savings in your specific case.