Gifts of Cash and Other Assets

You also can arrange for lifetime income to be paid from retirement funds to a family member after your death, with a gift to the CF Foundation at a later date. Your retirement plan probably accounts for significant assets in your estate. At the same time, your pension plan assets could be subject to taxes to over 70% when the proceeds go to family members, with your heirs receiving only a fraction of the value of your retirement plan after the payment of the taxes. This is caused by the imposition of both the estate tax and a tax on income in respect of a decedent, commonly referred to as IRD. IRD is income that was earned by the plan participant but was not taxed to that individual before death. As a result, any of your heirs receiving distributions from your retirement plan assets after your death, must pay an income tax on the proceeds. If your assets are left to one of you children, for example, your children would be required to pay personal income tax on the funds they receive and the amount of their inheritance could be reduced by more than 45% (combined individual state and federal rates).

To make the CF Foundation a beneficiary of a part, or all, of any of the above mentioned options, is easy to accomplish. We will be pleased to provide you with the appropriate language to use, and your employer, attorney or other financial advisor can assist you in making the necessary changes in your beneficiary designation.

Life insurance enables you to leverage in the future your actual cash gift today. Life insurance can combine with other gifts to replace dollars for your heirs that you decide to give to the CF Foundation. For example, by combining a charitable remainder trust and an irrevocable insurance trust, you can make a charitable gift to the CF Foundation and replace the assets with life insurance for the benefit of your heir. To accomplish this, you would simply use all or part of your trust or annuity income, and any tax savings that resulted from the gift, to buy an insurance policy for an amount equal to the charitable gift. By naming a spouse or child as the beneficiary, you can pass an asset of equal worth to your heirs while still accomplishing your philanthropic objectives.

You can make this gift by a deed transfer to the CF Foundation during your lifetime, or through your will. Your real estate gift may be made outright, or through an income-producing gift arrangement. While most people give their entire interest away, you may give only a portion of the property (an undivided percentage interest) while retaining the rest for other purposes. You may deduct the value of the gift up to 30% of your adjusted gross income, with an additional five-year carry forward period.

Your tax deduction is based on the current market value of the property at the time you make your gift as determined by appraisal (within six months of gift). If your property has appreciated in value, you may avoid tax on the capital gain, reduce your taxable estate by the value of the gift, and receive a charitable contribution deduction for the full fair market value. In order to avoid capital gain tax, it would be necessary to gift your property to the CF Foundation prior to any binding agreement to sell. The Foundation may sell to an interested party immediately after the gift is made. Property sold within two years from the date of the gift requires reporting to the IRS with no tax consequence if the sale is at or above the appraisal value.

>Tangible gifts that benefit the college's health occupation programs may be eligible for state match funds that are added to the Health Occupations Endowed Scholarship Fund.

We invite you to contact the Foundation in advance to discuss your possible gift, including its condition, possible use, and other special concerns that may be important to you. A decision will be made quickly as to whether the gift can be used by the college and will be accepted. Once possession is taken, the college reserves the right to use the gift in any way that benefits the college, unless a prior agreement has been made with you. We will officially acknowledge the current market value if we have a professional appraisal and the value is over $500. If you do not require a specific market value, then we will give you a general acknowledgment and you may list your own value.

By deeding the property to the CF Foundation, you retain the right to use it for life, in essence, to use it and care for it the same way you would if you continued to own the property. You may wish to stipulate that your spouse may live there for his/her lifetime or that you continue to live on the property for a given number of years. You will receive an immediate income tax deduction for the contribution equal to the value of the remainder interest given to the CF Foundation.