Each year it is the generous spirit of friends that makes our work possible. This generosity is evident in countless ways, including gifts of financial support. And while giving may seem a straight forward discussion, there are many ways that friends choose to make a gift to the HCC Foundation. Some careful planning will ensure that your objectives are met. Here is an overview of some of the most common ways to make a gift and the benefits of each.
The HCC Foundation’s DOUBLE PLAY challenge allows individuals, businesses and civic organizations to have their donation to Highland Community College matched dollar for dollar. Donors can choose to donate to EITHER the “Major Gift Campaign (MGC),” which supports the Stamm Health Science Nursing wing and nursing and allied medical training programs as well as Wind Turbine technology programs OR “the greatest needs of Highland Community College.”
For the next five years, two donors have pledged to match gifts to the Major Gift Campaign or “the greatest needs of Highland Community College”--- an anonymous donor from Jo Daviess County for $50,000 per year and an anonymous donor from Stephenson County for $10,000 per year. For 2013, they are also being joined by Ultrasonic Power Corporation of Freeport, which will provide an additional $10,000 for matching funds. This brings the total matching pool to $70,000 for calendar year 2013.
Download a printable pledge form.
The most common way to make an immediate gift is by writing a check. This type of cash gift provides immediate liquidity for us and generates a charitable income tax deduction for you, the donor, in the year of the gift.
Giving stocks or bonds may provide greater tax benefits. If you have owned securities for more than one year and the fair market value has increased since you purchased them, you can avoid capital gains tax and receive a charitable income tax deduction equal to the fair market value.
A gift of real estate that has been held for more than a year also has the advantage of providing you with a charitable deduction based on the current fair market value, as well as bypassing capital gains tax on the appreciation.
Selected artwork, books and antiques are examples of gifts of personal property that can, in certain situations, be an appropriate gift. However, to ensure that any tangible personal property qualifies for a favorable tax deduction, please contact the HCC Foundation office prior to making a gift.
Sometimes called deferred gifts, the term planned gifts refers to specific strategies that (in most cases) benefit charity at some point in the future while offering immediate benefits to the donor.
The gift of a paid-up life insurance policy is a good example. By designating the HCC Foundation as owner and beneficiary of such a policy, you will receive a charitable income tax deduction that, in most cases, is equal to your cost basis in the policy.
The benefits of planning compound when you utilize one of a number of strategies that generate income as well as provide a number of other attractive benefits.
The Gift Annuity is a great example of how a gift generates income for the donor. This is actually a contract between a donor and a charity that is part gift and part annuity. In addition to the annuity payment, the donor receives a charitable income tax deduction and a portion of each annuity payment may be tax free.
The Deferred Payment Gift Annuity in which annuity payments are delayed for a number of years, offers rates that make it an attractive supplement to retirement income.
The Charitable Remainder Trust is perhaps the most versatile charitable giving tool. With the CRT, it is possible to bypass capital gains on tax on the sale of highly appreciated assets, generate an increase inincome, receive an attractive charitable income tax deduction, and fulfill your philanthropic objectives.
The CRT is a legal trust that can be constructed to produce a predicable annuity payment each year or take advantageof investment growth opportunities with income payments based on a growing trust principal.
Please see our information on charitable bequests here
If you would like more information on the strategies discussed here, or any other planning option, please feel free to contact the HCC Foundation office.