With careful planning, there are many ways you can support Wittenberg's future while simultaneously meeting some of your own personal financial goals and objectives.
Today, with changing patterns of wealth and tax laws, philanthropic interests and tax savings are often linked. Knowledge of tax laws and judicious planning may enable one person of modest means to make a gift in exchange for a life income; it may permit another to make a significant gift that is paid in part from tax savings. Planned giving is the process by which the philanthropic desire is guided and shaped by financial and estate planning considerations.
Planned gifts, either standing alone or as part of your overall giving, can help you make that special gift that otherwise seemed impossible.
- Gifts That Pay Income for Life
- Gifts by Will
- Gifts of Retirement Plan Benefits
- Gifts of Life Insurance
Donors who choose to support the College through any of the above mentioned mechanism are eligible for membership in the David Hawley Associates, Wittenberg's planned giving society.
Thinking about a planned gift? Contact Us to see if this option is right for you. Want to include Wittenberg in your will? Use our Suggested Language for a Bequest (pdf) document to make the process easier.
A charitable gift annuity is a contract between you and Wittenberg University. In exchange for your gift, the university agrees to pay you and/or another income beneficiary a fixed dollar amount for life. The annual annuity rate is determined by the age of the income beneficiary and by the annuity rates determined by the American Council on Gift Annuities. A charitable gift annuity offers a range of benefits:
- You will receive a fixed income from your gift annuity for your life;
- Your gift annuity payments are backed by the full assets of the university;
- You can enjoy favorable capital gains tax treatment when you gift appreciated assets to the university;
- A part of your gift annuity payment may be a tax-free return of principal;
- Your gift annuity income may be greater than the income from your current investments.
Deferred-Payment Charitable Gift Annuity
A deferred-payment charitable gift annuity involves the current transfer of cash or marketable securities to Wittenberg University in exchange for the university’s promise to pay the donor an annuity starting at a future date, such as at the donor’s retirement. The deferred-payment annuity may be an appropriate gift planning tool for that individual who is still active in their career, who has a high current income, who will benefit from a current charitable tax deduction, and is interested in building future retirement income. Benefits afforded by a deferred-payment gift annuity include:
- You will enjoy favorable capital gains treatment when you transfer appreciated assets to Wittenberg;
- You will receive a federal charitable income tax deduction for a portion of your gift;
- You determine when you wish to begin receiving annuity payments;
- A part of your annuity payment may be a tax-free return of principal.
Charitable Remainder Annuity Trust
The charitable remainder annuity trust offers a fixed income payout that provides income for life or for a term of years. You determine how much will be paid out. Upon termination of the trust, the assets will be paid to Wittenberg for the purposes you determine.
A charitable remainder annuity trust offers a range of benefits:
- You will receive favorable tax treatment when you transfer appreciated assets to your annuity trust;
- You will receive an immediate income tax charitable deduction for a portion of your gift;
- You will receive a fixed amount of income each year of the trust;
- Your annuity income may be higher than the income you receive from your current investments.
Charitable Remainder Unitrust
A charitable remainder unitrust provides for the distribution of a percentage (five percent or more) of the annual value of the trust principal for your lifetime or for a term of years. Although the growth of principal cannot be guaranteed, if the principal of the unitrust appreciates in value, the amount of income distributed will also increase. Upon termination of the trust, the assets will be paid to Wittenberg to be used for the purposes you determine.
A charitable remainder unitrust offers a range of benefits:
- Your income from your unitrust may be higher than the income you receive from your current investments;
- Your unitrust income may increase over time;
- You will receive favorable tax treatment when you transfer appreciated assets to your unitrust;
- You will receive an immediate charitable income tax deduction for a portion of your gift.
Charitable Lead Trust
A charitable lead trust creates a current stream of income for Wittenberg for a period of years, after which the remaining trust principal passes to parties you designate, usually children or grandchildren. Wittenberg benefits immediately through annual payments from the trust, and trust assets can continue to grow before they pass to the next generation.
A charitable lead trust can effectively transfer assets from one generation to another at a significantly reduced gift and estate taxes, preserving more of your assets for the purposes you choose.
Because an amount has been distributed to charity, the gift or estate taxes due on the transfer to heirs can be greatly reduced. If such a trust is created during the donor’s lifetime, gift tax may be due when the trust is established, depending upon how much income will go to charity. Any appreciation in the trust passes to heirs with no additional tax due. Assets donated to the trust may be sold or held intact if they can produce the required income stream. Donors sometimes use businesses or closely held stock to fund these trusts.
A Gift Through Your Will
Every year, many alumni and friends choose to significantly support the University through their estate planning. These gifts serve as the foundation on which Wittenberg can continue to build its academic programs and provide additional learning opportunities for its students. Your own thoughtful planning and your generosity can help these educational experiences continue for future Wittenberg Tigers.
Called a charitable bequest, this type of gift offers these main benefits:
- Simplicity. Just a few sentences in your will or trust are all that is needed.
- Flexibility. Because you are not actually making a gift until after your lifetime, you can change your mind at any time.
- Versatility. You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.
- Tax Relief. If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift's full value.
- Support. You gift support the future growth of Wittenberg
Our Bequest Wording document (pdf) may assist you as you explore the possible inclusion of Wittenberg in your will. Please consult your estate planner for assistance with wording to meet your specific needs and requirements.
Should you choose to include Wittenberg in your estate plans, we hope you will inform our office so we may update our office records and acknowledge your thoughtful planning and generosity.
- A bequest of a percentage of your estate;
- A bequest of a specific dollar amount;
- A bequest of a specific piece of real or personal property;
- A bequest for a specific purpose.
Retirement Plan Beneficiary
Wittenberg University can be designated as a beneficiary of an IRA, 401(k), 403(b), or other retirement plan. By naming Wittenberg your beneficiary, your estate will receive an estate tax charitable deduction. You can designate a specific amount or a percentage of the benefit, and you can restrict your gift to a specific purpose or make an unrestricted gift to the University.
Life insurance can be used as a gift to the university. You may:
- Make Wittenberg the beneficiary of an existing policy and earn an estate tax charitable deduction;
- Make the University the owner and beneficiary of an existing policy, removing that asset from your taxable estate and earning an immediate income tax deduction approximately equal to the cash value of the policy. Future premium payments on the policy may also be deductible for income tax purposes;
- Take out a new policy with Wittenberg as the owner and beneficiary. Future premium payments on that policy may also be deductible for income tax purposes.
David Hawley Associates
David Hawley made the first planned gift to the university when he contributed land where the old fieldhouse stands in exchange for a lifetime annuity. In 1990, the David Hawley Associates was established in his honor to recognize those who have made estate commitments to Wittenberg by will, trust, annuity, insurance or other instrument recognized by the Office of University Advancement.
This information is not intended as legal, tax or investment advice. For such advice, please consult your attorney, tax professional or investment professional.
Planned Giving and Estate Planning
Office of Leadership Giving and Gift Planning
P.O. Box 720
Springfield, OH 45501-0720