Well-timed outright gifts of highly appreciated assets can avoid capital gains taxes while achieving philanthropic goals immediately.
Gifts by will or estate:
An estate provision: By using a simple bequest in your Last Will & Testament, you can make a gift to the Georgia Tech Athletic Association/Alexander-Tharpe Fund. Your gift can be a specific amount (e.g. $25,000) or a percentage of your overall estate (e.g. 10 percent). See the sample bequest language below.
Beneficiary designation: Using your life insurance policy, IRA, or retirement account makes for a quick and easy planned gift. By simply changing the beneficiary designation to include the Alexander-Tharpe Fund as a percentage beneficiary.
Gifts that pay a life income:
There are several ways to donate discretionary cash, highly appreciated securities, and other assets to:
Obtain a life income
Obtain a current deduction
Benefit Tech in the future
Note: Both fixed and variable income arrangements are possible as the donor chooses. The best arrangement will depend on assets and family financial circumstances. Planning often revolves around a particular asset with high appreciation that is subject to capital gains taxes. Gift vehicles include charitable gift annuities and charitable remainder trusts.
Gifts of income payable to Tech:
Known as Charitable Lead Trusts, these are vehicles that make gifts payable to the Georgia Tech Athletic Association for a term of years (say 15 or 20 years) with assets reverting to family members at the end of the trust term.
Note: Individuals with large estates may find this wealth transfer method advantageous. Please contact a member of the Gift Planning Team at Georgia Tech to explore further.
IRA Charitable Rollovers:
This gift from your traditional or Roth IRA can count toward your required minimum distribution (RMD).
To qualify for this tax-free benefit:
You must be 70.5 yrs or older at the time of your gift
The transfer must go directly from your IRA to the Georgia Tech Athletic Association/Alexander-Tharpe Fund
Your total IRA charitable gift(s) cannot exceed $100,000 per year
Your gift must be outright, so it cannot fund a life-income arrangement
Note: Such gifts do not qualify for a charitable deduction.