Planned Giving

Planned Giving

Foundation staff share their appreciation for Legacy gifts made by:

Mary Forestieri with LCC's President Mary Spilde
Mary Forestieri
Bill and Lynn Buskirk
Bill and Lynn Buskirk
Greg Fisher
Greg Fisher 

Foundation Hosts Legacy Society Gatherings

Private gifts and bequests help provide funding stability to Lane Community College. The Foundation holds an annual luncheon to honor those who have named Lane Community College Foundation as the recipient and/or beneficiary of their will, insurance or retirement policies, trusts and other planned gifts.

A planned gift to the Foundation today can benefit Lane Community College tomorrow. Please remember us in your will.

Many people would like to make larger charitable gifts to support the organizations and institutions they care most about. There are many options to give to the Lane Community College Foundation while actually enhancing your financial security or that of loved ones.

In making a new plan for the future financial well being of yourself and loved ones, you may wish to begin with your will. Many people choose to provide for charitable interests by making gifts through their wills. Bequests can be made in the form of specific amounts of cash, other property, a percentage of the overall estate, or all or a portion of the residue ("what's left" after other bequests have been fulfilled). A will may be used along with, or to create, many of the plans of giving described here. Rely on your attorney and other advisors to guide you through the estate planning process.


Ways to Give


Bequests

A bequest is a gift made through your will that directs your estate executor to make a gift from your assets to the person or institution of your choice after you die. Bequests may be used to provide gifts of money, stocks, real estate, or other property such as art or jewelry. When donors leave a bequest to the Foundation, they can make a generous gift without reducing their current income or giving up ownership of the assets during their lifetime. Donors can create funds in their name or in memory of a loved one. Charitable bequests are usually deductible in full for estate tax purposes.

To leave a bequest to the Foundation, contact our Foundation Director at (541) 463-5804 or foundation@lanecc.edu.

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Charitable Remainder Trusts

Charitable remainder trusts allow you to transfer assets into a separately managed trust that will provide you and/or your beneficiaries with fixed percentage payments for life or for a set period of time. The person who establishes the trust selects the trustee as well as the charities that will receive future distributions. The donor earns a charitable deduction when the assets are transferred to a trust. Upon termination of the trust, the remaining assets are distributed to the charity and will be used for the charitable purpose specified by the donor.

To establish a charitable remainder trust for the benefit of the Foundation, contact our Foundation Director at (541) 463-5804 or foundation@lanecc.edu.

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Charitable Annuity Trust

With a charitable annuity trust, the donor transfers assets to the Foundation in exchange for a guaranteed, fixed annuity payment to them or one other beneficiary for life. The annual payment is a fixed sum, the amount of which is based on the size of the gift and the number and ages of the beneficiaries. In addition to the charitable deduction, a portion of the annuity payment is generally tax-deductible. Upon the death of the donor, the Foundation receives the full amount of the initial gift to use as specified by the donor.

To establish a charitable annuity trust for the benefit of the Foundation, please contact our Foundation Director at (541) 463-5804 or foundation@lanecc.edu

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Retirement Assets

One frequently overlooked way donors can make a charitable contribution is by using qualified retirement assets. Subject to income and estate tax, retirement plan assets are among the most taxed assets at death in larger estates. While current tax law does not allow the donor to transfer these assets directly to Lane Community College, the donor can name the Foundation as the beneficiary on the account during his or her lifetime and, by doing so, may be able to avoid both income and estate taxes upon his or her death.

To name the Foundation as a beneficiary for all or any of your retirement plan assets, contact our Foundation Director at (541) 463-5804 or foundation@lanecc.edu.

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Life Insurance

The gift of a life insurance policy can be a great way to combine charitable objectives with tax advantages to donors since donors may receive an income tax deduction by naming the Foundation as a partial beneficiary or owner of a life insurance policy. You can name the Foundation as a designated or alternate beneficiary of a life insurance policy, a deferred annuity contract, an IRA, a defined benefit plan, a 401(k) plan, a defined profit sharing plan, or other qualified plans.

There are several ways for donors to make gifts through their life insurance. Some of the most popular options are:

  • Purchase a policy and designate the Foundation as the irrevocable owner and beneficiary of the policy.

  • Designate the Foundation as the new owner or beneficiary in an existing policy.

  • Add the Foundation to an existing policy as a remainder or final beneficiary, in case the primary or secondary beneficiaries do not survive you.

To make a gift of a life insurance policy to the Foundation, please contact our Foundation Director at (541) 463-5804 or foundation@lanecc.edu

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Life Estate Agreements

Life estate agreements are contracts between the donor and the Lane Community College Foundation. The donor transfers the title to his or her real estate property, usually a primary residence, to the Foundation. In return, the Foundation agrees to provide the donor with use of the property throughout the donor's lifetime. Upon the death of the donor, the property becomes an asset of the Foundation. The Foundation can then sell the asset to generate funds, which will benefit a Lane Community College program, department, or other purpose designated by the donor. Life estate donors receive a partial charitable income tax and estate tax deduction, depending on their age.

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Real Estate

Real estate includes homes, farmland, cabins, commercial buildings, and undeveloped rural property. A current appraisal of the property is needed in order to use it as a charitable gift. Real estate may be given outright, used to fund a charitable remainder trust, or given as a life estate.

Donating a highly appreciated real estate property that otherwise could be a tax burden, can result in tax advantages similar to those from giving appreciated securities to the donor. If you've owned the property for more than one year before giving it to the Lane, you could earn a charitable deduction equal to the full fair market value of the property, less any outstanding mortgage. The property will also be removed from your taxable estate.

Options exist that allow you to give your primary residence to the Lane and continue to live there or derive an income from it during your lifetime. See above for life estate agreements.

Gifts of real estate may be transferred to the Foundation after the Board of Trustees agrees to accept and administer such gifts.

If you would like to give real estate property to the Foundation, please contact the Foundation Director at (541) 463-5804 or foundation@lanecc.edu

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Tax Considerations

While most charitable gifts are made in the form of cash, important advantages can be possible when gifts are made using non-cash property that has increased in value.

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Gifts of Appreciated Property

When stocks, bonds, mutual funds, real estate, and other appreciated assets are sold, tax is due on any capital gain.

One of the only ways to avoid or delay the capital gains tax is to make a charitable gift of the property. When you give appreciated property that has been held long-term, you may take a deduction based on the current value of the property rather than just its cost.

The combined benefits of bypassing tax on the capital gain, receiving an income tax deduction, and making a charitable gift can be very gratifying.

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Increasing Your Retirement Income

Many of the plans described here can be a welcome addition to your retirement plans. If you have property that has increased in value but yields little income, using it to fund a charitable gift plan can help your assets do double duty.

The life income you receive from the gift plan will be based on the full value of your property, not just what would be left after you paid tax on the gain. You will also enjoy tax savings from the deduction you receive when you create the plan. This amount can be invested for greater income. But carefully planning your gifts, you can substantially increase income from investment assets, while receiving the satisfaction of making a very meaningful gift in the process.

Example:
John Harrison, 75, has been retired for five years. He has $100,000 worth of growth stocks, which cost $35,000 and yield two percent. He would like to receive more than the $2,000 per year in income that this asset currently yields. His tax bracket is 36 percent.

If he sold the securities, he would owe a capital gains tax on the $65,000 increase in value. He would thus have considerably less than $100,000 left to invest after paying the tax.

If, instead, he placed the stocks in a charitable remainder annuity trust with a payout rate of seven percent, his income from the property would more than triple to $7,000 per year. He would not incur tax on the $65,000 gain at the time of his gift, but he would receive income based on the entire $100,000. His income tax deduction would be approximately $41,000.

Mr. Harrison's federal income tax savings from the gift would be nearly $15,000. His savings would be even greater if he were taxed at higher state and federal rates.

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Federal Estate Taxes

Each year, more people discover that their estates are surpassing the value at which such taxes are levied.

Through careful planning of your charitable gifts, it can be possible to meet multiple goals. By choosing the best property to fund your gifts, their timing, and the methods used to make them, you may find you can give more while minimizing or eliminating federal estate and gift taxes and preserving or actually enhancing your financial well being.

This information is intended to help guide you through the gift planning process. More information is available to you and/or your advisors on request.

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How to Plan

Before you make your will and/or other estate plans, be well prepared.

  1. Make a list of the people you want to include in your plans--family, special friends, employees and charitable interests.

  2. List the property you wish to distribute--include securities, real estate, life insurance, retirement plans, and personal possessions.

  3. Consider ways to match the people with the property.

  4. Finally, list any professional planners you may need to consult--for instance your attorney, banker, accountant, tax advisor, or representatives of a charitable recipient.


Lane is an excellent investment!

Every gift makes a difference and brings our students closer to achieving their dreams.
Thank you for making a difference!

* The information on this page is not meant as tax advice. To fully understand any implications of your intended contribution for income tax purposes, please consult a professional tax advisor.