Ways to make a legacy gift (planned gift) to ASOR
As you consider your long term financial and estate plans, we hope that you will consider ASOR. Not only will your gift be put to good use, benefiting generations of dedicated and deserving students and scholars of the ancient Near East, we can also save you significant tax dollars through the charitable deduction and the avoidance of capital gains. In some cases, we may even increase your income.
Please contact Andy Vaughn for more information. The following does not represent a commitment by ASOR to accept any gift, and it is provided for informational and illustrative purposes only. Please also consult your attorney and estate planning professional as you consider any planned gift.
- Wills: If your estate is subject to the federal estate tax, a charitable bequest can save significant tax dollars. ASOR can be named as a beneficiary in your will in any number of ways.
- Outright Bequest:
You can specify an outright gift of cash, securities, real estate, or tangible personal property. If you bequeth dollars, you may wish to bequeath a certain frational interest, or percentage, of your estate to ASOR, rather than a fixed amount. This technique hedges against inflation and unforeseen shrinkage, and assures your heirs their proportionate share.
- Sample language: "I, [name], of [city, state, zip], give, devise and bequeth to the American Schools of Oriental Research (ASOR) [written amount or percentage of the estate or description of property] for its unrestricted use and purpose [or specify purpose]."
- Residual Bequest: A residual bequest provides that, after specific bequests are made to named indivuals, ASOR receives the amount (or a percentage) that remains in the estate.
- Contingent Bequest: A contigent bequest means that ASOR will receive certain assets only if a named individual (i.e., a spouse or a sibling) does not survive you.
- Testamentary Trust: Such a trust can provide income for anohter person or persons for list with the principal ultimately passing to ASOR. In the alternative, you could designate that the income come to ASOR for a certain number of years and the principal ultimately pass to family members or others.
- Codicil: If you already have a valid, up-to-date will, your attorney can prepare a codicil to your will naming ASOR as a beneficiary without having to re-write the entire will.
- Outright Bequest: You can specify an outright gift of cash, securities, real estate, or tangible personal property. If you bequeth dollars, you may wish to bequeath a certain frational interest, or percentage, of your estate to ASOR, rather than a fixed amount. This technique hedges against inflation and unforeseen shrinkage, and assures your heirs their proportionate share.
- Charitable Gift Annuity (CGA): offers the simplicity and security of a steady income stream accompanied by a gift that ASOR can use immediately. There is no complicated trust agreement and the donor is entitled to an income tax deduction. The annuity payment is a direct obligation of ASOR and is not dependent on the assets of the finite trust.
- Charitable Lead Trust (CLT): is a good vehicle for providing income to ASOR for a set number of years, with the assets in the trust ultimately passing on to your children or grandchildren. Under this arrangement, you transfer assets to a trustee who would then make annual payments to ASOR for a specified number of years. There is no minimum or maximum payout requirement. CLTs are typically created by those in higher estate tax brackets with significant charitable interests who wish to pass assets to younger generations with little or no estate or transfer tax.
- Charitable Remainder Trust:
With a Charitable Remainder Unitrust or Charitable Annuity Trust, you can make a life income gift that allows you to continue to receive a guaranteed income while also donating to ASOR. Your gift is administered separately as a trust and at the end of your lifetime, the balance of your Unitrust or Annuity Trust goes directly to ASOR. The income and tax advantages can be significant—avoidance or reduction of capital gains tax, personal tax deductions, and estate tax deductions. These types of trusts make sense for those own stock with a low cost basis.
- Charitable Remainder Unitrust: You make a donation to ASOR, and we pay you a fixed percentage of the assets held in trust. Your income varies annually with the market. You decide, within certain limitations, the rate of return you will receive on the trust's assets.
- Charitable Remainder Annuity Trust: You make a donation to ASOR, and we pay you a guaranteed fixed income for life based on the amount you designate. The rate of return varies according to your age at the time of donation.
- Donor Advised Funds (DAF): Any individual or family with assets that wants to have control over how charitable dollars are spent—without the hassle and expense of setting up a family foundation—should consider a DAF. With a DAF, you make a gift to the host charity, usually a community foundation. Because the host charity is recognized by the IRS as a tax-exempt organization, you get a fair market value tax deduction in the year of the gift. Assets are deposited into an investment account where they can grow tax-free. You retain the right to advise the host charity in administering the affairs of the DAF, such as naming the fund, managing investments, recommending grants and selecting a replacement adviser at death.
- Gifts of Life Insurance: Life insurance provides another excellent means for making a gift to ASOR. When your children were young, you may have purchased life insurance to ensure their education. Now, the children are grown and no longer need the protection provided by that policy. Perhaps you purchased a policy to help with your retirement years but no longer need that assistance. Do you have a policy to pay the mortgage but the balance on the mortgage is now very low? Do oyu have a policy for business purposes and hte business has been sold or the protection is no longer needed? You can designate ASOR as a beneficiary, and at the time of your death, your estate would receive a charitable deduction.
To receive the federal income tax charitable deduction, you would need to designate ASOR as both the owner and beneficiary of the policy. When such a gift is made, the deduction will be equal to the cash value of the policy at the time of the gift. If you decide to continue to pay the premiums on the policy after the gift is made, the additional premium payments will be tax deductible each year.
- Retirement Plan Assets: Your retirement plan serves as an important building block for future financial security.
To receive preserve your retirement assets after your lifetime—rather than relinquish a large portion of them to taxes—consider the benefits of using them as a source for charitable giving.
Retirement accounts are particularly suited to charitable contributions because such accounts are often exposed to income and estate taxes, at a combined marginal rate that could rise to 75% or even higher on large, taxable estates, leaving very little for heirs. Yet, many of these taxes can be avoided or reduced through a carefully planned charitable gift.
- Charitable Bequest—Direct or Deferred: Your retirement account can pass directly to ASOR as your primary beneficiary, or it can be transferred to a deferred giving arrangement that will pay an income for life to a family member, after which the remaining assets pass to ASOR. You might even consider a deferred gift of your retirement benefits that is designed to pay a life income to yourself.
- Charitable IRA Rollover: As of 2013, new laws permit lifetime charitable gifts from IRAs—so long as the donor is over 70 1/2 and does not give more than $100,000 per year. The donor benefits by not having to report the IRA distribution as taxable income, although the donor will not be able to claim a charitable income tax deduction for the gift. (note: Information believed to be current as of 2013, so please check for the 2014 and beyond).
American Schools of Oriental Research
Located at Boston University
656 Beacon Street, 5th floor
Boston, MA 02215-2010
Tel: (617) 353-6570; Fax: (617) 353-6575; Email: firstname.lastname@example.org