What will your legacy be? Will you be able to make a difference in the lives of others for causes you care about after you are gone? How can you do that and still ensure you are providing for your family? Are there different ways to do this that are the right fit for your particular circumstances? All important questions.
No approach provides a more defining answer than planned giving. Planned gifts are a method for donors to make contribution plans for their favorite interests while they are still living to support these areas after they have died. Many donors find they are able to make gifts they might have thought otherwise impossible due to the nature and uniqueness of planned gifts.
Planned gifts will make a difference for the future of Shocker Athletics and in the lives of men and women student-athletes. They leave an endearing legacy for the program, donor, and their families forever! It makes you feel great to change Lives!
Planned gifts may also reduce or eliminate income or estate taxes, based on advantageous treatment provided under state and federal laws for charitable giving. Donors may also be able to give more with a planned gift due to tax savings, or since many options are deferred to a time when it is more deneficial for them to donate.
What to Give
Securities – Stocks, bonds
Art and Other Tangible Property
There may be significant tax savings to donors who give property like securities, retirement plans, real estate and other tangible property whose value has appreciated over time.
What is the Shocker Legacy Club?
The Shocker Legacy Club is an organization which recognizes planned gifts benefiting Wichita State Athletics. Club membership will apply to gifts from the donor’s will (bequests), endowments, gift annuities, life insurance, retirement plan, trust, appreciated property or other estate plans.
Shocker Legacy Club Member Benefits
1. Invitation to the annual Shocker Legacy Club Luncheon, held at the Champions Club in Charles Koch Arena.
2. Name recognition in the men’s basketball and baseball game programs.
3. Name recognition in the Planned Giving/Shocker Legacy Club section of GoShockers.com.
4. Name recognition in the SASO newsletter.
5. Recipient of a Shocker Legacy Club lapel pin.
6. Special hospitality opportunities at Shocker athletic events.
The transfer of property through a will.
The passing of a loved one can mean many things to many people; for some it is an opportunity. An opportunity, through planned giving and a will, to make a gift, the impact of which will endure—not unlike that of a pebble being tossed into water. Bequests are often used to endow scholarships in the name of the donor, a family or anyone the donor seeks to honor. Your bequest to endow, or partially endow, a student-athlete scholarship would not only be a significant step on your part, it would also greatly assist Shocker Athletics as it seeks to have all student-athlete scholarships fully endowed. Remember, higher education institutions in Kansas that come under the Kansas Board of Regents are not permitted to waive the payment of tuition for its student-athletes.
Your legacy, making a gift of money or property through your will, can significantly and positively impact the lives of many, not just the person who is the immediate beneficiary of your thoughtful and generous act. Leaving a mark may not be your objective; nevertheless it will likely be an affect of your selfless donation.
Charitable Remainder Trust
An arrangement where money or property is split into two types of interests, one or more income interests and one or more remainder interests. The income interest beneficiary is generally of a non-charitable nature—for example, the donor, family or a friend. The remainder interest resides with a charitable entity, for example WSU-ICAA (WSU Athletics) and becomes its property with the passing of the last recipient of income.
Charitable Lead Trusts
This tool is generally used where high federal and state gift and estate taxes are anticipated. The income from certain assets is passed to a charitable entity, for example WSU-ICAA (WSU Athletics), for a number of years, and at the end of that time period the principal is returned to the donor.
The establishment of a charitable remainder trust is frequently for the purpose of providing a lifetime stream of income for the donor and or the donor’s spouse. Income received from this arrangement will depend, in large measure, to the type of remainder trust selected by the donor.
Income associated with the choice of a unitrust remainder is based on a percentage of the total value of the assets in the trust each year; hence, the amount of income received can vary from year to year because the value of the trust can likewise vary due to the level of return from trust investments.
The amount of income to be paid from an annuity trust remainder will be a set amount that has previously been determined and will not vary from payment to payment; trust earnings do not determine the amount of the payments from the trust.
The differences between the two trust arrangements, and the importance of fully exploring which one best serves your goals, is further highlighted by the fact that an annuity trust, once initially funded, cannot accept further funding; however, the unitrust can accept additional funding.
Benefits from a charitable remainder trust can include savings related to the federal income tax, capital gains taxes and estate taxes, as well as the professional management of trust investments.
A charitable lead trust is viewed by many as the just the opposite of a charitable remainder trust. A charitable lead trust is initiated and becomes effective when a donor transfers property to the lead trust; the trust returns, in payment, a percentage of the original value of the trust for a time certain. At the end of the agreed upon time period, the assets remaining in the trust, plus any growth that has accumulated, is returned to the donor or the donor’s heirs—without further estate or gift taxes.
In a charitable lead trust, growth, in effect income earned from the investment of trust assets, is initially paid to the charity. Tax on the trust is based on trust rates, and the trust receives an income tax deduction for the income paid to charitable causes.
Charitable Gift Annuity
An arrangement where donor(s) of an irrevocable gift to a charity receive in exchange a partial tax deduction and the lifetime payment of a fixed dollar amount for themselves and a designated survivor, if one is named. The amount of the payment is determined by the age(s) of the donor(s) at the time the gift is made.
Would you like a guaranteed fixed income for the rest of your life and the life of your spouse—even if your spouse is younger than you are, and enjoy the advantage tax deductions while receiving a stream of income? If your answer is “Yes,” a charitable gift annuity might be the appropriate vehicle for you.
When you have made a charitable gift to Shocker Athletics in the form of a charitable gift annuity, you will receive a guaranteed fixed income for life; and, if you are married, your spouse can also receive the same guaranteed fixed income for the term of their life.
The fixed and guaranteed amount of income that you will receive will be determined by your age and, when appropriate, the age of your spouse when the gift is made. And, one of the good things about the aging process is that the rate of return is determined by one’s age—the older you are the greater the rate of return.
The charitable gift annuity is an excellent way to make a significant contribution to Shocker Athletics and provide a continuous and steady stream of income for your own purposes.
The proceeds, all or a portion thereof, of a life insurance policy represents an excellent means of making a gift to WSU-ICAA (WSU Athletics). The policy owner designates the beneficiary (ies) and how much she/he/they receive from the policy proceeds. This tool enables us to donate more in passing than we could in life.
You may have dreamed of “making a difference” in Shocker Athletics,” but discarded that idea because you did not believe your resources were sufficient to address the care and interests of your loved ones and make a gift that would help support the Shockers.
Unless you have consulted your financial advisor, your accountant and or your attorney, and know with certainty that your dreams exceed your abilities—chances are, there is a way for your dream to become a reality.
A gift of life insurance to Shocker Athletics is the way for you to make your dream a reality.
As a donor, your gift of life insurance can make it all possible; such a gift reflects a comparatively moderate to low cost investment by you that yields a significant and substantial gift. Life insurance has been purchased for the purpose of providing a financial a resource to meet anticipated needs, typically in the event of the death of a breadwinner. However, because that possibility did not become a reality, that policy has been forgotten. You can make that forgotten policy your gift to Shocker Athletics.
There are many ways to make your gift of life insurance to Shocker Athletics, and the purpose for which it was purchased and whether or not it was or is paid-up does not matter. Rather, how and when it is given to Shocker Athletics can have tax implications for you; in this regard, please consult your accountant, tax advisor, and or legal counsel to determine what vehicle best meets your needs and objectives, and will make your dream a reality.
Assets in a retirement account such as an IRA, a Keough plan, a 401(k), and a 403(b).
Retirement plans, often referred to as pension plans, profit-sharing plans, stock bonus plans, 401(k) plans, IRA’s, and other names, are assets of your estate, and not only are they assets, they are likely to constitute a significant percentage of those assets. And, assets they can be subject to estate taxes upon your passing, as well as income tax when they are transferred.
Assets in the form of retirement plans, because they are subject to income and estate taxes, makes them more expensive to transfer than real estate, stocks and other assets that are not taxed on their transfer. Because of these factors, making a gift of your retirement plan assets is an excellent means of providing support for a charitable organization such Shocker Athletics and eliminating the payment of estate and income taxes.
Pooled Income Fund
This tool, through pooling and investment of gifts and the resulting interest, donors to the gift pool and the named beneficiary (ies) receive an income, based on their share of the fund, for life. Upon the death of the donor the value of the assets are transferred to a charity (ies) of the donor’s choice.
A pooled income fund is an arrangement where a pool of money is the result gifts from donors; that pool of money is then invested and managed by investment professionals. The rate of return on the investment is based on the productivity of the investment—not some predetermined figure. Donors receive a proportionate share of the pooled monies based on their investment in the pool.
In return for your investment in the pool, and having designated yourself as a beneficiary, you receive a life income and benefits from an income tax charitable deduction, avoidance of capital gains taxes, and the likely addition of an income stream for the lifetime of another. Additionally, and in your capacity as a donor, you may designate the charity or charities you want to receive the value of the account after the death of the last income beneficiary.
Retained Life Estate
A gift of real estate, such as a residence, to another that permits the donor(s) to continue using the property during his/her/their lifetime where, upon the death of the donor(s), the person(s) who received the gift become the owners of the property.
A retained life estate occurs when the owner of property conveys his or her interest in the property to another, but retains the use of that property during his or her life; the owner the property, because he or she has retained a life estate, is known as a life tenant; the property interest will vest, i.e., become full and complete for the remainderman upon the death of the life tenant.
Life estates are generally regarded as a planned giving tool that facilitates the avoidance of probate and minimizes the impact of taxes associated with the transfer of wealth. Additionally, life estates are a means of transferring the ownership of property to another in a manner consistent with the wishes of the person transferring the property.