Benefits of Giving Wisely

Consider the following questions to help you weigh you options:

Give Now, or Give Later?

A significant outright gift to Columbia will allow Columbia to meet immediate objectives. In turn, it will give you maximum tax benefits, especially attractive if you are in high earnings years. It can also be the simplest gift to arrange.

But if you make a gift through your estate, it will support Columbia's long-term goals without disrupting your cash flow.

To make a gift from your estate, use a will or revocable trust. You may also use life insurance or the balance remaining in your retirement plan. These gifts help you keep your lifetime financial planning flexible, although they provide only limited income tax benefits.

Most estate-planning gifts will require professional help.

What Assets to Give?

• Cash
  It is, of course, the easiest transaction for both you and the University. You are limited only by your cash flow and your inclination to draw from your cash reserves.
• Appreciated securities
  Get the same tax deduction as if you had given cash, but use stocks, bonds, or mutual fund shares that cost you less than they are currently worth. Your deduction is based on market value, but you incur no capital gains liability on the transfer to the University: It's one of the best tax incentives left, and Columbia can work with your broker to make a gift of securities simple.
• Real estate
  Gifts of land, vacation homes or income-producing properties can bring great benefits to Columbia. You can give real estate outright, transfer it in a part sale/part gift arrangement, use it to fund a life-income gift, or give your residence and reserve the right to continue to live there. To ensure the viability of your gift, Columbia will review each proposal carefully.
• A retirement account
  The balance remaining in your retirement account after your death is often subject to double taxation if it passes to your heirs, by being taxed both as income and as an estate asset. Instead designate the remainder of your account to Columbia, and then use other assets for gifts to your family. New regulations simplify the procedure of naming the University as beneficiary, and we are ready to help you plan this gift.
• Appreciated assets
  You may be holding a book collection or artwork that you no longer wish to maintain. Instead, these assets could bring real benefit to Columbia. There are particular IRS requirements to meet before you can deduct a gift of appreciated assets. And, Columbia will review each gift proposal carefully to make sure the University can put the asset to good use.
• Business interests
  Shares of closely held stock may hold value for the University, and if so, Columbia will work with you and your advisors to make the transfer simple.

PLEASE NOTE: Gifts of appreciated securities and other property must have been held by the donor for one year in order to receive a full fair market value tax deduction

Gifts that Pay Back

Since Columbia offers gift plans that pay you income in return for contribution, your gift to Columbia does not have to be made outright. You can receive fixed or variable income, take payments for your lifetime or for a term of years, and direct the income to beneficiaries. In essence, you make a contribution to Columbia while retaining benefits from your gift.

Your charitable deduction is based on the full market value of the assets you give us, minus the present value of the income interest you retain. The higher the income payout, the lower the deduction.

These flexible, creative gifts meet many needs. The return of income allows you to consider a more substantial gift to Columbia than you might be able to afford in an outright format. Even though Columbia cannot use these gifts until the death of the last income beneficiary, they give the University long-term financial strength. Click on Ways to Give Wisely to learn more about these gifts.