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Glossary
Ways of Giving Defined
A short list of many of the financial terms
we use to help us help you make your donation for Lewis-Clark
State College. Can't find
what you are looking for? Please email
collegeadvancement@lcsc.edu with
suggestions for additions to this list.
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- annual gift
- These are gifts that are made every year. Annual gifts
provide ongoing support for Lewis-Clark State College students, departments and programs.
- bequest
- A bequest is a very simple and uncomplicated way to help
provide for the future excellence of Lewis-Clark State College. A
bequest may be of a specific sum, a percentage, or the residue
of an estate, and may consist of cash, securities, life
insurance proceeds, real estate, and/or personal property. A
bequest may be made through a will or by a living trust, and
should be directed to the "Lewis-Clark State College Foundation, a
not-for-profit corporation, for the general benefit of
Lewis-Clark State College." Similar language can be used to direct a bequest to
specific uses at the College.
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- cash
- Cash gifts are outright gifts of checks, drafts, and money
orders. If mailed before the end of the year, they will enable
those who itemize to take an income tax deduction for that year.
Gifts of cash are deductible for up to 50% of the donor's
adjusted gross income. Cash contributions in excess of the
deduction limitations may be carried over and deducted in the
five tax years following the gift.
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- charitable gift annuity
- In this case, the donor makes an irrevocable gift to the
Foundation in exchange for life income payments. A charitable
gift annuity is a contract between the donor and the Foundation,
under which the Foundation guarantees payment of the annuity,
unlike a trust which pays the annuity from its assets alone. Two
features in particular make charitable gift annuities appealing.
An individual may specify whether he or she wants an immediate
annuity, with payment to begin not later than one year from the
date of the gift, or a deferred gift annuity, from which
payments are not to begin until a specified future date. In
addition, the income stream from such an arrangement can be
higher than current market rates.
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- charitable lead trust
- These trusts provide income—either a percentage or a
specified amount—to Lewis-Clark State College Foundation for a specific
number of years. At the termination of this period, the
principal is returned to the donor or others whom the donor has
designated. Under one type of charitable lead trust the donor
includes the income in his or her taxable income, but is
entitled to a corresponding charitable deduction, if he or she
itemizes, of the amount of income paid to the Foundation in that
year.
-
- charitable remainder annuity trust
- One of many types of available trusts, charitable remainder
annuity trusts provide that a specified dollar amount (at least
5% of the fair market value of the assets at the time the trust
is created) be paid at least once a year to the beneficiary(ies)
for their lifetime(s) or for a term of years, not to exceed
twenty.
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- charitable remainder trust
- In turn for the irrevocable transfer of cash or property to
a trustee such as the Lewis-Clark State College Foundation, you receive
a certain percentage or amount of the annual income from the
property to you and/or another named beneficiary(ies) for life
or for a specified term of years. The remainder interest in the
property would then pass to the Foundation, for the benefit of
Lewis-Clark State College. You would be entitled to a federal income
tax deduction for the value of that charitable remainder
interest, which is based on the number and ages of life income
beneficiaries and the percentage of payout you and the trustee
agree upon.
Some advantages of these charitable remainder trusts are:
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If you fund the trust with appreciated
property, you will recognize no capital gain on the
appreciation, and the trust will be funded with the full fair
market value of the gifted asset.
-
You may designate anyone alive at the time of
creation of the trust, including yourself and your spouse, as
income beneficiary(ies).
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The trust itself is not taxed.
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The burden of investment and management
decisions regarding the corpus of the trust are removed.
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If the trust is funded with cash or tax-exempt
securities, the trustee can purchase or retain such securities
to produce tax-exempt income for yourself and/or other
beneficiaries.
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The asset is essentially removed from your
estate, which may mean additional tax benefits.
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- charitable remainder unitrust
- This type of trust provides that a fixed percentage (at
least 5% of the fair market value of the assets in trust,
computed each year) be paid to the beneficiary(ies) at least
once a year. In a unitrust, however, the amount paid to the
beneficiary(ies) will vary on a yearly basis according to the
annual reevaluation of the trust principal.
-
- corporate matching gift
- Corporations will often match gifts made by employees,
officers, directors, and in some cases spouses and/or retired
employees, officers, or directors. More than 1,000 American
companies have adopted corporate matching gift plans to help
support higher education. Consult your company's personnel or
community relations department for guidelines.
-
- corporate gift
- If you are an owner or CEO of a business, you might wish to
consider making a corporate gift through which you may derive
federal tax benefits as well as additional benefits in some
states.
- endowment
- In an endowment fund, the principal is invested, and only a
portion of the investment earnings is spent. The rest of the
earnings are channeled back into the fund, so that the endowment
grows over time. In this way, the endowment becomes a perpetual
source of funding for whatever the donor wishes to achieve.
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- estate planning
- The process of working out, with an attorney, accountant,
trust officer, life insurance agent, or other adviser, an
orderly and desirable arrangement for the disposition of your
estate. The primary objective in any plan should be the
fulfillment of your wishes regarding the security of your family
and others that you wish to benefit. Tax consequences, although
secondary, are an important part of estate planning and are
often directly related to the accomplishment of your primary
goals.
A well-drafted estate plan can provide benefits to you and/or
your family and also make it possible for a substantial gift to
be made to a charitable organization such as the Lewis-Clark
State College Foundation at a relatively small cost to you or your
estate.
The importance of working with professionals in estate
planning and making a will or establishing a trust cannot be
overemphasized. Whenever desired, counsel for the Foundation
will be available to consult with you and your attorney or other
adviser, in order to ensure that your gift arrangement carries
out your specific wishes. All communications will be held
confidential unless you wish us to disclose information
regarding your gift for Lewis-Clark State College.
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- life income gifts
- This group of planned gift options allow you to make a
substantial gift to LCSC, while still retaining income. Life
income gifts include: charitable remainder annuity trusts,
charitable remainder unitrusts, pooled income funds, charitable
gift annuities, and gifts of retirement plan proceeds and real
property subject to life estate.
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- life insurance
- Gifts of life insurance allow donors to make sizeable gifts
to the Foundation at a relatively low cost. To make such a gift,
you would name the LCSC Foundation irrevocable
beneficiary of a life insurance policy, then deliver and assign
ownership of the policy to the Foundation. When you pay the
annual premium, you will be entitled to deduct the amount of the
premium, if you itemize. Gifts of life insurance policies may
offer estate planning possibilities. You may designate the
Foundation as the primary, secondary, remainder, or residual
beneficiary of a policy. There are a variety of policy options
available. You will want to discuss your plans with the
Foundation's Planned Giving staff and/or an insurance adviser.
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- living trust
- Under a living trust, the management of a person's property
is left to a trustee with instructions for distributions during
the lifetime of the individual and at his or her death. These
distributions may include charitable gifts, such as those to the
LCSC Foundation, for Lewis-Clark State College.
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- outright gift
- The value of an outright gift immediately benefits the
College. Outright gifts include: cash, checks, and money
orders; gifts of securities, real estate, and tangible personal
property; and corporate gifts, corporate matching gifts, and
gifts-in-kind.
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- pledge
- Though a cash gift, a pledge to make a gift may not be
deducted until the year in which actual payment is made.
Multi-year pledges allow you to spread your gift payments out
over a period of time.
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- pooled income fund
- These are trusts into which two or more donors irrevocably
transfer property, contributing the remainder interest in the
property to the LCSC Foundation. Each donor
retains an interest in the annual proceeds based upon the
proportionate share of assets which he or she contributed to the
total fund.
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- property
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Real property includes all gifts of real estate.
In considering whether to accept the gift, the Foundation weighs
its potential value to the College and determines whether a
management plan can be implemented to maximize that potential.
In most instances, such a property will be sold; in other cases,
it may be kept as an investment. Many of the tax advantages
which apply to gifts of appreciated securities also apply to
gifts of appreciated real property.
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Tangible personal property include works of art,
furniture, equipment, collections, and personal mementos. For
tax purposes, the date of the gift is the date of physical
delivery, and the value is the item's fair market value on that
date as determined by a competent appraiser.
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- real property subject to a life estate
- You may transfer a personal residence or farm to the LCSC Foundation, while retaining a life estate (the right
to use the property for the remainder of your life.) You are
entitled to a federal income tax deduction for the fair market
value of the remainder interest in the property at the time it
is transferred.
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- securities
-
Long-term appreciated securities are those which
have been owned for more than one year, and have increased in
value. If you itemize deductions, such a gift would entitle you
to a federal income tax deduction for the full fair market value
of the securities on the date of the gift, up to a maximum
deduction of 30% of your adjusted gross income for the year.
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Short-term securities are those held for less
than one year. If you itemize, you will be entitled to a federal
income tax deduction for only the purchase price of the
securities.
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Depreciated securities are those which have
declined in value since purchase. The Foundation suggests that
the donors sell them, take the tax loss, and donate the cash
proceeds. This will provide the maximum tax benefits from the
gift.
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- tax incentives
- Taxpayers who itemize can qualify for the federal income tax
charitable deduction by making gifts to the LCSC Foundation for
the benefit of Lewis-Clark State College. You may also be
eligible for Idaho State Income Tax deducations.Maximum limits for
such deductions may apply, depending on the type and size of the
gift and the total of a donor's gifts to charitable
organizations during any one year.
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- unrestricted gift
- Unrestricted gifts give the College the latitude to
direct this money where it is most useful. Programs that might
encounter limitations can flourish with the help of unrestricted
funding. This money allows the College to take advantage of
unexpected opportunities which occur after state budgets are
set.
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- will
- A carefully planned and drafted will can preserve a maximum
amount of an estate for the surviving members of one's family
and others, such as Lewis-Clark State College, whom one wishes to
benefit.
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