Spring 2017 Carolina Cornerstone Newsletter

UNC Office of Gift Planning

 

Carolina Forever is the name given to the society of Rams Club members who have designated The Educational Foundation, Inc., as a beneficiary of a planned gift. For more information on making a planned estate gift to the Foundation, please contact Sue Walsh at 919-843-6413 or email her at sue@ramsclub.com.

 

Using Your IRA to Further the Educational Foundation's Mission

As a reminder, the IRA Charitable Rollover provision was made permanent in December 2015. Individuals age 70 ½ or older are able to use the IRA Rollover to support qualified charitable organizations like the Educational Foundation. Gifts of up to $100,000 made from your IRA directly to qualified charitable organizations are not reportable as taxable income and qualify for your required minimum distribution (RMD), which can lower your income and taxes – a win-win for you and the Educational Foundation! This is a particularly good option for philanthropic individuals who do not itemize deductions for tax return purposes. In order to qualify for a given tax year, QCDs must be delivered directly to the Educational Foundation by the IRA plan administrator, postmarked on or before December 31. Note: a donor may not receive anything of value, including points, for directing their IRA Rollover distribution to charity, including the Educational Foundation. However, they may elect to take the IRA distribution and then in turn make a contribution to the Educational Foundation. The deduction they will receive from the contribution may be enough to cover the income taxes they will pay on the distribution they receive. And, in that case, they can receive point credit for their contribution.

 

Check Out the Carolina Development Office Gift Planning Website

The Educational Foundation, Inc. works in close partnership with University Development to help support our planned giving program. Carolina Developments gift planning website (unclegacy.org) provides tools and information to assist you in becoming a member of Carolina Forever.

You will find a tablet/mobile friendly layout and text size that is easy to modify. The site includes updated information on gifting options, tax law and news. It also contains information on how to create a legacy through a bequest. It contains information on how an income producing gift may benefit both you and the Educational Foundation. There are also calculators to estimate tax burdens and capital gains, all to assist you in planning for your Carolina Forever legacy. There are interactive portals on the site to create gift illustrations that may help you determine which giving options might make the most sense for you and your family.

Creating a Carolina Forever legacy provides an opportunity for donors to leave a lasting legacy and ensure the future of Carolina Athletics. Giving to this program may allow the member substantial tax benefits while also giving generous support to Carolina's athletic programs. Additionally, there are a number of gifting vehicles that will qualify for priority points. We encourage you to visit the site and contact either Sue Walsh at The Rams Club (919-843-6413/sue@ramsclub.com> or Beth MacKethan at the Office of Gift Planning (919-962-6628/bmackethan@unc.edu) with any questions.

 

Support The Educational Foundation and Carolina Athletics with a Carolina Annuity

The Carolina Annuity is a charitable gift annuity which is a simple contractual agreement between a donor and the UNC-Chapel Hill Foundation. In exchange for a gift of cash or readily marketable securities, the UNC-CH Foundation agrees to pay the donor and/or their loved ones fixed payments for life.

The payout rates vary depending on the number of recipients and their ages and the current IRS Discount rates in effect when the gift is made. The UNC-CH Foundation generally follows the annuity rates as established by the American Council on Gift Annuities, however please contact the Office of Gift Planning to obtain current and accurate rates. Once determined, however, it is important to note that the payout rate will not fluctuate with the market. The UNC-CH Foundation issues gift annuities to any beneficiary over the age of 50 who wishes to make a gift of $20,000 and greater to support The Education Foundation and Carolina Athletics.

 

Charitable Remainder Trusts

In a charitable remainder trust, a donor transfers assets to the UNC-Chapel Hill Foundation, which serves as trustee. These assets can be either cash or noncash possessions. In return, the UNC-CH Foundation provides regular payments to one or more individuals for a term of years. The donor's income amount can be either variable or fixed. When the trust terminates, the amount remaining in the trust is transferred to the University to be used for a purpose designated by the donor. (In some situations a financial institution or the donor him/herself may serve as the trustee of the trust. At its termination, the trust assets would be transferred to the beneficiary(ies) named in the trust document.)

Generally, a minimum gift of $100,000 is required to establish a charitable remainder trust at The University of North Carolina to benefit The Educational Foundation and Carolina Athletics.

Charitable Remainder Trust Tip

It is important for donors who have established CRTs to analyze their investments and distributions annually, as well as discuss with their legal and financial planners how their financial situation may be impacted with changes in the tax law. Should you have any questions regarding any of these matters, please call Sue Walsh at 919-843-6413, or email her at sue@ramsclub.com. Sue will work with the Office of Gift Planning at Carolina to obtain answers to your questions and to prepare any illustrations you may request.