Planned Giving

Planned Giving

Planned giving includes both outright and deferred gifts, both of which have tax advantages authorized by the Internal Revenue Service. Outright gifts include gifts of cash, securities or property. Deferred gifts involve the transfer of an asset to a charitable organization, allowing an individual to retain either income or the interest. Current tax laws permit several planning alternatives for deferred gifts allowing the donor to receive a charitable income, gift, or estate tax deduction.

If you are considering a planned gift, please consult with a financial advisor to look at our suggested ways to give, as well as what to give, in your lifetime that may be advantageous not only to you and your family, but also to Phi Theta Kappa. There are many giving opportunities that support Phi Theta Kappa and allow you to play an integral role in shaping a bright future for deserving students.

Types of Gifts

Cash Gifts, now or pledged over time

Cash gifts are the simplest way to give and are deductible up to 50 percent of your adjusted gross income for the taxable year. If a portion of the gift exceeds the 50 percent, it may be carried forward for up to five additional years.

Credit Card Gifts

If you are making regular gifts to Phi Theta Kappa, you may make donations through your Visa, MasterCard or Discover. This may be a convenient way to make sustained gifts to the Foundation.

Matching Gifts

You or your spouse may work for a company that has a corporate matching gifts program. Taking advantage of this wonderful gift giving option may allow you to double or even triple the impact of your gift. Ask the personnel benefits office at the company for information about the program and a form to complete.

Appreciated or Depreciated Securities

If you have appreciated stock held for more than one year, you can not only avoid capital gains taxes on the gift amount but also receive a tax deduction for the full fair-market value of the gift.

If you have an investment that has decreased in value since its purchase, you may want to sell it and make a charitable gift of all or a portion of the cash proceeds. Not only would you be able to receive a tax deduction for the cash contribution, but you may be able to deduct the loss from other taxable income.

Bonds, Mutual Funds

Similar to stocks in their tax treatment, if you have held bonds or mutual funds for more than one year, a tax deduction for the full value of the gift may be possible. Corporate, state, municipal and U.S. government bonds are examples of great sources of gifts.

Life Insurance Gifts

You may consider giving a life insurance policy to Phi Theta Kappa. For the gift of a paid policy, you will receive an income tax deduction equal to the lesser of the cash value of the policy or the total premiums paid. The Foundation must be named as owner and beneficiary to qualify for the federal charitable contribution deduction on a gift of an existing policy.

Real Estate Gifts

Gifts of real estate may include a home, a vacation home, land or a farm. In most cases, if your property is fully paid off and has appreciated in value, you can deduct the fair market value of your gift and avoid all capital gains taxes. You can transfer the deed to the Foundation now and retain the right to live there for the remainder of your life, your spouse’s life or other survivor and receive an immediate income tax deduction for the gift.

Ways to Give

Bequests Through Your Will

A bequest is one of the simplest ways to give through your estate. Leave your legacy by making a gift in your will to Phi Theta Kappa for a specific dollar amount, a percentage of your estate or the remainder of your estate after you have provided for others. When you name the Phi Theta Kappa Foundation as a beneficiary in your will, your estate will receive a charitable estate tax deduction when the gift is made.

Retirement Account Assets

Retirement account funds, whether individual retirement accounts or employee’s company plans, may be given to the Foundation by a simple beneficiary designation. Naming the Phi Theta Kappa Foundation as the beneficiary of an IRA, 401K, Keogh or other retirement plan can result in favorable estate tax reductions.

Retained Life Estate

Retained life estate is when you make a gift of a personal residence, vacation home, land or farm to Phi Theta Kappa Foundation and retain the right to live there for the remainder of your life, your spouse’s life or other survivor. You receive an immediate income tax deduction for the gift. Upon death, the Foundation can use or sell the property.

Life Insurance

You can make a significant life insurance gift by naming the Foundation as a beneficiary of all, or a portion, of the proceeds of an existing policy. For the gift of a paid policy, you will receive an income tax deduction equal to the lesser of the cash value of the policy or the total premiums paid. The Foundation must be named as owner and beneficiary to qualify for the federal charitable contribution deduction on a gift of an existing policy.

Charitable Remainder Trust

A charitable remainder trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever you choose to receive income. You may claim a charitable income tax deduction and may not have to pay capital gains tax if the gift is of appreciated property. At the end of the trust term, the Phi Theta Kappa Foundation receives whatever amount is left in the trust.

Charitable Lead Trust

A charitable lead trust allows you to designate a charity as the beneficiary of a trust for a term of years that you choose, with the assets passing on to your heirs. This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to the Phi Theta Kappa Foundation during its term. This type of charitable donation is ideal for circumstances when you do not need the income for a period of time and would like to make a significant charitable gift but ultimately want to provide an inheritance for your children.

See the latest issue of Visionary to view those who are making an impact in students’ lives through planned gifts.


The information on these pages is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.