Planned Giving

Planned and Life Income Gifts . . . Leaving a Legacy

Blue Ridge Community College is . . . innovative. Collaborative. Impactful. And as someone who knows the value of Blue Ridge Community College to our community, you also know that every gift is stretched to best support our students, programs and community.

Are you interested in a way of giving to Blue Ridge Community College that means your charitable dollars can go farther and have more impact? If getting more out of your giving sounds smart, then giving stock, bond or mutual fund shares might be the right idea for you.

Let’s say you bought securities for $2,000 five years ago. Those shares are worth $10,000 today. If you sold this stock, you would pay capital gains tax on the $8,000 gain in value. Now, let’s say that instead of selling that same stock, you donate it to Blue Ridge Community College Foundation. Not only does the full $10,000 support Blue Ridge Community College’s students and programs, but you pay no capital gains tax and get a charitable gift deduction on your taxes.

When you use stock to give, you can give more. Think of the capital gains tax that would have been due if you’d sold the shares as an addition to your gift. Given that the Dow Jones Industrial Average has risen substantially over the past several years, you are likely to realize a taxable profit on the sale of shares you’ve purchased or held over time. In North Carolina, you’ll save both Federal and state tax, so donating appreciated shares you’ve held for more than a year increases your gift by about 20% percent (15% Federal rate + 5.25% NC rate) over making the same gift by selling the stock and donating the proceeds.

Reduce future taxes with a swap. Many people invest in companies they believe in and want to hold that stock for the long term. When the stock increases in value, that’s confirmation of your good choices, and sets the stage for substantial gains when you sell. So why not consider a charitable swap? Donate some of your appreciated shares, then buy new shares of the same stock. You’ve kept your holdings steady, but reset your cost basis at the current, higher price. This will reduce future capital gains tax exposure if the stock continues to grow in value.

Giving with stock can be part of your portfolio strategy. If you’re a “buy-and-hold” investor, over time, stock splits and dividend reinvestment can tip your holdings out of balance. A review of your investments’ gains and losses will show if it’s time to rebalance your portfolio. If it is, choosing some shares to donate puts your capital gains to work funding your generosity. Your financial advisor can help you identify the best shares to donate for tax savings and your portfolio’s future performance.

The key to this giving strategy is to transfer your stock, bond or mutual fund shares directly to Blue Ridge Community College’s Foundation. As always, we encourage you to consult with a trusted financial advisor regarding your particular situation. If you decide that this way of giving is right for you, you or your broker can get specific instructions by reaching us at brccef@blueridge.edu or (828) 694-1710. And if you need more information, we are ready to help – just ask!

Types of Planned Gifts

Bequest

Planned and Life Income Gifts
You specify a gift in your will or revocable trust to be effective upon your death.
Benefits to Donors
You retain control over the property during your lifetime.
Gifts may be defined as a specific dollar amount, as a specific asset, or as all or a portion of your residuary estate.
An estate tax deduction is permitted for the gift.
Benefits to Foundation
Blue Ridge Community College Educational Foundation receives the gift upon your death.

Charitable Remainder Trust

Planned and Life Income Gifts
You create an irrevocable trust during your lifetime, or upon your death, and transfer assets to the trust.
You may designate one or more income beneficiaries (including yourself) to receive a fixed dollar amount (annuity) or a fixed percentage of the trust assets (unitrust) each year in annual or more frequent installments.
The annuity or unitrust may be paid for a period of years or for the lifetimes of the income beneficiaries. Following the death of the income beneficiaries or the expiration of the term of years, the remaining trust assets pass to BRCC Educational Foundation.
Benefits to Donors
You may provide an income stream for yourself or your family members for life or a period of years.
If you create the trust during your lifetime, you may claim an income tax deduction in the year the trust is created for a portion of the gift.
The trust is tax-exempt, so all proceeds from the sale of the assets contributed to the trust may be invested without reduction for capital gains taxes.
Annuity or unitrust payments received by the income beneficiaries are generally taxable as a blend of ordinary income, qualified dividends, and capital gains, depending on the character of the income earned by the trust.
Benefits to Foundation
Blue Ridge Community College Educational Foundation receives the remaining trust assets upon the death of the income beneficiary or the expiration of the term of years.

Retirement Plans (Gifts at Death)

Planned and Life Income Gifts
You designate Blue Ridge Community College Educational Foundation as the beneficiary of all or a portion of your IRA or other qualified retirement plans.
Benefits to Donors
You control the IRA until your death and may revoke the beneficiary designation at any time.
The portion of your IRA passing to Blue Ridge Community College Educational Foundation qualifies for an estate tax charitable deduction.
Benefits to Foundation
Upon your death, the Educational Foundation receives the designated portion of the IRA free of estate and income taxes.

Qualified Charitable Distributions from IRAs

Planned and Life Income Gifts
The 2015 PATH Act permanently enacted a provision that allows certain IRA account owners to make tax free distributions from their IRAs to eligible charitable organizations. Qualifying charitable distributions may be made by individuals age 70-1/2 and older in amounts of up to $100,000 per year, however, the amounts must be paid directly to a qualified charitable organization from the IRA. IRA owners are required to begin withdrawals from their IRAs after age 70-1/2 and must generally pay income tax on the amounts distributed. This provision of the law allows the IRA owner to instead redirect their IRA distributions, up to $100,000, to a qualified charitable organization. These charitable distributions are excluded from the taxpayer’s federal taxable income, so they are not subject to federal income taxation.
Benefits to Donors
Transferring an IRA distribution to Blue Ridge Community College Educational Foundation allows a donor to avoid federal income taxes (and possibly some state income taxes) on the amount distributed. These qualified charitable distributions can be used to satisfy the donor’s required minimum distributions.
Benefits to Foundation
The Blue Ridge Community College Educational Foundation receives the distribution free of income taxes.

Charitable Lead Trust

Planned and Life Income Gifts
You create an irrevocable trust during your lifetime, or upon your death, and transfer assets to the trust. You may designate the Educational Foundation to receive a fixed dollar amount (annuity) or a fixed percentage of the trust assets (unitrust) each year in annual or more frequent installments.
The annuity or unitrust may be paid for a period of years or for the lifetime of an individual (the “charitable term”). Following the expiration of the charitable term, the remaining trust assets pass to your family members or to other named beneficiaries.
Benefits to Donors
The trust may be structured so that the trust assets revert to you or your estate after the charitable term. This would allow you to receive an income tax deduction for the value of the charitable interest in the year the trust is created, even though the payments to the Educational Foundation are spread over a number of years.
The trust may be structured so that the trust assets pass to your children, grandchildren, or other family members after the charitable term. In this case, in the year the trust is created you would receive an estate or gift tax deduction (but no income tax deduction) for the value of the charitable interest, which would reduce the value of the remainder interest passing to family members for estate and gift tax purposes.
With careful drafting, the trust may be structured to give you both an income tax and an estate/gift tax deduction in the year the trust is created.
Benefits to Foundation
Blue Ridge Community College Educational Foundation receives the benefit of the annuity or unitrust payment during the charitable term.

Professional Advisors

Blue Ridge Community College Educational Foundation works with professional advisors including estate planning attorneys, accountants, financial advisors, insurance professionals, trust officers, and other professional friends who serve our area donors, their families, and corporations.

Your clients may already be donating regularly to Blue Ridge Community College Educational Foundation or are interested in learning more about how they can make an investment in the future of their College and the lives of others in our community. We can work with you to inform your clients of the needs and priorities of the College and match them with giving opportunities according to their specific interests and needs.

It is a pleasure to partner with our professional advisors. If you would like us to meet with you and your clients, please e-mail or call us to schedule a time that works best for you.

Student Panel

Planned and Life Income Gifts . . . Leaving a Legacy

Types of Planned Gifts

Professional Advisors

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