Types of Giving
Thank you for considering a gift to support NorthWest Arkansas Community College. We appreciate your belief in our mission and your desire to make a difference in the lives of others. At the same time, we would like to make sure that you also benefit from making a gift to NWACC. You may be surprised to learn that some of the best gift plans also improve the donor's financial and tax situation.
The most common donations are outright gifts, such as cash or check. But many people prefer to hold on to their assets for now to be sure that they can meet their family's future financial needs. That's why it's good to know that "planned gifts" are excellent alternatives to outright or current gifts which still provide a meaningful charitable contribution.
The appeal of most planned gifts is that they are deferred. You may plan to part with an asset today, but we don't receive the asset for a while - often until after your lifetime and that of a surviving beneficiary. During that time in between, you receive benefits from the gift.
With a Charitable Remainder Trust, for example, you receive lifetime income from the asset and we receive the remainder after your death. The key feature of planned gifts like these is that they allow the donor to benefit, as well as the charitable organization.
The following chart summarizes the benefits of some of the most popular types of planned gifts. Think about what you would like to accomplish with your gift and there is probably a way to do it. The NWACC Foundation staff is happy to answer any questions you may have about these opportunities. We also maintain a list of Planned Giving Advisors, experts in estate planning, tax accounting, and investing, if you do not have your own professional financial advisor to help you through the giving process.
For further information please contact:
One College Drive
Bentonville, AR 72712
Ways to Give
What is it?
What are the tax benefits?
What are some other benefits?
| Outright Gift ||A donation of cash, securities or personal property ||Income tax deduction for the value of the gift, plus no capital gains tax due on appreciated property ||You can tailor your gift to the chartable organization's immediate needs |
| Living Trust ||A trust you establish to take effect during your lifetime ||Possible savings in estate taxes if a charitable organization is the beneficiary of the trust remainder ||Terms of trust can be changed at any time |
| Bequest in Will ||A gift you make by naming a charitable organization in your will ||Estate tax deduction for the value of your bequest to the charitable organization ||Gives you flexibility in providing for your family needs first |
| Life Insurance Gift ||A gift of a new or old policy with a charitable organization named as beneficiary and owner ||Immediate income tax deduction for gift's value, plus possible estate tax savings ||Provides a way to make a significan t g ift with little expenditure |
| Retirement Plan Gift ||A gift made by naming a charitable organization as the beneficiary after your death ||Avoids income tax on the plan, in addition to possible estate tax savings ||Preserves plan's value and allows you to leave heirs bequests and other assets free of income tax |
| Real Estate Gift ||A donation of real property either in full or with a retained life estate ||Immediate income tax deduction for the charitable value of the gift, plus no capital gains tax due ||Can allow you to live in your home and still receive a charitable deduction |
| Charitable Remainder Annuity Trust ||A trust that pays a set income to you or those you name before a charitable organization receives a remainder ||Income tax savings form deduction, no capital gains tax liability, plus possible estate tax savings ||Provides fixed annual income for donor or other beneficiary |
| Charitable Remainder Unitrust ||A trust that pays a variable income to you or those you name before a charitable organization receives a remainder ||Income tax savings from deduction, no capital gains tax liability, possible estate tax savings ||Provides annual income that could increase if the trust value increases |
| Charitable Gift Annuity (not available from all organizations) ||A contract in which a charitable organization agrees to pay you back a percentage of your gift annually for your lifetime ||Immediate income tax deduction for part of the gift's value, with capital gains spread out over life expectancy ||Gives you and/or another beneficiary a set income for life at an attractive rate |
| Charitable Lead Trust ||A trust that pays an income to a charitable organization for a period of years before you or your heirs receive the remainder ||Gift or estate tax savings for value of payments made to the organization ||Allows you to pass assets to heirs intact at a reduced tax rate|
For questions/comments on this content, please call 479-619-4184.