Planned Giving

For some friends of Manchester, it simply is not possible to donate from their current income or assets. Some instead donate during their lifetimes and designate part of their estates to the College. Planned giving is a way to plan now to help the College later.

Planned giving has many benefits!

  • It feels good to give.
  • Maximize your gift with estate planning.
  • Create a permanent memorial, if you wish.
  • Give, yet still draw income from the gift.
  • Perhaps realize income, estate and capital gains tax savings.

Of course, there are many legal and tax ramifications to any form of estate or tax planning. Manchester College's development officers are trained to work with your legal, tax or financial planners. There are many planned giving options … perhaps one is perfect for you!
Giving to Manchester College
Why Give?
Where to Give?
Who Can Give?
How to Give?
When to Give?
Office of College Advancement
Alumni Links


Contact the Office of College Advancement:

E-mail: giving@manchester.edu

Phone: 260-982-5218
or toll-free, 888-257-2586


BRIEF DESCRIPTOR OF PLANNED GIFTS©*

Instrument
Description
Benefits to Donor
Will/Bequests
Donor names charitable organization in will.

- Provide for family first .
- Estate tax deduction full amount of bequest.

Retained Life Interest
Contract: Gift of real property with retained life estate.

- Donors can live in home for remainder of their lives.
- Partial income tax deduction.
- No capital gains tax.
- Reduction of estate tax.

Charitable Lead Trusts
Trust: Pays trust income annually to charitable organization for period of years determined by donor, after which gift reverts to donor or heirs.

- Gift is returned to donor or heirs at reduced tax cost.
- Gift or estate tax savings for value of payments to charitable organization.
- Trust pays tax on its income and capital gains.
- Trust deducts amounts paid to charity.
- Amounts paid to charity can be by percentage or fixed amount.

Life Insurance Gift of old or new policy with charitable organization as beneficiary and owner. - Donor makes large gift with little expenditure.
- Income tax deduction
- No estate tax when life insurance proceeds are paid to the charity.
Retirement Plans Gift by naming a charitable organization as remainder. - If retirement plan assets pass directly from plan to charity, both income and estate taxes are avoided.
Charitable Gift Annunities Contract: Donor transfers cash or stock. Charitable organization pays donor a percentage of gift annually for a lifetime. - Fixed income payments to donor and/or other beneficiary for life.
- A portion of each payment is return of donor's principal and is free from income tax. Part of each payment is taxable as ordinary income.
- Capital gains tax is reduced and spread over donor's lifetime.

Charitable

Remainder

Unitrusts

Trust: pays variable income (fixed percentage of value) to donor or other beneficiaries for life or specific term up to 20 years. - Annual income to donor, could increase if trust value increases.
- Partial income tax deduction.
- No capital gains tax is paid when assets are transferred into the trust.
- Estate tax savings possible.

Charitable

Remainder Annuity Trusts

Trust: Pays fixed income ($ amount) to donor or other beneficiaries for life or specific term up to 20 years.

- Fixed annual income to donor or other beneficiaries.
- Partial income tax deduction.
- No capital gains tax is paid when assets are transferred into the trust.
Estate tax savings possible.

Pooled Income Funds Trust: a charitable mutual fund. - Provides income stream for life for donor and/or other beneficiaries.
- Donor receives income tax deduction when gift is made to the fund.
- Gifts are free of estate tax.
- Fund beneficiaries must pay ordinary income tax on fund distributions.

Other Considerations

  • Other gifts, such as specific hard assets, can be given to the College. Art or other collectibles, real estate and privately held businesses are just a few of the infinite number of choices that fall into this category. If you are considering a gift of this sort, advance consultation with the development staff and the administration of the College is required. While a gift of this sort has generous intentions, it could create problems and costs for the College. It would be unfortunate if the College would have to decline a gift due to these complications.
  • Life insurance and retirement account beneficiary designations are easy ways to make planned gifts. Designating the College as beneficiary must be done in writing. The forms for doing so are provided by the administrator or custodian of the insurance contract or retirement plan.
  • A bargain sale is a transaction between an asset holder and the College at a price substantially below the normal market price for that asset. The College must be involved at the planning stages of such a transaction to ensure that it works for all parties involved.
  • When negotiating a will or trust, there are three types of bequests to consider. Click here for more information.

* © Used with permission of The Fund Raising School, The Center on Philanthropy at Indiana University.