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News and Events
Dale Bumpers College
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How to GiveThe Many Ways to Make a Difference Through Your Charitable Gifts The University of Arkansas Division of Agriculture truly appreciates your philanthropic spirit and commitments. The Division is grateful that you are considering a gift(s) to support its work in the Cooperative Extension Service. Gifts to The University of Arkansas Foundation, Inc., for the Division's benefit can either be made immediately or through one or more deferred giving alternatives. Many individuals do both, making regular gifts and including the Division through The University of Arkansas Foundation, Inc., in their estate planning. Annual Giving Annual giving is crucial to the UA Division of Agriculture as these gifts provide a solid foundation for the programs that exist today. Annual gifts ensure flexibility as funding is immediately available to underwrite a program, provide unrestricted funds for a county or program area, or sponsor a scholarship, event or seminar. While many gifts may be unrestricted, meeting the most important immediate needs identified by the Division, you may also designate your annual gift to support a specific county, program or fund. Your annual gift, in any amount, demonstrates your commitment toward making a difference today in the lives of individuals and in local communities. Non-cash / In-kind Gifts You may gift to the Cooperative Extension Service or one of the Division's research centers valuable personal property that can either be used "as is" in our programs or be sold with proceeds funding a project/program of your choice. Depending on the value of your gift, an appraisal may be required. Your financial/tax/legal advisor(s) or the Division's development staff will be pleased to explain the criteria and determine if your personal property qualifies as a bona fide charitable contribution. Securities Appreciated, marketable securities are a very good resource for charitable giving. If you have stocks that have appreciated over the years, it is far more advantageous to transfer your stock as a gift instead of selling it and then donating cash. By giving appreciated securities you may receive two tax benefits. First, you get charitable credit for the fair market value of the stock on the day it is legally transferred. You also avoid the capital-gains tax that is assessed on the increased value of the stock from the time you acquired it. Depending on your tax bracket, your net, after-tax cost of a stock gift can be reduced by as much as 50 percent. Immediate Gifts of Your Farm or Real Estate Gifts of appreciated farmland and other real estate owned more than one year have the same tax benefits as gifts of securities. The appraised value of the property is tax deductible to the fullest extent of the law, and you do not pay capital gains taxes on the appreciation compared to selling the property and then making a gift. Upon the sale of the property, the UA Division of Agriculture can begin funding the targeted project of your choice. Gift with Retained Life Estate A gift of a farm or residence to the UA Division of Agriculture can provide many benefits to you. As part of any such gift, you may want to live in your home or maintain your farm until the time of your death or that of your spouse. This is achieved through a retained life estate gift. If you qualify, you can retain virtually all rights of ownership during your lifetime while still receiving an immediate charitable deduction for your gift. Charitable Lead Trust The charitable lead trust is an excellent tool to minimize taxes on assets you intend to leave to your heirs while providing an immediate gift of income. As such, you select assets to place in trust and how long the trust will last. Income from the trust is paid to the UA Division of Agriculture for the period you specify. When the trust terminates, the remaining principal is given to you or to others you specify, and you may benefit significantly if you elect to transfer the remaining assets to others at this time. Either way, the charitable lead trust can allow you to provide a significant immediate gift to the Division of Agriculture while also substantially reducing tax liabilities on your assets. Deferred Gift Deferred gifts directed to The University of Arkansas Foundation, Inc., can also be made that will benefit the UA Division of Agriculture at a later date when you no longer need all your resources, when you have been able to accumulate more resources, when care of loved ones has been properly provided, and/or when you believe it will benefit the Division the most. Deferred gifts include: Your Will or Living Trust Designating a gift to the Cooperative Extension Service or a research center in your will – a "bequest" – is an excellent way to make a significant contribution without diminishing assets during your lifetime. Making provisions for The University of Arkansas Foundation, Inc., to be named as a beneficiary in your will/living trust is easy for your attorney to complete. Since gifts by bequest are tax deductible from your taxable estate, considerable tax savings are possible. You may designate the specific program(s) that you wish to benefit. In fact, when you plan your gift, a member of the UA Division of Agriculture development staff can work with you, putting your plan in a formal gift agreement that governs the exact purpose and use of the funds. In planning your estate, bequest allocations can be specific, residual or general. Specific bequests designate exact items that you wish to give, and residual gifts provide a percentage of your remaining estate after all taxes, debt repayments and other distributions have been made. Example Bequest Language (PDF) to share with your legal counsel is provided for your convenience. Life Insurance Gifts of life insurance are another excellent way to help your favorite areas within the UA Division of Agriculture. Substantial sums can be provided for a modest initial outlay. This is most advantageous when you contribute a paid-up, whole-life insurance policy. You may also give a whole-life policy on which you are still paying premiums or a paid-up term policy. Gifts through life insurance can be accomplished two ways: you can retain the policy and name The University of Arkansas Foundation, Inc., the beneficiary or you can gift the policy to The University of Arkansas Foundation, Inc. If you retain ownership of your policy you can borrow against it, change the beneficiary, or cash it in. You will not receive a charitable deduction from your income taxes for this deferred gift or for your premium payments during your lifetime, however. The proceeds from the policy will be included in your estate, and your estate would be eligible for a charitable deduction. Tax benefits are available during your lifetime, however, for gifts of life insurance in which The University of Arkansas Foundation, Inc., is made both the owner of the policy and the beneficiary. Life insurance can also be used to replace funds charitably given so that your children or other heirs can be provided for, as well as programs of the UA Division of Agriculture. Your financial advisor(s) and our professional gift planners can share information about how this tool can be added to other deferred gift options. Charitable Gift Annuity A charitable gift annuity is a transfer of cash or other valuables (such as farmland or other real estate) to The University of Arkansas Foundation, Inc., in exchange for guaranteed annuity payments. The benefits include a fixed lifetime income, an immediate tax deduction for your gift, tax-free treatment on part of the lifetime income, and the joy of knowing you are helping a program in which you truly believe. The fixed income returned to you may exceed the current return you are getting on CDs, stock dividends or other investment returns. Upon your death, or the death of a spouse, the UA Division of Agriculture receives the remainder interest. You can also direct how the Division is to use these proceeds. Our development staff will be glad to provide you with specific information in strict confidence about how these tax and income incentives add up and without any obligation from you. Trusts A number of trusts also provide lifetime income for you and your spouse, if you elect. These include the Charitable Remainder Annuity Trust, Charitable Remainder Unitrust, Net Income Unitrust and Flip Unitrust. A successfully created trust can provide a fixed level of income, significant tax advantages, future financial protection for loved ones, and generous support for UA Division of Agriculture programs. A trust can be woven into other financial tools to provide a specially crafted plan that meets your needs. The Division's development professionals will be pleased to work with you and/or your financial/tax/legal advisor(s) in strict confidence to review and, as appropriate, to develop a trust that gives you and yours the greatest income and tax advantages. Contact Information To speak with someone about your gift, please contact one of the directors of development.
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