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The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
ALADN 2003 Conference
Michele Fletcher, Director of Library Development
June Steel, Director of Planned and Regional GiftsOffice of University Development
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Why Planned Giving works for Libraries
• Type of donor is “millionaire next door”
• Pattern of small gifts
• Donors typically self identify
• Donors typically offer clues
• Larger payoff
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
“To the rich, the very rich, and the super rich! Have I left anybody out?”
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
•$250 a year donor
•“Fill-in” appointment
•Highly appreciated stock with low income
•Interest in planned giving
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Why Planned Giving is Vital for your Library
• Aging population
• Trillions to be transferred
• Millions without wills
• Enormous potential
• Enormous competition
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Planned Giving – Value Added• Know your donors and prospects
• Know your collections
• Know about assets
• Know about methods
Outright Life Income Bequest
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Investment Cycle
Special
Ultimate
Annual Gift
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
“Would everyone check to see they have an attorney? I seem to have ended up with two.”
copyright The New Yorker Collection from cartoonbank.com
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Planned Gifts • Current Gifts
– Stocks– Tangible Personal Property– Real Property
• Deferred Gifts– Bequests– Life Income Gifts
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Tangible Personal Property
• Charitable deduction for FMV• Related use • Avoids capital gain tax• Self-created works• IRS Form 8283
– Gifts over $500– Gifts over $5,000
• IRS Form 8282
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
•Real Property
•Life Estate
•Bronze in newly renovated library
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Real Property
• Full or undivided fractional interest
• Environmental issues
• Marketability/Carrying costs
• Buyer in the wings
• Bargain sale
• Retained life estate
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
“After 18 years of cultivating Patrick Daniels, III, may I present his planned gift to us: Twinkles.”
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Wills/Bequests
• Easy to do - often largest gifts• Types
– Specific– Residuary– Contingent– Testamentary trust
• Removes assets from estate
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
"To whom much is given, of him much is expected. I have been given much: an inquiring mind, a sense of ethics, a lifelong search for religion and truth (defined as knowledge in agreement with reality), good health, more than my share of earth's physical treasures, a reasonable balance in seeing relationships, and finally the blessing of a nagging inner voice to preach, even demand, in strident tones and at the most inopportune times, duty, that draconian self-law which binds one to his principles."
-excerpt from Jack Lynch's will
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Life Income Gifts
• Charitable Remainder Trusts– Unitrust– Annuity Trust
• Pooled Income Fund
• Charitable Gift Annuities– Current
– Deferred
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Charitable Remainder Trusts
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Charitable Remainder Trusts
Benefits:
• Immediate income tax deduction
• Avoids capital gain tax on transfer
• Income for life or term of years
• Removes assets from estate
• Several different types
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Charitable Remainder TrustsUnitrustUnitrust
VariableVariable income income
Assets valued Assets valued annuallyannually
Additional Additional gifts allowedgifts allowed
4 types4 typesStraightStraight
Net incomeNet incomeNet Income + Net Income +
makeupmakeupFLIPFLIP
Annuity TrustAnnuity Trust
FixedFixed income income
Assets valued Assets valued one timeone time
No additional No additional giftsgifts
1 type1 type
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Pooled Income Fund
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Pooled Income Fund• Agreement between donor and University• Additional gifts can be made - units revalued• Variable income• Managed by University• UNC-Chapel Hill policy:
– cash or securities -- no municipals or real property– one or two income beneficiaries, minimum age 50– minimum initial contribution -- $5,000
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Charitable Gift Annuities
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Current Gift AnnuitiesBenefits:• Immediate income tax deduction• Preferential capital gain treatment• Attractive rates of return• Fixed income• Removes assets from estate• State regulations vary
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Deferred Gift AnnuitiesBenefits:
• Same benefits of current gift annuity plus…
• Payments start when contract stipulates
• Higher payout and deduction since payments deferred – based on original gift amount
• Used for retirement income
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Retirement Plan Assets
• Currently– Lifetime giving has income tax
consequences for the donor
– Asset best given to library at death
• Future?– Care Act of 2003
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Gifts of Life Insurance• Donate a paid up
policy
• Donate a partially paid up policy and continue to pay premiums
• Use insurance to replace asset given to your library
For gift credit the charity must be both
the owner and beneficiary of the
policy.
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
Valentine’s Day Cookies
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
The Campaign for the UNIVERSITY of NORTH CAROLINA at CHAPEL HILL
www.lib.unc.edu
www.carolinafirst.unc.edu/giftplanning