Listed below are a number of options available for a planned gift which can be very confusing to many. The OLLI Legacy Fund Advisory Group has been established to assist OLLI members in navigating through all of this. If you would like help just call the OLLI office and ask for someone from the Advisory Group to contact you. In any case, you will want to work with your estate planning attorney and probably someone from the SOU Foundation in order to make to appropriate provisions in your estate plan.
Outright gifts are current contributions of cash, stocks, bonds, mutual fund shares, real estate and personal property. As a donor you can benefit from an outright gift in the form of a tax deduction based upon the current value of the gift and the avoidance of capital gains tax if the gift involves appreciated property.
A bequest through a Will or Trust is one of the most widely used and flexible ways to make a planned gift. For sample bequest language (PDF), click here.
Types of bequests include:
- General: An agreed upon dollar amount.
- Specific: A specific property or security including real estate, stocks, or bonds.
- Residual: All or portion of the estate’s property after specific bequests, debts, expenses, and taxes have been paid.
- Contingent: The SOU Foundation, administrator of all OLLI at SOU funds, serves as an alternate beneficiary in case the primary beneficiary dies or disclaims the bequest.
Charitable Remainder Trust
This type of trust makes an annual payment to one or more individuals for life or a term of years. Upon termination of this charitable remainder trust, the property remaining will be transferred to the foundation for the specific use of OLLI, to be used for the purpose you have specified. There are two types of charitable remainder trusts:
- Unitrust: Income fluctuates annually with the fixed percentage of the fair market value of the trust.
- Annuity Trust: Income payments are fixed and determined when the gift is made.
Charitable Lead Trust
A Lead Trust pays an income through the SOU Foundation, for the benefit of OLLI at SOU, for a number of years and then terminates. Upon termination, the assets are returned to your heirs with favorable tax treatment.
Charitable Gift Annuity
A deferred gift, such as a charitable gift annuity, is a great way to make a significant contribution. In exchange for your gift of cash or property, OLLI at SOU, through the SOU Foundation, guarantees you a lifetime of income.
Retirement Plan Gift
You can designate OLLI at SOU, through the SOU Foundation, to receive any remaining assets of your IRA, 401(k), 403(b), or other qualified pension or profit sharing plan. By doing so, you maintain complete access to the assets during your lifetime.
Naming the SOU Foundation, as administrator for OLLI at SOU, as the owner and beneficiary of your life insurance policy is a great way to support the future of OLLI especially when your policy has a face amount that is much greater than the amount you can afford to give in cash. Pay the entire policy, or make annual contributions to the SOU Foundation for the cost of premiums.
Retained Life Estate
Primary residences, vacation homes and farms may be deeded to the SOU Foundation for benefit of OLLI at SOU. The gift provides the owner/donor the right to retain the use of property for life.