Outright Gift Options
Outright gifts of cash are the easiest and most direct way to make a gift. Cash gifts can be made simply by writing a check payable to NC State Engineering Foundation, Inc. and mailing it to the following address:
NC State Engineering Foundation
Campus Box 7901
Raleigh, NC 27695
Be sure to include a note with your check that states the purpose of your gift. The gift can then be easily recorded and you will be issued a receipt for your tax records.
Donors can pledge a set amount over a period of years to support the College of Engineering. To do so, please author a letter of intent that includes the total amount pledged, a schedule of payments and the purpose of the gift. For assistance with a letter of intent, please contact Shawnda Hill, business officer for NC State Engineering Foundation, at 919.513.7557 or firstname.lastname@example.org.
To make an outright gift with a credit card, follow the instructions to make a gift online. If you would prefer to talk to a person, please call the NC State Engineering Foundation Office at 919.515.7458 or toll free at 866.316.4057.
An excellent way to leverage your gift to the NC State Engineering Foundation is to ask your human resources department if your employer will match your gift through their matching gift program. By following the guidelines established by your employer, your gift could be doubled or even tripled. This benefit is often available to the spouse of the employee as well as to retirees and board members.
Gift credit is given to both the donor and the company when a matching gift is received. These gifts are also factored into the calculation for the donor’s placement in the University Lifetime Giving Societies.
Using appreciated securities (stock and bonds) is a popular method of making a gift to the NC State Engineering Foundation. A gift of appreciated securities provides a double tax savings: you can deduct the average of the high/low value of the securities on the date of the gift and avoid the capital gain tax on the appreciation.
A gift of appreciated securities, held for more than one year, entitles you to a charitable income tax deduction in the year you complete the gift. You can use the deduction to offset up to 30% of your adjusted gross income. Any deduction exceeding the 30% limit is carried forward for up to five additional years. You may also donate securities you have held for less than one year, but your deduction will typically be based on what you paid for the securities.
Publicly traded securities can fund all types of gifts — everything from annual gifts for current operations to major gifts or even to fund a life income gift. More and more donors are transferring publicly traded shares to the Engineering Foundation electronically. Mutual funds are also transferable as well, but can take much longer to complete as the transfer requirements vary significantly from fund to fund.
Gifts of property such as equipment, paintings or other art objects can be donated to the NC State Engineering Foundation and entitle you to an income tax deduction. Because items of this nature are subject to estate tax, a donation, either during your lifetime or as a bequest under your will, may also produce estate tax savings.
For gifts made during your lifetime, the amount of the deduction depends on whether the gift relates directly to NC State’s educational activities and purposes. This “related-use” restriction does not apply to gifts made through a bequest under your will or living trust. Donors can deduct the full fair market value of the property provided they have owned the assets for at least one year and the gift satisfies the “related-use” requirement. With property owned for less than twelve months, the deduction is limited to the price paid for the property.
A gift of real estate can include a gift of a principal or vacation residence, farm, timberland, commercial buildings or unimproved land and can be for the entire property or a fractional interest. Gifts of real estate entitle you to the same tax benefits as gifts of appreciated securities, provided you have owned the real estate for more than one year and there are no liens on the property. The donor is entitled to a charitable income tax deduction of the full fair market value of the real estate, valued at the time of the gift. Additionally, the donor will avoid capital gains tax on the transfer. Gifts of real estate can also generate substantial estate tax savings by removing a high-value asset from your estate. Appreciated real property is also an excellent asset to use to establish a charitable remainder trust.
Since your home or property may be your most valuable asset, you may want to consider a gift of a remainder interest in your property instead of an outright gift. A gift of a remainder interest allows you to continue to enjoy your home for your lifetime, and the lifetime of your spouse, while providing a current charitable income tax deduction and potentially lower estate tax costs. See the retained life estate topic under the planned giving section below.
Because the ability to market the property is a major consideration in the NC State Engineering Foundation’s acceptance of a gift of real estate, we invite you or your advisor to call us to discuss such a transfer.
Naming the NC State Engineering Foundation as owner and irrevocable beneficiary of the policy will generate an income tax deduction for the donor. The charitable deduction will depend on several factors including what, if any, premiums are still to be paid. This can be a cost efficient way to provide a significant gift in support of the College of Engineering at NC State.
You may also designate the NC State Engineering Foundation as the beneficiary, or contingent beneficiary of your group term life insurance through your employer. This method of giving will not generate a current income tax deduction, but it will remove the value of the insurance from your estate. Your human resources division can assist you with making such a designation on your group term policy.
A gift made in memory or in honor of a family member, friend, student or teacher is a generous way to memorialize the individual’s life, accomplishments and association with the College of Engineering at NC State.
We notify the honoree or their family of the names and the addresses of those making the gift. Please forward with your gift the name of the person being honored and their address or that of their next of kin if possible to the following address:
NC State Engineering Foundation
Campus Box 7901
Raleigh, NC 27695
Planned Gift Options
Life income gifts involve the irrevocable transfer of assets in exchange for income for life (or a term of years in some cases) for one or more beneficiaries. Only after the passing of the last beneficiary are the remaining proceeds used for the purpose the donor designated. The NC State Engineering Foundation offers two types of charitable remainder trusts (the annuity trust and the unitrust) and two types of charitable gift annuities (one with payments that start now and a deferred option with payments starting in the future).
All of these gifts share several common characteristics:
- An immediate income tax deduction for the remainder value of the gift
- Estate tax savings
- Income for life or a term of years
- Relief or total avoidance of capital gains tax on the transfer
- The satisfaction of making a significant gift in support of whatever areas you choose in the College of Engineering at NC State
The easiest and simplest form of a life income gift is the charitable gift annuity. This is a simple one and a half page contract between the donor and the NC State Engineering Foundation, whereby the Foundation guarantees to pay the donor, the donor and his or her spouse, or another beneficiary a set sum annually for life. The payments remain the same over the lifetimes of the income beneficiaries and often a portion of the income received is tax exempt. The interest rate paid depends on the ages of the income beneficiaries and whether the payments are to start at once or be deferred to some point in the future. Charitable gift annuities can be funded with cash or securities. Additions are not permitted to a charitable gift annuity or a deferred gift annuity; however, a new contract can be drawn at any time.
Deferred gift annuities can be an excellent retirement income or IRA substitute. Since the payments are deferred for at least one year, the interest rate paid will be substantially higher than for an immediate payment annuity and the charitable deduction will be larger as well. In certain circumstances, real estate can be used to fund a deferred charitable gift annuity.
Requirements to establish a charitable gift annuity or deferred gift annuity follow:
- Minimum amount of $10,000
- Minimum age of 55 for a standard annuity. Minimum age for a deferred annuity of 40 with a 15-year deferral
- One or two lives only
Benefits of a Trust Gift
- Fixed income for life, lives or term of years
- Avoid capital gains tax on the sale of your appreciated assets
- Charitable income tax deduction for remainder portion of your gift to North Carolina State University
Charitable Remainder Annuity Trust for Fixed Income
If you are tired of riding the fluctuating stock market and want a fixed income, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays out a fixed amount each year based on the value of the property at the time it is gifted.
You may establish a charitable remainder trust, a charitable lead trust or a charitable gift annuity through your will. Because it does not come into existence until after your death, it will not provide any income tax savings during your lifetime. However, it will provide income for a spouse or other loved one for his or her lifetime and will reduce your exposure to estate taxes.
The charitable lead trust is essentially the reverse of a charitable remainder trust. Rather than receiving the trust’s remainder value, the NC State Engineering Foundation will receive the trust’s income for a specified period of time. At the conclusion of the trust, the property either reverts to the donor or to a non-charitable beneficiary designated by the donor. Established during the donor’s lifetime or through a will, charitable lead trusts are best for donors who can forego the income generated by the property for the trust’s period of existence. The tax benefits for this type of a trust are complicated but can be highly beneficial depending on the tax situation of the donor and his or her family.
A provision of the tax law allows you to give your personal residence, or farm, to the NC State Engineering Foundation and to retain for yourself and your spouse or other beneficiary the right to continue to live there for life. During your lifetimes, you retain the full use of the property and continue to pay all expenses related to the property. At the death of the survivor, the property passes to the NC State Engineering Foundation.
In addition, your vacation or second home qualifies for this treatment as long as it is used as a personal residence and not a rental property. The immediate charitable deduction allowed for this future gift is the present value of our right to receive the property at some later time. This present value, and the resulting charitable deduction, is determined, primarily, by the age of the life tenants. If the lifetime enjoyment of the property is limited to the donor and his or her spouse, the property will not be taxed in either estate.
Frequently, people reach retirement age with significant wealth accumulation in retirement plan accounts. Unfortunately, assets in these types of plans are included in the owner’s taxable estate at death and can be subject to as much as 70% combined estate and income taxes.
Rather than see such a large percentage of your remaining retirement assets eaten up by taxes, you might consider directing that part or all of these excess retirement assets be used to make charitable gifts. While the value of these accounts is still included in your taxable estate, your estate will receive a full charitable deduction for all gifts designated to charity.
For more information about planned gift options, please contact the Office of Gift Planning at 919.515.5106 or email@example.com.