How to Give
All kinds of gifts are included in a class’s reunion campaign. They include gifts of cash, securities, real estate, and many more. All gifts can be made in memory of a Brother Rat per request of the donor. Detailed information is available after the jump.
Gifts can be made to VMI by credit card, electronic funds transfer (EFT), check, or physical cash.
A donor may deed property to one of the alumni agencies; then that agency would sell the property and keep the proceeds. The donor may also contribute a piece of real estate to the Foundation in exchange for a life-income stream (which would then be considered a deferred or planned gift). Finally, the donor has the option of creating a “life estate” in a piece of property. The donor would simply deed a remained interest in his property as a gift to one of the alumni agencies while retaining himself or herself the right to occupy the property for his lifetime.
Stocks and bonds make excellent charitable gifts. Instead of selling the stock and donating cash, the donor should transfer ownership of the securities to the appropriate alumni agency, thus avoiding capital gains tax on the appreciate and receiving credit for the appreciated value of the gift.
In the case of depreciated stocks, it is better to sell them yourself, claim the capital loss, then make a cash gift out of the proceeds of the sale. Long-term, appreciated securities also deserve strong consideration as a gift. If so donated, the stock can be sold and re-invested avoiding capital gains tax. In many cases, the income provided from the gift will be more than was previously earned by the securities. The donor would also receive a charitable deduction for a portion of the current value of the donated assets. It’s truly a win-win situation for the donor and VMI!
There are several ways life insurance can be used as a gift:
Reunion Campaigns are special to the respective class and the Institute in that it is a unique opportunity to contribute to the quality of life at the Institute. Alumni donate most of their gifts and pledges in support of VMI. Many of those gifts are generated through annual Reunion Funds organized by the classes that are celebrating their 10th, 25th, and 50th reunions.
Donors to these funds – who often include spouses, children, and friends – participate in many ways: planned giving, gifts to Annual Giving’s three funds (VMI Foundation Fund, Keydet Club Scholarship Fund or Athletic Operations Fund), or restricted gifts to specific programs. Classes may even create special funds associated with their reunions, such as unrestricted endowments or scholarships. These special funds offer Brother Rats special opportunities to come together in support of VMI.
1. You can take an already existing policy and simply add the appropriate alumni agency as a full or partial beneficiary. You would still own and control the policy, so you could change the amount of the gift, if you later decided to do so. Therefore, just as with a bequest, there are no current tax benefits.
2. You could donate an existing policy which you own but is no longer needed to meet your needs. Just tell the insurance company to transfer ownership to the appropriate alumni endowment agency. If the policy is fully paid up, your gift is complete and you can forget about it. If it has premiums still due, the new owner (the VMI Foundation, for example) would pay the premiums when due, and then look to you for reimbursement. The reimbursements may be treated as charitable gifts by you on your taxes. Also, if the policy has any cash value (and most policies do), then you will receive an additional tax deduction, as allowed by law.
3. You could purchase a new policy, making the appropriate agency both owner and beneficiary. The recipient agency would pay the required premiums, with you then donating premium reimbursements annually (and claiming a charitable deduction).
This is one of the simplest ways to make a gift, and one of the least expensive! You don’t have to name a specific dollar amount. You can describe your gift as a percentage of the estate, or as a percentage not to exceed a certain dollar amount, or as a percentage not less than a certain dollar amount. If you already have a Will, just add a codicil, a paragraph describing the nature an amount of the gift you are making and name the agency to which you are making it. Have the codicil witnessed appropriately. Advice of counsel would be helpful and a copy of the codicil should be given to Terrie Conrad, CFRE, Vice President of Planned Giving at the Foundation.
Through a deferred gift annuity, you can make a substantial contribution to VMI while retaining an income for yourself, your spouse, or other selected beneficiaries. You receive a tax deduction for a portion of the value of your donated assets, but the class reunion campaign would receive full credit. There are minimums attached to these gifts so if you are considering a charitable remainder trust, pooled income fund, or gift annuities, please contact Terrie Conrad, CFRE, Vice President of Planned Giving at the Foundation.