The College's ability to enhance its student financial aid capabilities, build upon its programmatic initiatives, and recruit the nation's best faculty relies upon the success of this campaign. Many alumni and friends have come up with very creative ways to fund important endeavors at the law school and we encourage you to think about ways in which your current gifts or estate planning could help advance our vision for the future.
In the past twelve months, several alumni have used their creativity and philanthropy to create such things as public interest scholarships, endowing the College's first visiting lecturer position, and support students by funding an enhanced interview techniques program in the Office of Planning & Professional Development. These are just a few ways in which funding is being uniquely and strategically provided to maximize our potential for success.
During this campaign, the College is counting all gifts — unrestricted, designated funds, and estate planning — to reach our $50 million goal. Though you may not feel as though you can impact the overall vision with your current gift, you can help much more than you think. A combination of current and planned giving has become an increasingly popular way for alumni and friends to support their various areas of interest at Illinois. Below is a list of ways in which you can give to this campaign.
Please contact the Office of Development & Alumni Relations at (217) 333-2628 to discuss in further detail ways in which you can support the College of Law.
A gift of cash/check is the most commonly used means of giving to the College. Most cash gifts are made for unrestricted purposes through the College's Law School Annual Fund.
Common and preferred stocks, bonds, mutual funds and other appreciated securities may be donated to the College of Law through the University of Illinois Foundation. In addition to providing immediate benefit to the College as a current gift, securities may also be part of the planned giving process, depending on the donor's wishes and financial objectives. A popular benefit of such a gift beyond the charitable income tax deduction is the avoidance, in most cases, of capital gains tax on the appreciation. Regardless of your income bracket, it is almost always to your advantage to transfer appreciated securities to the Foundation directly, rather than selling them and giving cash.
Bequests are the most common form of planned giving and are gifts made through a will or living trust. The College of Law via a non-profit entity, the University of Illinois Foundation, is often named beneficiary in the wills and living trusts of alumni and friends.
Bequests may be stated as a percentage of the estate, as the residual of the estate or for a specific dollar amount. Since a will can be changed, no income tax benefits are associated with a bequest; however, the donor's estate is reduced by the amount of the bequest for estate tax purposes.
Except for individuals 70 or older, under current tax law, retirement accounts cannot be transferred directly to a charity during one's lifetime without reporting the distribution as income. The charitable income tax deduction that results from a lifetime transfer of retirement assets will typically offset the income tax incurred. Nonetheless, a donor can name the College of Law as primary beneficiary of the account with the value being fully deductible for estate tax purposes. Furthermore, income taxes on the assets are also avoided since the University of Illinois Foundation is a tax-exempt entity.
Life insurance can become a gift of much greater value than the actual money expended when the policy is given to the University of Illinois Foundation, naming the College of law as the beneficiary.
Three different giving opportunities are available with life insurance. First, a donor can contribute a "paid up" policy to the University of Illinois Foundation and receive an income tax deduction equal to the policy's cash/replacement value. Second, a donor can name the College of Law as primary beneficiary of the policy. This results in estate tax savings, but no income tax deduction. Third, a donor can name the College of Law as owner and beneficiary of a new policy and receive an income tax deduction for the amount of the premiums paid.
The charitable gift annuity is not a trust, but is a contract between the University of Illinois Foundation and the donor whereby the Foundation promises to pay a fixed annuity to a maximum of two beneficiaries (beginning immediately or deferred to a later date) in exchange for the irrevocable transfer of assets by the donor to the Foundation. Annuity payments are based on the initial market value of the assets contributed and the ages of the income beneficiaries. A portion of the annuity payment may be considered a tax-free return of principal. An income tax deduction is allowed for a portion of the total gift value, and capital gains tax is also avoided. The charitable gift annuity is very popular due to its simplicity and effectiveness in providing immediate income tax deductions with a high level of tax advantaged income. The $5,000 minimum gift amount is also attractive to many donors.
Testamentary trusts are simply arrangements for loved ones established with language in your estate plan document (will or living trust). Upon your demise, the trust is initiated as set forth in your estate plan document. Testamentary charitable remainder trusts are often used to provide income to a donor's survivors. If so, the trust principal would pass to the College of Law after the income recipient's lifetime, or after a term of years, as determined by the donor ahead of time. Multiple beneficiaries, and even multiple generations, in most cases, can benefit from such an arrangement. Your estate receives a valuable tax deduction since the trust assets ultimately pass to the College of Law after your beneficiaries are provided for.
There are two major forms of property: real and personal. Real property is simply real estate — a home, farm, or other land. Personal property includes cash, securities, art, patents, copyrights, and any other item that has a determinable value. According to the Internal Revenue Service, services do not have a determinable value and they may not be deducted as a charitable contribution.
Many donors contribute real estate such as their residence, vacation home, farm, ranch, commercial property or undeveloped land to the College of Law via the University of Illinois Foundation. Usually, the Foundation will accept gifts of real estate if there are no restrictions placed on selling the property. Real property can be donated to the Foundation as a current gift by a warranty deed. Real property may also be part of the planned giving process. The donation is equal to the property's fair market value, which must be established by an independent appraisal.
