The Four Winds Legacy Society was created to recognize and thank alumni, family and friends who have made a bequest or planned gift to New College. For a complete listing of our generous Legacy donors, click here.
By becoming a Four Winds Society member, you join the company of many who have helped provide for generations of students and scholars to come. Most importantly, you will be making an invaluable contribution to securing the future of New College. Gifts to New College can be designated to a specific fund or need or may be given for general purposes.
When considering a planned gift, begin by asking yourself these simple questions:
• Do you want to make a significant gift during your lifetime, or would a gift as part of your estate work better?
• Do you have a particular asset that you are thinking of donating?
• Do you want to increase your retirement income, or is your primary goal estate preservation?
• Are you carrying excess life insurance or a large balance in your retirement plan?
Giving by bequest costs nothing now, yet it may give you a great deal of satisfaction to know that your future gift will live on. An outright gift from your estate is entirely free from federal estate taxes. This means that New College Foundation is able to use the full amount of the bequest. You may make a bequest and retain the ability to change it at any time.
SAMPLE BEQUEST LANGUAGE
“I give, bequeath and devise to New College Foundation, Inc., a not-for-profit corporation organized and existing under the laws of the state of Florida and located at Sarasota, Florida, the sum of $_____________ (or __ percent of the rest, residue and remainder of my estate) for the uses and purposes of said Corporation in support of New College of Florida."
A gift can be included in the body of a will or as an amendment (codicil). Gifts typically provide an estate tax deduction. Bequests to New College Foundation can include cash, securities, real estate, other property, a percentage of the residue of your estate, or all the residue of your estate.
Life insurance policies also can be used as charitable gifts. If you name our Foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution.
Charitable Remainder Trusts/Annuity Trusts
Establishing a trust is simple. New College Foundation is able to administer charitable remainder unitrusts and annuity trusts, both of which pay lifetime income to you or other named beneficiaries.
Cash or property is transferred to the trust. The income beneficiaries receive annually an amount equal to a fixed percentage of the trust's fair market value (unitrust) or a fixed dollar amount (annuity trust). Upon termination of the trust, the assets are transferred to New College Foundation.
Charitable Gift Annuities
A charitable gift annuity is a way for you to receive a guaranteed income for life and an immediate income tax deduction, while at the same time, leaving a legacy to the charitable cause of your choice.
Through a charitable gift annuity, you receive a fixed stream of income for life. After paying the lifetime annuity to you and your spouse, the remaining principal is transferred to New College Foundation to be placed in our endowment and used for tuition assistance. Our payments to you are based on your age the older you are, the higher the rate. If the annuity is for you and your spouse, the calculation is based on your joint ages. If you need the income now, you can use our deferred plan and receive the income tax deduction now, but begin receiving payments when you reach a specific age. This is an excellent complement to your existing retirement plan.
The tax advantages of both a current and deferred annuity are two-fold. First, you receive an immediate income tax charitable deduction when you create your annuity. This is based on your age and annuity payout rate. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the net income you receive.
Our development staff is pleased to provide a free, personalized analysis regarding your charitable gift annuity rate and tax deduction information. As these giving vehicles are complex and related to other estate planning, we encourage you to work with your lawyer or financial advisor.
Pension Plan Beneficiaries
A retirement plan is one of the best types of assets to transfer to New College Foundation because it produces taxable income. Most assets an heir inherits are free from income tax.
However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer the taxable assets subject to income tax to a tax-exempt charity — such as a New College Foundation — and to transfer the assets not subject to income tax to heirs.
For a taxable estate over $3 million, the combination of estate and income taxes will frequently exceed 75 percent of the total amount — even more if the generation skipping transfer taxes are triggered. At a cost to your heirs of only 25 percent of the fair market value of these types of assets, you could apply 100 percent of the assets to New College Foundation.
Life Insurance Beneficiaries
Perhaps you would like to contribute the proceeds of a life insurance policy to New College Foundation, but you are not yet ready to give up ownership of the policy. By naming New College Foundation as the only beneficiary, you retain ownership of the policy and have access to the cash value as well as the right to change the beneficiary.
If you don’t have liquid assets right now but want to support New College Foundation, a gift of life insurance may be a good option. While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate New College Foundation as the beneficiary or for subsequent insurance premiums. However, proceeds payable to New College Foundation, at your death, will not be subject to federal estate taxes.
Gifts of stock and other appreciated securities provide the same tax deduction as if you had given cash, but use stocks or bonds that cost you less than they are current worth. Your deduction is based on the current market value of your securities, but you incur no capital gains liability when transferring them to the New College Foundation.
Gifts of open land, a home up north or income-producing commercial or residential properties can bring great benefits to New College. You can give real estate outright, transfer it in a part sale-part gift arrangement or use it to fund a life-income gift. You can also make a gift of your current home while retaining the right to continue living there.
Appreciated Personal Property
Do you own a collection of rare books, antiques, valuable jewelry, fine artwork or equipment that you no longer wish to maintain? Consider giving these assets to the New College Foundation. (Note, there are particular IRS requirements to meet before you can deduct a gift of appreciated tangible assets. The Foundation also reviews each gift proposal carefully to ensure we can put it to good use in benefiting the College.)
We encourage you to work with your lawyer or financial advisor as you consider these options. Our staff is experienced in the use of these giving vehicles and is eager to work with you and your advisor in this process.
Staff at the New College Foundation is ready to work with you and your advisors to develop a gift that meets you and your family’s longer-term philanthropic and financial goals. For more information on making a planned gift or to learn about ways your legacy gift will be used at New College, please contact the New College Foundation at 941-487-4800 or firstname.lastname@example.org.