Planned Giving

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.

Planned Giving

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, see 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?

Bequests

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.

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

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.

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.

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.