Fund a Charitable Gift Annuity (CGA) with Long-Term Appreciated Property
A Tax-Smart Giving Strategy
Creating a Charitable Gift Annuity using long-term appreciated property — such as stocks, mutual funds, or real estate — can be an excellent way to support The LeTourneau University Foundation while securing fixed payments for life. In addition to these benefits, this approach offers unique tax advantages that may reduce your capital gains tax burden.
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a simple contract between you and The LeTourneau University Foundation. You donate long-term appreciated property, and in return, The LeTourneau University Foundation agrees to make fixed payments to you for life. Your payment amount is determined by your age at the time of the gift and does not change over your lifetime, providing reliable income regardless of market fluctuations.
Why Fund a Charitable Gift Annuity with Long-Term Appreciated Property?
While you can use cash to fund a Charitable Gift Annuity, using long-term appreciated property can provide you with additional tax benefits. Here’s why it’s advantageous to consider funding a Charitable Gift Annuity with long-term appreciated property:
- Reduced Capital Gains Taxes: You recognize only a portion of your capital gain in the appreciated securities. What’s more, in most cases you can spread payment of the capital gains tax you do owe over many years. If you were to sell the appreciated securities yourself, you would owe capital gains taxes on all the appreciation in the year of sale.
- Income Tax Deduction: You are eligible for an income tax charitable deduction based on the fair market value of the property you give, subject to IRS limitations. This deduction can reduce your taxable income in the year of your gift. You may carry forward any unused deduction for up to five additional years.
- Lifetime Income: You receive fixed payments for life, based on the value of your gift and your age at the time of the gift. In addition, your payments are partially tax-free for many years. This stable payment stream can be particularly appealing if you are looking to supplement retirement income.
- Diversification: Donating appreciated securities to fund a CGA can serve as a diversification strategy, allowing you to reduce concentrated holdings in your investment portfolio without incurring immediate capital gains taxes.
- Charitable Impact: After the annuity payments conclude, the remaining funds support The LeTourneau University Foundation’s mission, making a lasting impact.
Consult with Your Advisors
A Charitable Gift Annuity funded with appreciated property is a powerful way to secure fixed payments for life and tax benefits while supporting the values and work of The LeTourneau University Foundation.
Before you fund a Charitable Gift Annuity, however, we encourage you to speak with your financial and tax advisors to evaluate how it fits within your overall financial plan.
If you would like to explore establishing a CGA with appreciated property or other assets, please contact us. We can provide you with information tailored to your needs, including the current annuity rates, potential tax benefits, and the long-term impact of your gift.
Thank you for considering a generous gift to help sustain The LeTourneau University Foundation.
“Estate and Legacy Planning” – Does it Really Matter?
Think about this: early in the life of Israel we see the Lord repeatedly reminding them about the importance of passing on to “their children and their children’s children” God’s testimony of faithfulness (Deuteronomy 4:9 and following). God went on to tell the children of Israel that He wasn't’t talking directly with their children, but rather with them – because “their eyes had seen” all that the Lord had done (Deuteronomy 11:2-7).
Estate planning, when done with intentionality and by including a narrative of one’s life, can be an incredible means of motivating future generations. Further empowering such planning with
Watch for our next installment where we will purpose to unpack …
- what estate and legacy planning is
- why it’s important
- what it looks like
and most importantly,
- how it can be a compelling motivation for succeeding generations when it is empowered with an integrated level of charitable gift planning
As always, if we can be of service to you in this area, or for any questions you may have, please do not hesitate to email us at leavealegacy@letufoundation.org or call us toll-free at 903-500-2972 and ask for Tom Bevan.
And always a proper disclaimer: When considering what we might point to by way of a benefit to you in any given situation, always assure to consult your legal and tax advisor for what qualifies as the actual tax treatment of that scenario in your unique situation.
Scholarships play a major role in the lives of LETU students. More than 90% of the student body receives financial assistance from scholarships, grants, and loans. But with graduating seniors incurring significant financial debt, it is our goal to lessen the burden and increase our scholarship aid. Endowed scholarships play a vital role in decreasing the debt burden on students.
Why do LETU alumni and friends choose to establish Endowed Scholarship Funds?
- To perpetuate the memory or legacy of a loved one;
- To honor positive role models who have significantly influenced others;
- To invest in today's students who will influence every workplace and every nation for Christ tomorrow.
Endowed Scholarships provide significant impact:
- Equip leaders for tomorrow today;
- Recruit and retain outstanding students seeking the hands-on, Christ-centered education that has for decades been the strength of LETU;
- Recognize and reward outstanding performance by students with demonstrated financial need.
Endowed professorships, chairs, programs and schools are also available. Call 903.233.3833 to establish your endowment today.
Many companies will match their employees' charitable gifts. Some will even match the donations of retirees or employees' spouses! You can make your money double or even triple and at the same time invest in students' lives.
If your company is eligible, request a matching gift form from your employer's Human Resources department. Complete, sign and send in the completed form with your gift- every time you give a gift! Inform your employer of your donation and give them LeTourneau University's mailing address (2100 S. Mobberly Ave. Longview, TX 75607) so they can make the match. We will do the rest.
Giving a cash gift isn't the only way you can support LeTourneau University students. All you have to do is sign up for all the programs below and then let your shopping do the donating. It's that easy! Your normal, everyday shopping will help the LETU Annual Fund provide scholarship aid to deserving students. Thank you!
Give by Shopping
You're going to buy things anyway, right? Here are some ways your purchase can benefit LeTourneau University.
Amazon Smile
Start your shopping at smile.amazon.com, choose LeTourneau University as your selected organization, and the AmazonSmile Foundation will donate 0.5% of the price of your eligible purchases.
Kroger
If you are a KrogerPlus member, Kroger's Community Rewards program donates a portion of your eligible purchases to the organization of your choice. Choose LETU! Visit https://www.kroger.com/topic/kroger-community-rewards-3 to enroll with your membership card and choose LeTourneau University (NPO# 84780). Don't forget to re-enroll each year to continue in the Community Rewards program.
Tom Thumb
Tom Thumb's Good Neighbor Program allows customers to direct donation dollars to a favorite church, school or other non-profit organization. Visit the courtesy booth at your local store to link your reward card to our account (use our Charity# 9090).
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