Gift Planning

Making a gift to SMC is primarily an act of the heart. Giving satisfies our desire to make a difference in the world. Managing our resources wisely helps us have more so that we may give more. This is an act of the mind. A carefully constructed financial plan can provide a more stable future for ourselves as well as for those things we care about.

The Office of Gift Planning offers a wide variety of options to consider as you explore ways to manage the resources that make up your financial and estate plans. Each person’s circumstances are unique. Consult your financial, tax or legal advisor for the best way that any of these options may apply to your particular situation. We will gladly work with you and your representative(s) to develop an estate plan that meets both your heart’s desire and your mind’s design. Some of the options that you may include:

Cash

Gifts of cash can be fully tax deductible- up to a maximum of 50% of adjusted gross income in the year of the gift. Amounts given in excess of this maximum generally may be carried forward and deducted over as many as five years. While giving cash is perhaps the simplest giving option, there are other options that may provide greater benefit to you as well as enable you to make a larger gift to the College.

Appreciated Assets

Donating appreciated assets, such as stock or real estate, offers a two fold tax advantage: First, you may receive a tax deduction for the full fair market value of the property or stock at the time of the gift. Second, you avoid paying capital gains tax on the increase in the value of the asset.

Life Insurance

Gifts of life insurance offer significant charitable deductions while making a tremendous impact on the future of SMC. You may purchase a new policy or donate a policy that you may already own but no longer need. A tax deduction is allowed when you make the College both owner and beneficiary of the policy. While designating SMC beneficiary of a policy that you continue to own offers no tax benefits, it will insure that your generosity to the College will continue beyond your death. Life insurance, as a part of a comprehensive estate plan, can provide excellent wealth protection and replacement. Consult your insurance agent for more details.

Life Income Gifts

Some gifts pay annual income to the donor and/or the donor’s heirs. Some examples include Charitable Gift Annuities and Charitable Remainder Trusts and Charitable Lead Trusts. These instruments also offer very attractive tax benefits.

Will Bequests

This legal document enables you to make gifts to the College as a part of the distribution of your assets after your death.

Taking Action

Opportunities for giving to SMC are many and varied. For more information on ways to maximize the impact of your gifts to the important work of the College, please contact Don Tate, Director of Development, at (864)587-4295 or e-mail: tated@smcsc.edu. Or you may complete and submit the Gift Planning Form.

Benefits

Capital Gains Tax Savings

When you fund a Gift Annuity with appreciated stock or other assets (before the sale), current tax law allows you to avoid much of the capital gains tax you would pay if you sold the asset yourself. In addition, any remaining capital gain that you incur is spread over the remaining years of your life, thereby reducing today’s tax liability. Your annuity payment is based on the value of the stock or other assets on the day you transfer ownership to us.

Charitable Tax Income Deduction

An important distinction between a Charitable Gift Annuity and a commercial annuity is that a Charitable Gift Annuity assumes that at the end of your life (lives) a minimum of 50% of your original contribution will be available as a charitable gift to support our mission.

As a result, the IRS allows a portion of every dollar that you contribute today to be income tax deductible this year.

Reduce Estate Taxes and Costs

The assets you use to create your Gift Annuity with us are no longer considered property in your taxable estate. Therefore, whatever you put into the Gift Annuity will not be subject to estate taxes or probate.

A Larger Gift Than You Thought You Could Give

Most of us make charitable gifts from our income each year and consequently are limited in how large a gift we can afford to make. Many people dream of making a major gift, but simply cannot afford it out of their income resources. Our Charitable Gift Annuity enables our donors to make gifts of their assets, rather than their income. And, since they receive an increased income as a result, they are able to improve their standard of living while giving the major gift they have always dreamed of.

Tax-Free Payments

A portion of each of your annuity payments is “return of principal” and therefore is not taxed as income to you…it is essentially “tax-free!” This unique feature serves as a multiplier for your return rate and gives you an even larger “effective rate of return” than the published rates.

Charitable Gift Annuities

” The generous will be blessed.” — from Proverbs 22:9

A way to take care of your financial future…as you give to others.

  • A new source of lifetime income, some of it tax-free.
  • Guaranteed security and high return.
  • A charitable income tax deduction that you can take this year.
  • A partial savings on capital gains tax if you give appreciated stock or other assets.
  • Reduced estate taxes and probate costs.
  • A larger charitable gift than you may have thought you could afford.

Our Charitable Gift Annuities give you a way to provide for your own- and your family’s – financial future with a dependable, guaranteed lifetime income. Charitable Gift Annuities typically enjoy a higher rate of return than most conservative investments. And a Charitable Gift Annuity is never subject to market fluctuations. You’ll know exactly what you will receive. Plus, part of your income can be tax-free!
Gift Annuities offer you significant benefits Here’s how our Gift Annuity Program works:

In exchange for your gift of cash, appreciated stock or other assets, we’ll give you an annuity contract which guarantees you a fixed income for the rest of your life or the lives of both you and your spouse (or another beneficiary you designate).

Charitable Gift Annuity Rates

Single Life

Rates Effective January 1, 2012 Unchanged as of July 1, 2013
Approved by the American Council on Gift Annuities 
Suggested Charitable Gift Annuity Rates

Age Rate Age Rate Age Rate

0-10

2.0

51-52

3.8

75

5.8

11-15

2.1

53-54

3.9

76

6.0

16-19

2.2

55

4.0

77

6.2

20-23

2.3

56-57

4.1

78

6.4

24-26

2.4

58

4.2

79

6.6

27-29

2.5

59

4.3

80

6.8

30-32

2.6

60-61

4.4

81

7.0

33-34

2.7

62-63

4.5

82

7.2

35-36

2.8

64

4.6

83

7.4

37-38

2.9

65

4.7

84

7.6

39-40

3.0

66-67

4.8

85

7.8

41-42

3.1

68

4.9

86

8.0

43

3.2

69

5.0

87

8.2

44-45

3.3

70

5.1

88

8.4

46

3.4

71

5.3

89

8.7

47

3.5

72

5.4

90 & over

9.0

48-49

3.6

73

5.5

50

3.7

74

5.7

NOTES:

  1. The rates are for ages at the nearest birthday.
  2. For immediate gift annuities, these funding rates will result in a charitable deduction of more than 10% contingent on prevailing IRS discount rates.
  3. For deferred gift annuities with longer deferral periods, the rates may not pass the 10% test when the CMFR is low.
  4. To avoid adverse tax consequences, the charity should reduce the gift annuity rate to whatever level is necessary to generate a charitable deduction in excess of 10%.

Request a Personalized Gift Annuity Proposal

In less than one minute, you can give us the information we need to prepare a personalized Gift Annuity proposal designed especially for you. There is no cost or obligation, and your inquiry will be treated in complete confidence. Our services are also free. Just call (864) 587-4227 or email us today!