A. There are many ways to make a gift to the College of Natural Resources. The simplest and most common is an outright cash contribution. Cash contributions, gifts of stock, real estate and personal property provide an immediate tax deduction to the donor. Income-producing gifts and deferred gifts provide income to the donor during his or her lifetime, and the benefit to the College is realized upon the donor's death. Most contributions to the College of Natural Resources are coordinated through UWSP Foundation, Inc., a tax exempt 501(c)(3) non-profit corporation dedicated to enhancing the quality of teaching and learning at UWSP through private support. Contributions to benefit the College's Paper Science & Engineering Department may also be made through the UWSP Paper Science Foundation, Inc.
A. That depends on the type of gift and how you specify its use. There are two basic categories of gifts: unrestricted and restricted. Both categories of gifts can be deposited in either a spendable program fund or an endowed fund.
A program fund is essentially a “checking” account that contains spendable funds for the designated purpose (unrestricted or restricted).
An endowed fund is a permanent pool of money that generates spendable interest for the designated purpose (restricted or unrestricted). Endowment contributions are never spent. Instead, only the earnings or a portion of the earnings from the endowment principal is spent, leaving the principal intact. Endowment accounts are created for purposes specified by the donor, and can grow either by reinvesting the earnings or through additional contributions. Endowments are extremely valuable for meeting the long term needs of the College and for maintaining quality educational programs without substantial increases in tuition and student fees.
Unrestricted gifts to the College are used at the discretion of the Dean. The CNR Endowment Fund is an example of an unrestricted endowed fund. Spendable funds from this account are typically used for:
Restricted gifts allow you to limit the use of funds for specific uses, such as for research, a specific unit or program, or student scholarships. Examples of a restricted fund: GEM Education Center Development Fund; Paul Foundation Wildlife Research Fund; Treehaven Double Cabin Project
A. Yes, and through the use of some planned giving techniques you may even INCREASE your income! This is due to the tax-related benefits of certain trusts.
A. Planned giving is no more than using a plan to determine your charitable giving. Your plan takes into account your needs and objectives in a way that takes advantage of the prevailing tax laws to maximize the benefit to you as the donor and to the institution. As well, a planned charitable gift can offer immediate benefits such as increased income and reduced income taxes both now and in the future. You may have heard about the benefits provided by Charitable Remainder Trusts, Charitable Lead Trusts or other planned giving techniques. Creating a planned gift is to create a legacy that provides for generations of students at UWSP. This web site explains the various types of planned gifts. One doesn't have to be wealthy to consider a planned gift. Planned charitable giving offers many techniques the average person can use. The main criteria is a desire to help the College of Natural Resources and recognize that what you do now shapes the future. A typical profile of a candidate for a planned gift is someone who has a need for current income such as in retirement, but also has a problem paying too much in income taxes. Many people find themselves in this situation when they reach their 70s and they have to take minimum required distributions from their TSAs, IRAs or 401K plans. More information on planned giving options is included under the title Charitable Trusts on this web site.
Download Gift Pledge Form (pdf file)
Q. Can I name UWSP as a beneficiary in my will?
A. Yes, you can name a specific dollar amount or a percentage of your estate that you wish to give to the College of Natural Resources. You may also specify the College as a named beneficiary of investments such as tax-sheltered annuities, IRAs and 401K assets. Because UWSP Foundation is a tax-exempt organization, no income tax is paid upon receipt of tax-deferred retirement assets and therefore 100% of the proceeds go to the College.
Download Gift Pledge Form (pdf file)
Cash Contribution
An outright gift of cash or securities is the most frequent gift to the College. Current income tax laws allow for a deduction of the full amount of your cash gift to the UWSP Foundation for an amount up to 50% of your adjusted gross income. Any amount in excess of that % can be carried for up to five years.
If you are ready to make a gift now:
Download Gift Pledge Form (pdf file) - Print from your computer, fill out the form, and mail with your check made payable to "UWSP Foundation" and send to:
Steve Menzel, Development & P.R. Coordinator
UWSP College of Natural Resources
800 Reserve Street
Stevens Point, WI 54481
Credit Cards can also be used to make a cash contribution. Gifts, pledges and payments may be made using Mastercard or VISA, by mail or phone at 1-800-858-5267.
Gifts of Securities (Stocks, bonds, mutual funds) are common in cases where donors wish to avoid capital gains taxes in highly appreciated securities. See also Stocks & Securities or contact me for assistance in making a gift of securities:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Bequests
Bequests, or naming the College of Natural Resources as a beneficiary in your will or trust document is the most common form of planned giving. This is an opportunity to provide for others beyond the limits of one's lifetime. For many a bequest is a means of making a much larger gift than possible while you are still drawing an income from your investments. Such bequests are exempt from federal or state estate taxes. A properly planned bequest can even result in a larger estate passing on to your heirs.
Many donors make specific bequests of property, or allocate a percent or dollar amount from their estate in their wills. Another method would be to allocate "the residue" of your estate, or what is remaining after all other bequests or terms of your will have been met.
You can make a bequest to the College by inserting certain language in your will or trust document. State laws pertaining to wills and bequests vary widely, so please consult your attorney when including a bequest in your will.
SAMPLE BEQUEST LANGUAGE for an outright bequest in your will:
Specific dollar amount: "I bequeath the sum of $_______ to the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, for the following use and purpose: to benefit the College of Natural Resources at the University of Wisconsin-Stevens Point."
Specific property (personal property): "I bequeath < DESCRIPTION OF PROPERTY > to the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, to be used or disposed of in such a way that benefits the College of Natural Resources at the University of Wisconsin-Stevens Point."
Specific property (real estate): "I devise all of my right, title and interest in and to the real estate located at < DESCRIPTION OF PROPERTY > to the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, to be used or disposed of in such a way that benefits the College of Natural Resources at the University of Wisconsin-Stevens Point."
Share of, or entire residue of estate: "I give and bequeath (all/or _____%) of the remainder of my property to the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, to be used or disposed of in such a way that benefits the College of Natural Resources at the University of Wisconsin-Stevens Point."
Conditional bequest in will: "If my husband/wife does not survive me, I bequeath the sum of $_______ to the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, to be used or disposed of in such a way that benefits the College of Natural Resources at the University of Wisconsin-Stevens Point."
In the event a gift is subject to a restriction, you may wish to add one of the following provisions:
"However, I impose no legal or equitable obligation in this regard."
OR
"If in the judgment of the Board of Directors of the University of Wisconsin - Stevens Point Foundation, Inc., of Stevens Point, Wisconsin, it becomes impossible to accomplish the purposes of this gift, the income or principal may be used for such related purposes and in such manner as determined by its Board of Directors."
For more information contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Stocks & Securities
Under current tax law, if you've owned a stock for more than 12 months and you sold the stock, you would pay capital gains taxes on the difference between what you paid for the stock and its current value. Current capital gains tax rates are 10% for those in the 15% Federal ordinary income tax bracket and 20% for those in the 28% Federal tax bracket. If you've owned the stock less that 12 months, the gain is treated as ordinary income. If you make a gift of the stock BEFORE you sell it, you can avoid the capital gains tax and claim an income tax deduction for the fair market value of the stock, for an amount up to 30% of your adjusted gross income. To make a gift of securities, simply inform your brokerage trading company or your broker that you wish to make a gift of < NUMBER OF SHARES OF XYZ COMPANY STOCK > to UWSP. The brokerage house transfers the stock into a brokerage account owned by the UWSP Foundation and the Foundation sells the stock.
EXAMPLE:
John, class of '58, usually gives $1000 per year to the College of Natural Resources Endowment Fund. He owns a stock that he bought 5 years ago for $10,000 which is now valued at $50,000. If he sold the stock, he would pay capital gains taxes on $40,000. At the 20% capital gains tax rate, this would amount to $8,000 of income tax! John decides to give the stock to the Foundation to provide a $1000 per year to the CNR Endowment. He transfers the stock into an account owned by the UWSP Foundation and the stock is sold. He gets an income tax deduction for the market value of the stock equal to the average trading price of the stock on the day the transfer was made AND he avoids paying any capital gains tax.
If you wish to make a gift of stock or other securities please contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Life Insurance
By making a gift of life insurance you can increase the size of your gift to the College of Natural Resources. You can name the UWSP Foundation as the primary or secondary (contingent) beneficiary of a life insurance policy, with instructions that the money be used in such a way that benefits the College of Natural Resources. While this offers no immediate income tax deduction under current tax law, the death benefit passes on to the Foundation free of any estate tax liability for your heirs.
You can also name the UWSP Foundation/College of Natural Resources as the owner of a life insurance policy; either a policy you now own or a new policy purchased specifically for this purpose.
EXAMPLE:
You have a life insurance policy that's no longer needed for its original purpose such as providing for young children, a spouse, or paying off a debt. This policy has a death benefit of $50,000 and a cash value of $20,000. You transfer the ownership of the policy to the UWSP Foundation, name the Foundation as the beneficiary of the policy with instructions that the money be used in such a way that benefits the College of Natural Resources at the University of Wisconsin-Stevens Point, and you remain as the insured. At the 31% Federal income tax rate, you receive a charitable deduction of $6200 for the year you make the transfer of ownership. If you continue to pay premiums on the policy you are entitled to additional income tax deductions for the amount of premiums you pay in the future years. At your death, the death benefit is paid to the UWSP Foundation and allocated according to your instructions to benefit the College of Natural Resources.
If you're interested in making a gift of life insurance to the College, contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Personal Property
If your antique collection or valued piece of artwork will serve to enhance the mission of the College of Natural Resources, it can also allow for a significant charitable income tax deduction for you. A gift of personal property (antiques, manuscripts, equipment, ect.) can be given or willed to the College of Natural Resources. We ask that before you give or will tangible personal property to the College, that you contact us to discuss the appropriateness of the gift and the best way to make the transfer. The income tax deduction is based on the appraised value of the gift, and the donor is normally responsible for obtaining the appraisal.
To talk about gifts of personal property, contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Real Estate
The income tax benefits of gifts of real estate are similar to gifts of appreciated securities. You avoid paying capital gains taxes on the appreciated value and you receive a deduction for the full market value of the property. Gifts of property such as land, farm, or your personal residence can be transferred by deed to the UWSP Foundation with no liability for income, estate or gift taxes on the appreciation.
EXAMPLE:
David, Class of '68, has owned a rental home in Stevens Point for the past 30 years during which time the property has increase substantially in value. Upon his retirement David would like to sell the property and invest the proceeds so he can draw an income from the investment. However, selling the property would result in substantial capital gains taxes reducing the amount he can invest for his retirement income. David transfers the ownership of the property to a charitable remainder trust; the Trustee then sells the property, invests it, and sends a retirement check to David each month for as long as he lives. The remaining investment goes to the UWSP Foundation at David's death to benefit the College of Natural Resources.
See also: Charitable Trusts
To talk about gifts of real estate contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
TSAs/IRAs/401K Assets
You can save both income taxes and estate taxes by naming the College of Natural Resources as the beneficiary of a qualified retirement plan such as a Tax Sheltered Annuity (TSA or TDA), Individual Retirement Account (traditional IRA, not a Roth IRA) or your 401K plan. Under current tax law, the money remaining in these accounts at your death are subject to income taxes to a beneficiary such as your children. But, because the UWSP Foundation is a tax-exempt organization, your retirement plan may never be taxed when you name the Foundation as a beneficiary (with instructions that the gift benefit the College of Natural Resources).
EXAMPLE:
Bob taught for 30 years following his graduation from UWSP in 1955. In retirement he and his wife Pat, Class of '54, have been living off the income from Bob's pension, their Social Security benefits and income from Bob's TSA and Pat's 401k plan. Because they're just using the income from their investments, the principal of their TSA and 401k remains intact. When Bob and Pat considered which of their assets to leave to the College of Natural Resources and which to leave to their children, they decided to leave the TSA and 401k plans to the College so their children wouldn't have to pay income taxes on those assets. The remainder of their estate they left tax free to their heirs.
EXAMPLE:
Chuck, class of '50, is single and has been a good saver and investor most of his life. As a retired DNR professional, he has a good income from his pension and Social Security- enough to meet his monthly expenses and provide for a very comfortable retirement lifestyle.
Chuck turns 70 this year and has to start making minimum withdrawals from his tax-sheltered annuity. Because he hasn't needed the income from his TSA, it has grown to a value of $300,000. Under current schedules required minimum distributions for Chuck would be $18,750 per year. This would be added to his already taxable pension and move him into a higher tax bracket by making 85% of his social security benefits taxable to him instead of the 50% of the benefit that was taxable prior to his turning age 70.
Chuck would have to pay approximately $6000 in income taxes on his TSA distributions and an additional $1232 in taxes on his Social Security income, for a total of $7232 of additional taxes on income he didn't really need! He decides to make annual contributions to the College of Natural Resources to support student research in natural resources, and initiates the “Chuck Family Student Research Fund” in honor of his now deceased parents. Chuck will build the fund by contributing $15,000 a year into an endowment within the UWSP Foundation. This saves his $4800 in income taxes and leaves him with additional after-tax income of just over $2400 to spend elsewhere.
Chuck also is revising his will to name the UWSP Foundation and his parents’ research fund as the beneficiary of his TSA while leaving other investments and property to his heirs as an inheritance.
While this may be a complicated income tax situation, it is not an uncommon one for retirees with a good income from a retirement pension and Social Security.
See Bequests for information of beneficiary language or contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)
Charitable Trusts
Charitable Lead Trust:
You can contribute just the income from securities or other property and receive income tax benefits. To establish a Charitable Lead Trust you transfer the property to the trust for a number of years or for your lifetime and the income from the trust is paid to the University for the term of the trust and used to benefit the College of Natural Resources as per your instructions. When the trust terminates, the remaining property goes to the beneficiaries you have designated. You receive a charitable income tax deduction in the year the trust is established.
Charitable Remainder Trust:
Gifts of partial interests in property are usually not deductible, but charitable remainder trusts are an exception. The "actuarial value" of UWSP Foundation's interest in the gift is based on how long the Foundation can expect to wait to receive this interest and this is the amount that is allowed as a charitable deduction.
A Charitable Remainder Trust is an arrangement where you irrevocably transfer dollars or property into a Trust: You, or someone you designate receives an income from the Trust, generally over a lifetime. The income is usually a set percentage of the trust value which may change from year to year. When you die the remaining property in the Trust passes to UWSP Foundation to benefit the College of Natural Resources. You are entitled to an income tax deduction at the time the Trust is established.
EXAMPLE:
Thirty years ago, Martha bought 100 acres of land near Minoqua, Wisconsin for $20,000. She thought she might build a retirement home there but her plans changed. Martha would like to sell the property, eliminate the real estate tax liability, and draw an income from the proceeds of the sale. The problem is that the property is currently valued at $5000 an acre, or $500,000. If she sold, she would pay over $96,000 in taxes, leaving her only $404,000 to invest. Martha decides to contribute the land to a Charitable Remainder Unitrust thereby avoiding the capital gains tax and receiving a charitable income tax deduction of $271,485! She also increases her retirement income because the full $500,000 is invested, and she is able to make a substantial contribution to the College of Natural Resources, her alma mater.
It is even possible to give your home to the College (through UWSP Foundation) and continue to live there by making a gift of the remainder interest or a gift with a retained life estate. You receive a charitable deduction in the year you make the contribution and you remove the property from your estate, eliminating probate expense.
The rules on Charitable Trusts are complicated and require the advice of your estate attorney and tax and/or investment advisor. If you'd like to discuss making such a gift to benefit the UWSP College of Natural Resources, please contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Downlod Gift Pledge Form (pdf file)
Charitable Gift Annuity
"A person who enters into a Gift Annuity Agreement with a religious, charitable and educational institution makes a gift to the institution and receives fixed payments for life. If the person could afford to do so, he or she would probably donate as an outright gift the entire amount paid to the organization; but he or she needs to make some provisions for income while alive."
- American Council on Gift Annuities (www.acga-web.org)
Of late, we've experienced poor stock market returns. CDs and money market interest rates have fallen dramatically. Returns of 4% or less can seriously reduce your income. If you want to increase your monthly income while providing an eventual gift to UWSP, you may want to consider a Charitable Gift Annuity. It's easy to implement and has no set up fees or charges.
A Charitable Gift Annuity provides:
- A fixed income for life
- A charitable income tax deduction
- Partially tax free income
- Reduction of capital gains tax if funded with appreciated securities owned more than one year
- A future gift to College of Natural Resources
A Charitable Gift Annuity is a contract between you and the UWSP Foundation that provides you or another person with a fixed annual annuity payment. At the time the gift is established, you receive a charitable income tax deduction, and at your death any remaining principal remains with UWSP Foundation to be used to benefit the College of Natural Resources as person your instructions.
The income tax deduction you receive is based on the estimated "residuum" (amount of funds left over after your death). Part of the income you receive is considered interest and part a return of principal. The income portion is taxed to you as ordinary income, but the return of principal is not taxed. After your lifetime, the remainder is not subject to estate taxes since it was treated as a gift to UWSP at the time the gift annuity was established.
Suggested Charitable Gift Annuity Rates are listed on the American Council on Gift Annuities web site at www.acga-web.org.
The amount of monthly income you receive is based on the amount of the gift to UWSP, your age, and the current gift annuity rates, as established by the American Council on Gift Annuities. The older you are at the time of the gift, the higher the guaranteed payout rate.
EXAMPLE:
Mrs. Donor, age 70, transfers $25,000 to UWSP in exchange for an annuity of $1,875 a year for her life. Of this amount, about $943 will be treated as a tax-free return of principal for the next 16 years (her life expectancy), and $932 will be taxed as ordinary income. This is like getting a 12% return on a fully taxable investment like a CD. After 16 years, the $1,875 will all be taxed as ordinary income. In addition, Mrs. Donor receives a current charitable income tax deduction of about $10,014. In her income tax bracket of 31%, this generates a tax savings of $3,104 in the year the gift was made.
Although a charitable gift annuity is primarily a charitable giving plan and not intended to be used only as an investment, the returns compare very favorably with traditional income-paying investments like CDs.
EXAMPLE:
Phyllis, age 78 is concerned that her $80,000 CD is yielding only a 5% return in today's market environment and in her 30% tax bracket she will net only $2800 a year. A charitable gift annuity will give her annual payments of $6720 and because only $2,493 of that payment is taxable, she will net $5972 after taxes - over twice as much as she would've with the CD. In addition, the gift annuity produces an income tax deduction of $35,653, saving her $10,696 in taxes which she could reinvest for even more cash flow.
EXAMPLE:
Jerry is 70 and his wife Millie is 68. They would like to get a higher return on their investments without taking a lot of risk. Jerry is a graduate of the College of Natural Resources and has considered leaving some money to the College when he dies. They decide to give $50,000 worth of stock (for which they paid $25,000) into a charitable gift annuity with the UWSP Foundation. This will pay Jerry and Millie an income for the rest of their lives. At their ages they will receive $3250 annually or 6.5%. In addition, they will get an immediate income tax deduction of $14,763, which in their tax bracket of 36% results in a tax savings of more than $5300. They also avoid paying capital gains tax on most of the $25,000 capital gain on the stock. The remainder of the gain is spread out over their life expectancies and will be taxed as a portion of the annuity payments.
To talk about a charitable gift annuity, contact:
Steve Menzel
Steve.Menzel@uwsp.edu
715-346-2032
Download Gift Pledge Form (pdf file)