Planned gifts allow you to meet your own needs or those of your beneficiaries, while still making an important contribution to Naropa University. Planned gifts also offer significant tax benefits to you and your family. Consider a planned gift to Naropa University to meet your own financial and philanthropic goals.
The most common types of planned gifts include:
- Life Income Gifts
- Charitable Lead Trusts
- Real Estate
- Retirement Plan Assets
Our Development and External Relations office will be happy to discuss your various options in planned giving. Contact them by e-mail at: email@example.com.
Bequests through a Will or Living Trust
Revocable planned gifts—A flexible way to provide future support
If you want to provide a future benefit to Naropa University but aren't comfortable giving away assets that you may need in the future, you can include a bequest to Naropa in your will or living trust. Bequests are the transfers of wealth that occur upon a donor's death. Bequests can take several forms:
- Specific bequest—A specific amount of cash, securities or property.
- General bequest—A donation of part of your general estate.
- Percentage bequest—A stated percentage of your estate.
- Residual bequest—All or a portion of what remains of your estate after specific and general bequests.
Please let us know if you have included Naropa University in your estate plan.
If you have already included Naropa University in your estate plan, we are grateful. Please let us know about your intentions by completing a Statement of Intent to Provide Future Support.
By sharing your plans with us, you'll ensure that we carry out your exact wishes. It will also help Naropa in our long-range planning efforts. We would be honored to have the opportunity to thank you during your lifetime for your generous intentions. Of course, informing us of your philanthropic intentions doesn't obligate you or your heirs to fulfill them -- you'll continue to have the flexibility to adjust your plans as needed.
If you want to restrict your bequest to a particular program or area at Naropa, or if you'd like to establish a scholarship or other endowed fund, please contact the Development and External Relations department at 303-245-4751 or by e-mail at firstname.lastname@example.org. We'll review your intended provision to be certain that your wishes can be carried out.
Life Income Gifts
You can donate assets to Naropa University now and still receive a regular stream of payments for life. This ensures your needs are met during your lifetime. The remainder then goes to support Naropa University.
- Charitable Gift Annuity (CGA)—This is a simple contract with Naropa University to pay you and/or your designated beneficiary a fixed annuity for life. The remainder will be distributed to Naropa to be used for the purposes you designate.
- Charitable Remainder Trust (CRT)—This provides regular payments to you and/or the other beneficiaries you designate for life or for a selected term of years. A CRT offers more flexibility than a CGA. It will allow you to identify multiple beneficiaries and to decide how your annual payment will be calculated. The remainder is then put to use by Naropa University as you choose.
Making a life income gift offers you many benefits. As a life income donor, you will:
- be eligible for a current income tax deduction
- receive a regular payment stream
- remove the assets you contribute from your taxable estate
- reduce or eliminate capital gains tax on appreciated assets
- provide much-needed future support for Naropa University
Charitable Lead Trust
In contrast to a "life income" gift that provides you with a current payment stream and Naropa University with a future remainder interest, a Charitable Lead Trust (CLT) provides a current payment stream to Naropa University and a remainder interest to you or your designated beneficiaries.
There are multiple benefits of a Charitable Lead Trust. You:
- may be eligible for a current income tax deduction
- may transfer assets to your family free of transfer tax
- will remove the contributed assets from your taxable estate
- will be able to witness during your lifetime the tangible impact your dollars are making on your designated area of support at Naropa University
There are multiple ways to donate real estate to Naropa University:
- use real estate to fund a life income gift
- designate real estate to Naropa University through your will or living trust
- donate a "remainder interest" in your home and retain a "life estate" for yourself. This means you get a current income tax deduction for the gift of your home, but can continue to live in it for the rest of your life.
Retirement Plan Assets
By naming Naropa University as your retirement plan beneficiary, you can avoid all
income and estate tax on the account and have the total value benefit Naropa University
for purposes you designate.
Retirement accounts can often be taxed at rates of more than fifty percent at the time of the owner's death. This is due to accrued income taxes and possibly estate taxes that apply at the time of death. To avoid losing over half the value of the account, many alumni and friends of Naropa University use their retirement plans to establish special philanthropic legacies at Naropa. By naming Naropa University as your retirement plan beneficiary you can maximize the value of your retirement account as well as your donation to Naropa.
Making a gift of your retirement assets at the end of your life is easy. You simply need to request a new beneficiary designation form from your plan administrator and add Naropa University as your beneficiary.
You may designate a specific portion or all of your plan assets to benefit Naropa University. Or, as is often the case with larger qualified plans, you may wish to establish an endowed scholarship or professorship that will be administered in perpetuity. For example, if you want to provide funds for the university's unrestricted use, simply complete your form by designating the "Naropa University" (Tax ID # 84-1029228) as your beneficiary. If you're married, your spouse may have to consent to your designation.
Because any designation of your retirement plan for Naropa University needs to fit into your overall estate plan, we recommend that you consult with your professional advisers and Naropa University before completing your designation.
What about a current gift of my retirement plan assets?
- If you are age 70½ or older, you can make a gift to Naropa University from your IRA without including this withdrawal in your taxable income. This provision is available through December 31, 2011 as part of current Charitable IRA "Rollover" legislation.
- If you do not quality for the provision above, current law requires that you pay income tax on any retirement plan withdrawals during your lifetime (even if you immediately donate the assets to a charity). Depending on your specific tax situation, those assets may provide a welcome opportunity for philanthropic support even if you must first pay income tax on the amounts withdrawn.
Naropa University does not provide legal or tax advice. We recommend that you seek your own legal and tax advice in connection with gift and planning matters. To ensure compliance with certain IRS requirements, we disclose to you that this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties.