Creative Giving Methods
The easiest way to make a planned gift to Hofstra is through your will. When preparing your will, here are sample bequest paragraphs you can share with your attorney:
I hereby give, devise and bequeath to Hofstra University (Federal Tax ID number 11-1630906 the sum of $________to be used for its exempt purposes.*
I hereby give, devise and bequeath to Hofstra University (Federal Tax ID number 11-1630906 _______% of the residual of my estate to be used for its exempt purposes.*
I hereby give, devise and bequeath to Hofstra University (Federal Tax ID number 11-1630906 the sum of $________to be used for the _________________________ (specific program, academic area, activity or scholarship you wish to support) for its exempt purposes.*
*These sample paragraphs can be modified to suit your intentions.
Life Income Gifts
Hofstra University offers a variety of planned giving vehicles as a service to its alumni and friends who wish to make charitable gifts to Hofstra, but who may also need to continue receiving income from their investments now.
Endowments created through planned gifts can be structured to provide income to the donor, family members, or friends, for life or a term of years.
The following diagram illustrates how a life income gift flows:
Some types of life income-producing gifts are:
Charitable Remainder Unitrust
A Charitable Remainder Trust is established by placing assets in a trust that provides benefits to designated persons for a period of time after which what is left - the remainder - is distributed to a charity or charities. A Charitable Remainder Unitrust (CRUT) pays a fixed percentage of the value of the trust assets as they change annually.
Charitable Remainder Unitrust provides the donor:
- Variable lifetime income at favorable rates
- Elimination of initial tax on capital gain for contributed long-term appreciated property
Charitable Remainder Annuity Trust
The Charitable Remainder Annuity Trust (CRAT) functions exactly as a Unitrust with one major difference. The annual payment to the donor is fixed at the time the trust is created. The CRAT provides the donor:
- A fixed lifetime income that will not change
- Elimination of initial tax on capital gains for contributed long-term appreciated property
Charitable Gift Annuities
Immediate Gift Annuity
For a gift of greater than $25,000, you may want to consider a Charitable Gift Annuity. The Charitable Gift Annuity is a contract between you, the donor, and Hofstra University. Hofstra agrees to pay a guaranteed lifetime annuity in return for a gift of cash or securities. The same income may continue to a spouse, family member, or a friend for life, but there may not be more than two income beneficiaries on each agreement.
The dollar amount of the annual annuity, which is fixed at the time the contract is written, does not change throughout the existence of the agreement. There is no trustee; all the assets of the University, not just the assets contributed by the donor, are pledged against the payment of the annuity. No additional gifts may be added to the annuity once it has been established.
Charitable Gift Annuity provides the donor:
- Guaranteed annual income
- Primary or supplementary tax advantaged retirement plan
- Portion of income may be received tax-free
- Current income tax charitable deduction
- Reduction of estate taxes
- Opportunity to make a significant gift to charity
Deferred Gift Annuity
Another form of a gift annuity is the Deferred Gift Annuity, which is tailored to meet the needs of the donor who prefers to receive income at a future date but wants to claim a substantial charitable contribution now. The deduction is based on the age the beneficiary will have attained when payments are first received, and the annuity rate will be based on that same age.
Named Endowment Gifts
By creating an endowment, donors provide a gift in perpetuity that grows over time. Endowments can provide a naming opportunity for a loved one or a beloved Hofstra faculty member. They create a lasting legacy for you while addressing vital University needs such as research, teaching, and scholarship.
You might also consider making your planned gift in memory of someone dear to you: a loved one, or a favorite professor.