May 1999
Over the last three-quarters of this century, the West Virginia 4-H program has touched the lives of thousands of young people. Based on a rich tradition, 4-H continues to address the changing needs of our state’s youths.
Because traditional funding for the 4-H organization only covers basic program costs, the importance of outside contributions is essential to the program. This support provides a legacy of continued quality programming for West Virginia 4-H'ers.
Planned gifts recognizing the donor's personal, financial, and charitable objectives sustain 4-H while giving donors the satisfaction of choosing how their support will be used. Named scholarships, projects, or personal development and leadership opportunities are just a few of the ways to support 4-H through planned giving.
Donation options include:
Bequests: Bequests are made by naming the WVU Foundation as a beneficiary in a will. These can be in the form of an outright gift, a percentage of an estate, or as a "residuary bequest" in which a specified portion of an estate is donated to West Virginia 4-H after other provisions are fulfilled. A bequest is not subject to estate taxes and helps reduce the tax liability for heirs. A bequest can be included in a will through a codicil.
Living Trust: A trust providing for a person’s financial needs during his or her lifetime also can carry out their philantrophic goals. Individuals can prepare a living trust provision (much like a bequest), naming the WVU Foundation as the recipient of the gift. This entitles a person’s estate to a charitable deduction.
Retirement Assets: Donating retirement assets to the foundation to help 4-H is a way for an estate to escape paying most or all taxes associated with retirement assets. It also allows for a charitable deduction. Retirement assets also can be used to create life income for others in an estate.
Life Insurance: An individual’s need for life insurance often changes over the years. A family can grow or a beneficiary can die. In such cases, an individual might consider donating their policy to the WVU Foundation (or naming the foundation as their beneficiary). This allows for a significant tax benefit. Such a gift also can be used to create a life income gift for others in an estate.
Life Income Gifts: A deferred gift can help provide a secure future for West Virginia 4-H while paying the donor (or another family member) a lifetime income. It's easy to do. When donating an asset (such as cash, real estate, or appreciated securities) to the WVU Foundation, an individual is assured of a supplemental income during their lifetime (or that of their designee's). At the appropriate time, their remaining funds will be used for their specific charitable purpose.
A Unitrust pays a variable income (a minimum of 5 percent) based on an annual valuation of the trust assets. Among its advantages are a potential for growth and protection against inflation. An Annuity Trust pays an individual a fixed income (also a minimum of 5 percent) based upon the amount of their gift, thus providing a supplement to their income. A Gift Annuity pays a fixed income at a rate related to a person’s age -- the older a person is, the higher the rate. A portion of the income may be tax-free.
All three types of life income gifts provide a charitable deduction on a person’s taxes based upon the amount 4-H is likely to eventually receive. Estate taxes also may be reduced. By donating appreciated property, a person can avoid capital gain taxes, allowing 100 percent of the value of the property to produce income.
Such gifts also can benefit another nonprofit organization. As long as at least 50 percent of the gift’s remaining funds will benefit 4-H, the foundation is willing to serve as the trustee of the gift.
Real Estate: Real estate donated as a life income gift can generate income from otherwise unproductive property. An alternative is donating a residence, vacation home, or farm through a "remainder interest" deed. This allows people to enjoy their property fully for the rest of their lives while getting a tax deduction now.
West Virginia University Foundation, a private, nonprofit organization, is the designated agency receiving and administering private gifts to West Virginia University and West Virginia 4-H. By investing and managing wisely, the foundation uses these gifts to strengthen and further the work of the University and 4-H.
For more information on how to support 4-H, call the local Extension Office, or (800) 847-3856.
--WVU-ES--
Doug Hovatter--5/99
