Ways to Give
Ways to Give
If you would like to help, to make a difference in the lives of students and the future of our communities, we have many options for you to make gifts of any size.
Current gifts can include cash, credit card charges, appreciated securities (shares of stock or mutual funds), or other property. Current gifts provide immediate financial assistance for either unrestricted or restricted purposes.
A pledge is a formal Declaration of Intent to make a gift to ECTC. It may be followed by an immediate gift or it may confirm your intention to make a gift in the future. You may choose to complete your pledge by making regular payments over a period of time, which will allow you to maximize your contribution to ECTC.
Gifts in Honor of Memory
Gifts may be made in honor or memory of a loved one, friend, colleague, business, or to commemorate a special occasion.
An endowment is a fund that is permanently invested. Only the annual income generated from the investment is used for an unrestricted or restricted purpose. Establishing an endowment is the best way to have a permanent impact on the future of the college and leave a lasting legacy for future generations.
Planned gifts are arrangements that usually require the assistance of a professional advisor to determine the specific tax advantages for you, your family members, and/or your estate. A planned gift maximizes your giving potential and can even allow you to ensure your future financial security or that of a loved one. If you are interested in a planned gift, please contact the college s Institutional Advancement Office.
Types of Gifts
A cash gift is usually made by a personal or business check or by currency. Your income tax deduction is for the full amount of your gift, assuming no goods and/or services are received in return for the gift.
More than 1,400 businesses nationwide match the contributions of their employees. Check with your employer to determine if your gift can be matched on 1:1 ratio or more and to obtain the proper forms to direct the matching gift to ECTC.
A gift of long-term appreciated securities has two major advantages:
- it provides you with an immediate income tax deduction and
- eliminates capital gains taxes to the extent allowed by law
With a gift of closely-held stock, you may receive a current income tax deduction and eliminate capital gains taxes for the fair market value of closely-held stock if valued over $10,000, or at the per-share cash purchase price if valued at $10,000 or less.
Real and Personal Property (In-Kind)
You may give a residence, land, or other real property as an outright gift-in-kind. The value of the donation is determined by an appraisal of the fair market value at the time of the transfer of ownership.
In some cases, you may wish to donate property in which you retain an interest. A gift of a remainder interest in a personal residence or farm provides you with a current income tax deduction for the present value of the remainder interest and also permits you to eliminate capital gains taxes on the appreciation.
Donations of personal property such as equipment, books, art, and jewelry may also be contributed under special guidelines established by the IRS.
The gift of life insurance provides you with a charitable contribution for the present cash surrender value. Future premium payments following the transfer of ownership and beneficiary status of the policy also are tax-deductible.
A provision in a will allows for a substantial contribution without diminishing assets during your lifetime. Since bequests are deductible from the estate, significant tax savings are possible.
Charitable Gift Annuities
A charitable gift annuity is actually part gift and part purchase of an irrevocable lifetime annuity contract. The portion that represents the gift to the college is deductible on your federal income tax return if you itemize your deductions. The size of the deduction is determined by your age, the amount of your gift, and a monthly interest rate factor provided by the IRS.
Charitable Lead Trust
A charitable lead trust allows you to place in trust assets that will be left to your heirs. In making your commitment to ECTC, you specify a set number of years during which a guaranteed amount or a fixed percentage of the value of the assets in the trust will be paid to the college. You pay a discounted gift tax when transferring assets to the trust and the trust s beneficiaries ultimately receive any remaining trust assets free of estate taxes.
Charitable Remainder Trust
This is an irrevocable, tax-exempt trust in which you place assets to provide income for yourself during a specific period of time (i.e., your lifetime or a period not to exceed 20 years). Afterward, the remaining assets are distributed to ECTC as a charitable gift.
The trust can be funded with an assortment of assets, including bonds, mutual funds, stocks, and real estate. There are no capital gains taxes on assets transferred to and sold through a charitable trust; it also has the potential to generate substantial income while at the same time creating an income tax deduction.
This information is not offered as financial or legal advice. Please consult your financial or legal advisors for guidance on the best method of charitable giving and potential tax consequences for you, your family and/or business.