Planned Giving

Planned Giving

Types of Gifts

Appreciated Securities

Make a gift to KPLU by transferring appreciated securities instead of writing a check. By doing so, you avoid the tax due on the capital gain AND you receive an income tax deduction for the fair market value of the security.

For example, if you give stock with a fair market value of $1,000 for which you paid only $100, the "cost" to you for making the gift is only $100! Plus, you may be able to deduct the full $1,000 from your income tax, thereby reducing your "cost" even further.

A gift through your will or estate

The most common method of deferred charitable giving is a bequest. Cash, securities, real property or personal property can be given to KPLU to support its mission.

Unrestricted Bequest - may be used by KPLU for any purpose within the scope of its corporate powers. These bequests are especially useful in that they provide support to the station's greatest need, or may be held for future use. Such a bequest should state:

I give to KPLU, a community service of Pacific Lutheran University located in Tacoma, Washington, . . . (here follows the dollar amount or percentage of the estate or an accurate description of the securities, real estate, or other property to be given).

Endowment Bequest - establishes a permanent fund with the income from the fund being available to meet either the general needs of the station or specific needs of a designated fund, Such a bequest should state:

I give to KPLU, a community service of Pacific Lutheran University located in Tacoma, Washington, . . . (here follows the dollar amount or percentage of the estate or an accurate description of the securities, real estate, or other property to be given) to be known as the . . . Fund, the income only to be used according to university guidelines for . . . (general purposes of the university or designated purpose).

Contingent Bequest - this form of bequest allows a donor to make a gift to one or more beneficiaries while including KPLU in his or her will as a contingent beneficiary. Such a bequest should state:

. . . If any or all of the above-named beneficiaries should predecease me, then I give to KPLU, a community service of Pacific Lutheran University located in Tacoma, Washington, all the property, real or personal, which said beneficiary or beneficiaries would have received if they had survived me.

Residual Request - a donor may name KPLU as the beneficiary of all or part of the residue of his or her estate. Such a bequest should state:

I give to KPLU, a community service of Pacific Lutheran University located in Tacoma, Washington, all the rest, residue, and remainder of my estate, both real and personal.

Charitable Annuity

The simplest way to make a deferred gift to KPLU, while at the same time receiving an income for life (for one or two persons), is through an arrangement called a charitable gift annuity. The income received is based on the age of the income beneficiary(ies). Benefits include:
  • Guaranteed lifetime income, part of which is tax free,
  • A charitable income tax deduction,
  • Freedom from investment and management worries, and
  • An eventual gift to KPLU.

The minimum amount needed to fund a charitable gift annuity is $10,000.

The minimum age for a charitable gift annuity arrangement is 60.

Charitable Remainder Trusts

A Charitable Remainder Trust provides income either for lifetime or for a term of years to a designated beneficiary(ies).

A Charitable Remainder Unitrust pays income based on a fixed percentage of the trust's assets as revalued each year. As a result, payments will vary from year to year. A Charitable Remainder Annuity Trust pays a fixed dollar amount each year. Charitable Remainder Trusts may be funded with cash, marketable securities, and with debt-free acceptable real estate.

Both the Charitable Remainder Unitrust and the Charitable Remainder Annuity Trust provide an income tax charitable deduction. In addition, when funded with an asset that has grown in value, there can be avoidance of some or all capital gains taxes. Finally, the trust asset is removed from one's estate, offering potential estate tax savings.

Paid Insurance Policies

Life insurance can produce a significant gift from relatively small premiums.

Examples:
  1. Joe Smith has a $50,000 life insurance policy that is fully paid up. By naming KPLU the irrevocable owner and beneficiary of the policy he will receive an income tax deduction equal to the cash value of the policy.
  2. Mary Smith purchases a new life insurance policy naming KPLU as irrevocable owner and beneficiary. She is entitled to receive income tax deductions on gifts made to KPLU that are designated for premium payments.
  3. Bill and Jane Jones have a life insurance policy on which they still owe premiums. They name KPLU as irrevocable owner and beneficiary and they receive an income tax deduction equal to the cash value of the policy, and they will receive an income tax deduction for any additional gifts toward premium payments.


What to Give

Look below to learn more about the assets most commonly used to fund a gift.

Cash

Making a donation of cash is as simple as writing a check or authorizing a charge on your credit card. From your standpoint, it's no fuss, no bother.

Securities

Stock that has increased in value is one of the most popular assets used for charitable giving, once it has been held for more than one year. Making a gift of securities to us offers you the chance to help our organization while realizing many important benefits for yourself.

Retirement Plan Assets

If you're like many Americans, your financial future will likely revolve around your retirement plan assets. To maximize the value of a retirement account, consider making a lifetime gift of its after-tax values to a tax-exempt deferred giving plan.

Savings Bonds

Savings bonds—likely the nation's most widely held appreciated asset—represent major assets that may have stopped growing and are now collecting dust, just waiting to be put to use. A tax-wise use for your appreciated savings bonds is to support a cause you care about.

Real Estate

Using real estate, such as your house, farm or commercial property, to fund a gift allows you to preserve your cash assets and receive significant tax advantages.

Closely Held Stock

A donation of your closely held stock can be a fine way for you to make a sizable charitable contribution while realizing valuable tax benefits.

Life Insurance

Donating your life insurance could be a wonderful way to fulfill your desire to support our work. By making KPLU the beneficiary of an existing policy, you make good use of your resources and expand your ability to make a significant gift.

Contact

Brent Mason, Major Gifts Manager, at 253.535.7266 or bmason@kplu.org

*The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.