Planned gifts are those you arrange during your lifetime with the
benefit to Randolph-Macon deferred to a future date. Some popular planned giving
vehicles include bequests, gifts of life insurance, charitable gift annuities, or
charitable remainder trusts. These gifts are a vital source of the College’s future
financial strength and may also provide donors with substantial tax savings. Planned
giving donors are recognized through membership in
Randolph-Macon’s Heritage Society. Read more on bequests,
life income gifts, and gifts
of real estate below.
Many of Randolph-Macon Colleges alumni and friends have become partners in its history
by remembering the College in their estate plans. You may leave a bequest to Randolph-Macon
under your will or name the College as the beneficiary of your life insurance policy
or retirement account. Bequests continue to account for a major portion of the College’s
endowment and provide significant funding for the College’s programs, scholarships,
and professorships. Bequests have provided, and will continue to provide, a certain
and solid foundation for many lofty and ambitious dreams.
You can make a bequest to Randolph-Macon College in several different ways:
Life Income Gifts
These gifts provide you or a loved one with income for life, and thereafter, benefit
the College. Two popular types of life income gifts are a charitable gift annuity
which provides guaranteed, fixed payments for life and a charitable remainder
trust which typically provides fluctuating income payments based on
the annual value of the trust. When the annuity or trust ends, the remaining assets
support the College.
Charitable Gift Annuities
A gift annuity is the simplest type of life income gift. A charitable gift annuity
provides guaranteed income in exchange for an irrevocable gift of cash or appreciated
securities. A deferred gift annuity works the same way except that the payments
start a year or more after the date of the gift. With a gift of $10,000 or more,
you can establish a charitable gift annuity with Randolph-Macon
College. A gift annuity is a simple contract whereby the College promises to pay
one or two beneficiaries (for example, you and your spouse) a fixed amount per year
for life. The rate of income, as recommended by the American Council on Gift Annuities,
depends primarily on the age of the beneficiary or beneficiaries. The older the
beneficiaries, the higher the rate. Also, the rate will be increased if the donor
delays receiving payments for a year or more after the date of the gift. Many donors
use this type of deferred gift annuity to supplement retirement
At the death of the beneficiary or beneficiaries, the principal remaining in the
annuity account will be used by the College for the purpose you designate.
Some benefits of establishing a charitable gift annuity are:
In addition to these benefits, a gift annuity can provide generous support for the
future of Randolph-Macon College.
Charitable Remainder Trusts
A charitable remainder trust is a life income gift in which you make an irrevocable
contribution of cash, securities, real estate, or other assets to a trust that ultimately
benefits the College. You receive income from the trust for a period of time such
as your life or the life of another, and the College receives the remaining trust
principal at the end of the term, to be used for the purpose you designate.
There are two types of charitable remainder trusts--the charitable remainder
unitrust and the charitable remainder annuity trust.
With the unitrust, the beneficiary or beneficiaries receive a fixed percentage of
the annual value of the trust principal. Payments may fluctuate from year to year,
since they are based on the changing annual value of the trust. The donor can make
additional contributions to a charitable remainder unitrust.
With an annuity trust, the beneficiary or beneficiaries receive
a fixed dollar amount annually. Payments will not fluctuate from year to year. Additional
trust contributions are not allowed with a charitable remainder annuity trust.
Some benefits of establishing a charitable remainder trust are:
In addition to these benefits, a charitable remainder trust can provide generous
support for the future of Randolph-Macon College.
Gifts of Real Estate
You can make an irrevocable gift of a personal residence, vacation home, or farm
to Randolph-Macon College and retain the right to live in it for your lifetime.
A life interest, called a retained life estate, can be retained
for your life or the lives of other individuals. Because the College receives your
property at the end of your life, you are entitled to an income tax deduction a
the time you make the gift.
You can also make an outright gift of all or a portion of your interest in your
property, or use the property to establish a charitable remainder trust and receive
income for your life or a term of years.
If you make an outright gift, you receive a current income tax deduction for the
appraised value of the property. The proceeds from the subsequent sale of the property
are applied to the area of the College your designate.
In the case of a trust, the proceeds from the sale are reinvested in the trust and
provide income to you or another beneficiary. At the end of the trust term, the
College applies the remaining principal to the College as you designate.
In the alternative, you may sell property to the College for less than its fair
market value. This type of gift, called a bargain sale, is often
used when an individual is interested in supporting the College with a gift of real
estate while at the same time recouping some cash, perhaps equal to their initial
investment in the property.
If you have questions on planned giving at Randolph-Macon College, contact Nancy
Denton, Director of Planned Giving, 804-752-3039 or
firstname.lastname@example.org. You may also call toll free at 866-694-4574.
The Office of College Advancement • P.O. Box 5005, Ashland, VA 23005 • email@example.com • 866-694-4574