Types of Planned Gifts

What is Gift Planning?

Gift Planning is a powerful tool to help people donate significantly more than otherwise possible.

Some gifts are created through wills and trusts while others produce income from a current transfer of assets. No matter the particular structure, all contributions to Whitman are investments in the education of generations to come. Gift planning typically provide donors and beneficiaries with tax benefits including the reduction of capital gains tax, minimizing or eliminating gift and estate tax, and producing tax efficient income streams.

Types of Gifts

Different types of planned gifts are appropriate for specific purposes and certain assets are suitable for particular structures of gifts. Please refer to our gift planning asset matrix for further information.

Bequests are a vital part of Whitman's planned gift program and the foundation upon which the college was built. Many donors, after evaluating their family and philanthropic goals, make bequests to Whitman to help support its many programs through their wills, trusts, insurance or retirement plans.

Life Income Gifts benefit both Whitman and donors. Donors can receive numerous tax and financial benefits by creating a life income gift, such as a charitable gift annuity or charitable remainder trust. The donor makes an irrevocable contribution of assets to fund the trust or annuity, may claim an immediate income tax deduction for part of the contribution's value, and also receives income for life or for a fixed term of years. When the trust or annuity term ends, the remaining assets can be directed to support programs at Whitman.

Charitable Lead Trusts can make an agreed payment to Whitman for a specific term of years or for someone's life. Thereafter, the lead trust assets are either returned to the person who created the lead trust (this person also receives an income tax deduction when the trust is created) or passed on to children, grandchildren or other loved ones (applicable estate or gift taxes on the value of the gift to the child or other heir are reduced or completely eliminated.)

Real Estate Gifts can provide funding for life income gifts or establish a retained life estate. A retained life estate allows a person to donate his or her home or vacation home to Whitman yet still reserve the right to live in and use the property for the rest of his or her life while generating a current charitable deduction for part of the value of the property.

Outright gifts of tangible personal property (assets other than cash and publicly traded securities) can have differing tax consequences depending upon how long that asset has been held and whether it is related to the charitable purposes of the college. These questions should be evaluated prior to making the gift. The Office of Gift Planning can help assess and direct a gift of tangible personal property, privately held securities, or real estate so that it meets your philanthropic goals.

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