Planned Giving
Each campus has staff members that are experienced in gift planning
and understand the importance of philanthropy as a part of a successful
overall estate plan. They are available to assist you and your advisers
as you consider the many opportunities to make a planned gift. By working
together, the university and the benefactor create a distinctive gift
that blends the donor's vision with the objectives of the California State
University.
Giving Through Your Will
Many people see their will as a chance to leave their mark on the future
by assisting important causes or institutions that have had meaning for
them.
You may contact your CSU campus planned giving representative or simply
use the following language:
I give, devise and bequeath to the California State University (NAME),
The sum of $__________
OR
________ % of the remainder of my estate
OR
the following property, to wit: ________
as an unrestricted gift to benefit CSU (NAME) to be used wherever the need
is greatest.
Gift Annuity
A gift annuity is when the donor makes an irrevocable gift in exchange for
life income payments. A charitable gift annuity is a contract between the
donor and the CSU Foundation under which the foundation guarantees payment
of the annuity. Two features in particular make charitable gift annuities
appealing. An individual may specify whether he or she wants an immediate
annuity, with payment to begin not later than one year from the date of
the gift, or a deferred gift annuity, from which payments are not to begin
until a specified future date. In addition, the income stream from such
an arrangement can be higher than current market rates. For more information
about the CSU Charitable Gift Annuity Program, link here.
Remainder Trusts
Some gifts offer a lasting impact while providing favorable income and estate
tax advantages to you as a donor. A Charitable Remainder Trust pays income
to you for life.
Cash or highly appreciated assets, such as real estate or stocks, may be
placed into a professionally managed trust. As a charitable entity, the
trust is able to sell and reinvest the assets, without shrinkage or capital
gains.
Retirement Plan Assets
IRAs, deferred annuities, and other retirement plan assets can be a great
way to make a gift to a California State University after your lifetime.
When distributions are made from a retirement plan, they usually generate
taxable income for heirs. In extreme cases, the heirs may receive less than
20 cents of every dollar in the plan.
When the foundation is named as beneficiary of the retirement plan,
the assets are distributed for the benefit of the campus without generating
any taxes - every dollar in the plan goes to work to accomplish your charitable
purpose here at the university.
Donors who wish to have their heirs receive some benefit from their retirement
plan can name a charitable trust to receive the assets on their death.
Assets in the plan are distributed to the trust without triggering income
taxes. The trust pays a taxable income to the heirs for life or for a
term of years then distributes the assets to the university. This type
of arrangement generates a partial estate tax deduction.
Other Planned Gifts
"Beneficiary Arrangements" - As with retirement plan assets, arrangements
can often be made to pay assets to the university upon your death, including
life insurance, U.S. Savings Bonds, bank accounts, and some mutual fund
accounts. Your financial institution or insurer can provide you with the
paperwork it requires to implement these arrangements.
Charitable Lead Trusts - Charitable lead trusts are often viewed as the
opposite of Charitable Remainder Trusts. The donor transfers property to
the charitable lead trust to provide the California State University with
an income stream for a designated period of time. When the time has lapsed,
the remainder of the trust passes to heirs. Although there is no income
tax deduction when the charitable lead trust is established, the donor can
reduce the size of their taxable estate and pass asset growth to heirs
that avoid both gift and estate taxes.
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