Find out what types of assets make the best planned gifts. Learn about gifts of cash, securities and property.
Bob and Mary Are Giving Smarter and Achieving Their Dreams...Find Out How You Can Too!
Bob and Mary first met at Two-Bit Flicks, a 25-cent movie night held on Fridays in Brighton Lecture Hall. When the spring formal hosted by the women's dorm came around, Mary asked Bob to go with her. It was their first "official" date.
The rest, as the saying goes, is history. Or in Bob and Mary's case, it is natural history. That's because Emporia State also introduced them to a lifelong passion for the natural sciences.
Bob and Mary feel Emporia State was the catalyst for the life they've built together. Mary became a science educator for 6th, 7th, 8th and 9th grade students. Bob founded and served as director of the Great Plains Nature Center and became a renowned nature photographer.
Now they want others to have the same opportunity they did. They want to help students come to ESU and discover a passion they can follow for the rest of their lives.
Bob and Mary found a simple and easy way to achieve this dream. When they set up their trust, they named Emporia State as a beneficiary.
What's your dream?
Learn how easy it is to make your dream a reality by naming Emporia State University in your will or trust. Contact Angela Fullen, Director of Planned Giving at the Emporia State University Foundation. She can answer your questions or help you get started. If you have already named Emporia State in your will or trust, let us know. We will make sure your gift does everything you want it to do.
"I would encourage anyone, if they are thinking about doing something like this, to contact the Foundation. For us, it has been a great experience." - Mary Butel
Getting Started is Easy
Not sure how to take the first step? We've got just the thing you need. Download your free Will and Estate Planning Guide. This guide is an easy way to get started on, or update, your estate plan. It will help you explore your options at your own pace. It's free, easy and yours to keep.
Download your copy today or contact Angela Fullen to request a printed copy.
Case of the Week
Check Goes Postal - Year End Gifts - Part 2
Case:Gregory, 60, is a very control-oriented businessman. In fact, his business philosophy is best summed up as “my way or the highway.” While sometimes difficult to work with, Gregory nevertheless has achieved substantial business success in his life. His quick decision-making skills and solid commitment to a plan has catapulted his company onto the Fortune 1000 list. It seems Gregory’s “way” proved financially fruitful over the past 20 years.
Gregory likes to control many other aspects of his life as well, including his charitable giving. Gregory gives $100,000 to charity annually. While very philanthropic, Gregory is extremely selective with his charitable giving. Specifically, Gregory looks for a well-run charity with minimal overhead costs. Gregory wants to see his dollars effectively used and not dissipated on excessive expenses.
Gregory lives on the East Coast but wants to give $100,000 to a non-profit zoo on the West Coast. Unfortunately, it is already December 30 and Gregory is worried his check will not reach the zoo before year-end. However, for tax planning reasons, Gregory wants his charitable contribution to be deductible for this year.
Question:Despite the time constraints, can Gregory complete the gift for federal tax purposes this year? What rules govern the timing of gifts by check?
Solution:The basic rule is that a gift to a charity is deductible when the property or cash is delivered to a charity. Because state law normally governs title to property, delivery is usually complete under state law when the charity has legal ownership of the property. However, in some specific circumstances, there are examples in the income tax regulations that supersede state laws. One such specific circumstance deals with gifts by check.
Even though the final transfer to charity is not actually made until the check clears the banking institution, checks are usually deductible on the date of unconditional mailing or delivery through U.S. Mail. See Sec. 1.170A-1(b). Therefore, so long as the check clears in the normal course of business, the charitable deduction will be allowable in the year the donor mailed or delivered the check. This is true despite the fact donors could hypothetically stop payment on the check and negate the actual gift.
Gregory is very pleased with this flexibility and this “mailbox” rule. Consequently, Gregory elects to send the $100,000 check to the zoo on December 30 by U.S. Mail. To be safe, Gregory makes sure the envelope is properly postmarked this year. The check reaches the zoo on January 3 and clears on January 7. The zoo saves a copy of the postmarked envelope as a record that the gift was made the prior year. Pursuant to the tax regulation, Gregory’s gift is complete on December 30. Gregory may therefore deduct $100,000 on his Form 1040 for the previous year.