Appreciated stock and mutual fund shares are useful in estate planning. If you pair these assets with charitable giving vehicles, you can reap tremendous financial benefits, not to mention the satisfaction of having furthered a cause in which you believe. Advantages of donating stock you have held for more than one year is this double tax benefit:
- You earn a deduction for the stock’s full fair market value (instead of its lower cost basis).
- You completely avoid capital gains tax on the stock’s appreciation (the difference between cost basis and market value).
Charitable giving vehicles can breathe new life into highly appreciated stock. With a charitable remainder trust, for example, you choose the trustee who reinvests your stock to provide a lifetime income for yourself and anyone else you designate. Upon your death, or that of the surviving beneficiary, the trust’s remaining value passes to Maryland Athletics.
How Do I Write a Bequest to Maryland Athletics?
Making a provision in your will for Maryland Athletics is a simple process. Such bequests can be included in your will at its creation or added and updated later by a codicil.
When making a bequest, it is important to name precisely the individuals and organizations that you intend to benefit. By avoiding generalities such as a common name for an organization, you avoid confusion or possible litigation and ensure your donation reaches its intended beneficiary.
The suggested bequest language below may be adapted by your attorney for you to provide a legacy of support to Terrapin student-athletes and athletic programs.
“I give, devise, and bequeath to the University of Maryland College Park Foundation, a tax exempt organization located at 2119 Main Administration Building, University of Maryland, College Park, MD 20742, (state a percentage of estate or residue, or sum of money, or otherwise describe property) to be used for (state purpose, such as, to support the scholarship program in the Department of Intercollegiate Athletics, or to support facility renovations in the Department of Intercollegiate Athletics).
While not necessary, it is helpful to make UMCPF aware that we are being named in your will. This way you can be sure your bequest will be executed in the manner you intended. In addition, we have special means of recognizing donors who have named us in their wills. Furthermore, public recognition of your generosity can inspire others to consider supporting causes of importance to them.
Your Generous Support in Tentative Times
One thing has remained constant—there has been a generous, giving attitude among American donors who continue to channel portions of their accumulated assets to charitable organizations.
In its annual compilation of charitable donations, the Giving USA Philanthropy Report for 2006 cites $295 billion in total giving. Of that, individuals contributed $223 billion, the lion’s share of contributions—nearly 76 percent. Additionally, close to $23 billion was received from individuals through their estates via bequests in their wills. The combined gifts accounted for just under $246 billion of the total, or almost 84 percent.
Overall, the estimate for charitable giving in 2006 represented 1.7 percent of gross domestic product (GDP). So, despite some economic setbacks, devotion to charitable giving remains rock solid. Educational institutions were second only to religious organizations in the total amount of charitable donations received in 2006.
For more information on planned giving to Maryland Athletics, please call the Major Gifts office at (301) 314-7020.