Gift Planning - The Whitworth Foundation

The Whitworth Foundation was established in 1972 with the goal of helping individuals devise gift plans that would meet their financial and personal objectives and would ultimately benefit Whitworth University. 

Over the years, we have assisted countless donors who have made generous donations to Whitworth through bequests, gift annuities, charitable trusts, life insurance policies, and outright gifts of stock, real estate and other assets. These gifts provide an income for the donor and/or the donor's beneficiaries and provide the additional benefits of reducing or eliminating capital gains taxes on appreciated assets and significantly reducing income and estate taxes. Perhaps even more important is the fact that they ultimately support our university.

Our professional staff is willing to work with you, as well as your legal and financial advisors, to create a plan to meet your objectives. Please feel free to contact Holly Norton or Jaime Warfield for more information.

Bequests

Your Estate:

• You built it.
• You preserved it.
• Bestow it with care.

The most common, and simplest, way to make a lasting gift is to include Whitworth in your will or living trust. This option provides you with the greatest flexibility and can be adjusted as your life circumstances change.

Have you already included Whitworth in your estate plans? Please fill out this form and become a member of the Jay P. Graves Society today!

Gifts that Create Income

There are several ways in which you can make a gift that will ultimately benefit Whitworth while providing you, or those you designate, with an income for life or for a specified term. These include gifts to a charitable remainder unitrust, a charitable remainder annuity trust or a charitable gift annuity. When you establish one of these life-income gifts, you irrevocably transfer money, securities or other assets to The Whitworth Foundation. Each of these gifts provides you with an immediate income-tax deduction based upon the age of the income beneficiary, payment percentage and other factors. You will also benefit from a probable reduction of estate taxes and probate costs. The Whitworth Foundation staff can help you determine which option is best for you. To learn more about the benefits of each life-income gift option, please see below:

Charitable Remainder Unitrust
The charitable remainder unitrust is a separately created and -invested trust that offers a variable income based on the value of the trust, which is recalculated each year. You, or others you name, receive the income for life or for a term of years. At the death of the surviving beneficiary, the remaining principal in the trust goes to Whitworth, and you can designate how it should be used.

With the help of The Whitworth Foundation staff, you decide the appropriate payout rate, which must be at least 5 percent and will depend on the age of the income beneficiaries or term of years. If the value of the trust assets increases, your income increases, providing a hedge against inflation. Conversely, your income could decrease if the value of the assets declines. You may make additions to a unitrust at any time. Use the gift calculator to see how you might benefit from a charitable remainder unitrust.

Charitable Remainder Annuity Trust
A charitable remainder annuity trust is ideal if you would like to ensure yourself a fixed amount of income every year. This is a separately created and -invested trust that offers a fixed annual income for you or others you designate. The payout rate must be at least five percent and is determined based on the age of the beneficiaries or term of years. No additional gifts may be made to the annuity trust once it is established. As with other life-income options, you may designate how the remaining principal is to be used by Whitworth. Use the gift calculator to see how you might benefit from a charitable remainder annuity trust.

Deferred Charitable Gift Annuity
A deferred charitable gift annuity is ideal if you are a younger donor (age 40-60) in your peak earning years. You may make a gift now, receive an immediate charitable tax deduction and defer the resulting income until retirement or at some time when you have a greater need for income. Because the income is deferred, the annuity rate is compounded, thus making the eventual payout much larger in relation to the original gift. Use the gift calculator to see how you might benefit from a deferred charitable gift annuity.

Charitable Gift Annuity
The charitable gift annuity is a simple way to make a gift of cash or marketable securities in exchange for a guaranteed income for life; it may be established for one or two individuals. This arrangement is a contract between you and The Whitworth Foundation. The payments can begin immediately, or you may defer the payments for a period of time. The proceeds of the annuity will eventually be transferred to the Whitworth endowment or to a designation of your choice.

The annuity rate is based upon the age of the income beneficiary; it is determined at the time the gift is made and never changes. A portion of each payment will be tax-free income. You will also receive an immediate income-tax deduction in the year the gift is made. Since each annuity is a separate contract, no additions are allowed. However, you may establish as many annuities as you like. Use the gift calculator to see how you might benefit from a charitable gift annuity.

Deferred Charitable Gift Annuity A deferred charitable gift annuity is ideal if you are a younger donor (age 40-60) in your peak earning years. You may make a gift now, receive an immediate charitable tax deduction and defer the resulting income until retirement or at some time when you have a greater need for income. Because the income is deferred, the annuity rate is compounded, thus making the eventual payout much larger in relation to the original gift. Use the gift calculator to see how you might benefit from a deferred charitable gift annuity.

Suggested Charitable Gift Annuity Rates (PDF)

Gifts of Retirement Assets

As with bequests, naming Whitworth University as the beneficiary of your retirement plans is a simple way to make a gift to the university. Giving retirement assets to Whitworth is also smart estate planning.

Under current tax law, recipients must report distributions from qualified retirement plans (IRAs, 401(k)s, Keoghs, etc.) as taxable income. Upon the plan-owner's death, retirement-plan assets left to family or friends are subject to income tax and possibly to estate taxes. The tax implication could be as high as 65 percent. This is why using retirement funds to make charitable gifts is smart estate planning. It allows you to leave other, less heavily taxed, assets to family and friends.

A gift to Whitworth through your retirement plan can usually be accomplished by completing a change-of-beneficiary form available from your plan administrator.

Gifts of Stock or Mutual Funds

Gifts of appreciated securities are an easy, advantageous way to make a lasting contribution to Whitworth. For example, a donor may be able to avoid the capital gains taxes that would have been due if the stock had been sold and the proceeds given to charity. In addition, the donor may be eligible for a charitable tax deduction. Tax law in gift planning is complex and subject to change. Please consult your tax, legal or financial advisor before making any decisions. In addition, please feel free to contact our office for a complimentary proposal or to allow us to answer any questions you may have. Information on making a stock gift is available here.

The science research endowment funds the purchase and maintenance of laboratory equipment, matching funds for competitive research grants, and training to increase the level and integration of research in the sciences. The endowment would also be designed to provide permanent funding for a summer science-research program being piloted with eight faculty-student teams in 2006-07 under a grant from the M.J. Murdock Charitable Trust.

Gifts of Real Estate

When considering ways to make charitable gifts more effectively, many donors have discovered that gifts of real estate can result in special benefits for both themselves and Whitworth. Developed and undeveloped real property, farms, ranches, and personal residences can be given outright to Whitworth or in exchange for lifetime income.

A gift of real estate to Whitworth provides a charitable tax deduction, avoids capital gains tax and may complement your overall financial plans. Some gifts of real estate even allow you to stay in your home. Such a gift may enhance your security now and in the future.

We would be pleased to work with you and your advisors as you explore the benefits of giving real estate.

Retained Life Estate
You may give real estate (such as your residence, vacation home or farm) to Whitworth and retain the right to use the property during your lifetime. This is an excellent way to make a gift at a later date, yet take advantage of a current income-tax deduction.

Since you continue to use the property, you also continue to pay taxes, insurance and maintenance costs on the property for life. The transfer is made with a deed and a written agreement with The Whitworth Foundation, specifying that the foundation may not use the property until a time specified by you.

As mentioned above, you will receive a current income-tax deduction for your gift; in addition, the designated property will not included in your taxable estate.

If you are interested in how a retained life estate would benefit you, please contact our office.

Gifts of Life Insurance

The simplest way to make a gift of life insurance is to name Whitworth as a beneficiary, or contingent beneficiary, of all or a portion of a policy already in effect. An alternative would be to purchase a new policy, naming The Whitworth Foundation as the owner and beneficiary, thus receiving an income-tax deduction for the amount of the premium payments.

If you are like most people, through the years you have bought various life insurance policies to meet a variety of needs. As we all know, these needs change along with our life circumstances. You may have purchased a policy to cover minor children, to pay off a mortgage, or to take care of some other now non-existent need. These fully-paid, no-longer-used policies make generous charitable gifts and can provide you with an income-tax deduction. The deduction is equal to the replacement value of the policy or to the total of premiums paid, whichever is less.