With proper planning, donors may make substantial gifts to Bluegrass Community and Technical College in ways that complement their personal financial planning. We welcome the opportunity to meet with you and your professional financial advisors to determine the most advantageous ways of giving.
Through a simple bequest, you may be able to make a significant gift that will create a legacy and have a lasting impact on the students, faculty, and programs at Bluegrass Community and Technical College. A bequest may be made in the form of property such as cash and securities, a percentage of an estate, or the residue of the estate (property remaining after other bequests have been filled).
A Charitable Remainder Trust allows the beneficiary to receive a current income tax deduction and an immediate income stream from the assets placed in the trust. At the end of the trust agreement, all of the remaining trust assets pass to Bluegrass Community and Technical College.
A Charitable Lead Trust provides a means to give to Bluegrass Community and Technical College for a specific period of time, with the remaining trust assets distributed to your designated heirs. The College receives an annual amount for the length of the trust agreement, while trust assets are distributed to your designated heirs.
Life Insurance policies purchased while building a family may later in life prove to be good charitable gifts that can offer tax advantages. If other assets are now providing the income your family will need after your lifetime, consider transferring ownership of your policy to BCTC, thereby reducing estate taxes.
Because most retirement assets have been sheltered from income tax, they are subject to double taxation in your estate (income and estate tax). By bequeathing your retirement plan assets to BCTC, your heirs will realize income and estate tax savings and the charity will receive the full value of the gift.
Donating shares of closely held stock to Bluegrass Community and Technical College is another method of gifting assets. Once the donation is complete, the College seeks redemption from the corporation, which then purchases the stock with retained earnings. The donor realizes an income tax deduction for the charitable gift as well as the ability to avoid capital gains taxes on its appreciated value, while maintaining a controlled interest in the company.
Making charitable contributions through a Donor Advised Fund or Foundation can offer a high level of flexibility, current and/or deferred tax advantages, and an assurance of asset distribution to specific charities or focus areas.
With gifts of cash to Bluegrass Community and Technical College, donors may deduct an amount up to 50% of his/her adjusted gross income in the year that he/she makes a contribution. Any excess contributions over this percentage may be deducted over the next five years.
With gifts of appreciated property to Bluegrass Community and Technical College, individuals may avoid paying capital gains taxes and may receive a deduction for the full value of the gift.
With gifts of depreciated property to Bluegrass Community and Technical College, there are advantages to selling the property. By selling the property and contributing the proceeds, a donor may receive the deductions for both the capital loss and the charitable gift.
With gifts of personal property, tax deductions may depend on the appraised value and how the gift will be used by Bluegrass Community and Technical College.
The foregoing is not intended as legal advice. Please consult your professional advisors.