Frequently Asked Questions
[GLOSSARY]

1. What are the three kinds of gifts I can give to The Douglass Fund?
A. During your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

B. Upon your death you can make a gift through your will or revocable trust or with a distribution from a retirement plan or life insurance policy.

C. You may also make a gift that returns lifetime income to you, your spouse, or other individuals, through a charitable gift annuity, charitable remainder unitrust, or annuity trust.


2. What assets can I use to make a gift?
Almost anything: cash, publicly traded securities, life insurance, the balance of your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by the Associate Alumnae of Douglass College office before we can accept them as gifts: real estate, closely held stock, artwork and collectibles.


3. What tax deduction will I receive for my gift?
It depends on the form your gift takes:

• Outright gifts to the Associate Alumnae of Douglass College generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains – a great tax benefit!
  
• Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission.
  
• Bequests do not generate a lifetime income tax deduction. However, they are exempt from estate tax.
  
• Similarly, life insurance distributions are not income-tax deductible, but are exempt from estate tax. If you have made the Associate Alumnae of Douglass College the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 5 below).
  
• The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
  

4. Can Douglass College, the Associate Alumnae of Douglass College, or the Rutgers University Foundation serve as the Executor of my estate?
No. State law, the limitations of our corporate powers, and our internal policies prevent us from taking such a role in your affairs.


5. I want to set up a life insurance policy, name the Associate Alumnae of Douglass College as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS does not consider that a "completed gift." As the owner of the policy, you could change the beneficiary designation to a friend or family member. The Associate Alumnae of Douglass College must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

6. Can I transfer my IRA to to set up a life-income gift, and avoid income tax on the transfer?

New legislation gives donors aged 70½ and older an opportunity to direct lifetime distributions from their IRAs to us without incurring income tax liability on the withdrawal. The provision will be in effect for just the 2006 and 2007 tax years. Distributions can total $100,000 per year, and must be made outright — they cannot fund a life-income gift. Just e-mail us and we'll be happy to give you more information about this new charitable incentive.


7. I would like to donate a painting. Will you determine its value for my income tax deduction?
No, we cannot. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too – an insurance appraisal will not suffice.


8. I am interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my husband?
Your charitable gift annuity will be treated as a general obligation of the Rutgers University Foundation (the agent for the Associate Alumnae of Douglass College), backed by all the Foundation's assets. The Foundation has an unbroken record in making timely payments to annuitants, and that ongoing responsibility is a key element in their financial policies.


9. If I create a bequest or life-income gift, will the Associate Alumnae of Douglass College continue to ask me for annual contributions?
Yes, because the commitments address two different needs. Your planned gift is a significant addition to Douglass College's long-term financial strength -- her ability to meet the challenges and opportunities the future will bring. The obligations and expenses that the Associate Alumnae of Douglass College and Douglass College encounter today, however, are met through your annual gift. We are very grateful for your support today and in the future.

Associate Alumnae of Douglass College
Office of Gift Planning
181 Ryders Lane
New Brunswick, NJ 08901-8557
732-932-2880 | 732-932-2883 (fax)
E-mail: chamlin@winants.rutgers.edu

Planned Giving content and GiftTree copyrighted © 2010 VirtualGiving.