Giving to the College of Visual & Performing Arts
What Can Be Given
The most common gift is a gift of cash. If the donor itemizes income tax deductions, 100 percent of the gift may be deducted, up to 50 percent of the donor's adjusted gross income for the year. Any excess deduction may be carried over for an additional five years.
Pledges may be accepted for gifts to be made over a period of three years. Pledges should be in writing and signed by the donor, in order to be officially recorded by the university.
Gifts of Securities
Gifts may consist of appreciated marketable securities, including stocks, bonds and mutual funds. Gifts of long-term appreciated securities offer an advantageous way to support the college and university. For long-term securities (held more than one year), the tax law permits a charitable deduction of the current full fair market value of the securities, up to 30 percent of adjusted gross income, with a five-year carry-over. In addition, the securities are not subject to a tax on the capital gain.
Short-term securities (held less than one year) are considered to be ordinary income property by the Internal Revenue Service, and a charitable deduction may be taken for the original cost of the securities only.
Real estate can be a valuable gift to the university. A residence, a farm, a commercial building, a parcel of land or an oil and gas producing property may all be given, allowing the donor to take a charitable deduction for the fair market value of the real estate and to avoid any capital gains tax.
Matching gifts multiply the benefits of your gift to the institution. Many corporations will match gifts made by their employees and associates. Please check with your personnel office to determine if your employer sponsors such a program.
Gifts in Kind
Gifts of tangible personal property, such as art, antiques, and various collectibles are also acceptable. A corporation may make gifts in kind such as microscopes, computers, and equipment. Such gifts are fully deductible at fair market value only if the property itself will be used in a way related to a normal exempt purpose of the recipient institution.
By naming the college or university as the owner and beneficiary of a life insurance policy, donors may make an irrevocable gift that will benefit the institution in the future. By simply naming the institution as a primary or secondary beneficiary, a revocable gift is created.
Ways to Give
An outright gift is a gift in which all ownership interest in the asset is transferred to the receiving institution at the time of the donation. Most types of assets can be given outright to a component institution.
A deferred gift is a gift in which full ownership interest in the asset is not transferred to the receiving institution at the time of the donation, but is delayed to some point in the future. Deferred gifts include:
By naming the College of Visual and Performing Arts in a will, a donor may make the college the beneficiary of a specific and/or residual bequest. A specific bequest names the college to receive a specific dollar amount or specific
asset(s). A residual bequest names the college to receive all or part of the residue of the estate, which is comprised of the estate assets remaining after the payment of any specific bequests.
Charitable Remainder Trusts
A charitable remainder trust is an excellent way to use appreciated assets to provide a dependable income stream to the donor and/or another beneficiary without capital gains tax ramifications. The assets transferred to a trust, with a trustee of the donor's choosing (which may be the donor), can be liquidated and reinvested to diversify the holdings of the trust. The donor secures a charitable tax deduction while the trust pays an annual amount to the donor and/or other beneficiary. Upon termination of the trust (after the death of all income beneficiaries or after a term of years), the amount remaining in the trust is distributed to one or more charitable entities, for use by the charity as the donor has designated in the trust agreement. Charitable remainder trusts, which name the College of Visual and Performing at Texas Tech University to receive at least 50 percent of the trust remainder, may be trusteed by the Texas Tech University Foundation Board. Charitable remainder trusts include both charitable remainder annuity trusts and charitable remainder unitrusts. For annuity trusts, the annual payout is a fixed amount and does not change from year to year. For unitrusts, the annual payout is a fixed percentage of the annual fair market value of the trust assets, and fluctuates from year to year with the market value of the trust.
Charitable Lead Trusts
A charitable lead trust allows the donor to transfer assets to create a trust for a period of time during which the trust pays an income to the component institution. At termination of the trust, the corpus is distributed to a non-charitable beneficiary, often the donor's children or grandchildren.
Charitable Gift Annuity
A charitable gift annuity pays a fixed income over the period of one or two lifetimes, one of which is often the donor. The donor contributes an asset, usually cash or appreciated marketable securities, to fund the charitable gift annuity. At termination, the remainder of the gift is distributed to the benefiting institution. Texas Tech Foundation, Inc., is the entity to which such gifts are made for the benefit of a Texas Tech entity.
How Gifts Will Be Used
Gifts may be donated for unrestricted use, such as for current expenditure for the general support of the university, or the college, school or department of the institution.
Gifts may be designated by the donor for restricted use, such as for current expenditure in support of a specific program or purpose such as student scholarships.
A gift of $10,000 or more can be given to create an endowment that may be funded over a three-year period. The terms of the endowment should be set out in writing and signed by the donor. The corpus of an endowment is held and invested and distributions from the earnings are used to benefit the component institution, in accordance with the donor's wishes. The donor may specify that endowment distributions be for unrestricted use by the component institution, or may designate distributions to support students through scholarships and graduate fellowships; faculty through fellowships, professorships, and chairs; research; student activities; and various other specified educational activities of the college.
Named Memorial Gifts and Living Tributes
Any gift may be given in honor or in memory of an individual or family. Please remember that when making a financial decision you should always seek the opinion of your professional tax adviser or legal counsel.
For More Information
There are many ways in which alumni and friends can make gifts to the College of Visual & Performing Arts. Development staff is available to assist donors to structure gifts to provide the greatest positive impact to the institution and the donor.
To contact the development officer at the College of Visual and Performing Arts, email Micah Blakeor call (806) 742-0700.
Please remember that when making a financial decision you should always seek
the opinion of your professional tax advisor or legal counsel.