Giving and Receiving

THINK ABOUT THE IMPACT THAT NOVA SOUTHEASTERN UNIVERSITY has had on your life, on its alumni, faculty members, friends, and the community. If it is your intention to help ensure that NSU will continue to make a positive impact for many years to come, you can achieve such results through gift planning arrangements that provide you with significant tax, income, and estate planning benefits. With a planned gift, you can support NSU's efforts to provide scholarship endowments, secure the highest quality professors, conduct groundbreaking research, and provide state-of-the-art facilities far into the future. There are various ways of creating an important legacy at NSU, many of which will even pay you an income in return for your gift.

Charitable Gift Annuity

The concept of a charitable gift annuity (CGA ) is simple-you donate assets to NSU, we reinvest those assets, and we agree to make fixed income payments to you for life. At the end of the agreement, the funds are available for use by the university. A CGA is particularly attractive because the rates (based upon your age) typically produce higher yields than you would receive in the stock and bond markets. And, when combined with partially tax-free payments, the effective rate of return is even higher. In addition, upon the agreement becoming effective, you will receive a partial charitable deduction for the funded amount.

Retained Life Estate

Perhaps you like the tax advantages a charitable gift of real estate offers, but wish to continue living in your personal residence for your lifetime and retain the right to rent your home or make improvements. Ultimately, though,you want NSU to receive the property. By deeding your home to the university now (subject to all these rights), you can still obtain valuable tax advantages. This arrangement is called a retained life estate. You receive an immediate income tax charitable deduction, because the gift cannot be revoked, yet you still retain the right to live there. The amount of the deduction depends upon the value of the property and your age (and the age of any other person given lifetime use of the property).

With this type of gift, you retain the rights and responsibilities of home ownership (including maintenance, improvements, and insurance) and you continue to live in your residence without any interference from NSU. You can make a retained life estate arrangement with any personal residence, including a vacation home, a farm, a condominium, or stock in a cooperative housing corporation (if it is owned by you).

Charitable Lead Trust

Are you concerned about the possibility of the government taxing a huge portion of the assets you were planning to pass along to your heirs? There is a strategy that will allow you to pass assets to your family with significant estate tax savings, while at the same time, making a gift to NSU. This gift is called a charitable lead trust. After the university receives income from assets in the trust for a period of years, the principal goes to you (or your family), with estate or gift taxes usually greatly reduced or even eliminated.

The charitable lead trust is an excellent way to transfer property to your children or other heirs at minimal tax cost. It is an ideal option if you are willing to forgo investment income on an asset, but do not want to have estate taxes reduce the principal passed to your heirs. With a charitable lead trust, your philanthropic plans take place today, and you ultimately save on taxes.

Charitable Remainder Annuity Trust

If you are disappointed with the yield from your current investments in the stock and bond markets, yet you want to avoid the capital gains tax should you sell, a charitable remainder annuity trust might be an excellent option for you. This option will pay you, year after year, the same dollar amount you choose at the outset. The income payments are fixed, based on the starting valuation. When you establish an annuity trust, you get to decide how the remaining trust assets will ultimately be used at NSU. You receive an immediate income tax deduction for a portion of the gift, and this deduction can be used over as many as six consecutive tax years. If your gift is funded with appreciated assets, you can also reduce your capital gains tax liability.

Charitable Remainder Unitrust

This type of gift planning vehicle is like a combination of a gift and an investment plan. You place assets in trust and you (and/or another beneficiary) receive lifetime income from those assets, then NSU receives the remainder. With a charitable remainder unitrust, the amount you receive as income is a set percentage of the value of the trust assets, recalculated annually. When you establish a unitrust, you get to decide what program area at NSU the trust assets will ultimately support.

You receive an immediate income tax deduction for a portion of the gift, and this deduction can be used over as many as six consecutive tax years. If your gift is funded with appreciated assets, you can also reduce your capital gains liability. There are many different types of unitrusts. NSU's gift planning professionals and your estate planning attorney can provide you with the specifics that will meet your philanthropic goals.

Ward Sullivan, Director of Legacy Giving

Phone: (954) 262-2135 Fax: (954) 262-3974