Villanova's planned giving program is one of the ways in which the University helps alumni, parents and friends maximize their giving intentions, while accommodating plans to provide for themselves and their heirs. While contributions may be important to reaching financial and tax goals, our first priority is to make sure gifts fulfill the aspirations of our alumni, parents, and friends to support Villanova and our strategic priorities.

If you would like to learn more about planned giving at Villanova, please contact Charlie Thomas, director of Planned Giving at (610) 519-7976 or by email at charles.thomas@villanova.edu.

Bequests

A bequest is a charitable donation to the University through a will or living trust. A donor’s estate will distribute the gifts and any other charitable or non-charitable bequests.

• Bequests can be modified as circumstances change.
• Donors can specifically request how gifts should be used.
• There is no upper limit on the estate tax deductions taken for charitable bequests.
• Bequests will support the University in the way the donor intends.

Charitable Gift Annuities

Charitable Gift Annuities are contracts between the donor and the University in which the University agrees to make fixed lifetime payments to the donor and/or another beneficiary in exchange for the donor’s gift. Cash or securities can be transferred to Vilanova. The principal is paid to the University when the contract ends.

• Charitable gift annuities qualify for an immediate income tax deduction for a portion of the gift.
• Payments are guaranteed for life and backed by a reserve and the assets of the University.

Charitable Lead Trusts

A lead trust is the only planned gift that provides an immediate income stream to the University. Donors contribute cash, securities, or other property to a trust. The trust makes fixed annual payments to the University for a specified term of years. When the trust ends, the remaining principal is paid to the donor’s heirs.

• Lead Trust donations qualify for a gift tax deduction for the present value of the annuity payments to the University.
• Annuity payments and the term of the trust can be adjusted to reduce or even eliminate the transfer taxes due when the principal reverts to heirs.
• All appreciation that takes place in the trust goes tax-free to heirs.
• Available estate tax credit ($1.5 million per person in 2004; $2.0 million per person beginning in 2006) can be used to further reduce taxes on transfers to heirs.
• Significant gifts to the University can be made now, while also reducing the taxes due on transfers to heirs.

Charitable Remainder Trusts

Individually managed trusts, these are the most flexible life-income gifts that the University offers. Donors can transfer cash, securities, or other appreciated property into a trust. The trust makes fixed annual payments to donors or to someone named by a donor. When the trust ends, the principal is paid to the University.

• Charitable Remainder Trust donations receive an immediate income tax deduction for a portion of the contribution to the trust.
• No capital gains tax is applied on any appreciated assets donated.
• Donors or designated income beneficiaries receive stable, predictable income for life or a term of years.

Gifts of Personal Property

The University welcomes gifts of tangible personal property and gifts-in-kind, such a valuable painting, antiques, collectibles or other personal property. The University may hold the property for display or sell the property and use the proceeds. Donors receive gift credit and an immediate income tax deduction for the appraised value of personal property gifts and pay no capital gains tax, according to IRS guidelines.

Life Insurance

Life insurance donations are the transfer of ownership of a paid life insurance policy to the University. To be credited as a gift to the capital campaign, any gift of life insurance must name Villanova as the irrevocable owner and beneficiary of the policy. Donors must be 70 years of age.

• Life insurance donations receive gift credit and an immediate income tax deduction for the cash surrender value of the policy.
• A significant gift to the University can be made without adversely affecting cash flow.

Retirement Plans

Alumni and friends of Villanova are often surprised to learn that they can use their retirement plans to make a gift to the University. The easiest way is to designate Villanova as a contingent beneficiary of a qualified retirement plan or IRA assuming there is anything left in the plan after the plan owner passes away. Giving retirement plan assets while living is not recommended because they are subject to income tax. Legislation is pending that may change this.

• With retirement plan donations income AND estate tax can be avoided on the balance left in the retirement account.
• Withdrawals can continue to be taken during the donor’s lifetime.
• Beneficiary can change with life circumstances.