How To Give
Gifts of Cash
The majority of gifts to the University of Kentucky College of Agriculture are in the form of cash. An unrestricted gift to be used for needs determined by the College of Agriculture may be of the greatest benefit, but the College also appreciates gifts designated for specific purposes. If you itemize your tax deductions, you may claim as a charitable deduction a cash gift of up to 50 percent of your adjusted gross income.
Gifts of Securities
Gifts of appreciated securities can provide special tax advantages: you may completely avoid capital gains taxes; and the fair market value of the stock may be claimed as a charitable deduction on your income tax, up to 30 percent of adjusted gross income for those who itemize, with a five-year carryover.
The simplest way to make a gift of stock is to instruct your broker or banker to transfer it to the University of Kentucky College of Agriculture. The broker should be asked to contact the University's Development Office to determine whether the University wishes to keep the stock or sell it. Or, if you have the stock certificates in your possession, you may send them by registered mail, unsigned, to the University of Kentucky; in a separately mailed envelope, send a stock power form signed by you in the presence of your broker or banker.
Instructing your agent to reissue the stock in our name often causes a delay. This can be a problem when a year-end gift is involved, since the delay could result in a different valuation than intended.
Gifts of Real Estate
Gifts of homes, farms and other real property can receive the same tax treatment as gifts of securities: no capital gains tax plus deductibility at fair market value. Usually, the University of Kentucky will accept gifts of real estate if there are no restrictions placed on selling the property, although some real property is highly desirable for long-term research and educational programs.
Gifts of Life Insurance
When you name the University of Kentucky as the owner and sole beneficiary of a life insurance policy, you receive an immediate income tax charitable deduction for the lesser of the policy's fair market value or the net premiums paid. Premiums you pay later are also tax deductible.
Memorial and Honor Gifts
You may designate gifts to remember or honor a relative or friend for specific purposes, such as scholarships or equipment; or you may allow the University to use such gifts for general support. Acknowledgment will be made to the family of the deceased if the name and address of the closest survivor is provided.
Some of our alumni and friends are able to increase their gifts to the University of Kentucky College of Agriculture through their employer's matching gift programs. If your employer has such a program, your gift may be multiplied once, twice, or even three times. Usually, your employer's personnel department can provide information about a matching gift program and forms to send with contributions.
Estate and Planned Gifts
Although outright gifts provide valuable support for current programs, estate giving provides substantial support for future programs. This form of giving is particularly suitable if you desire to make a larger gift through your estate rather than in your lifetime. The allowable estate tax deduction for charitable gifts remain unlimited under the new tax laws.
The most frequent form of an estate gift to the University of Kentucky College of Agriculture is a specific bequest in a will. Important tax savings can result from this type of contribution, since bequests to the University qualify for an estate tax deduction. You should arrange to draft your will with your attorney. University representatives are available upon request to confer with you and your attorney in drafting the appropriate bequest clauses. The following is a simple form for an outright bequest:
I give, devise, and bequeath to the University of Kentucky College of Agriculture, a charitable corporation located in Lexington, Kentucky, the sum of ________ dollars (or other personal or real property appropriately described) to be used as it shall deem advisable to best promote the institution's objectives.
Gifts in Trust
If you wish to receive income during your life and at the same time provide a significant gift to the University of Kentucky, you should consider establishing a charitable remainder trust, that is, a life income trust.
Another way to support the College is through gifts of tangible personal property. When your gift relates to the mission of the University, such as rare books, artifacts or equipment, you are eligible for a charitable deduction equal to the full fair market value of the gift.