Gifts that Reduce Your Taxes

Gifts that Reduce Your Taxes

Everyone appreciates the opportunity to pay less in taxes. These gifts provide that opportunity, but their real value lies in empowering students at Cottey to become strong, intelligent, achieving women who will change the world.

Retirement plan gift: Many Cottey supporters select this type of gift. When you designate Cottey College as a beneficiary of your retirement plan, you give a gift that reduces your taxes, costs you nothing now, and sustains the transformative education that creates incredible futures.

Benefits to you include each of the following:

  • Reduce or eliminate taxes on retirement assets
  • Remove highly taxable assets from your estate by direct beneficiary designation
  • Reduce or avoid probate fees
  • Retain your current assets – there is no cost to you now
  • Creates your legacy of women’s leadership

To name Cottey College as a beneficiary of your retirement plan, contact your bank or insurance company to see whether a change of beneficiary form must be completed.

IRA Charitable Rollover — a Permanent Giving Option:
Many donors feel that the direct transfer of funds from an IRA to Cottey College is an effective way to create their legacy of learning and leadership for women. Here’s how it works:

  • You must be 70 ½ or older.
  • An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000.
  • Your gift must be transferred directly from the IRA account to Cottey College.
  • Your gift is a transfer of funds from your IRA to Cottey College, so it does not create taxable income for you and is not considered a charitable tax deduction.
  • The transfer of funds counts towards your annual Required Minimum Distribution from your IRA.

If you’re interested in this popular way to support Cottey, download a sample letter for your IRA administrator here.

Life insurance policy gift: Many people have a life insurance policy that has outlasted its original purpose. If you do, you can use it to reduce your taxes and create a gift for Cottey that empowers women to dream big and achieve.

Benefits to you include each of the following:

  • Reduce your income taxes.
  • Receive additional tax deductions by making annual gifts so Cottey College can pay the premiums if the policy is retained to maturity.
  • See firsthand how your gift supports our work if Cottey College cashes in the policy.
  • Create your legacy of women’s leadership. If Cottey College retains the policy to maturity, or you name it as a beneficiary, once the policy matures, the proceeds of your policy will be paid to Cottey College.

Gifts of real estate: You can donate appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch, or commercial property. This method is an easy and effective way to fund a gift for Cottey to sustain and advance the college for years to come. What’s more, you can leave this generous gift while you continue to use the property throughout your lifetime, and you may receive a tax deduction for your gift.

Gifts of securities: Stocks, bonds, and mutual funds that have appreciated in value are among the best ways to support Cottey College. You may receive a charitable income tax deduction for the full market value of the stock (up to a maximum of 30% of your adjusted gross income) and avoid paying the capital gains tax on any increase in the value of the stock.

Savings bonds: When you redeem savings bonds, you or the person to whom you leave your bonds will owe income tax on the appreciation. You can eliminate the income tax on bonds you own that have stopped earning interest and that you plan to redeem. Because Cottey College is tax exempt, 100 percent of your gift of savings bonds will support our mission.

Benefits to you include each of the following:

  • Reduce income tax
  • Reduce income tax and estate taxes for your loved ones
  • Create your legacy of women’s leadership

To find out more about celebrating women at Cottey, contact Sherri L. Taylor, Vice President for Institutional Advancement, at 417-667-8181, ext 2120 or impactcottey@cottey.edu.