Contributions can be made as outright gifts, or through a variety of planned giving arrangements such as pooled income funds, bequests, gift annuities or trusts. Gifts of cash and securities are the predominant vehicles for supporting Iona. Real Estate, tangible personal property and certain other assets may also be suitable forms of giving.

Contributions to Iona College qualify as charitable deductions for federal income tax purposes and may help to reduce gift or estate tax liability. Tax information provided by Iona’s Office of Advancement applies only to federal taxes since state laws vary. You should consult your own financial advisers for assistance in analyzing your particular financial situation.

Members of the Advancement staff can assist you with questions related to Gift Planning contributions. All discussions will be held in the strictest confidence.

Gifts made in memory of someone provide a meaningful way to participate in supporting the College. Memorial gifts may be unrestricted or restricted.

Advancement staff members are available to discuss various options and designations for your gifts.

Named Gifts bear in perpetuity the name of the donor or of someone she/he wishes to honor or remember. Scholarships, campus buildings, professional chairs, and academic or extracurricular program endowments are examples of the many kinds of named gifts that have important and historic roles in the life of Iona College. These gifts are lasting symbols of the link between Iona College and those who are forever honored.

Iona’s life income plans permit donors’ gifts to be invested to provide income for themselves or persons they designate. A life income plan may have either one or two individual beneficiaries. The income is paid for the life of each beneficiary or for a set period of years. Ultimately the gift assets become available for use by Iona College in an area designated by the donor.

Life income plans include gift annuities and charitable remainder trusts. A life income plan can be a good way to make substantial future gifts to Iona College after providing (and possibly increasing) income for the donor, the donor’s family or friends for as long as it is needed.

Charitable trusts may be established with cash, securities or with certain kinds of property. The percentage of a life income gift that is deductible for federal income tax purposes depends upon the age(s) of the income beneficiary(ies), the rate of return, the federal monthly discount rate, and the size of the particular gift.

Advantages:
Create a life income for yourself and/or someone else age 50 or older.
Claim a partial charitable income and an estate and gift tax deduction for the value of the remainder interest in the trust.
Convert low-yield securities or other property to a form of investment that has a better yield.
Receive professional investment management of these assets.
The possibility of making a gift of long-term appreciated property without paying capital gains tax.

A gift annuity is becoming one of the most popular methods of making a planned gift to a college. It is a combination of a gift and an investment whereby, in exchange for a gift of cash or marketable securities, Iona College by contract guarantees to pay a fixed quarterly payment to no more than two beneficiaries designated by the donor for life. The annuity rates are based upon the ages of the beneficiaries. Each gift annuity is established separately and requires a gift of $5,000 or more.

Charitable Remainder Trusts that benefit Iona College contain assets with yields that create income for one or more individual beneficiaries. They differ from pooled income funds in that the assets are managed as individual accounts.

If you wish to establish a charitable trust, you may do so during your lifetime or under your will. It is always appropriate for you to consult an attorney or financial counselor for personal advice when contemplating creation of a trust.

A charitable remainder trust can be structured in either of two ways:

• Unitrusts pay individual beneficiaries a fixed percentage of the market value of the entrusted assets as valued each year. The dollar amount will vary according to the performance of the trust. By law, the annual amount must be a minimum of the smaller of the trust income or 5% of the annual value of the trustee assets. Gift additions may be made to a unitrust after it is established.
• Annuity trusts pay individual beneficiaries a fixed dollar amount quarterly each year. By law the annual payment must be equal to 5% or more of the trusts original assets. Additions to an annuity trust are not permitted.

All gift annuities and charitable remainder trusts that benefit Iona College are credited to the College at the market value of the gift on the date of that gift.

A lead trust is an advantageous way for a donor to transfer assets to heirs after contributing substantially to Iona College. Assets in a lead trust can appreciate without creating any capital gains tax liability.

A lead trust provides a yearly gift from trust asset earnings to Iona for a fixed number of years. When the trust’s term of year ends, its assets are distributed to the donor or the donor’s heirs. A lead trust is thus the opposite of a charitable remainder trust.

An estate or gift tax deduction is allowable for the yearly income paid to Iona. Because of this deduction and avoidance of the capital gains liability, it is sometimes possible for heirs to receive a larger estate after taxes than would have been possible without the trust.

Advice from an attorney or financial counselor is recommended for those considering establishment of a lead trust.

Campaign credit is given in the amount of the projected yearly payments to be made to Iona during the term of a lead trust.

There are, of course, many more “technical” considerations to estate and gift planning than covered in this donor advisory outline. If we may answer questions you have concerning the tax or design aspects of a charitable gift or bequest, please feel free to call or write in confidence without any obligation. When necessary we will be happy to refer you to an estate planning professional.

For more information on gift planning, please contact the Advancement Office at (914) 637-7739, or via e-mail onlinegiving@iona.edu.