Gift Planning
Helping You Meet Philanthropic and Financial Planning Goals
There are numerous planned giving options that provide you with income payments for the rest of your life — and a charitable deduction. You can also designate lifetime income for a second beneficiary (such as a spouse).
The Office of Gift Planning works with alumni and friends who wish to include Bentley University in their estate plans. A variety of planned giving vehicles are available to individuals who would like to support the mission of the university, guarantee an income for themselves and/or loved ones, and take advantage of the many tax benefits planned gifts have to offer.
Brochures, newsletters, fact sheets and individual calculations are available. You can run a sample calculation anytime, too, with our online gift calculator.
To request more information, please contact our technical expert, Amy Chick, Gift Planning Administrator, MSPFP '04 by phone at 781.891.2556 or e-mail giftplanning@bentley.edu.
NEW: Tax-Free IRA Transfers — Learn more!
Life Income Gifts
All the life income gifts described below provide you with an income, great tax benefits and allow you to have an impact on the future of Bentley. We hope you will let us work with you to complete the perfect gift for you, your family and the university. We thank you for considering such a special gift and look forward to working with you.
Run a sample calculation.Charitable Gift Annuity
A Charitable Gift Annuity is a simple contract between you and Bentley University. It is easy to set up and beneficial to both you and the university. In exchange for your irrevocable gift of cash, securities, or other assets, Bentley agrees to pay you and/or your spouse or another beneficiary you name a fixed sum each year for life. The payments are guaranteed by the general resources of the university. The older your designated beneficiaries are at the time of the gift, the greater the fixed income Bentley can agree to pay. The minimum gift amount is $5,000 for a one-life arrangement and $10,000 for a two-life arrangement.
Planning for Bentley and for your Future:
A Secure Investment for Uncertain TimesFinancial planning is critical, whether you graduated in 1952 or 2002. Right now with the stock market volatility people are looking for security in uncertain times. Today, money market accounts are yielding approximately 2 percent interest and CDs approximately 3.5 percent. When you see the gift annuity rates that Bentley is offering, you may discover that a charitable gift annuity is a better option for you. Charitable gift annuities are easy to establish. Bentley guarantees the donor a fixed income for life (and, if desired, proves life income for your spouse’s lifetime as well). Interested in finding out more? Please contact the Office of Gift Planning at 781.891.2556 or giftplanning@bentley.edu to request a free brochure or sample calculations.
Example of a Gift Annuity for Bentley University
Funding asset worth: $100,000
Age of beneficiary
Bentley will pay an annual income of
Charitable Deduction
50
4.4 percent or $4,400
$11,679.00
55
4.8 percent or $4,800
$14,063.00
60
5.0 percent or $5,000
$21,514.00
65
5.3 percent or $5,300
$28,433.00
70
5.7 percent or $5,700
$35,437.00
75
6.3 percent or $6,300
$41,697.00
80
7.1 percent or $7,100
$48,183.00
85
8.1 percent or $8,100
$54,865.00
90
9.5 percent or $9,500
$60,822.00
95
9.5 percent or $9,500
$70,828.00
Please note that all calculations shown are estimated. Figures may vary based on the timing of the gift.
Run a sample calculation.
Deferred Gift Annuity
A Deferred Gift Annuity is another simple contract between you and Bentley University. In exchange for your irrevocable gift of cash, securities or other assets, Bentley agrees to pay you and/or your spouse, or another beneficiary you name, a fixed sum each year for life. Payments start at least one year after your gift. This option allows younger donors to defer the start of payments until retirement age. You will receive a charitable deduction in the year of the gift; the longer payments are deferred, the higher the fixed income Bentley can agree to pay.
The calculations below are for illustration purposes only and are based on a $50,000 charitable deferred gift annuity to be paid out at age 65.
Age Payout Rate Annual Annuity Payment
(during retirement)Charitable Deduction
(today)45 15.7 % $7,850 $24,567 50 12.3 % $6,150 $23,831 55 9.7 % $4,850 $22,605 60 7.6 % $3,800 $21,021 Run a sample calculation.
Charitable Remainder Trust
A Charitable Remainder Trust provides an income stream to you or others for life, a term of years or a combination of the two. These trusts can help you avoid capital gains taxes and reduce income and estate taxes. The payments may vary based on the performance of the trust or a trust can be established to pay a fixed dollar amount to its beneficiaries. The type of trust you chose to establish depends on your personal and financial goals for you and your family. The minimum gift amount to set up a charitable remainder trust is $100,000.
Run a sample calculation.Charitable Lead Trusts
The Charitable Lead Trust allows you to transfer assets to your heirs at a substantially reduced gift and estate tax cost while providing an income stream to Bentley for a term of years. As a lead trust donor, you irrevocably transfer assets — usually cash or securities — to Bentley University or a trustee of your choice (for example, a bank trust department). During the term of years, a fixed or variable income is paid to Bentley for a purpose you designate. At the end of the term, the assets are passed on to your heirs. Any appreciation of the trust assets over the trust term is not subject to gift or estate tax. Typically a lead trust is most effective for high-net-worth individuals who wish to fund the trust with assets valued at $500,000 or more.
Tax-free IRA transfers
If you are age 70 ½ or older, the new Pension Protection Act of 2006 allows you to make distributions directly from your IRA to one or more qualified charities without the distributions being included in your taxable income, and therefore without tax consequences.
Another benefit is that the funds transferred from your IRA account to a charity will count toward your mandatory withdrawal.
To qualify:
- You must be age 70 ½ or older at the date of transfer.
- Transfers must be made directly by your IRA administrator to Bentley or another public charity (not a private foundation or a donor advised fund).
- Only transfers from a traditional IRA or a Roth IRA are eligible. The maximum amount that each donor may transfer annually is $100,000.
- These tax-free distributions can be made only in calendar years 2006 and 2007.
Please note: Since the funds are not subject to income tax, the donor is not eligible for an income tax deduction for these types of gifts. Transfers from 401(k)s, 403(b)s, or Simple IRAs do not qualify.
Bequests — A gift through your will
Bentley University has received many contributions from alumni and friends who have included the college in their testamentary plans. In doing so, they have helped to ensure that succeeding generations will benefit from their achievements.
As we face the challenges of the 21st century, support of this type becomes increasingly vital. Your bequest to Bentley may support the general educational purposes of the college or be used for a purpose of particular importance to you, such as financial aid, teaching or research. Any type of property, including cash, securities, real estate and works of art, may be given to Bentley through your will. If you have already drawn your will, a simple codicil may be added to provide a gift to Bentley.
Please note that the examples included here are for informational purposes only and should not be included in your will unless they are first reviewed by your lawyer to be sure they are compatible with your estate plan.
Types of Bequests
Specific Bequest — This may be a specific dollar amount, a specific piece of tangible or real property, or a stated percentage of your estate.
Sample language:
“I give to Bentley University, a Massachusetts educational corporation with a usual place of business at 175 Forest Street, Waltham, Middlesex County, Massachusetts, the sum of __________Dollars ($________), to be used for the general purposes of said Bentley (or add specific purpose such as scholarship, support for teaching, etc.)” OR “I give (describe property) to Bentley University, a Massachusetts educational corporation with a usual place of business at 175 Forest Street, Waltham, Middlesex County, Massachusetts, to be used or disposed of as said Bentley, in its sole discretion, deems appropriate.”
Residuary Bequest — This includes all or a portion of your estate after other specific bequests, debts, taxes, expenses and fees have been distributed and paid.
Sample language:
“I give and devise (all or ______ percent) of the residue of all the property, of whatever kind and wherever located, that I own at my death to Bentley University, a Massachusetts educational corporation with a usual place of business at 175 Forest Street, Waltham, Middlesex County, Massachusetts to be used or disposed of as said Bentley, in its sole discretion, deems appropriate.”
Contingent Bequest — Under this type of provision, Bentley University will only receive the bequest if the primary intention cannot be met or if certain specified circumstances take place. You can also establish a trust under your will that provides income support for family members and friends. Upon termination of the trust, the principal is distributed to Bentley University.
Sample language:
“If any of the beneficiaries named in this will are not living on the thirtieth day after my death, I direct that his or her share of my estate be given to Bentley University, a Massachusetts educational corporation with a usual place of business at 175 Forest Street, Waltham, Middlesex County, Massachusetts, to be used or disposed of as said Bentley, in its sole discretion, deems appropriate.” OR “If my husband/wife_____________ is not living on the thirtieth day after my death, I direct that his/her share of my estate shall be given to Bentley University, a Massachusetts educational corporation with a usual place of business at 175 Forest Street, Waltham, Middlesex County, Massachusetts, to be added to the general funds of said Bentley in his or her memory.”
Retirement Plan Gifts
Retirement accounts [including 401(k)s, 403(b)s, IRAs and Keoghs] if left to heirs after lifetime may be taxed. Once funds from these accounts enter the estate, they are subject to income tax. This tax treatment makes retirement plans one of the worst assets to pass on to children, but one of the best to make a meaningful gift for Bentley.
Retirement Plan Gift by Bequest
The simplest way to donate a retirement account is by bequest. The donor should advise the plan administrator or custodian in writing that they would like to name Bentley as the beneficiary or joint beneficiary of their retirement account. A bequest to Bentley University of retirement account assets avoids twofold taxation. The donor will be able to make a substantial gift to the university and its mission while escaping both estate and income taxes.
Retirement Plan Gift by Testamentary Charitable Trust
Leave the assets to a charitable trust and name your children or other loved ones as income beneficiaries for life or a term of years and Bentley as the charitable remainder. Bentley will receive the principal of the trust when it terminates.
Outright Retirement Plan Gift
If you withdraw funds from a retirement account during your lifetime, all distributions will be subject to federal & state income tax. This should be offset by the charitable deduction you will receive. (There was a 15 percent excise penalty tax on excess IRA distributions but this was repealed in the Taxpayer Relief Act of 1997.)
Please note: There is legislation pending that proposes retirement account funds will not be subject to income tax if they are rolled over directly to a charity during lifetime. This legislation is still pending.
Real Estate
A gift of real estate to Bentley University is a unique way to support the university and its mission. Gifts of real estate include primary and vacation homes, condominiums, cooperatives, commercial property, and land. Giving a gift of highly appreciated real estate can be beneficial to both you and Bentley. By making a gift of real estate to Bentley you will be able to avoid capital gains tax (if applicable), receive a charitable income tax deduction and take the value of the real estate out of your taxable estate.
There are several options available to you in making a gift of real estate to Bentley. Here are just some examples:
Outright — You avoid capital gains tax and receive a charitable income tax deduction.
Charitable Remainder Trust — You can transfer property to a charitable trust and receive an income for life for yourself and/or your spouse or another beneficiary you name.
Bequest — By taking the property out of your estate you reduce your estate taxes.
Retained Life Estate — You may give a personal residence or vacation home and reserve the use of that property for your life and/or the life of another beneficiary. You will receive a charitable income tax deduction and make a significant gift to the school while retaining the use of the property.
Paying Tribute
All of the planned gift vehicles described on this site can be an excellent way to make a meaningful gift in honor or in memory of a family member or friend. We will be glad to assist you in your gift plans and let you know how to complete a gift in honor of someone special to you.
