Planned Gifts

Bequests
Making bequests allows individuals to keep their assets during their lifetimes. They can specify the colleges or programs that they wish their gifts to benefit. They also can create special funds in the names, or in memory of loved ones. Charitable bequests are normally deductible in full for estate tax purposes. A provision may be made in your will stating that the Bemidji State University Foundation, for the benefit of Bemidji State University, is to receive a specific amount, a percentage, or the remainder of your estate after payment of taxes and expenses.

Life Income Gift
You may wish to make a gift to the University through the BSU Foundation, but feel you cannot afford to give up the income presently being produced by the asset. Our Planned Giving Program offers a number of alternatives for making such a gift while generating lifelong income for you and your spouse.

A Charitable Gift Annuity
This is one of the easiest and most popular ways to make a charitable gift and receive an annual income. You transfer cash or securities to the Bemidji State University Foundation, which pays a fixed annual amount to one or two named individuals for life. You can fund a gift annuity with a minimum gift. Payments made to you can be received quarterly, semi-annually, or annually. A portion of the income is tax-free and the donor also receives a charitable deduction for part of the gift.

A Charitable Remainder Trust
This trust makes an annual payment to one or more individuals for life or for a term of years. A charitable remainder trust can be funded through the transfer of assets such as cash, stocks, bonds or other property. The annual payment can be a dollar amount or a fixed percentage of the annual value of the trust property. The donor is allowed an immediate income tax deduction for part of the value of the initial trust property. If that property is appreciated, the trustee can sell it without paying capital gains tax.

Life Insurance
The Bemidji State University Foundation may be named as owner and beneficiary of an existing policy that may have outlived its original purpose, or you may wish to make the Foundation the owner and beneficiary of a new policy. On a new policy, you would claim donations equivalent to the premium payments as income tax deductions (for those who itemize) each year. For an existing policy, you would claim the cost basis or cash surrender value, whichever is less.

Gift of Residence With a Life Interest
Ownership in a primary residence, a vacation home or a farm may be donated during your lifetime. There are several advantages: you may retain the use of the property for your life and that of a second person, you are allowed an immediate charitable deduction from your income taxes and you remove the asset from your taxable estate.

The Benefits To You

• Make an immediate or future impact on the University.
• Help the department or college of your choice.
• Make a large gift with a small cash investment.
• Save on income tax.
• Reduce estate taxes.
• Avoid capital gains tax.
• Generate lifetime income.

*Funding your planned gift with securities or other property that has appreciated in value has the additional advantage of avoiding all capital gains taxes.

To choose the right kind of gift option, you need to determine how you would like your gift to benefit Bemidji State University and fit your own financial goals and situation. For further discussion, please contact the Bemidji State University Foundation Office of Planned Giving (See Contact Info - Above Right).