Development

Daisy Spears Stroud graduated from Fayetteville State in 1941.
After dedicating her career to education, she retired after thirty years. Her love for education was cultivated at Fayetteville State and her commitment to the university has shown through her unending support. She recently joined the Bronco Legacy Circle by making FSU a beneficiary in her will. Read More...

Why Planned Giving is Important

Planned giving, also known as deferred giving, includes several plans designed to
allow you to enjoy the benefits of your gift throughout your life.  Many plans guarantee a regular income after assets have been transferred to the institution directly or through a trust.  A deeding of a remainder interest in your home or other real estate property, for example, allows you to retain full use of the property for life.

Planned gifts to Fayetteville State University help ensure continued excellence for future generations of students. By effectively planning your charitable gift to FSU, you can
arrange donations in a manner that 1) meets your personal financial goals, 2)
maximizes tax benefits and 3) assists the University in advancing its mission.
Through the FSU Foundation, you can make a significant gift and retain use of the
gift for your lifetime or the lifetime of your beneficiary. Some of the gift options that are available within the foundation include:

• Cash bequest
• A gift of property—real estate, artwork, a rare manuscript collection, etc.
• The transfer of securities to FSU
• The establishment of gift annuities
• Retirement plan assets as a gift
• FSU as beneficiary of a life insurance policy

We hope the following information will give you an idea of the possibilities and
variety of gift plans available.  We urge you to meet with your professional advisors
now to help you achieve your goals to support FSU.

Bequests

When you make a provision for the Fayetteville State University Foundation in your
will or revocable living trust, you are making a bequest. A bequest gift may be included directly in your will or may be added by codicil at a later time. Some of the various
types of bequests include:

Specific Bequest—states a specific amount or asset. It may be a gift
of cash, securities, real estate or tangible personal property (i. e. jewelry,
rare books, antiquities, etc.).
Example: I give and bequeath to the Fayetteville State University
Foundation, Inc., Fayetteville, North Carolina, the sum of [xxx] dollars.
This gift shall be used to further the educational mission of Fayetteville State University in such a manner as the Board of Directors of the FSU
Foundation may direct.

Residuary Bequest—names FSU to receive all or a percentage of the remainder of the estate after specific bequests, expenses, debts, and taxes has been paid.

Example: All the rest, residue and remainder of my estate, both real and personal property and whatever kind and wheresoever situated, which I may own or have the right to dispose of at the time of my death, I give and bequeath to the Fayetteville State University Foundation, Inc., Fayetteville, North Carolina, to be used to further the educational mission of Fayetteville State University in such a manner as the Board of Directors of the FSU Foundation may direct.

Contingent Bequest—take effect only if all primary beneficiaries named in the will are predeceased. Declaring FSU a contingent beneficiary can prevent the property from going to the state if there are no heirs.

Example: If [name of beneficiary] predeceases me, I give such property to the Fayetteville State University Foundation, Inc., for the unrestricted needs of Fayetteville State University.
The preceding clauses are suggestions only. Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The Office of Institutional Advancement is pleased to provide you or your advisors with more detailed information.

Advantages:

Federal estate tax deduction
Reduction of taxable estate

Charitable Gift Annuity

Creative charitable planning can convert appreciated securities into a source
of lifetime income while minimizing or eliminating capital gains tax. A charitable
gift annuity is a contract between you and the Fayetteville State University Foundation, Inc. You transfer an irrevocable gift of cash or appreciated securities to the Foundation
in exchange for quarterly or annual payments--with payout based upon your age at
the time of the gift and other factors. This planned giving arrangement provides
numerous tax advantages, with a portion of the gift qualifying for a tax deduction. It also provides a way for you to pledge an enduring gift to FSU when the remainder becomes available for our needs.

There are generous income tax advantages with funding a gift annuity with appreciated stocks. If you own highly appreciated stocks yielding little dividends, a charitable
gift annuity is an excellent way to move these assets into a financial plan that
guarantees income for you at an attractive fixed rate for life. You will also avoid
much of the capital gains tax that applies if you were to sell the stock and you
can spread the capital gains tax you do incur over the life of the annuity.

Example: Juanda Bronco is a 70-year-old graduate. She has assets of $500,000 in assets. She would like to make a gift to the FSU Foundation.  She gives the Foundation $50,000 in securities, for which she paid $20,000, in exchange for a charitable gift annuity to establish an education scholarship. The annuity yields the following: 1) annual income of 7.3% or $3650 for life; 2) annual tax free income for 15.9 years of $699; 3) prorated capital gains for 15.9 years; 4) ordinary income of $1092 for 15.9 years.
Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The Office of Institutional Advancement is pleased to provide you or your advisors with more detailed information.

Advantages:

Guaranteed income for life
Generous tax breaks

Charitable Remainder Trust (CRT)

The charitable remainder trust has a charitable beneficiary or beneficiaries. You
make an irrevocable gift of cash or appreciated securities and specify how trust
income and principal are to be distributed. The CRT allows for the selection of the
trustee who will oversee investment of the funds. The trust may be created to become effective during life or at death.

There are two types of charitable remainder trusts: the charitable remainder annuity trust and the charitable remainder unitrust.
A charitable remainder annuity trust pays a fixed dollar amount, determined
at the funding of the trust, to the income beneficiaries.
A charitable remainder unitrust pays a fixed percentage of the trust annually
to the income beneficiaries. The dollar amount goes up or down each year depending on the trust’s performance. Assets can be added to a unitrust at a later time.
Example: Jessie, age 60, contributes $100,000 in cash to a unitrust, arranging to receive 7% of the fair market value of the unitrust assets each year, payable quarterly. The first year, he is entitled to $7000 (7% of $100,000). Each subsequent year, the same process is followed. As the value of his trust increases or decreases, so do his income payments.
Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The Office of Institutional Advancement is pleased to provide you or your advisors with more detailed information.

Advantages:

Professional management by FSU
Income for life at a fixed percentage

Retirement Plan Assets

Retirement account assets are one of the best sources for a gift to FSU. You may
consider using these assets to endow a scholarship, a professorship, or to make a significant gift. Because of the way estate taxes are handled with retirement plan
 assets, your specific charitable objectives can be administered at a relatively
 small cost to the estate and to heirs. By naming the University as the beneficiary
 of your retirement account, you can substantially reduce or eliminate both income
 tax and estate tax and your family can be given more tax-advantaged assets such
 as stock or real estate.

 Example: An alumnus of the School of Business and Economics establishes a charitable remainder trust while he is still alive, minimally funding it. The trust will provide an income to his wife for her life, and then the remainder will go to the School of Business. With his wife’s consent, the alumnus names the trust as the beneficiary of his retirement plan assets.  At the time of his death, those assets total $1 million.  His wife will receive payments for life based on the payout rate he selected when the trust was created. No estate tax is payable because the trust qualifies for both charitable and marital deductions. No income tax is assessed on the $1 million transferred to the trust because the charitable trust is a tax-exempt entity.

Thereafter, his wife will be taxed only for the payments she receives in her tax bracket. At the end of her life, the trust will terminate and the principal will be transferred to the FSU School of Business and Economics Unrestricted Endowment Fund.
Please consult with your attorney or accountant on how this general information relates to your specific financial and estate planning situation. The Office of Institutional Advancement is pleased to provide you or your advisors with more detailed information.

Advantage:

Tax-exempt deferred income

Charitable Lead Trust

You can create income for the University and provide for the transfer of trust assets
to your children after a specified number of years with a charitable lead trust.
The reverse of other planned gifts such as charitable gift annuities or charitable
remainder trusts, the lead trust results in the University receiving income immediately instead of waiting until the death of one or more life income beneficiaries.  A lead
trust can be created during your lifetime or under your will, with support to FSU in either case.

Advantage:

May help minimize estate taxes

Life Insurance

 Life insurance can be used to make a charitable gift by irrevocably naming the FSU Foundation as the owner and beneficiary of a completed funded life insurance policy.
For example, with the donation of a whole-life policy no longer needed for family
protection, the proceeds will benefit the University. The gift of a policy that is not fully
paid up can also support FSU. A deduction can be taken for the “present value” of the policy. If the premiums continue to be paid to maintain the policy in force, you will
be able to deduct the annual premium payments as an income tax charitable deduction.

 Example: An alumnus bought a whole-life policy for $50,000 early in his career when his family was young. He did so to assure that they would be supported.  The policy is now completely funded, but the alumnus has other assets to support his family and has no need of this insurance. The insurance company informs him that the surrender value of the policy is $42,000. In a simple step, he assigns ownership of the policy to the FSU Foundation.  In doing so, he receives an income tax deduction of $42,000.
You may also wish to make a gift of a new life insurance policy to the FSU Foundation. Again, the Foundation should be named irrevocably as the owner and beneficiary of the policy.

 Advantage:

Federal charitable tax deduction based on policy’s surrender value 

Conclusion

Charitable planned giving to Fayetteville State University may help improve your
income, income tax, and estate tax situation. While the University cannot provide
specific financial or estate advice to individuals, we urge you to consult professionals specializing in these areas so that the FSU Foundation and the Office of Institutional Advancement may assist you and your advisers in establishing a charitable giving strategy.  

FSU wishes very much to recognize all that have chosen to make an investment in the future of the university through a planned giving vehicle.  If you have made such a gift in the past, whether directly to the university or through the National Alumni Association, please contact Arthur G. Affleck at 910-672-1339.  If you would like more information, or for a confidential discussion contact Arthur G. Affleck, Vice Chancellor of Institutional Advancement at 910.672.1339 or via email at aaffleck@uncfsu.edu.
 
Please Note: As Fayetteville State University (FSU) prepares to meet the challenges of the 21st century, we know that the generosity of alumni and friends of the University will make the difference in our success. We want to ensure that our donors benefit from making a gift to FSU, and there are many ways to give that can improve a donor's financial and tax situation. While employees and representatives of the University may not provide specific tax or legal advice to donors or prospective donors, the staff in the Office of University Development may provide general non-binding information regarding potential tax and legal implications of proposed gifts. We also recommend that you seek professional legal and/or tax consultation as needed.