Willpower: Putting your will to work through planned giving
How will you be remembered? It's an important question, but one that doesn't get much thought as we go about our daily routines. As many MCC Foundation donors have learned, supporting the MCC Foundation through planned giving is a truly meaningful way to build a significant legacy for themselves, friends and loved ones. It is a way to either continue support started during life or initiate giving that was previously unaffordable.
Planned giving is simply the concept of including the MCC Foundation in your will, retirement, or estate planning. As much as we may want to, many of us just aren't able to make a significant gift to charity while maintaining our current standard of living. However, building a gift into your estate planning can achieve many of the same benefits as a gift given today, especially when you use the planned giving tools of charitable gift annuities and bequests. What's more, planned giving enriches the MCC Foundation by helping build future security.
A charitable gift annuity is simply a contract with the Foundation in which you agree to make an irrevocable donation of property, usually cash or marketable securities. In return, the Foundation agrees to make fixed payments at above-average interest rates for the lifetime of one or two people (annuitants.) Any assets remaining at the death of the annuitants go to the Foundation. Charitable gift annuities are an excellent choice for those who want to assure themselves a dependable source of income in their later years while avoiding management issues and still providing for a charity after death.
A bequest is the transfer of property (real estate, securities, money) to a charitable organization through one's will. Bequests provide donors both capital gains tax and income tax benefits. And, unlike other planned giving vehicles that can be complicated to set up, bequests are easy to understand and easily revocable should the family's circumstances change. A bequest can be set up as a defined amount or a percentage of the total estate.
When considering planned giving, give some thought about what you would like the money to support. At the MCC Foundation, it can support one or more endowed scholarships, capital improvements on the MCC campus, or professional development opportunities for faculty and staff.
For instance, a named endowed scholarship is special because of its permanence and enduring benefit to students. Because the initial gift of an endowment is never spent, the scholarship never "dries up" or goes away. Instead, the money is wisely invested, and proceeds from the investment fund a scholarship award each year in honor of the namesake … forever. A total gift of $15,000 is needed to fund an endowed scholarship, or $25,000 for an endowed presidential scholarship. The funds can be added all at once or a little at a time (however, the scholarship cannot be awarded until the endowment is fully funded and begins earning interest.) Naming an endowed scholarship fund as your charity of choice in an obituary is an excellent way to let friends and loved ones know how to honor your wishes.
A gift given through planned giving can be a "quiet" way to support a charitable cause. But because planned gifts deserve as much recognition as gifts made during life, the MCC Foundation has established the Highlander Legacy Society to honor those who include the Foundation in their estate planning. Legacy Society donors are recognized with a special award and a private dinner with the college president and foundation staff.
Planned giving may seem complicated, but with the guidance of your financial planner and the MCC Foundation, it is a wonderful way to permanently make a difference for MCC and for the future of our community. For more information about planned giving, contact Executive Director Harry Harelik, MPA, CPA, CRFE at hharelik@mclennan.edu or 254-299-8606.