Deferred Gifts

There are many ways to give a deferred gift to the MCC Foundation, including retirement funds, wills, life insurance, trusts, charitable gift annuities, and gifts of stock or real estate. Please keep in mind that the information provided here is not intended to replace the advice of your professional advisors. We would welcome the opportunity to discuss the many options available for deferred giving with you. There is no obligation or charge. We are also happy to confer with your financial planner, CPA, trust officer, or attorney at your request.

Retirement Funds

You may name the MCC Foundation as a beneficiary of your retirement plan account. The Foundation may be named as the sole beneficiary of any unused retirement funds at the time of your passing, or as a partial beneficiary, sharing the remaining funds with others. A retirement fund still owned by the account holder is included in their taxable estate, but a charitable deduction may be allowed for the amount left to charity. Naming the MCC Foundation as a retirement account beneficiary is a simple way to fund a charitable bequest. We recommend consulting your tax advisor to confirm this option fits your particular estate plan. The MCC Foundation can also accept current distributions from IRAs. Donors over age 70 may authorize such distributions of up to $100,000 per year, which may simplify your individual tax return and offer tax advantages.

Wills

One way to give a deferred gift to MCC is to name the MCC Foundation as a beneficiary in your will. A simple way to do this is by executing a codicil, or amendment, to your will. This signed, dated, and witnessed paragraph can be attached to your existing will without redrawing the entire document. You may designate a fixed amount, a percentage, or the remainder of your estate to the McLennan Community College Foundation, and you may also specify how the gift should be used. We also suggest naming the MCC Foundation as a charity of choice in your obituary, to encourage others to give — perhaps to the fund you supported or endowed.

Another simple way to provide a bequest is to add the words "in trust for McLennan Community College Foundation" after your name on a bank account, mutual fund, money market account, or stock purchase. You keep full ownership and control of the account, and you can modify or close it at any time. If any funds remain in the account at your death, the account automatically becomes the property of the Foundation without going through probate. Gifts transferred to the Foundation at death may be deductible for federal estate tax purposes.

Life Insurance

Most people own life insurance, and often the original reason for purchasing it no longer applies. For example, you may have purchased a policy to cover a child's college education in case of early death — but that child may now be grown, married, and have children of their own. You can donate a life insurance policy to the McLennan Community College Foundation in a few ways:

• Name the McLennan Community College Foundation as owner and beneficiary of an existing policy. You may receive an immediate federal income tax charitable deduction equal to your adjusted basis in the policy (not its face value), and future premiums you pay may also be tax deductible.
• Name the McLennan Community College Foundation as the charitable beneficiary of a policy. While this does not offer an immediate income tax deduction, your estate may be entitled to an estate tax deduction for the proceeds paid to the Foundation.
• Purchase a new life insurance policy naming the McLennan Community College Foundation as both owner and beneficiary. By paying the yearly premiums, you may claim a federal income tax deduction each year for the full premium amount.
• Use group life insurance provided by your employer. If your employer provides group term life insurance over $50,000, you must normally include the cost of that excess coverage in your taxable income. However, if you name the McLennan Community College Foundation as the sole beneficiary of the coverage above $50,000 for the full tax year, that excess cost may be excluded from your taxable income.

Trusts

Trusts come in several forms and can be excellent tools for preserving your assets, increasing your current income, reducing income, estate, and capital gains taxes, avoiding the cost and public record of probate, increasing what you leave to your heirs, and supporting the causes you care about. Your attorney, CPA, or financial advisor can help you determine the best option for your goals.

Charitable Gift Annuities

A Charitable Gift Annuity is an excellent way to support the MCC Foundation while receiving income for life — income that may also continue for a second annuitant. Your potential income tax deduction is based on the difference between your gift to the Foundation and the present value of the income expected to be paid over your life expectancy. The MCC Foundation's Charitable Gift Annuity offers guaranteed annual income backed by the Foundation's multimillion-dollar assets. It does not depend on stock or bond market performance, or on how long you live — even if you outlive the original gift amount, you continue receiving the income you were guaranteed at enrollment. Please contact the MCC Foundation office at 254-299-8606 for more information.

Gifts of Stock or Real Estate

You may be able to avoid capital gains tax on stock (public or private), real estate, or other assets by gifting them to the MCC Foundation before selling. You may still qualify for a charitable income tax deduction for the full value of the gift, while avoiding tax on the gain. Please call us for details, or consult your tax advisor.

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