If Inventing Tomorrow had enough space to publish
the stories of all the remarkable alumni whom I've met
over the past year, this magazine would have the heft
and girth of an encyclopedia.
IT alumni are remarkable
individuals whose lives and achievements embody creativity,
intelligence, and dedication. But I've noticed something
else about our alumni, too.
Maybe it's something in the water, but gratitude and
philanthropy are common values among IT alumni. Our
graduates demonstrate heartfelt charitable intentions—toward
IT, religious institutions, hospitals, youth organizations,
the arts, and other nonprofit groups.
But busy lives and daily responsibilities sometimes
distract us from carrying out these wonderful intentions.
Perhaps we hesitate to act because we're unsure about
the process or because we assume that planned giving
is the sphere of only the wealthiest people. However,
with the aid of a bit more information and professional
advice, we all can attain our charitable goals.
Regardless of your situation, the first step is to
make a will or a living trust. If you have an average-size
estate, a will is an important vehicle for making your
legacy a reality, especially if you have IRAs and other
qualified retirement plans. As part of your estate,
these assets can be subject to extraordinary taxation.
Be sure to update your will every three years (the recently
passed tax law makes this review highly desirable).
During your lifetime, you can avoid capital gains taxes
by making your charitable gifts—large or small—with
appreciated property. Some people don't like to give
up their favorite stock, but it's to your advantage
to give the stock and then buy additional stock using
the cash you would have donated.
In your will, make your charitable bequests from property
that has “income in respect of decedent” (IRD). For
most people, this kind of property consists primarily
of their retirement plan. Making your bequests from
your retirement plan makes a great deal of sense because
your estate will avoid paying income tax on the assets
given, and larger estates avoid estate taxes. An attorney
can draft simple language stating these provisions.
Most qualified retirement plans also allow participants
to make a gift through the beneficiary selection process.
In planning your charitable giving, a good rule of
thumb to follow is this simple tenet: While living,
give appreciated property first; at death, give IRD
first. These suggestions are not intended to be legal
advice but merely ideas you can discuss with your professional
advisors—an attorney, CPA, financial planner, and/or
a gift planner.
The IT development team's great desire is to help you
fulfill your charitable intentions and create a personal
legacy. In doing so, you enrich the legacy of gratitude
and philanthropy that's been passed down through generations
of IT alumni and friends.
