Planned Giving

Bequests are one of the easiest and most common forms of planned giving.

Bequests can be:

• A specific dollar amount
• A percentage of the net value of your estate
• A residual of your estate

When you create a bequest, you can name the Howard Community College Educational Foundation as a recipient of the bequest under a will or revocable living trust. This way, the Foundation can receive a contribution from your estate after all taxes, administrative fees and liabilities have been paid.

Here is some sample language that you can use when you are making a bequest:

“I bequeath to Howard Community College Educational Foundation, a nonprofit organization located in Columbia, MD,

• The sum of _______ dollars; or
• An amount equal to ______ percent of the net value of my estate; or
• All the rest, residue, and remainder of my estate

If you would like to designate your bequest to a particular program, cohort or scholarship, you can use this additional language to make this designation:

“It is my request that this gift be used for the benefit of [specific program or scholarship] at Howard Community College as directed in my most recent statement of intent with the College.”

Some examples of programs and cohorts that can benefit from your gift:

• Ambiciones
• Fueling Dragons/Campus Pantry
• Howard P.R.I.D.E.
• Parent Scholars
• R.I.S.E. (Women of Color)
• Silas Craft Collegians
• Student Helping Hands Funds

Retirement savings tend to be one of the largest portions of a person’s estate. However, these assets can be subject to hefty income taxes and, in some cases, estate taxes. Funding charitable gifts with your retirement assets lets you minimize tax burden and create a tremendous philanthropic impact while allowing you to leave other assets that are not taxed as heavily to your loved ones.

Some ways to give through these assets are:

Charitable Gifts from Retirement Accounts before Age 70½

When an individual is age 59½ and older, they can withdraw from their retirement accounts with no withdrawal penalty, whether they continue to work or are retired. Any withdrawals made can be used to fund charitable organizations and can be written off as a charitable deduction if you itemize deductions on your tax return.

IRA Charitable Rollover for Age 70½ and Older

• Starting at age 70½, an individual may make a gift of any amount up to $105,000 (or $210,000 from a married couple who holds separate IRA accounts) from their IRA without paying income tax.
• If you are age 73 or older, these gifts will also count toward the year’s required minimum distribution (RMD).
• Any funds must be transferred directly from your IRA account to the Howard Community College Educational Foundation.
• Donors may not receive any goods or services in exchange for this gift.

Gifts of Retirement Assets through Estate Plans

Gifts that are left to individuals other than spouses can be subject to various fees and taxes that would quickly lower the amount that you intended to leave.

In comparison, when you designate the Howard Community College Educational Foundation as a beneficiary of some or all your retirement assets, 100% of the proceeds are received tax-free and available to support any program, endowment/scholarship or area of your choosing.

All you would need to do is notify your plan administrator and obtain any forms necessary to sign the Howard Community College Educational Foundation as a beneficiary. If you do plan to name the Foundation as a beneficiary, please contact us as soon as possible so we may assist you in determining the exact use for your gift.

Savings bonds are one of the most widely held assets and have the added benefit of being exempt from state and local taxes. However, they are still subject to income and estate taxes if you reissue the bond, cash the bond out, or when they reach final maturity.

While you cannot directly donate the bonds to a charitable organization, there are some ways to support the Howard Community College Educational Foundation:

• Leave the bonds to the Howard Community College Educational Foundation through your will. This will allow you to gift the full value of the bonds and qualify the amount for exemption from income and estate taxes.
• Redeem the savings bonds and use the cash to make a charitable donation to the Howard Community College Educational Foundation. This method will still incur tax liability, but you may be able to claim the donation as a charitable deduction if you itemize your tax return.

Making the Howard Community College Educational Foundation a beneficiary of an existing life insurance policy expands your ability to make a significant gift. There are added benefits of receiving tax benefits now, while also being able to make a substantial contribution later in life.

Gifts are credited based on the face value of the policy, and policies that no longer apply to its original goal (such as providing college education to children that are now adults, or to provide financial security for a loved one that has passed) can be redirected to the Foundation instead. Naming a charitable organization as a beneficiary can significantly reduce the tax burden on your estate in the future.

A charitable remainder trust will provide income for you or other beneficiaries for each year for life or over a specified period of time. This option is ideal if you would like to contribute a significant amount while still creating income for yourself or a loved one. At the end of the trust term, the remaining balance in the trust will go to Howard Community College to support the areas that you have designated.

A gift through a charitable remainder trust may offer several tax benefits and allow you to repurpose assets into a more steady, predictable stream of income versus keeping said assets or selling them all at once.

An important thing to keep in mind is that this type of trust is irrevocable. This means that any assets placed within the trust cannot be withdrawn once the contribution is made. As always, we recommend that you consult your tax, legal, or financial advisor for guidance in planning your gift.