Cash
Cash gifts are outright gifts of checks, drafts, and money orders. If mailed before the end of the year, they will enable those who itemize to take an income tax deduction for that year. Gifts of cash are deductible for up to 50% of the donor's adjusted gross income. Cash contributions in excess of the deduction limitations may be carried over and deducted in the five tax years following the gift.

Charitable gift annuity
In this case, the donor makes an irrevocable gift to the Foundation in exchange for life income payments. A charitable gift annuity is a contract between the donor and the Foundation, under which the Foundation guarantees payment of the annuity, unlike a trust which pays the annuity from its assets alone. Two features in particular make charitable gift annuities appealing. An individual may specify whether he or she wants an immediate annuity, with payment to begin not later than one year from the date of the gift, or a deferred gift annuity, from which payments are not to begin until a specified future date. In addition, the income stream from such an arrangement can be higher than current market rates.

Charitable lead trust
These trusts provide income—either a percentage or a specified amount—to Alamance Community College Foundation for a specific number of years. At the termination of this period, the principal is returned to the donor or others whom the donor has designated. Under one type of charitable lead trust the donor includes the income in his or her taxable income, but is entitled to a corresponding charitable deduction, if he or she itemizes, of the amount of income paid to the Foundation in that year.

Charitable remainder annuity trust
One of many types of available trusts, charitable remainder annuity trusts provide that a specified dollar amount (at least 5% of the fair market value of the assets at the time the trust is created) be paid at least once a year to the beneficiary(ies) for their lifetime(s) or for a term of years, not to exceed twenty.

Charitable remainder unitrust
This type of trust provides that a fixed percentage (at least 5% of the fair market value of the assets in trust, computed each year) be paid to the beneficiary(ies) at least once a year. In a unitrust, however, the amount paid to the beneficiary(ies) will vary on a yearly basis according to the annual reevaluation of the trust principal.

Corporate matching gift
Corporations will often match gifts made by employees, officers, directors, and in some cases spouses and/or retired employees, officers, or directors. More than 1,000 American companies have adopted corporate matching gift plans to help support higher education. Consult your company's personnel or community relations department for guidelines. A list of companies that match gifts to higher education may be obtained by writing the Alamance Community College

Corporate gift
If you are an owner or CEO of a business, you might wish to consider making a corporate gift through which you may derive federal tax benefits as well as additional benefits in some states. In Indiana, for instance, corporations making gifts to institutions of higher education within the state are entitled to a credit against Indiana Gross income tax, subject to applicable limits.

Life income gifts
This group of planned gift options allow you to make a substantial gift to ACC, while still retaining income. Life income gifts include: charitable remainder annuity trusts, charitable remainder unitrusts, pooled income funds, charitable gift annuities, and gifts of retirement plan proceeds and real property subject to life estate.

Gifts of life insurance allow donors to make sizeable gifts to the Foundation at a relatively low cost. To make such a gift, you would name the Alamance Community College Foundation irrevocable beneficiary of a life insurance policy, then deliver and assign ownership of the policy to the Foundation. When you pay the annual premium, you will be entitled to deduct the amount of the premium, if you itemize. Gifts of life insurance policies may offer estate planning possibilities. You may designate the Foundation as the primary, secondary, remainder, or residual beneficiary of a policy. There are a variety of policy options available. You will want to discuss your plans with the Foundation's Planned Giving staff and/or an insurance adviser.

Living trust
Under a living trust, the management of a person's property is left to a trustee with instructions for distributions during the lifetime of the individual and at his or her death. These distributions may include charitable gifts, such as those to the Alamance Community College Foundation, for Alamance Community College.

Outright gift
The value of an outright gift immediately benefits the College. Outright gifts include: cash, checks, and money orders; gifts of securities, real estate, and tangible personal property; and corporate gifts, corporate matching gifts, and gifts-in-kind.

Pledge
Though a cash gift, a pledge to make a gift may not be deducted until the year in which actual payment is made. Multi-year pledges allow you to spread your gift payments out over a period of time.

Pooled income fund
These are trusts into which two or more donors irrevocably transfer property, contributing the remainder interest in the property to the Alamance Community College Foundation. Each donor retains an interest in the annual proceeds based upon the proportionate share of assets which he or she contributed to the total fund.

Property

1. Real property includes all gifts of real estate. In considering whether to accept the gift, the Foundation weighs its potential value to the College and determines whether a management plan can be implemented to maximize that potential. In most instances, such a property will be sold; in other cases, it may be kept as an investment. Many of the tax advantages which apply to gifts of appreciated securities also apply to gifts of appreciated real property.

2. Tangible personal property include works of art, furniture, equipment, collections, and personal mementos. For tax purposes, the date of the gift is the date of physical delivery, and the value is the item's fair market value on that date as determined by a competent appraiser.

Real property subject to a life estate
You may transfer a personal residence or farm to the Alamance Community College Foundation, while retaining a life estate (the right to use the property for the remainder of your life.) You are entitled to a federal income tax deduction for the fair market value of the remainder interest in the property at the time it is transferred.

Securities
1. Long-term appreciated securities are those which have been owned for more than one year, and have increased in value. If you itemize deductions, such a gift would entitle you to a federal income tax deduction for the full fair market value of the securities on the date of the gift, up to a maximum deduction of 30% of your adjusted gross income for the year.

2. Short-term securities are those held for less than one year. If you itemize, you will be entitled to a federal income tax deduction for only the purchase price of the securities.

3. Depreciated securities are those which have declined in value since purchase. The Foundation suggests that the donors sell them, take the tax loss, and donate the cash proceeds. This will provide the maximum tax benefits from the gift.

Tax incentives
Taxpayers who itemize can qualify for the federal income tax charitable deduction by making gifts to the Alamance Community College Foundation for the benefit of Alamance Community College. Maximum limits for such deductions may apply, depending on the type and size of the gift and the total of a donor's gifts to charitable organizations during any one year. There may also be certain state tax incentives for the support of higher education. For example, Indiana offers a direct credit against Alamance Community College Gross Income Tax within specified limits for contributions to institutions of higher education within the state. Gifts to the Alamance Community College Foundation may also qualify for favorable treatment in connection with capital gains, estate, and inheritance taxes. These advantages will depend on the circumstances of each gift.

Unrestricted gift
Unrestricted gifts give the College the latitude to direct this money where it is most useful. Programs that might encounter limitations can flourish with the help of unrestricted funding. This money allows the College to take advantage of unexpected opportunities which occur after state budgets are set.

Will
A carefully planned and drafted will can preserve a maximum amount of an estate for the surviving members of one's family and others, such as Alamance Community College, whom one wishes to benefit.