The Right Moment - A Guide to Planned Giving
As a lifetime member of Beta Gamma Sigma, you are an important part of a special and select group of people in the business community who were invited to represent the ideals of honor, wisdom and earnestness.
We understand the sense of pride and fulfillment that comes from being a member of the honor society. You are now in the enviable position to help continue the legacy through Planned Giving.
When is the Right Time?
One of the first decisions when planning charitable giving is the timing. Essentially, there are two choices: gifts by will, and gifts during life. People who choose current giving generally realize both the immediate satisfaction fo benefitting the charity and the maximum tax reduction
Whichever meets your needs, we encourage you to remember all of the people and organizations that have played a role in your life, along with your alma mater and Beta Gamma Sigma. The broad base of support and appeal provided by your educational institution, coupled with the vision and goals of Beta Gamma Sigma, will give your gift greater utility and endow an even deeper sense of pride.
Please let us know if you decide to include BGS as part of your Planned Giving so that we may recognize you by name and institution if you wish in our deferred giving program.
The Power of Giving
The effect on those who benefit from your Planned Giving is widespread and immeasurable. The effect on your financial future, however, is very calculable.
While there are variables too numerous to consider here, the following examples illustrate just a few of the many advantages of a carefully considered plan:
- A member's outright gift to Beta Gamma Sigma will reduce federal income tax liability. Furthermore, the gift will reduce the estate subject to estate tax. The end result is that the true cost to the donor for the contribution (after income and estate tax savings) is significantly less than the charity actual receives, thus benefitting both the donor and the recipient.
- A member and spouse are both in their 50s. They contribute to an annuity trust, which will pay the member a set amount per year for life, then pay an equal amount per year during the spouse's life, with the remaining assets going to their alma mater and Beta Gamma Sigma upon the death of the spouse. The donors are entitled to a charitable contribution deduction. When such tax benefits are added to the annual annuity payment, their current disposable income increases for the next several years until the deduction has been exhausted. They are able to benefit both their alma mater and Beta Gamma Sigma during their lifetimes and also secure certain current financial advantages.
Methods of Giving
There are many ways to establish a tax-advantaged charitable giving program. The following methods are a few of the more common ones. Consult your financial advisor (such as a lawyer, accountant, or life insurance agent) for the method that can best fulfill your intentions.
Intervivos Gifts (gifts during life)
a. Outright gift of cash to charity
b. Outright gift of appreciated property to charity
c. Gift of Life Insurance or its proceeds
d. Gift of charitable trust for self and charitable organization
e. Gift to charitible annuity trust for donor, donor's spouse, and charity
Testamentary Gifts (gifts by will)
a. Outright bequest by will
b. Bequest by will with estate in trust for family member and charity
c. Bequest to trust with income to charity for period of time, with remainder to family member
Beta Gamma Sigma, Inc., founded in 1913, is a not-for-profit organization that honors the "best in business" - students, alumni and faculty of business programs from colleges and universities around the world. Your gifts to Beta Gamma Sigma, Inc., a 501(c)(3) organization, are tax deductible. The EIN for Beta Gamma Sigma, Inc., a Missouri non-profit corporation, is 43-1322067.
Portions of the publication, The Right Moment, were included, with permission, from On Gifts of Lasting Value, copyright Tau Beta Pi. Beta Gamma Sigma thanks Tau Beta Pi for their assistance with this project.
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