Gifts of Cash, credit card or appreciated stock

Gifts of cash make an immediate impact. Send your cash gifts to the President’s Office, 6191 College Station Drive, Williamsburg, KY 40769 or use the online form to make a credit card gift.

A gift of appreciated stock with a long term holding period results in Cumberland receiving the full market value of the asset and you receiving a tax deduction of that amount as well . . . no capital gains tax enter into the transaction. You may deliver a stock certificate to the college of you may transfer the stock electronically. When making a gift of stock, please contact the President’s Office in advance of the transfer at (606)-639-4201. Shares of stock owned and held in a brokerage account can be given simply by instructing the broker to transfer by wire to Fifth Third, DTC 2116 for the account of Cumberland College, account 3838006213078.

Make a gift that provides a life-income

If you wish to make a significant gift to Cumberland College but are not sure you can comfortably give up the assets, you might want to consider a planned gift. Through a planned gift, you can give the asset to Cumberland and retain the right to the income for yourself and/or additional beneficiaries. This stream of income can be held for a period of years or for the lifetime of your named beneficiaries. You will receive a charitable deduction for a portion of the value of your gift in the year the gift is made. You may also be able to avoid or defer capital gains tax.

Charitable Gift Annuity

If you wish to receive maximum spendable income now, are planning for retirement, wish to defer capital gains tax, desire the security and predictability of a fixed income, and would like to benefit Cumberland College, then a charitable gift annuity may be right for you. Cumberland requires a minimum of $1,000 to establish a charitable gift annuity.

What is a Charitable Gift Annuity?

A charitable gift annuity is considered a split interest gift: the donor retains an income interest while the charity has a remainder interest. You contribute cash or marketable securities to Cumberland in exchange for the College’s contractual promise to pay you and, if you wish, another annuitant, a fixed income for life at a rate based on the age(s) of the annuitant(s). This income is guaranteed by all the assets of Cumberland College. You will be eligible for a charitable deduction equal to the difference between the value of the assets you transfer and the present value of the stream of annuity payments. A transfer of low-yielding appreciated securities may very well allow you to increase your income. If you prefer to delay receiving income for some period of time, you may make a deferred-payment charitable gift annuity contribution. Deferring the start of income payments entitles you to an immediate charitable deduction while increasing the annuity payout rates. A portion of each annuity payment is tax-free for your life expectancy. If you transfer appreciated securities, you may report the capital gain associated with the value of the annuity over a period equal to your life expectancy.

Charitable Remainder Trust

If you wish to retain income or provide an income for a loved one while increasing your capacity to make a gift to Cumberland, then a charitable remainder trust may be right for you. A charitable remainder trust is particularly attractive if you fund it with appreciated property because there will be no capital gains tax when you fund the trust or at the time the trustee sells the asset(s).

What is a Charitable Remainder Trust?

A charitable remainder trust is a separately invested, irrevocable trust you create by designating a person or persons to receive income payments of at least 5 percent annually and transferring assets to Cumberland College. The trustee may also be a trust company or bank of your choice. The beneficiaries may be any person(s) you choose. They may receive income for their lives or for a specified term of years, not to exceed 20. At the death of the last beneficiary or at the end of the term of years, the trust terminates and the remaining principal is then used by Cumberland College to educate our students. Donors may designate a specific purpose for the use of their gift.

Charitable Remainder Annuity Trust

A unique feature of a charitable remainder trust is that you may tailor the annual income the trustee will pay. A charitable remainder annuity trust pays a fixed dollar amount that you select when you create the trust. If you prefer the security of a fixed income and can fund the trust entirely at one time, an annuity trust may be a good choice for you. You may not make subsequent additions to an annuity trust.

Charitable Remainder Unitrust

A charitable remainder unitrust pays an income equal to a percentage of the value of the principal; you designate the percentage when you create the trust, and the trustee revalues the principal each year to determine that year's income. The charitable remainder unitrust is the most flexible form of deferred gift and can be created to accommodate a wide range of donor and beneficiary needs. Since each trust is separately invested and managed, the trustee can tailor investment strategies to meet the needs of the trust's beneficiaries. The unitrust can also be useful for gifts of illiquid assets such as closely held stock or real estate. It can also be a valuable retirement planning tool.

You may make additional contributions to a unitrust and the investment strategy may vary with your changing financial needs. For example, if you do not currently require the income, a net income unitrust can invest for growth and at a future date invest for yield. A net income unitrust can also accept illiquid property such as unencumbered real property or tangible personal property. Contributions of cash, marketable securities and real property generate charitable deductions equal to the present value of Cumberland's remainder interest.

Charitable Lead Trust

Making a gift of income while retaining ownership of the asset

If you would like the capital value of marketable or income-producing assets to remain in your family but do not need the income stream from these assets for a period of time, then a charitable lead trust may be right for you. A charitable lead trust may be particularly attractive if the value of your charitable gifts already exceeds the allowable deduction limits for income tax purposes. Because a charitable lead trust involves administrative costs and some start-up costs in the form of legal or financial advice, you probably should not consider such a gift arrangement for amounts under $250,000.

What is a Charitable Lead Trust?

A charitable lead trust is a separately invested, irrevocable trust you create by transferring cash, marketable securities, or income-producing property to a trustee you select. You will designate Cumberland College as the beneficiary of income for a specified period of years. Upon completion of that period, the trust assets may revert to you or pass to persons you have designated in the trust instrument to receive them.

A unique feature of a charitable lead trust is that you have control over Cumberland's income interest. A charitable lead unitrust pays an annual income equal to a percentage of the value of the principal; you select that percentage when you create the trust, and the trustee revalues the trust each year to determine that year's income. A charitable lead annuity trust pays a fixed dollar amount each year; you specify that amount when you establish the trust.

Income tax consequences of establishing a Charitable Lead trust

The charitable deduction associated with the creation of a charitable lead trust depends on your relationship to that trust. You will need to consult with your tax adviser to determine the character of that relationship. Under certain circumstances, you will be eligible for a charitable deduction in the year you create the trust equal to the present value of Cumberland's income stream. You will also be required each year to include any income earned by the trust in your income. Under other circumstances, you will not be eligible for a current charitable deduction, and you will not include the trust's income in your own. This consequence is particularly useful to a person who wishes to contribute amounts in excess of the allowable deduction levels for income tax purposes.

Should you need further information, please contact Sue Wake at Cumberland College (606)539-4201