Using funds from a qualified retirement plan to make a gift to Centenary could be one of the best ways both to make a significant gift and to save on taxes, which could be as high as 75 percent. With a retirement fund, you can designate a specific amount or a percentage of the fund for the College. It is also possible to establish a charitable remainder trust with loved ones receiving the income for a specific period, and the remainder of the funds eventually benefiting the College.
EXAMPLE: Helen, age 63, has stocks valued a $300,000 in her company's 401 (k) plan for which she paid $100, 000. She would like to set these funds aside and optimize earnings for her retirement years. She would also like to make a major gift to Centenary for a renovated Student Center. After visiting with members of the development office, Helen learns that she can place the stocks in a charitable remainder trust, enjoy the income during her lifetime, and make the gift to Centenary, too. And, if she desires, she can make additional contributions to the trust.