Planned Giving

Gifts from Wills and Trusts:
When making a charitable gift to a nonprofit organization, it is vital that the charity’s legal name, address and other identifying details be used. To name The University of West Alabama Foundation in your will or trust, please use the following suggested language:

Residual Bequest Language
A residual bequest comes to us after your estate expenses and specific bequests are paid:

I give and devise to The University of West Alabama Foundation, Livingston, AL, (EIN 63-1074127) all (or state a percentage) of the rest, residue and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).

Specific Bequest Language
You can also name The University of West Alabama Foundation as a beneficiary of a specific amount from your estate:

I give and devise to The University of West Alabama Foundation, Livingston, AL,  (EIN 63-1074127) the sum of $ ________________________ (or “____ shares of __________________ stock”) to be used for its general support (or for the support of a specific fund or program).

Contingent Bequest Language
The University of West Alabama Foundation can be named as a contingent beneficiary in your will or personal trust if one or more of your specific bequests cannot be fulfilled:

If (insert individual heir’s name) is not living at the time of my demise, I give and devise The University of West Alabama Foundation, Livingston, AL,  (EIN 63-1074127) the sum of $ (or “all” or ” ___________ percentage of the residue of my estate”) to be used for its general support (or for the support of a specific fund or program).

The beneficiaries named on a retirement plan or life insurance policy determine who will receive these funds, even if they are designated differently in your will. Funds remaining in your IRA may be subject to multiple taxes if left to your estate. If you are considering including a gift for The University of West Alabama Foundation in your will, name The University of West Alabama Foundation as a beneficiary or partial beneficiary of your retirement plan and leave other less-taxed assets to your family.
1. Request a “change of beneficiary” form from your plan administrator
2. List The University of West Alabama Foundation as beneficiary as the following address:
The University of West Alabama Foundation
UWA Station 6
Livingston, AL, 35470
EIN #: 63-1074127
3. Let us know so we can thank you!

One of the biggest tax advantages in charitable giving continues to be the double benefit donors get when donating appreciated assets to The University of West Alabama Foundation instead of cash. By giving appreciated assets (like stocks held for more than one year), you’ll get a charitable tax deduction for the full value of the asset and avoid any capital gains tax that would have applied if you had sold the stock and made your gift in cash.

Please provide the following information in your request when directing your broker to transfer your shares to UWA:

• The University of West Alabama Foundation
• UWA Station 6
• Livingston, AL  35470
• EIN: 63-1074127

• UWA’s DTC Number:
• UWA’s Account Name: The University of West Alabama Foundation
• UWA’s FBO Account Number:

It is important to notify The University of West Alabama Foundation of the specifics of this transaction (stock name, share quantity, gift designation) so we can credit your gift appropriately. Please contact us at (205) 652-5459 or jwedgworth@uwa.edu.

The IRA Charitable Rollover provides you with an excellent opportunity to make a gift during your lifetime from an asset that would be subject to multiple levels of taxation if it remained in your taxable estate.

To qualify:

• You must be age 70 ½ or older at the time of gift.
• Transfers must be made directly from a traditional IRA account by your IRA administrator to The University of West Alabama Foundation. Funds that are withdrawn by you and then contributed do NOT qualify. Gifts from 401k, 403b, SEP and other plans do not qualify.
• Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.

Benefits—qualified charitable distributions:

• Can total up to $100,000/annually.
• Count towards your required minimum distribution for the year from your IRA reducing the amount you need to pay taxes on.
• Charity receives the full amount distributed “tax free”.

Example

Jane wants to make a contribution to The University of West Alabama Foundation . She is 73* and is required to take a minimum distribution of $20,000 from her IRA but does not need the income. She can authorize the administrator of her IRA to transfer $20,000 to UWA. The $20,000 distributed to UWA will not be subject to federal tax and will be counted toward her annual minimum required distribution.

*Note that under the Secure Act 2.0, the age at which you are required to make minimum distributions (RMD) was raised to age 73 for individuals born between 1951 and 1959, and age 75 for those born in 1960 or later.

As you plan your required minimum distributions for this year, if you do not need the money the government is requiring you to take, consider using it for a charitable gift using the IRA Charitable Rollover.

See below for sample letters you can send to your plan provider to initiate a rollover. Make sure that you contact Dr. JJ Wedgworth by phone at (205) 652-5459 or email jwedgworth@uwa.edu when you direct the rollover so we can look for the check from your IRA administrator.

Sample Letter of Instruction from Donor to IRA Provider

{Date}
{Name of IRA Provider}
{Address}
{City, State, Zip}
(Call your plan provider to determine the most efficient way to send this letter of instruction)

Re: Request for Qualified Charitable Distribution from Individual Retirement Account

Dear Sir or Madam:
Please accept this letter as my request to make a qualified charitable contribution from my Individual Retirement under Sec. 1201 of the Pension Protection Act of 2006 (the PPA) and Sec. 408(d)(8) of the Internal Revenue Code of 1986, and made permanent under the Consolidated Appropriations Act of 2016. My account Number is {Account Number}.

Please issue a check in the amount of $____________ payable to The University of West Alabama Foundation at the following address:

UWA Station 6
Livingston, AL 35470

In your transmittal to The University of West Alabama Foundation, please state my name and address as the donor of record in connection with this transfer, and copy me on your transmittal. It is my intention to have this transfer qualify during the {Year} tax year. Therefore, it is imperative that this distribution be postmarked no later than December 31, {Year}.

If you have any questions or concerns regarding this request, I can be reached at {Phone Number} or {Email Address}.

Thank you for your prompt attention to and assistance with this matter.

Sincerely,
{SIGNATURE OF IRA OWNER}

The benefits of using a donor advised fund are strong and, with the new tax laws, are expected to grow in appeal to strategic donors. They are far easier to establish than a private foundation and allow you to support UWA with relatively small amounts of money.

How does it work?

When you open a donor advised funds (DAF), you are creating a separate entity with the sole purpose of using the assets under management to support qualified charities.

You can fund it by irrevocably contributing assets such as cash, appreciated stock, insurance proceeds, or various other forms of capital. Given that your DAF is a separate entity, you can take an immediate tax deduction for the amount of the gift.

As advisor to the fund, you can elect to manage the investments personally or choose to have an investment advisor manage the portfolio.

The two primary avenues of supporting UWA with your donor advised fund are through a beneficiary designation and recommending grants.

Beneficiary

By assigning UWA or other charitable organizations as a beneficiary, you are ensuring that when the DAF ceases to have an advisor the assets in the account get transferred to UWA and can be put to use right away for your intended purpose.

Grants

While you or your assigned successor(s) are advising the fund, you can recommend grants from the fund to support UWA or other charitable organizations.

What are the Benefits?

• Receive an immediate deduction on your taxes.
• Assets in the fund grow tax free.
• Easier, and less expensive than establishing a private foundation.
• Allows you to get started with a relatively small amount of money, as low as a $500 gift.
• Tax smart for those using a “lumping” strategy under the new tax laws.

With a low barrier to entry and multiple ways to create charitable impact, DAFs are a great strategy for charitable giving. If you have questions about setting one up, or want more information please contact The University of West Alabama Foundation.

Making a gift of life insurance allows you to transfer ownership of a paid-up life insurance policy to The University of West Alabama Foundation. UWA elects to cash in the policy now or hold it.

How You Benefit from a Gift of Life Insurance

 Make a gift using an asset that you and your family may no longer need.

 Receive an income tax deduction equal to the cash surrender value of the policy.

 You may be able to use the cash value of your policy to fund a gift that delivers income, such as a charitable gift annuity.

Please use the following address for UWA:
The University of West Alabama Foundation
Institutional Advancement
UWA Station 6
Livingston, AL, 35470

Advisors Guide for Planned Giving

Gifts from Wills and Trusts:

When making a charitable gift to a nonprofit organization, it is vital the legal name of the charity, city and other identifying details be used. To name The University of West Alabama Foundation in your will or trust please use the following suggested language:

Residual Bequest Language
A residual bequest comes to us after your estate expenses and specific bequests are paid:

I give and devise to The University of West Alabama Foundation, Livingston, AL,  (EIN 63-1074127) all (or state a percentage) of the rest, residue and remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).

Specific Bequest Language
You can also name The University of West Alabama Foundation as a beneficiary of a specific amount from your estate:

I give and devise to The University of West Alabama Foundation, Livingston, AL,  (EIN 63-1074127) the sum of $ ________________________ (or “____ shares of __________________ stock”) to be used for its general support (or for the support of a specific fund or program).

Contingent Bequest Language
The University of West Alabama Foundation can be named as a contingent beneficiary in your will or personal trust if one or more of your specific bequests cannot be fulfilled:

If (insert individual heir’s name) is not living at the time of my demise, I give and devise The University of West Alabama Foundation, Livingston, AL,  (EIN 63-1074127) the sum of $ (or “all” or ” ___________ percentage of the residue of my estate”) to be used for its general support (or for the support of a specific fund or program).

GIFTS OF APPRECIATED SECURITIES

The University of West Alabama Foundation’s Broker:
DTC:
Attn:

,  

Account number:
Tax ID Number: 63-1074127

BENEFICIARY GIFTS FROM RETIREMENT PLANS, LIFE INSURANCE, BROKERAGE ACCOUNTS OR ANY OTHER PLAN WITH A BENEFICIARY DESIGNATION:

Please contact your plan provider for a change of beneficiary form. Once you have filled out the form, please send a copy to Dr. JJ Wedgworth, Interim Vice President at jwedgworth@uwa.edu

Legal name: The University of West Alabama Foundation
Tax ID number: 63-1074127
Address: UWA Station 6
Livingston,  AL  35470

NOTE TO ATTORNEYS, ACCOUNTANTS AND OTHER PROFESSIONAL ADVISORS:

Thank you for helping your client with their charitable planning. As a professional advisor, you build your client relationships on trust and mutual respect. The same is true for our relationships with our friends and donors.

We understand that financial, philanthropic and estate goals are unique to the individual. For this reason we welcome the opportunity to assist as you incorporate your clients’ philanthropic objectives into wellcrafted estate plans. Furthermore, we encourage prospective donors to consult with their professional advisors before making decisions based on information we provide.

If you have any questions or concerns, please call (205) 652-5459 or email jwedgworth@uwa.edu.

Disclosure: This information is not intended as legal advice. For more specific advice, please consult your attorney or financial adviser.