ABC's of Affirmative Action

Faculty Reflection

Opportunities For Giving

Campus Collage

Helping To Make CSU, Chico Better

TRAPPED BY TAXES?
YOUR ESCAPE MAY BE A GIFT THAT GIVES BACK.

Many alums, parents, and friends of California State University, Chico are discovering one course of action that can bring tremendous benefits to both themselves and the university. In cooperation with the University Foundation, many of our supporters have found they can "have their cake and eat it, too."

By working with us, they have been able to transfer greatly appreciated assets to produce additional personal income and tax deductions, while avoiding or minimizing taxes on the capital gain. As good as this sounds, it is not the complete story. It gets better.

First, an appreciated asset, given before it is sold, can provide the donor with an income tax deduction for the full current value and eliminate taxes on the capital gain.

Second, an asset that is selected—because it produces a low level of income—can be placed in a special trust. The trust will sell the asset, paying no tax on the sale, and disburse a higher, reasonable rate of income back to the donor.

Third, the donor receives an attractive tax deduction to help offset the taxes due on the new income coming from the trust.

All these benefits are made possible because of thoughtful financial planning. If the situation is right, however, many more advantages can be realized by working with the University Foundation:

• The donor may contribute to a gift annuity, which allows some of the regular distributions, paid back to the donor, to be tax-free.

• The donor may select to have the gift applied to a particular purpose that supports the donor's values (for example, scholarships, research, campus events, or physical expansion).

• The donor can watch the gift in action and endow a particular scholarship, program, or project, assuring a legacy that will endure in perpetuity.

• The donor's estate transfer taxes will be reduced because the gift can be irrevocably excluded from the estate.

For more information, please contact:

Gary Salberg, director
Major Gifts and Planned Giving
Office of University Development
California State University, Chico
Chico, CA 95929-0155
telephone 530-898-5297
fax 530-898-4747
e-mail: gsalberg@csuchico.edu.

Special note. As with any important decision, please seek counsel from your professional advisers, or call University Development regarding these and other gift-planning strategies. This information is not intended to be legal or tax advice.