Frequently Asked Questions
- What is Albright College's tax ID number?
Albright College qualifies as a public charitable organization and meets the requirements of the Internal Revenue Code Section 501(c)(3). Gifts to Albright College are deductible according to the limits set for federal income or estate taxes. Albright College's tax identification number is 23-1352615.
- If Albright College is named in my will or living trust, do I need to notify anyone?
You are not required to tell Albright College about your intent to leave a bequest. However, it is helpful for the College's planning purposes to be aware of future gifts. Therefore we would appreciate it if you would complete an 1856 Legacy Society Form and mail it to the College.
- After I have included Albright College in my will or living trust, can I change it?
Absolutely. A bequest intention is considered a "revocable gift," meaning it can be modified as often as you wish to suit your circumstances and charitable priorities.
- How can I leave Albright College in my will or living trust without redoing my entire will or living trust?
If you already have a will or a living trust, you can amend it to make a gift without rewriting the entire document. An attorney can prepare a codicil to your will that adds a new bequest to the College while reaffirming the other items in your will. Similarly, your attorney can prepare an amendment to your living trust to add the College as the beneficiary.
- Do you have sample bequest language?
Yes we do. Click here for our sample language
- How secure are planned giving investments? How are they invested?
They have proven to be very secure. The assets from your gift are invested in pooled funds composed of stocks and bonds under the general supervision of the College's Vice President for Administrative and Financial Services.
- Who manages the money?
The funds are managed by professional investment managers selected and monitored by the College's Vice President for Administrative and Financial Services.
- What fees are charged?
There are no fees charged by Albright College for the creation, management, or administration of these plans.
- What is meant by the term "tax-benefit"?
The Internal Revenue Code allows individuals who itemize their deductions to claim a deduction for gifts to charity. Tax benefits are generally the cash savings generated by such deductions. In other words, the tax benefit is the cash you save by reducing your taxable income and thereby decreasing your income-tax liability.
- What is the difference between "tax deduction" and "tax-free income" as they relate to my taxable income?
A tax deduction reduces your taxable income and, therefore, your tax liability. Tax-free income, such as a portion of charitable gift annuity payments or the income from tax-exempt bonds, is not included in taxable income.
- How do you calculate the tax deduction? For example, if I give Albright College something worth $10,000, why don't I get a deduction of $10,000?
The IRS has established a series of actuarial factors and calculations that we are required to follow to determine your charitable income-tax deduction. Where an individual has retained the right to receive income from a charitable gift, the amount of the deduction is reduced by the actuarial value of the income stream.
- What is a life-income plan and how does it work?
In a life-income plan, lifetime income is obtained in exchange for an irrevocable charitable gift. The gift may be made in trust (e.g., through a charitable remainder trust) or as a direct contractual relationship with Albright College (e.g., through a charitable gift annuity).
- Can I include anyone as the life-income beneficiary?
Yes. Most commonly, it's a spouse, but almost anyone may be named to receive income for a life-income plan. Be aware, though, that gifts of income to anyone other than a spouse may have gift-tax consequences.
- What is a charitable gift annuity? Why are they so popular?
A charitable gift annuity is a simple agreement in which the charity, such as Albright College, agrees to pay one or two annuitants, chosen by the donor, a fixed sum each year for life, in exchange for the donor's gift of cash or marketable securities with a value of at least $10,000. Because charitable gift annuities are the simplest of life-income agreements they have become the most popular.
- What annuity rate would I receive?
That depends on the age(s) of the income beneficiary(ies) and the type of gift created. The rate is calculated on key variables you supply—your age, the age of any other beneficiary(ies), and the type of gift you want to create.
- How do your gift annuity rates compare with those of other charities?
Our rates are competitive with those of other charities. We use the rate guidelines recommended by the American Council on Gift Annuities (formerly the Committee on Gift Annuities), which is an independent organization composed of representatives of various charitable organizations.
- Is there a minimum amount needed to establish a charitable gift plan?
To make our programs accessible to as many interested individuals as possible, our gift minimums are among the lowest in the country. A gift of $10,000 is required to create a charitable gift annuity, and $100,000 is required to create a charitable remainder trust.
- Can I receive monthly payments?
No. The quarterly payment plan is the most frequent payment option.
- When do my payments begin?
They can commence immediately or start at a predetermined date at least one year into the future. The latter case is called a deferred payment charitable gift annuity.
- How do I receive my payments?
Payments can be mailed to you, mailed to your bank, or deposited electronically into your bank account.
- Are the annuity payments guaranteed for life? If so, how?
Payments are fixed and guaranteed for life when the property is irrevocably transferred to the charity and the gift annuity contract is established. The gift annuity payment obligations are guaranteed by the general resources of Albright College.
- I'm under 50 and don't need the gift annuity payments now. What are the advantages of establishing a gift annuity today?
Establishing a gift annuity now will add to the fixed-income portion of your retirement portfolio, provide an income-tax deduction now while you are (most likely) within a higher tax bracket, and provide a higher payout rate to you because payments are deferred.
- Are donations of cash or stock the only options?
For a charitable gift annuity, yes. But in many other circumstances, real property, tangible personal property, and other assets, such as partnership interests, may be used to fund a life income or other gift. These types of gifts must be approved by the Board of Trustees.
- Can I direct the remainder of my gift to a beneficiary to Albright College?
- Can I restrict the purpose for which Albright College uses my gift?
Yes, in certain circumstances. We encourage you to discuss your wishes with the Office of Advancement so they can be reviewed and documented.
- Why is a charitable gift better than other investments?
Each planned gift must be individually evaluated to determine its appropriateness in relation to your life circumstances as well as your goals and objectives. If supporting your alma mater is among your philanthropic goals, you may indeed benefit by creating a planned gift to Albright College.
- Can Albright College give me tax advice?
Albright College's Office of Advancement is always willing to provide you with any information about various gift vehicles that may be of interest to you. However, our assistance should not be construed as specific legal or tax advice, and we recommend that you consult your own advisors, who know your circumstances and can assist you throughout the process. If you prefer, Albright staff can work directly with your financial advisors.
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