Ways to Give

Whether it’s your 50th Reunion or beyond, your support for Northeastern can make a profound difference in the lives of future generations of Huskies. Here are a few ways you can accomplish just that.

IMMEDIATE USE GIFTS

CASH: Giving cash is easy and familiar. Visit giving.northeastern.edu, and make a gift using a debit or credit card. A gift can even be designated for a particular school or fund by using the search function on the site. For itemizers, if cash (and only cash) is used to make a gift for 100% of gifts to public charities, the income tax charitable deduction limit is 60% of adjusted gross income (AGI). Any unused deduction may be carried forward for an additional five years.

APPRECIATED SECURITIES AND MUTUAL FUNDS: Held 1+ years, these gifts are also easy to make and no capital gains tax is paid on the appreciation. When given outright, the charitable deduction is equivalent to the market value of the shares on the date received, limited to 30% of AGI. Any unused deduction amount may be carried forward for five years. Contact Noreen Gallagher at 617.373.2793 or [email protected] for asset transfer instructions or visit giving.northeastern.edu for Stocks, Mutual Funds, IRA Rollovers • Northeastern Fund.

RETIREMENT PLAN ASSETS: IRA, 401(k) or 403(b) retirement plans work well for saving for retirement, but as an income stream, they may be the most heavily taxed asset. Withdrawals are taxed by the IRS, and by the donor’s state and/or city. If those funds are left to heirs, they will be taxed more heavily than other estate assets; consequently, gifts from a retirement plan may be the most attractive asset to use for charitable giving.

  • IRA Direct Transfers/Qualified Charitable Distribution/Charitable Rollover: With a traditional IRA, at age 70 ½, a donor may elect to make a Qualified Charitable Distribution (QCD), up to an aggregate $108,000 per year, to qualified charities like Northeastern without recognizing that distribution in their AGI. From age 73 on, any QCD may satisfy all or a portion of the Required Minimum Distribution (RMD), removing it from the AGI at tax time.
  • Don’t Have an IRA? Distributions from 401(k), 403(b), 457 governmental plans, simple IRA plans, and simplified employee pension (SEP) plans are not eligible for the QCD. However, many of these plans may be rolled into a traditional IRA to take advantage of this provision.

Gifts and pledges from retirement plans can be directed to any fund for any purpose at Northeastern. To make a gift from a traditional IRA, the donor should contact their IRA administrator and Northeastern’s Office of Gift Planning at 617.373.2030 or [email protected].

GRANTS FROM DONOR ADVISED FUNDS: A donor advised fund is like a charitable savings account where donors contribute to their fund as frequently as they like, receive a charitable income tax deduction, and then recommend grants to their favorite charities when they are ready.

LEGACY/FUTURE GIFTS

Any planned gift to Northeastern allows the donor to become a member of the Speare Society. Learn more at plannedgiving.northeastern.edu/frank-palmer-Speare-society. This gift option utilizes the Estate Gift Intention form located at plannedgiving.northeastern.edu/gift-intention.

BENEFICIARY DESIGNATION ON AN EXISTING ACCOUNT: An easy, no-cost way to make a gift from an estate is to name Northeastern as a percent beneficiary on a retirement account, life insurance policy, bank or investment account where allowable. Contact the plan administrator or financial institution for forms and instructions.

NAME NORTHEASTERN IN A WILL OR TRUST: Make a gift through a will or trust by including a specific dollar amount or a percentage gift to Northeastern. Suggested language can be found at plannedgiving.northeastern.edu/bequest-language.

LIFE INCOME GIFTS

CHARITABLE GIFT ANNUITY: This gift arrangement is simple contract between the donor and Northeastern which, in exchange for an irrevocable gift, provides:

  • Fixed, supplemental income for a lifetime—and future support for Northeastern, and any program and/or school the donor wants to support
  • An immediate charitable income tax deduction.
  • Ability to make a larger gift because income is received in return for this gift

Annuity Income: This income is guaranteed by Northeastern and based on the age of the annuitant and amount of the gift. With a minimum gift of $10,000 or more in cash or appreciated securities, including mutual funds, the donor can begin receiving payments immediately if age 60 or older. If payments are deferred for a year or more, the donor will enjoy a proportionately higher payout rate and income tax deduction. If a second annuitant is named (max of two annuitants), they will also receive payments for life.

  • Benefits of using cash or low-interest CDs to fund a Gift Annuity: (1) it creates a reliable stream of income for life; and (2) a portion of the income paid out is free of federal income tax. The remainder of the income is reported as ordinary income on tax returns.
  • Benefits of using an IRA RMD to fund a Gift Annuity: (1) It may satisfy all or a portion of the RMD (up to $54,000 in one year); (2) provides a fixed income for life; (3) spreads the lump sum tax attributable to the RMD into smaller sums over the lifetime. (Other restrictions apply for this limited option.)
  • Benefits of using appreciated securities for a Gift Annuity: (1) There is no immediate capital gains tax due, and the donor saves on capital gains tax overall; (2) a portion of the income paid is tax free, a portion is subject to capital gains tax, and a portion is reported as ordinary income; and (3) this is an excellent way to turn a non-income producing asset into a steady stream of income

Rates established by the American Council on Gift Annuities

VARIABLE INCOME FOR LIFE WITH A CHARITABLE REMAINDER UNITRUST (CRUT): This special irrevocable gift arrangement allows the donor to make a substantial gift while retaining an income for life or a term of years. Each year, the income beneficiaries receive a fixed percentage (typically 5%) of the trust’s assets, which is revalued annually; if the trust grows, so does the income. When Northeastern serves as trustee, the minimum funding level is $100,000. Once established, additional gifts can be added to the trust any time and donors will receive another charitable income tax deduction.

For more information on creative ways to make a gift to Northeastern visit plannedgiving.northeastern.edu or contact Northeastern’s Office of Gift Planning at 617.373.2030 or [email protected].

The information contained herein should not be considered legal, accounting, or tax advice. You should always consult your own advisors before making decisions regarding charitable gifts.