Summer 2003 - University of the Cumberlands

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Planned Giving Looking for a Way to Help Your Alma Mater Further the mission of Cumberland College by contributing a charitable gift annuity and secure fixed annual payments, now or during retirement, while also enjoying generous tax advantages. Payments for Life From Our Charitable Gift Annuity You can secure fixed annual payments for life by making a contribution to Cumberland College. Our charitable gift annuity will pay you (and a survivor, if desired) a fixed dollar amount when you make an irrevocable gift to the college. The amount is determined by your age at the time of your contribution. Here are examples of the annuity rates. These increase with age, but the rate remains constant once the gift is made. Age Return Rate Ages Return Rate 50 5.3% 50/55 4.7% 55 5.5% 55/60 5.0% 60 5.7% 60/65 5.5% 65 6.0% 65/70 5.7% 70 6.5% 70/75 6.1% 75 7.1% 75/80 6.6% 80 8.0% 80/85 7.3% 85 9.5% 85/90 8.4% 90 11.3% 90/95 10.1% * The rate of return is slightly lower for two lives because the period of payment generally is longer. This example and the following assume quarterly payments and a 5.2 percent charitable midterm federal rate. Generous Income Tax Advantages Assuming you itemize deductions, you can take a charitable deduction for part of the value of your gift when you file that year’s income tax return. The amount depends on your age. The percent of the transfer that is deductible as a contribution varies based on U.S. Treasury tables. Example: Harriet, age 70, gives Cumberland College $25,000 to fund a gift annuity for herself. She is allowed a charitable contribution deduction of $9,632.10. A sizable part of each annuity payment is also tax free, again determined by Treasury tables. When a charitable gift annuity is funded with appreciated property, the up-front capital gains tax that would have been owed if the property had been sold is avoided. A portion of the annuity amount is reported as capital gain income over your life expectancy if you name yourself as one of the annuitants. The net effect is to reduce the tax-free portion of the annuity payments. Use a Deferred Payment Gift Annuity to Supplement Your Retirement Funds Instead of securing an immediate payment under a gift annuity, you can have it deferred until a later date, such as your retirement. You make the contribution now, securing a current income tax charitable deduction, and Cumberland College will pay you fixed annual payments starting at any age you choose. This is especially advantageous if your tax bracket is higher now than it will be later. In addition, the annual payout rate is considerably higher when the payments begin. For many people, tax reform curtailed the tax benefits of IRAs, 401(k) plans and other retirement plans. The deferred payment gift annuity is a good way to make up for the loss of the future funds you may need. Example: Fred and Ann are both age 45. They transfer $2,000 annually to a series of joint and survivor gift annuities, arranging for payments to start when they reach age 65. Fred and Ann are in a 27 percent tax bracket, and they itemize their deductions. The first year they deducted $624 of the $2,000 transferred. The amount of their deduction decreases slightly each year thereafter. Based on then-current rates, they would receive $4,092 each year (partly tax free) beginning at age 65, a rate of 10.2 percent on their contributions totaling $40,000. Worry-Free Funds A charitable gift annuity is a gift that gives you fixed and attractive retirement funds with no investment worries or responsibilities. It also provides a way for you to make a special and enduring gift to support Cumberland College when the remainder becomes available for our needs. We will be glad to explain the specific financial benefits you can enjoy by participating in a charitable gift annuity. Please feel free to contact: Rick Fleenor Director of Alumni Services Cumberland College 6191 College Station Drive Williamsburg, KY 40769 © The Stelter Company The information in this article is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are based on current rates at the time of printing and are subject to change. “Until we can manage TIME, we can manage nothing else.” — Peter F. Drucker 20
Tribute Program Honor or Memorialize a Loved One What is a Tribute Gift A Tribute Gift shows love and respect for the person being honored or memorialized. It says to others that the world is a better place because of this person. Through a Tribute Gift to Cumberland College, a memory of the past or an honor of the present is tied to the future, as it is made to live on in the lives of our students. The size of the gift you send is up to you. Many send the amount they would spend on floral arrangements. Gifts generally range from $15 to $1,000, but the right amount for you is the one your heart tells you to send. An Honor Gift is a gift which shows admiration and respect for a loved one or friend on a significant day in their life such as a birthday, anniversary, etc. A Memorial Gift is a gift in memory of a departed loved one or friend. It is a wonderful way to express sympathy and high regard or as a means to remember birthdays, anniversaries, or other special days of a deceased loved one. How are Tribute Gifts Acknowledged For a Memorial Gift the family of the one you wish to memorialize is sent an appropriate card the same day the gift is received by the college. Then the name of the giver and the deceased will be listed in the next issue of Cumberland Today. For an Honor Gift the person being honored is sent an appropriate card listing the honor giver as well as the occasion for the honor. Then the name of the giver and the name of the honoree will be listed in the next issue of Cumberland Today. For all Tribute Gifts, the amount of the gift is kept confidential, and all gifts are tax deductible as allowed by law. How will your Tribute Gift Help Your gift will provide a lasting legacy for our students as it is used to help provide scholarship and workship assistance, books, supplies, food and housing, and many other supportive services. If you would like to send a gift to be included in our Tribute Gift Program,please send the gift along with the appropriate additional information to: Rick Fleenor Director of Alumni Services Cumberland College 6191 College Station Drive Williamsburg, KY 40769 Listings reflect Tribute Gifts received, June 16, 2002 through May 23, 2003. In preparing this list, every effort has been made to insure accuracy and completeness. If a mistake was made in the way you are identified or if your name was omitted, we apologize. You can help set the record straight. Please notify the President’s Office regarding any changes in the way your gift should be recorded in future reports. Thank you. 21
Page 2 and 3: 2002-2003 ALUMNI BOARD OF DIRECTORS
Page 4 and 5: Awards and Honors Bowling Receives
Page 6 and 7: Honorary Degrees Chick-fil-A Founde
Page 8 and 9: Cumberland’s Clocks During the pa
Page 10 and 11: Campus Renovations Cumberland alumn
Page 12 and 13: Alumni Athletic Hall of Fame ranked
Page 14 and 15: Faculty & Staff Recognition On Satu
Page 16 and 17: New Business Poynter to Succeed Ram
Page 18 and 19: If you haven’t already registered
Page 20 and 21: Alumni Honor Roll Mr. Robert W. Cok
Page 24 and 25: Tribute Gifts Memorial Gifts In Mem
Page 26 and 27: Tribute Gifts In Memory Of: William
Page 28 and 29: Class Notes James Davis (’72) is
Page 30 and 31: Class Notes Jonathan Gardner (’81
Page 32 and 33: Class Notes Tammy (Jones) Capps (
Page 34 and 35: Class Notes Barry French (’96) is
Page 36 and 37: Class Notes Andy Cooper (’01) is

Summer 2003 - University of the Cumberlands

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