There are many ways to support the Illinois College of Optometry and the Illinois Eye Institute while also contributing to your own personal and financial goals.
Outright gifts, such as cash, stock, and property, can lower your tax liability. They allow the College to put your philanthropy to work immediately in an area of special interest to you. Deferred gifts benefit ICO now and in the future. Such gifts can substantially lower income taxes and estate taxes.
You can designate your gift to benefit one or more areas of your choosing, or make an unrestricted gift so the funds will be used where the need is greatest.
A gift of cash is the most common way of making a gift and also is the simplest way to show your support for the students and programs at ICO. One of the advantages of a cash gift is that it allows the College to make immediate use of the gift.
To make a gift by Check, Money Order, or Credit Card
You may donate online by using the link to the left or you may click here to access a downloadable gift form that can be filled out and mailed along with your check or money order made payable to the Illinois College of Optometry. This form may also be used to make a gift using your credit card (Visa, MasterCard, American Express or Discover). Send your gift to the address on of the pledge form.
OR you can call us at (312) 949-7071 and make your gift via credit card
Your gift may qualify you for membership in ICO's premier giving society!
Click here for more information on ICO's Leadership Circle
Interested in how you can join the Leadership Circle?
Click here for information on the Dr. Donovan Crouch Alumni Council Leadership Circle Challenge
As an expression of dedication and generosity for the Illinois College of Optometry and its students, many alumni and friends have pledged parts of their personal estates in support of the College. Because of their belief in our mission and the impact on the profession of Optometry, these dedicated individuals are providing, in perpetuity, for future generations of optometrists. This can be an important consideration of those whose estates might otherwise be subject to higher estate tax rates. With a gift through your will or living trust, you retain full use of your gift property during your life.
Types of charitable bequests, include:
General Bequest
The most familiar type of bequest is the general bequest, which specifies that ICO will receive a designated sum. For example, you might make a general bequest of $10,000. You may prefer this arrangement because it is considered a primary charge against your estate, which means it will almost certainly be fulfilled.
Percentage Bequest
This is an excellent alternative to the general bequest. The percentage bequest states that ICO will receive a certain predetermined percentage of your estate. By making a percentage bequest of 10%, for example, you assure yourself that inflation will not reduce the true value of the bequest you intended for our benefit.
Specific Bequest
When making a specific bequest, you are directing that one particular property be transferred to ICO, such as a certain piece of real estate, the stock from one specific company or some other specific property. This type of bequest is ideal for individuals wishing to give particular stocks or a valuable art object.
Residuary Bequest
This bequest directs that ICO receive either everything remaining in your estate or a designated percentage of your estate after all necessary costs, all general bequests, and all specific bequests are satisfied. This type of bequest allows you the flexibility of making several primary bequests while still giving you the assurance that ICO will be a secondary beneficiary of your estate. But the residuary bequest has the drawback of uncertainty. ICO would receive only as much, or as little, as is left after all primary obligations are satisfied.
Contingent Bequest
As the name implies, this bequest is "contingent" on some event. Usually, you might make a primary bequest for a relative, with the contingency that if that relative is not living at the time of your death, the bequest would pass to ICO. The contingent bequest is often used in the case of a husband or wife who stipulates that if his or her spouse is not living at the time of his or her death, then the bequest specified for the spouse will pass to a contingent charitable beneficiary.
For more information please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Charitable Remainder Unitrust
What is a charitable remainder unitrust?
A charitable remainder unitrust ("Unitrust") is a gift plan defined by federal tax law that allows you to provide income to yourself or others while making a generous gift to Illinois College of Optometry. The income may continue for the lifetimes of the beneficiaries you name, a fixed term of not more than 20 years, or a combination of the two.
As a unitrust donor, you irrevocably transfer assets, usually cash, securities, or real estate, to a trustee of your choice.
During the unitrust's term, the trustee invests the unitrust's assets. Each year, the trustee distributes a fixed percentage of the unitrust's current value, as revalued annually, to your income beneficiaries. If the unitrust's value goes up from one year to the next, its payout increases proportionately. Likewise, if the unitrust's value goes down, the amount it distributes also goes down. For this reason, it may be to your advantage to choose a relatively low payout percentage so that the unitrust assets can grow, which in turn will allow the unitrust's yearly payments to grow.
Payments must be between 5% and 50% of the trust's annual value and are made out of trust income, or trust principal if income is not adequate. Payments may be made annually, semiannually, or quarterly.
When the unitrust term ends, the unitrust's principal passes to Illinois College of Optometry to be used for the purpose you designate. You may add funds to your unitrust whenever you like.
Benefits include:
1. You will qualify for a federal income tax deduction. Note that deductions for gifts of long-term appreciated property will be limited to 30% of your adjusted gross income and gifts of cash and non-appreciated property will be limited to 50% of your adjusted gross income. You may, if necessary, take unused deductions of either kind over the next five years, subject to the same 30% or 50% limitation.
2. The income beneficiaries you name will receive annual income for life or for the period you designate.
3. If you fund the trust with an appreciated asset and the trust sells it, there will be no immediate tax on the capital gain. If you were to sell such an asset yourself, you would owe tax on all the capital gain realized in the sale.
4. Your estate may enjoy reduced probate costs and estate taxes.
5. You will provide generous support to Illinois College of Optometry.
For more information please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Charitable Gift Annuity
The charitable gift annuity is one of the oldest forms of gifts with retained income. It may seem strange to think of a gift that is associated with income. However, this type of gift may be an appropriate answer to those donors who wish to make a meaningful contribution to the Illinois College of Optometry while at the same time creating, maintaining, or enhancing an income stream for their own economic security.
What is a charitable gift annuity? Simply, it is a legal agreement between an individual(s) and the Illinois College of Optometry in which the donor gives money or securities, and in return, the College agrees to pay the donor a fixed income for life.
The amount of income received is determined by the value of the gift and the annuity rate. The annuity rate is determined by the donor's age at the time the gift is made.
The following tables list applicable annuity rates for certain ages:
ONE LIFE
(yourself) |
TWO LIVES
(yourself and another) |
AGE |
RATE |
AGE |
RATE |
60 |
5.7% |
65/60 |
5.5% |
65 |
6.0% |
70/65 |
5.7% |
70 |
6.5% |
75/70 |
6.1% |
75 |
7.1% |
80/75 |
6.6% |
80 |
8.0% |
85/80 |
7.3% |
85 |
9.5% |
90/85 |
8.4% |
90 |
11.3% |
95/90 |
10.1% |
Given current market conditions, the rates are generating significant interest among donors.
EXAMPLE: Dr. Smith, age 76, contributed $10,000 to ICO in exchange for a gift annuity that will pay her 7.2% for the rest of her life. Her annual income will be $720, paid in quarterly payments of $180.
Additional Benefits:
- Only $225 of the annual income is taxable as ordinary income. The remaining $495 comes to her tax-free.
- The charitable tax deduction is $4,165. At maturity of the annuity, this program provides gift support for ICO student scholarships, faculty research, program needs and other important initiatives.
For more information, please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Gifts-in-Kind
Gifts-in-kind are non-cash donations of materials or long-lived assets that support and serve the mission of ICO. Such gifts may include equipment, software, or printed materials. Gifts-in-kind are a valued way of supporting the College and are tax deductible according to IRS regulations.If you would like to learn more about giving a gift-in-kind to ICO, please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Gifts
of Appreciated Securities
Many donors choose to make gifts in the form of common stock or other publicly traded securities. Substantial tax benefits are realized by transferring appreciated securities held long-term (owned by the donor for more than one year prior to the gift) to the Illinois College of Optometry. By making such a gift, the donor is entitled to a federal income tax deduction for the full fair market value of the security, subject to applicable limitations. By contributing the security instead of selling it outright and contributing the proceeds of the sale, the donor avoids c.
apital gains tax liability. This means you receive a double tax benefit.
It’s easy to make a gift of securities. There are three methods to transfer the stock:
- If the certificates are held in a brokerage account, simply ask your broker to contact our office for instructions on making the transfer.
- If you have the stock certificates in your possession, send the unendorsed stock certificates by registered mail to our office. Enclose a cover letter outlining the purpose of your gift, along with a description of the issues and the number of shares and certificates. In a separate mailing, send signed “stock power” forms for each certificate with the name of the issue filled in and the signature guaranteed by a broker or officer of a national bank. We can sell the stock more readily if you sign a blank stock power without filling in our name.
- Lastly, you can hand-deliver securities to the Illinois College of Optometry’s Office of Institutional Advancement.
For more information, please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Life Insurance as a Gift
Many alumni and friends of the Illinois College of Optometry have made significant financial commitments to the institution by using life insurance as a sensible and affordable way of giving.
Quite often the comment is made, "I want to do something significant for the College someday. I hope I will be in the financial position to make a meaningful contribution for a scholarship or something." Have you heard yourself saying that?
Perhaps a gift of life insurance can be an ideal and cost-effective way for you to do something today that can have a tremendous impact on tomorrow. The use of life insurance as a gift is a versatile and valuable asset. Relatively few dollars in premiums can ensure relatively large benefits being directed to ICO.
Purchasing a New Life Insurance Policy as a Gift
The purchase of a new life insurance policy, where the ICO is named owner and beneficiary, is a widely used method for contributing.
Although donors may purchase whole life or term policies at their discretion, a majority of donors have chosen the whole life policy as best fitting their economic circumstances and charitable intent.
Giving an Existing Life Insurance Policy
Regardless of the type of life insurance plan that you currently have (whole life or term) most policies can be contributed to the College with relative ease. Whether in whole or in part, the College can be named as beneficiary in your policy. You can make a wonderful gift without disturbing other assets and without loss of income.
Tax Consideration in Giving Life Insurance
Taking a charitable deduction for a gift of life insurance can only occur when the College is named as the owner of the policy in addition to being the irrevocable beneficiary.
For the gift of a paid-up policy, your charitable deduction generally amounts to what it would cost to replace the policy. For a policy on which premiums remain payable, the deduction is slightly higher than the policy's cash surrender value. These figures are easily obtainable from the insurance company.
If you elect to continue paying the premiums, you are allowed a further deduction for each payment. Payment can be made either directly to the insurer, or by making periodic gifts to the College to cover our cost of maintaining the policy in full force.
Remember, life insurance makes an ideal and affordable charitable gift. It has significant advantages to you and the College. We welcome any questions you may have about specific details.
For more information, please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Gifts of Real Estate
With proper planning and timing of a charitable real estate gift, a donor will enjoy added benefits created by incentives in our tax system.
Gifts of real estate which are held long term (i.e., longer than one year) are generally tax deductible at full fair market value, with no tax on the appreciation above original cost.
Gifts of appreciated real estate such as undeveloped land, farms, or personal residences may be transferred by deed to the Illinois College of Optometry with no liability for income or estate taxes on the appreciation. For this reason, it may make sense to make contributions of real estate where the current market value of the gift may be significantly greater than its original cost. It is a wonderful way to make a significant impact on the College’s outstanding students and academic programs.
If the market value of the contributed real estate exceeds $5,000, an income tax charitable deduction will not be allowed unless the donor complies with IRS "qualified appraisal" requirements.
A qualified appraisal can be done any time from 60 days before the donation, up until the due date (including extensions) for the return, on which the donor reports or claims the gift.
The appraisal fee will be the obligation of the donor, who can deduct the cost of the appraisal as an IRS, Sec. 212(3) deduction, not as a charitable deduction under the IRS, Sec. 170.
For more information, please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Gifts of Tangible Personal Property
Tangible personal property is commonly thought of as an asset that can be touched and moved. Examples of tangible personal property include artwork, jewelry, collections, automobiles, furniture, rare coins and stamps, boats, books, antiques, etc.
A gift of tangible personal property can be an appropriate gift to Illinois College of Optometry. In addition, such a gift can generate a charitable tax deduction.
However, a gift of tangible personal property is subject to certain Internal Revenue Service rules regarding the charitable deduction. Specifically, the IRS has ruled that donated tangible personal property must be put to a use "related" to the purpose or mission of the organization. A related purpose, or use, of a personal property gift must exist in order that the full fair market value of the asset be a charitable deduction. Otherwise, the charitable deduction is limited to the cost basis of the asset.
Some examples of tangible personal property that could have a related use to ICO, if given as a gift, are:
1. Computers; software
2. Books related to course work at the College
3. Optometric equipment
4. Eyewear
5. Patents and copyrights
Delivery
The delivery date, or date of the gift, is the date the tangible personal property is received by the College.
Valuation for Charitable Deduction
If a donor claims a charitable deduction of more than $500 for the contribution of tangible personal property, then Part I of IRS Form 8283 must be completed.
If a donor claims a charitable deduction of more than $5,000 for the contribution of tangible personal property, then the donor is required to have a qualified appraisal dated within 60 days of the donation and reported in Part B of the IRS Form 8283. The donor, according to IRS guidelines, must pay the appraisal fee.
For more information please contact David Korajczyk at (312) 949-7075 or dkorajczyk@ico.edu.
Honorary or Memorial Gifts
Honorary gifts recognize special individuals, anniversaries or events. Memorial gifts recognize lifetime accomplishments of individuals who have passed away. Honorary or memorial gifts can be unrestricted or designated for use in the College or the Illinois Eye Institute. Gifts are recognized with a card sent to the honoree or family of the memorialized individual. For more information on making an honorary or memorial gift to the Illinois College of Optometry, contact Patricia de Maat at (312) 949-7071 or pdemaat@ico.edu.
Matching Gifts
When you make a gift to ICO, you can multiply the effects of your philanthropy by taking advantage of a corporate matching gift programs which allow you, as an employee, to direct your organization's corporate philanthropy to the benefit of the College. Check with your human resources or employee benefits office to find out if your company will match your gift. You may also qualify under the matching gift program of a company from which you retired, at which your spouse works or from which he/she has retired, or on whose board you serve. There are also some foundations and associations that provide matching funds.
If you discover that you can garner these additional funds for ICO, please complete the appropriate forms obtained from your employer and send them along with your gift. For more information, please contact Patricia de Maat at (312) 949-7071 or pdemaat@ico.edu.
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