Deferred Giving Options for ACE Members

As members of the Association for Communication Excellence (ACE), we recognize the importance of professional development and networking opportunities. To maintain the high quality opportunities for professional communicators and information technologists offered through ACE, we need the support of private gifts.

Funds given by individuals like you will help ACE to provide professional learning experiences for many years to come. Gifts provided without restrictions can fund programs that advance the professional development of ACE members. Designated gifts can be used for particular priorities defined by the donor and ACE.

As with all major financial decisions, you should consult with your attorney and financial advisors if you decide to make a planned gift to ACE. If you and your advisors would like further information, you can request planned giving information in confidence and without obligation from Headquarters.

Bequest in a Will or Living Trust
A bequest is a gift made through a will or living trust. ACE can be named beneficiary in the wills and living trusts of ACE members and friends. Bequests may be stated as a percentage of the estate, as the residual of the estate or as a specific dollar amount. Since a will can be changed, no income tax benefits are associated with a bequest. However, the donor's estate is reduced by the amount of the bequest for estate tax purposes.

The drafting of your will or living trust should be arranged with your attorney. ACE representatives are available to confer with you and your attorney in drafting the appropriate bequest clauses.

Cash Gifts
A gift of cash is the easiest way to give to ACE. Simply make your check payable to the Association for Communication Excellence and mail it to ACE Headquarters, University of Florida, P.O. Box 110811, Gainesville, Florida 32611-0811. This directs your gift to be recorded and receipted promptly. Please include a short note with your check stating the purpose or designation of your gift, or you may note this on the memo line of your check. Without designation your gift will be recorded as unrestricted, and its use will be determined by the ACE board of directors.

Charitable Gift Annuity
The charitable gift annuity is a contract between ACE and the donor whereby ACE promises to pay a fixed annuity to a maximum of two beneficiaries (beginning immediately or deferred to a later date) in exchange for the irrevocable transfer of assets by the donor to ACE. Annuity payments are based on the initial market value of the assets contributed and the ages of the income beneficiaries. A portion of the annuity payment may be considered tax-free return of principal. An income tax deduction is allowed for the difference between the value of the gift and the present value of the annuity.

Charitable Lead Trusts
With a charitable lead trust, the Association for Communication Excellence receives the income from the donor's assets for a specified time, after which the asset is transferred back to the donor or to the donor's heirs. A lead trust can reduce gift and estate taxes or provide a charitable deduction for the donor.

Charitable Remainder Unitrust
In this case, the donor transfers cash, real estate or securities to an irrevocable trust that provides yearly, fluctuating income to the donor or other beneficiaries for a specified term or for life. Trust assets are revalued annually, allowing potential growth in income to the beneficiaries. Additional contributions can be made to the trust. Upon the death of the final beneficiary, the charity receives the principal and distributes it according to the donor's wishes. An income tax deduction is allowed for an amount equal to the present value of ACE's remainder interest in the trust.

Corporate Matching Gifts
Many corporations encourage employees to participate in philanthropic opportunities by matching, doubling, or even tripling each dollar they contribute to ACE. Your company's personnel department can provide details and the matching gift form to include with your gift check.

Deferred Gift Annuity
As with a standard gift annuity, a donor makes a gift now and receives an immediate income tax deduction. However, the donor begins receiving the annuity payment at a future, predetermined date. Because of compounding between the date of gift and the first annuity, payments can be significant and at a much greater rate than of the standard charitable gift annuity.

Deferred Gifts
Deferred gifts are the result of careful planning that integrates a donor's charitable gift into his or her overall financial, tax and estate planning objectives to maximize benefits for both the donor and ACE. Planned gifts typically come from a donor's assets rather than income and can be outright gifts, deferred gifts or a combination of the two.

Each of the deferred giving instruments summarized below is closely regulated by law and requires special arrangements and tax treatment.

Electronic Funds Transfers
The option of electronic funds transfers (EFT) is available as a gift payment method. Many people have become comfortable with having their monthly bills automatically debited; now we are extending that same convenience to our members and friends who wish to support ACE. A minimum pledge is required to take advantage of the EFT Payment option. Donors may choose to designate their gift to their program of choice by filling out a special form. To obtain forms, please contact ACE Headquarters.

Gift of Securities
Common stocks, bonds, mutual funds and other securities may be donated to ACE. Depending upon the circumstances, ACE Headquarters will either manage or liquidate the securities to achieve the donor's goals. A popular benefit of such a gift, beyond the charitable income tax deduction, is the avoidance, in most cases, of capital gains tax on the appreciation. It is almost always to your advantage to transfer appreciated securities to ACE directly, rather than selling them and giving cash.

You, your broker or bank trust officer should contact ACE Headquarters to determine the best method for the transfer of your securities to ACE. Instructing the transfer agent to reissue the stock in ACE's name often causes delay. This can especially be a problem for year-end gifts, since the delay could result in a different valuation of gift date than intended. For information about gifts of stock in closely held corporation, also contact ACE Headquarters.

Life Income Gifts
Charitable remainder trusts are becoming increasingly popular methods of giving. There are two basic types: the charitable remainder annuity trust and the chartitable remainder unitrust. Both can be funded through a gift of stock, cash or other assets during a donor's lifetime or through a testamentary disposition. Both provide life income for the donor and/or designated beneficiary(ies). The donor may claim a tax deduction for the estimated portion of the assets that will ultimately go to ACE. The assets of the trust are available for future use by ACE for the designated purpose(s).

Life Insurance
Life insurance can become a gift more valuable than the actual money expended when the policy is given to ACE, which is named as the beneficiary. Three different giving opportunities are available with life insurance. First, a donor can contribute a "paid up" policy to ACE and receive an income tax deduction equal to the policy's cash/replacement value. Second, a donor can name ACE as primary beneficiary of the policy, resulting in estate tax savings, but no income tax deduction. Third, a donor can name ACE as owner and beneficiary of a new policy and receive an income tax deduction for the amount of the premiums paid.

Retirement Accounts
A donor can name ACE as primary beneficiary of a retirement account with the value being fully deductible for estate tax purposes. Furthermore, income in respect of a decedent (IRD) is avoided since ACE is a tax-exempt entity. IRD is taxable to non-charitable beneficiaries, even if no estate tax is due.