Bob Delaney '55 and Ed Koch '58 Use Appreciated Assets to Support Bowdoin College
Diversify Your Portfolio With a Gift
History has shown that in well-diversified investment portfolios, asset allocation is the primary driver of investment return. Many loyal Bowdoin alumni have found that they can convert non-income producing appreciated assets to a stream of income for life while at the same time reducing risk through diversification and fulfilling their charitable wishes for the College. Bob Delaney '55 and Ed Koch '58 are two fans of Bowdoin's charitable gift annuities. Read more about why Bob and Ed are fans of charitable gift annuities at Bowdoin.
Ed Koch '58 has established 16 charitable gift annuities (CGAs) at Bowdoin and plans to do his 17th in this, his 60th Reunion year. Ed is a stock picker with his own formula: when a stock increases in value by 50% he either sells it, or transfers it to the College to fund a gift annuity, assuming the stock qualifies as a long-term gain. Ed has established the Edward T. Koch Scholarship Fund which is designated to receive the remainder value of his CGAs. By using appreciated stock to fund his CGAs, Ed is able to avoid immediate payment of capital gains, spreading it out over his life expectancy. In addition to securing a stream of income for life backed by the College for each of his gift annuities, Ed's gifts of stock to Bowdoin entitle him to an available charitable tax deduction in the year his gifts are made.
Bob Delaney '55 has established three charitable gift annuities at Bowdoin for himself and his wife, Roberta. A retired Goldman Sachs investment banker, Bob is an astute financial analyst with concerns about the chances of a major correction in domestic equities. Bob sees CGAs as a way to make a significant gift to Bowdoin and wring better yields out of cash. The remainder values of two of Bob's CGAs are designated to support the Class of 1955 Scholarship Fund while his most recent CGA gift is for unrestricted use by the College.
Make a Lasting Impact
You can make a lasting impact on Bowdoin's students now and in the future. To learn more, visit our webpage or contact Office of Gift Planning at 207-725-3172 or firstname.lastname@example.org.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
A charitable bequest is one or two sentences in your will or living trust that leave to Bowdoin College a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
"I give to Bowdoin College, a nonprofit corporation currently located at 4100 College Station, Brunswick, ME 04011, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor-advised fund is a charitable account sponsored by a public charity that donors use to support their philanthropy.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.
A lead trust holds appreciating assets for a term of years (or for your lifetime), and makes quarterly or annual payments to Bowdoin College. The College benefits from the stream of reliable, steady gifts from the lead trust, and you're able to witness the impact of your gifts during your lifetime. At the end of the trust's term, all remaining trust assets are distributed to your designated beneficiaries with greatly reduced (in some cases zeroing out) gift and estate tax, regardless of how much the trust has grown.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Bowdoin as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Bowdoin as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.
A charitable gift annuity involves a simple contract between you and Bowdoin where you agree to make a gift to Bowdoin and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
With a retained life estate, the donor(s) irrevocably deeds a personal residence or farm to the College, but retains the right to live in it for the rest of his/her life, a term of years, or a combination of the two. The term is most commonly measured by the life of the donor or of the donor and the donor’s spouse.