With effective planning, many alumnae and friends of the College find that they can meet their personal financial goals and support their philanthropic interests while realizing significant tax savings. Randolph College staff can work with you and your financial advisor to present ideas that might help you make a gift you never imagined possible—establishing a scholarship or library fund, endowing a faculty chair, or providing substantial support for another initiative important to you.

You can make a gift and continue to receive income from the gift. In many cases, you can even increase your income from the asset you contribute.

You can give assets you might not have considered as potential gifts (real or personal property, life insurance, closely-held stock).

If income from an asset is less important than preserving its value for your children or others, then you can make a gift to the College that will help you avoid estate taxes when you pass assets to heirs.

Please contact Jean Stewart for more information.

Also, please note that the information on this Web site is provided as a general guide. It is NOT intended as legal advice. You should consult your attorney or financial advisor regarding the effect any of these gifts might have on your financial and estate plans.

Gift Annuity and Deferred Gift Annuity

A charitable gift annuity (CGA) combines a gift with an annuity. It is a contract between you and Randolph College in which you transfer assets (usually cash or stock) to the College, and the College agrees to make regular fixed payments to you for the rest of your life. After your death (and the death of a second beneficiary, if you designate one) the annuity fund comes to the College.

Quick Facts
A gift annuity can increase your income (payout rates range from 6.6% for a 60-year-old to 12% for a 90-year-old).
You receive an immediate income tax charitable deduction for a portion of the gift. Part of each income payment is tax-free.
You can elect to receive semi-annual or quarterly payments. Income is fixed—it will not vary with fluctuations in the economy.
Gift annuities may be established with a minimum gift of $10,000.
If you use appreciated stock to fund the gift, you bypass part of the capital gains tax.
The College prepares necessary documents, so you incur no cost to establish the gift.
The College has been issuing gift annuities since 1983 and currently manages over $1 million in annuity funds.

Pooled Income Fund

As an alumna or friend of the College, you may participate in the Randolph College Pooled Income Fund (PIF). This fund operates like a charitable mutual fund: it combines your gift with those of other donors in a single account and distributes quarterly income as long as you live. After your death (and the death of a second beneficiary, if you designate one), your portion of the principal comes to the College.

Quick Facts
Historical performance of the Pooled Income Fund has resulted in average income payments of 5.5% and average capital growth of 4.5% for a total return of 10%.
Income payments vary; ideally, income grows over time to provide a hedge against inflation, but it can also decline if the stock market loses value.
You receive an income tax charitable deduction when you make the gift.
If you use appreciated stock to fund the gift, you bypass capital gains tax.
A Pooled Income Fund gift can be established with a minimum payment of $10,000; additions may be made at any time (minimum $2500).
The College prepares necessary documents, so you incur no cost to establish the gift. You can achieve the investment benefits available to a larger trust but minimize your investment risk and eliminate overhead costs.
Established in 1972, the Pooled Income Fund has over 30 participants and $2 million in investments.

Bequests

There are several different ways you can designate a bequest for the College in your will:

Specific cash bequest: Randolph College will receive a specific dollar amount.
Specific bequest of property: Randolph College will receive a specific asset, such as securities, a work of art, or real estate.
Residuary bequest: the College will receive all or a portion of the remainder of your estate after specific bequests are distributed and all estate-related expenses are paid.
Contingent bequest: Randolph College receives a bequest only if other beneficiaries are no longer living.
Testamentary trust: in your will, you provide for a trust to be created at your death to provide one or more beneficiaries with income for life, after which the trust assets will come to Randolph College. Bequests to Randolph College are deductible for federal estate tax purposes and are generally not subject to state inheritance or estate taxes. A bequest is a revocable commitment—one that you can change by creating a new will or adding a codicil to your current will. Including a bequest for Randolph College in your will qualifies you for recognition in the Legacy Club.
Sample Bequest Language: I give, devise, and bequeath to the Trustees of Randolph College (founded as Randolph-Macon Woman’s College in 1891), a corporation located in Lynchburg, Virginia (the College), the sum of $_____ dollars [or property, securities, etc.], to be used for [describe the purpose in as broad and simple terms as possible], or in the event that such use shall in the judgment of the Board of Trustees of the College become impracticable, said trustees may use the bequest for other purposes as nearly akin to the original purpose as they judge will help advance the aims of the College.

Most bequests made to the College are unrestricted or are designated for student scholarships. Please contact the Director of Planned Giving for information about supporting other needs of the College through a bequest in your will.

Gifts of Real Estate

When you make a gift of real estate or real property to Randolph College, you receive an income tax charitable deduction for the full market value; avoid capital gains taxes on the appreciation; eliminate some costs involved in transferring real property; and, in some cases, provide income to you.

What types of property can you consider? They include:

• primary residence
• vacation home
• farm
• ranch
• commercial building
• parcel of land
• interests such as mineral rights

As with cash and securities, real estate or real property may be given outright to the College or may be given in ways that allow you to use the property during your lifetime or that of a beneficiary.