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Annual Giving

Planning Your Gift

Bicentennial Initiatives

Committee on Development Meeting

March 4, 2011

As Jeff Little wrote in letters to the Hamilton family, “… we are not standing still, … this campaign is an opportunity to assert our priorities.” Speaking of opportunities, they abound in the new tax legislation. Each of us must be aware of them as we speak with others interested in Hamilton.

  • President Obama signed tax legislation on Friday, December 17, 2010. By the following Monday, Hamilton advised alumni over the age of 70 1/2 that the “IRA Charitable Rollover”provision was extended to 2010 and 2011, allowing lifetime transfers of IRAs to charities.
  • The legislation lowered gift, generation-skipping transfer and estate tax rates and increased exclusions through December 31, 2012. Some experts believe, including several quoted in a February 9, 2011, New York Times article, the legislation will free-up assets for charitable purposes. We agree. Consider:
    • Asset transfer strategies -- gifts to heirs, grantor retained trusts, and charitable lead trusts.
    • Donors can “leverage” the higher gift and generation-skipping transfer tax exclusions with a charitable lead trust.
    • Lead trust distributions to Hamilton can meet Bicentennial Initiatives objectives.
    • Charitable lead annuity trusts -- are even more attractive because the Discount Rate, a variable used in the calculation of gift tax deductions, is at a historic low.
  • Suggest stock contributions in advance of merger and acquisition activity, e.g. Burlington Northern.
  • Employ the following strategies enhanced by a historically low capital gains tax rate. Refer to Planned Gift Solutions, on the Planned Giving web page:
    • Contribute some securities, sell some securities, using deduction to offset gain.
    • Lock in the current value of securities.
    • Reinvest/diversify assets in a tax wise way.
    • Increase your cost basis in a stock.
  • Make assets productive/simplify estate administration by contributing a:
    • Vacation home in a charitable remainder trust.
    • Remainder interest in your home, while retaining life use. A strategy also enhanced by the low Discount Rate.
    • Highly appreciated, low-yielding asset to a charitable remainder trust.

At Your Service

Hamilton makes a number of resources available to you, including the following:

Email Ben Madonia '74 or Joni Chizzonite or call 1-866-729-0317 for more information.