Planned Gifts

Keep in mind the various forms of gifts the Foundation accepts

1. Bequests

   A simple bequest to Pima Foundation is the most common type of planned gift and is usually done through either a Last Will and Testament or a Trust. Those making such a gift who already have a Will in place can simply add a “codicil” to the Will, designating the gift.

   Bequests can be made for a specific dollar amount or as a percentage of what remains in the estate after the family’s needs have been taken care of.

   The recommended language for a bequest to the Foundation to benefit Pima Community College is, “I give the sum of $_____ (-or- I give _____ percent of the remainder of my estate) to Pima Community College Foundation, a non-profit charitable organization located in Tucson, Arizona, Tax ID #86-0345089”

   Although Arizona residents are permitted to hand-write their own Last Will and Testament (a Will), we recommend the creation of legal documents with the assistance of an Estate Law attorney.

2. Charitable Trusts

   There are several types of Charitable Trusts that can be established during one’s lifetime that have all have the same objectives: providing an income stream (or a lump sum) to an individual; and providing an income stream (or a lump sum) to a charitable organization. These Trusts are of two general types:

   Charitable Remainder Trusts*
   Provide an income stream over several years (possibly the donor’s lifetime) to one or two beneficiaries, with the “remainder” (that which remains in the Trust after the death of the beneficiary(s) passing) going to a charitable organization(s).

   Charitable Lead Trusts*
   Provide an income stream over several years (possibly the donor’s lifetime, but generally for a fixed number of years) to a charitable organization(s), with the “remainder” (that which remains in the Trust after a pre-determined number of years) going to a beneficiary or beneficiaries. Charitable Lead Trusts are especially attractive to high net-worth individuals who wish to pass a portion of their estates to children or grandchildren while minimizing taxes.

   *There are several ways in which Trusts can be established; any Trust should be created in consultation with a qualified estate-planning attorney.

3. Donor-Advised Funds

   Donor-Advised Funds ("DAF") are generally established with community foundations or through a non-profit subsidiary of a banking institution and are wonderful vehicles through which donors can make their charitable donations.

   A DAF generally specifies what is to be done with funds renaming in the DAF upon the donor’s death. Designating Pima Foundation as the beneficiary or partial beneficiary of a DAF is a superb way to make a lasting contribution to the College.

4. Life Insurance Policies

   There are two ways in which life insurance policies can be used to make a gift in support of the College:

   1) The Pima Community College can be named as a beneficiary, co-beneficiary, or contingent beneficiary of the policy; changing a beneficiary is often as simple as requesting a Change of Beneficiary form from the insurance provider.

   2) Certain policies, such as Whole Life and Universal Life, have a value in-and-of themselves, and can be gifted to Pima Foundation; it is best to talk with your insurance agent about gifting a policy.

5. Real Estate

   Real estate gifts are a way that some individuals can make a truly significant gift to the Foundation. Gifts of real estate should ideally be reviewed prior to placing the gift in one’s estate, however, as gifts of real estate require approval by Pima Foundation board prior to acceptance.

   There are several ways in which real estate can be transferred, the most common of which are:
   + Setting up a “testamentary deed” with an attorney that transfers title of the property upon the donor’s death

   + Establishing a “Charitable Life Estate,” also through an attorney, which transfers title of either a primary residence or family farm to the Foundation as soon as the documents are executed but allowing the donor(s) to continue living on the property for the remainder of their days (paying property taxes, property insurance, utilities, property upkeep, etc.). A Charitable Life Estate can provide a significant tax deduction in the year it is executed, which can be of significant benefit to an individual or couple expect a significant tax burden in a given tax year.

6. Retirement Plan Assets

   For many, a high percentage of their assets is invested in a retirement plan such as an Individual Retirement Account (IRA), 401(K), 403(b) or other type plans. There are two ways to make a gift to Pima Foundation through those plans:

   + The Pima Community College can be named as a beneficiary, co-beneficiary, or contingent beneficiary of the plan; changing a beneficiary is often as simple as requesting a Change of Beneficiary form from the insurance provider.

   + For individuals 70 ½ years of age or older and who are required to take an annual distribution (“Required Minimum Distribution” or “RMD”) from their IRA, they may be able to make a gift using the Qualified Charitable Deduction. Doing so does not result in a tax-deductible gift for the donor, but it eliminates the need to pay income tax on the distribution! Avoiding the payment of income tax on the distribution is generally more advantageous for the donor than taking the charitable deduction.

   A few important things to remember, however:
   1) The transfer must be made directly from the IRA administrator to Pima Community College (the check can’t be made out to the donor)

   2) The gift should be made in place of taking the RMD (if the RMD has already been taken for the year, it’s best to wait until the next year to make the Qualified Charitable Distribution)

   3) Gifts to more than one charitable organization can be made but should be made simultaneously.

   The transfers to charity can total as much as $100,000 per year – regardless of the amount of the required RMD!