Hundreds of Southwestern alumni and friends support Christian higher education through monthly and yearly contributions. Gifts to SCU help meet the educational needs of students, capital improvements, and special projects. Gifts in any amount, large or small, from alumni, friends and companies do make a difference at Southwestern Christian University.
Each year, donors provide the University with much-needed financial assistance through direct gifts of cash, securities, property or through planned giving.
There are many ways to give to SCU, whether the gifts are direct gifts or planned gifts. The Office of Institutional Development looks forward to working with you to help provide a bright future for Southwestern Christian University.
Direct gifts are the simplest form of gifts and result in an income tax deduction for the year in which the gift was made. Direct gifts are usually in the form of cash, securities, mutual funds, bonds, life insurance, personal property and real estate. Donation of appreciated assets directly to the University is more commonly used than selling the asset and then donating cash. This way, the capital gains tax is avoided on the sale of the appreciated asset.
1. Gifts of Cash
Gifts of cash are the easiest and most direct way to give to SCU and are fully deductible for individuals who itemize on their federal income tax return. Many alumni and friends participate in Southwestern’s Annual Heritage Fund with gifts of cash. Cash donors enjoy seeing the immediate results of their donations which expand University programs and facilities and benefit students, community, faculty and staff.
Cash gifts can also be used to create scholarships and endowments, support an academic program, or be designated to a capital campaign. A gift of cash might even be made through your will for these or other purposes,
2. EFT (Electronic Funds Transfer)
Monthly support to SCU programs can be convenient, easy, and safe. Choosing EFT will ensure consistent funds to the University, allowing administration to forecast and properly plan the growth of the University and its programs.
Simply contact the Office of Advancement and we will provide you with an EFT form to authorize SCU to instruct your bank or savings institution to make monthly gift payments of $10.00 or more directly from a checking or savings account. Within two months, you will notice the EFT amount on your account statement.
Each quarter, you will receive a gift receipt from SCU listing the amount of your donations during the year. Save these receipts for tax documentation.
3. Gifts of Securities
A gift of appreciated securities is a popular alternative to a cash gift because it actually saves taxes twice. You not only receive an income tax deduction for the full fair market value of your securities, but you also avoid capital gains tax on the appreciation (assuming you have held the securities for more than one year). You may realize substantial estate and gift tax benefits if appreciated securities are used to make a bequest to SCU.
You may claim an income tax charitable deduction of up to 30 percent of your adjusted gross income for a gift of securities held for more than one year. As with gifts of cash, any deduction you cannot use in the year of your gift may be carried over and used for up to five additional years.
You have spent most of your lifetime accumulating your estate and making plans that will continue your legacy and the legacy of your family. By considering some of the following planned gifts, you have the opportunity to direct your donations toward areas of personal interest and values.
1. Charitable Bequest
There are several ways to indicate a gift to Southwestern Christian University through wills or living trusts.
1. A donor can specify a dollar amount to be given to the University.
2. A donor can give specific assets of real estate, stocks, or bonds to the University.
3. A donor states a percentage of the total estate to be designated to the University.
4. A donor can specify that the residual of the estate goes to the University.
2. Gift of a current policy or originating a life insurance policy
While there are many ways to use life insurance as a gift to Southwestern Christian University, two of the most common are: naming the University as beneficiary or transferring the policy to the University.
Make SCU your Life Insurance Beneficiary
One way to make a sizable future gift is to make Southwestern the beneficiary (or contingent beneficiary) of your life insurance policy. You retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary. A gift of this nature is treated much like a bequest made through your will. Since you retain the ownership of the policy, you are not entitled to an income tax charitable deduction for this future gift or for the premium payments. The policy value will be included in your gross estate, and your estate will be eligible for an estate tax charitable deduction.
Making a Gift of Your Policy
You may want to transfer ownership of a policy to the University, or purchase a new policy with SCU as owner and beneficiary. If you make Southwestern the owner and beneficiary of the policy, you will be entitled to tax advantages.
3. Charitable Gift Annuities
One of the simplest and most popular charitable gifts is a charitable gift annuity. This type of gift is designed to grant the donor an income from their gift to the University. The gift annuity is a contractual agreement when the donor transfers cash, real estate or securities to the University. This charitable gift annuity immediately becomes the property of the University and is an irrevocable gift. In return, the University obligates itself to pay a fixed and specified dollar amount to the donor(s) for the life of the donor.
This gift option is a combination of an investment and a gift and provides life income to the donor (and other recipients if desired.)
4. Charitable Remainder Trust
This trust permits a donor to convert appreciated assets into lifetime income while avoiding capital gains tax at the sale of the asset(s). Some of the benefits of the Charitable Remainder Trust is the ability to reduce income taxes, estate taxes and avoid capital gains tax. One of the particular and main advantages of the Charitable Remainder Trust is the ability to still retain some control over the operation of the trust. Although the Charitable Remainder Trust is irrevocable, the donor can serve as trustee of the trust giving the ability to make changes in investment, trustee, and beneficiary decisions.