Outright | Planned Giving | Pledges

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Outright
Cash, Securities, Online Giving, Matching gifts, Stock or Bonds, Real Estate and Tangible Personal Property

Meredith College welcomes gifts of all types and will work with you and your financial advisors to maximize the tax benefits for you and the value of your gift to the College.

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Cash
Cash is the simplest way to give to Meredith. You may deduct a cash gift of up to 50% of your adjusted gross income on your federal income tax return. If your gift exceeds 50%, you may deduct the excess over the following five years, up to 50% of adjusted gross income in each carry-over year. A pledge or promissory note is not deductible until it is paid.Example: Elizabeth writes a check for $5,000 to the Meredith Fund in honor of her 25th Reunion. She claims a $5,000 charitable deduction on her federal income tax return. Because she is in the 30% income tax bracket, her deduction saves her $1,500 (.30 x $5,000) in income taxes. Elizabeth's $5,000 gift to the school costs her only $3,500 ($5,000 minus $1,500 in income tax savings).

Securities
If you contribute long-term appreciated securities that have been held for over one year, you enjoy a two-fold tax benefit: first, a charitable deduction for the fair market value of the securities; and second, no capital gains tax on the appreciation (difference between the cost basis and the current fair market value). You can deduct a gift of securities on your federal income tax return of up to 30% of your adjusted gross income. Similar to gifts of cash, there is a five-year carry-over allowance in order to realize the full benefit of the deduction.Example: To establish a scholarship, Kathryn gives securities to Meredith College that she had purchased for $50,000 ten years ago. The securities have appreciated and are now worth $100,000. Kathryn can take a charitable deduction of $100,000. She also avoids the capital gains tax on the $50,000 appreciation. Meredith College can sell the securities tax-free because of its not-for-profit tax exemption and reap the benefits of the full $100,000 of the gift.

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Matching Gifts
Often your gift to Meredith College can be multiplied by matching funds from companies and foundations. Check with your company's personnel office or call Meredith to find out if your company matches gifts. Click here to check online.

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Pledges
To make a pledge please contact the director of the The Meredith Fund at meredithfund@meredith.edu or call (919)760-8060.

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Gifts of Stocks or Bonds

Meredith College accepts gifts of securities (stocks and bonds).

The College's policy requires that securities given to Meredith College be sold as soon as possible. At times, a donor may express her wish that the gifted securities be held for a specific period of time. The College may or may not honor this request depending on a decision made by the Vice President of Business and Finance. Any restriction by a donor jeopardizes her/his deductibility unless a Rule 144 stock is involved.

Delivery of Securities

A donor may deliver or transfer a gift of stock in the following manner:

1. Electronic transfer
2. Medallion Signature Guarantee transfer (in person or via mail)

1. Electronic Transfer through the donor's broker is the most efficient and easiest for all concerned. A donor may instruct her/his broker to transfer the security to the College's account. It is extremely important that the donor or the donor's broker notify the Gift Records Coordinator of the impending transfer. A letter of intent then must be sent via mail or fax to our office. Click here for a stock transfer/letter of intent form.

Valuation of Security

A gift is valued on the date of transfer, assuming the security is marketable to the College at that time, which may be:

• The postmark date
• The date of delivery, if done personally
• The date the certificate is registered in the College's name with specific instructions authorized by any of the following; or
• The date the gift enters the College's account.

Gift valuation is based on the average of the high and low price of the security on the date of transfer. For example:

December 1st transfer date 100 shares XYZ Corporation

High of the day - $81.00
Low of the day - $78.00
Average - $79.50
Gift Value - $79.50 x 100 shares = $7,950.00

Meredith College Brokerage Information
Account #: AD 03662
DTC #: 0221
Contact:
Ron Walker or Amy Roberts
800.821.0355 or 336.834.6914
Ron.Walker@ubs.com or amy.krites@ubs.com

Meredith College
Attn: Advancement Services – Stock Gifts
3800 Hillsborough Street
Raleigh, NC 27607-5298

For more information contact Colleen Freeman
919.760.8158 or fax 919.760.2278
Email: giftrecords

Medallion Signature Guarantee Stock Transfer

When you have the stock certificates in hand:

1. Do not sign the stock certificates.

2. Go to a bank, a brokerage house or other financial institution that has a stock power form. This form needs to be signed and dated in their presence. Do not sign it in advance.

The donor must have a guaranteed stock power for every stock certificate. Each stock power has to be endorsed with the donor's signature, exactly as the name appears on the face of the stock certificate. The bank's licensed agent will provide a Medallion Signature Guarantee* on the stock power.

3. When the Medallion Signature Guarantee on the stock power is completed, prepare a dated authorization or cover letter to Bill Wade, Vice President for Business and Finance, Meredith College, 3800 Hillsborough Street, Raleigh, NC 27607, copying the Vice President for Institutional Advancement, Connie Harris.

In this letter, please state the purpose, number of shares and designation. This documents the donor's intent to give the stock to Meredith Collegeand tells the College how the gift should be designated. This can be as simple as a hand written letter. And it should be signed the same way the stock power(s) and certificate(s) are signed.

4. Please send the stock power(s) and the cover letter in one envelope and the unsigned stock certificates in another envelope (not in the same envelope)or deliverto the Business and Finance Vice President's office in Johnson Hall.

If it is mailed, the date of the gift is the date on the envelope. If it is hand delivered, the date it is delivered to campus is the date of the gift. It is essential that the stock power and the certificates are kept separate: they can be mailed on the same day, but in separate envelopes. If mailed, it is recommended that they be posted by certified mail.

*What is a Medallion Signature Guarantee?

In essence, a Medallion Signature guarantee indicates that the financial institution (such as a commercial bank, trust company, securities broker dealer, credit union or savings institution) is a member of a Medallion Signature Guarantee program and is an acceptable signature guarantor. This is not the same as a notarized signature. A notary stamp is not acceptable when transferring the ownership of stock. It protects the donor by making it harder for anyone to take these certificates or by forging the donor's signature.

Corporate/Foundation: For gifts by corporations or foundations, a corporate resolution should also accompany the Medallion signature guarantee.

Trust: For Trusteeships, a copy of the page designating individuals authorized to make transfers should accompany the Medallion signature guarantee.

Real Estate
Gifts of real estate can consist of many types of property: a principal residence or a vacation residence, a farm, a commercial building, subdivision lots or undeveloped land. The gift may be the entire property or a fractional interest in the property. The same benefits that accrue to gifts of appreciated securities apply to gifts of appreciated real estate. Gifts of real estate can be made as outright gifts or as life income gifts, such as a charitable remainder trust. Meredith College will need an environmental survey of the real estate before accepting a gift.Example: Paula, age 72, wants to make a substantial gift to Meredith College and also remove some assets from her taxable estate. She decides to give her home, with the reserved right to use the house for the rest of her life. Her accountant, using a formula prescribed by the IRS, determines the value of her income tax deduction.

Tangible Personal Property
Art, antiques, or any other form of tangible personal property may be given as charitable gifts to the College. Each item must be evaluated by Meredith College to determine whether or not it is related to the school's tax-exempt status and whether the College can reasonably use the gift. Gifts directly related to the College's tax-exempt purpose (e.g. a painting that is useful in art classes) can be deducted at their current market values. Other non-related gifts are limited to a deduction equal to your cost basis, which is generally what you paid for the item.If the College wishes to accept the property and if the property is valued at more than $5,000, you must obtain a professional independent appraisal (not more than 60 days prior to the date of gift) to receive a charitable deduction.Planned Giving Guide Meredith College 3The following information discusses the benefits and various forms of planned charitable gifts.Please consult your own advisors for tax and legal advice.

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Planned Giving
Life Income Gifts, Bequests, Lead Trusts, Charitable Remainder Trust, Testamentary Trust, Life Insurance, Retained Life Estate, Retirement, Charitable Gift Annuity, Legal Designation

• Heritage Newsletter Spring 2007 (.pdf)
• Heritage Newsletter Spring 2006 (.pdf)
• Heritage Newsletter Fall 2006 (.pdf)
• Planned Giving Guide (.pdf)
• Basic Will Preparation Guide (.pdf)

Your deferred gift will help continue a legacy at Meredith College for generations. It can also help you and your family with both financial benefits and tax savings.

Over 500 alumnae, faculty, staff, parents and friends have included Meredith in their estate plans. These gifts include bequests, gift annuities, life insurance policies and charitable remainder trusts.

By making a deferred gift you will join the many who have made gifts to the College while planning for their own future. The different plan instruments for making deferred gifts can be tax-wise as well as yield both immediate and long-term benefits. Regardless of the gift instrument, you can direct the proceeds of your gift to a scholarship, building or College program of your choice.

The Heritage Society recognizes contributors who have remembered Meredith in their estate plans. These individuals are dedicated to helping Meredith fulfill her obligation to future generations.

Our planned giving office would be pleased to work with you to find the plan that best fits your needs and goals. Before committing to a gift plan, please consult your attorney or financial advisor concerning your gift options.

We hope that you will take the opportunity to learn how deferred gifts have helped many of our alumnae and friends.

Contact the Office of Gift Planning at 919-760-8372 or by e-mail.

Life Income Gifts
For many alumnae and friends, the desire to make a gift to Meredith College is coupled with a continuing need for income from their assets. Fortunately, Meredith College's life income gift program makes it possible for a donor to achieve both of these objectives and receive substantial tax benefits as well. Life income gifts to Meredith may be made to Meredith through charitable gift annuities or charitable remainder trusts. These gifts may have the following benefits:

• A way to make a significant gift to Meredith College;
• Lifetime income to you and/or another;
• A charitable income tax deduction;
• Capital gains tax exclusion;
• Estate tax savings; or
• Professional management of your gift.

Since there are many technical requirements to satisfy in making life income gifts, it is particularly important that you seek your own tax and legal advice.

Bequests
For many donors, a bequest is the simplest and most realistic way of making a significant gift to Meredith College. The bequest may be in the form of cash, securities, real estate, tangible personal property or other assets.You may provide for Meredith College by creating a new will, adding a codicil to your present will, including Meredith College in your revocable trust, or designating Meredith College as a beneficiary of your retirement plan. To ensure that your exact intentions are carried out, wills, codicils and trusts should be prepared by or with the assistance of an attorney.

General Bequest Language
"I give, devise and bequeath to Meredith College, an educational institution incorporated under the laws of the State of North Carolina, located at 3800 Hillsborough Street, Raleigh, North Carolina 27607 ________ percent of my estate or ________ dollars."

Bequests exist in different forms:

Residuary Bequest
Meredith College receives all or a percentage of the remainder of the estate after the payments of any specific bequests and estate-related expenses.Specific Bequest
Meredith College receives a specific dollar amount or a specific asset such as securities, real estate, or tangible personal property (e.g. works of art).

Contingent Bequest
Meredith College receives the bequest only in the event of the prior death of other beneficiaries.

Lead Trusts
There is a way to pass assets to your family with significant estate tax savings while at the same time making a gift to Meredith College. It is called a charitable lead trust. Under a lead trust, income is payable to Meredith College for a number of years with the principal (very likely appreciated), on the termination of the trust, passing to your children or grandchildren either free of or at greatly decreased gift and estate taxes. The lead trust is a flexible plan and can be one of the few ways to control exactly when an inheritance is received.

Example: Gail, age 75, has been advised that her estate could be subject to a significant estate tax. She has four grandchildren, ages 10 through 22, to whom she would eventually like to give some money. After conferring with her advisors, she decides to create a 15-year $100,000 lead trust with a 7 percent annual payout to Meredith College. Her gift will, in time, endow a scholarship at Meredith, as the College will receive $7,000 per year ($105,000 in total) over the 15-year life of the trust. Gail is not taxed annually on the trust income paid to Meredith. For gift (or estate) tax purposes, only the remainder interest calculated under guidelines prescribed by the IRS is subject to gift tax.

Testamentary Trust
The trust provides one or more heirs with income for life, after which the assets pass to the school.

Charitable Remainder Trust
A charitable remainder trust distributes income to a donor and/or other beneficiaries for their lives or a specified term of years, not to exceed 20, with the balance of trust assets to be distributed to Meredith College at the conclusion of the trust. Charitable remainder trusts offer many opportunities to address specific goals for donors. For example, they can provide supplemental income during retirement and can be especially attractive as a way to convert appreciated, low-yielding assets into a high-yielding diversified portfolio without incurring capital gains tax.

There are two forms of remainder trusts. The unitrust pays a set percentage of the current value of the unitrust, determined annually. The payout rate is selected by the donor but must be at least five percent. The annuity trust pays income based on a percentage of the initial value of the trust and never changes. This trust provides a fixed amount each year, regardless of fluctuations in the market. The donor can serve as trustee of the trust, or can select a trustee. Meredith College, in conjunction with our planned giving partner, First Citizens Bank, can serve as co-trustees.

Example: Barbara and Ralph, both age 65, would like to create a $100,000 charitable remainder unitrust with stock that they bought 15 years ago for $40,000. Because the stock's dividend was yielding only 3 percent, they realize that it may be possible to increase their income and benefit Meredith College. They create a unitrust with a 6 percent annual payout. In doing so, they qualify for a charitable deduction. They also avoid the capital gains tax by making the gift rather than selling the stock. During the first year of the trust, they receive $6,000 ($3,000 more than when they owned the stock), and they continue to receive 6 percent of the trust assets annually for life. In time, Meredith will receive the remainder of the trust.

Life Insurance
A gift of paid-up life insurance might be attractive if you own a policy that is not needed to ensure your family's financial security. To receive a charitable deduction for such a gift, you should name Meredith College as both owner and beneficiary of the policy. Your tax deduction is generally what it would cost to replace the policy at your age and state of health at the time of the gift, but never more than your investment in the policy. This deduction is normally close to the cash surrender value of the policy.

Retained Life Estate
Contribute your personal residence or farm to Meredith and continue to occupy or use the property until death.

Retirement Plan
Meredith College is designated as a beneficiary of your retirement plan. Retirement plans are currently subject to estate tax and federal income tax of as much as 80% if not left to a spouse or charity. This tax consequence makes a retirement plan among the least desirable assets to leave to your heirs, but one of the best vehicles for benefiting the College.

Charitable Gift Annuity
The charitable gift annuity is a simple contract between you and Meredith College. The College agrees to pay you a lifetime annuity in exchange for a charitable gift. The amount of the annual fixed payment is generally determined by the amount of the gift and the age of the beneficiary or beneficiaries. The minimum gift to establish a charitable gift annuity is $10,000.

Example: Jean, age 75, transfers $25,000 in stock (originally purchased for $10,000) to Meredith College in exchange for a 7.9 percent annuity payment of $1,975 a year for life. For the next 12 years (her IRS-determined life expectancy), $500 of her payment will be treated as a tax-free return of principal, $750 as capital gains income and only $724 as ordinary income (these amounts vary depending on age of donor and percentage of payout). In addition, Jean is also able to claim an income tax charitable deduction.

Charitable gift annuities may also be structured to defer income until a future date. These gifts, called Deferred Charitable Gift Annuities, can be excellent retirement planning vehicles. Because the income is deferred until a later date, the annuity amount is increased. The donor also receives a larger deduction.

Legal Designation
In naming the College a beneficiary of a charitable gift, please note that the school should be named as: Meredith College, a non-profit corporation, organized and existing under the laws of the State of North Carolina, and with a principal business address of 3800 Hillsborough Street, Raleigh, NC 27607.This is a summary of legal and tax matters. Since Meredith College cannot give tax and legal advice, you are encouraged to consult your own advisors.

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