Empowering progress

Giving Outright

• Cash: Cash contributions through cash, check, or credit card are the simplest form of giving. Many donors choose to make a cash gift coupled with a written pledge to make additional gifts over a specified period of years.
• Securities and Real Estate: Stock, including closely held stock, is a preferred method of giving by donors with highly appreciated securities. Virtually any real property — a home, farm, office building, or land — can become a gift.
• Life Insurance: A life insurance policy may offer a simple way to support Hendrix, particularly if your family no longer needs life insurance for financial security.
• Pension plans: Tax-deferred pension plans are the best gift choice for many donors. Pension plan assets can be taxed at 60% to 70% of their total value at your death.
• Alternative assets: A gift of personal property, a remainder interest in your home, or a portion of a titled asset are ideal for some donors.

Giving with Life Income

Many donors desire to make a contribution but feel constrained by current income needs. We have several gift vehicles to allow you to make an irrevocable contribution to Hendrix. Specific types of life income gifts include:

Charitable Remainder Trusts
Quite simply, a charitable remainder trust provides for the payment of periodic income to a beneficiary for the beneficiary's life or specified term of years. Upon the death of the beneficiary, or the expiration of the specified term of years, the principal of the trust (remainder interest) is distributed to the charitable institution.

There are two types of charitable remainder trusts:

• CHARITABLE REMAINDER ANNUITY TRUSTS: A charitable remainder annuity trust pays a fixed income to a beneficiary, which must be at least five percent of the fair market value of the assets initially contributed to the trust. This amount does not change, and no additional gifts may be made to the annuity trust after its creation.
• CHARITABLE REMAINDER UNITRUSTS: A charitable remainder unitrust pays a fixed percentage (at least five percent) to the beneficiary of the fair market value of trust assets as valued annually. Because the value of assets can be expected to change from year to year, the unitrust payment will vary in amount each year. Additional contributions may be made to the trust after it is established.

Charitable Lead (Income) Trusts
A charitable lead trust is the opposite of a charitable remainder trust. In a charitable lead trust, the donor irrevocably transfers the property into trust with the income from the trust being paid to the charitable institution for the life of the individual or for a specified term of years. Upon termination of the life or the term, the remainder interest (the principal of the trust) is either retained by the donor or passed to another non-charitable beneficiary (i.e., son, daughter, etc.).

Charitable Gift Annuities
A charitable gift annuity is similar to a charitable remainder annuity trust in that a donor transfers cash or other property to a charity in exchange for a commitment by the organization to pay the donor a specified amount each year. At the death of the donor, the remaining assets are distributed to Hendrix College.

Pooled Income Funds
The Internal Revenue code defines a pooled income fund as a trust to which a donor irrevocably transfers property and in which the property transferred by the donor is co-mingled with property transferred by other donors. The donor to a pooled income fund receives a life income interest and the remainder interest (the principal) is ultimately distributed to the charitable institution.

Revocable Trusts (Living Trusts)
Revocable trusts are becoming an increasingly popular planned giving tool. Many individuals believe this to be a preferable way to transfer property in lieu of a will. However, there are many other considerations one should be aware of, such as transfer costs and titling all future acquired assets in the name of the trusts.

Giving Through Your Will or Trust

Bequests, gifts made by will or trust, are a wonderful way to establish a permanent legacy to strengthen the College for future generations.

Many donors choose to make multiple gifts, combining several gift methods. All gifts to The Hendrix Campaign should be given careful consideration, as many of the giving methods have significant beneficial tax implications.

To find out more about how you can ensure the future of Hendrix, please call 877-208-8777 or 501-450-1223.