Ways to Give

Cash & Pledges

Endowments

An endowment is an investment in the future. An endowment is an invested gift that generates income to be used, in perpetuity, to support the foundation. Endowments generate funds indefinitely. When you establish an endowment, your gift is invested with two goals in mind: to make the principal grow faster than inflation, and to provide expendable income for whatever specific purpose you designate. The principal is never reduced and a portion of the annual earnings can be returned to the principal to keep it growing.

The Dr. Melvin C. Terrell Educational Foundation’s endowment is its financial foundation. Endowment income provides security and protection that balance the sources of income for the foundation. A steady, increasing endowment income can mean the difference between merely sustaining the status quo and aspiring and achieving new heights of excellence. Because endowments generate support forever, they are especially valuable and appropriate for donors who wish to leave a legacy.

Endowed Scholarships

To facilitate major endowment contributions between $100,000 to $250,000, the Foundation established the Endowment Scholarship Fund to recognize these significant contributions to the Dr. Melvin C. Terrell Educational Foundation. A contribution to the Endowment Scholarship Fund entitles the contributor recognition and the combined endowment fund is used for other scholarship programs.

Named endowed scholarships can be established for a minimum gift of $100,000. The interest from this permanent fund will be used to sustain a scholarship to help a student with tuition and books. Endowed scholarships can be funded with a single gift or with a pledge which is payable over time.

Minimum Levels

• • • Honorary Scholarship            $200,000
    • Memorial Scholarship            $150,000
    • Sponsor Scholarship              $100,000

Non-Endowed Scholarships 

A named one-time, non-endowed scholarship may be made for a minimum gift of $500. As with the non-endowed scholarship, the entire amount will be awarded in the given year.
We invite you to join us in supporting graduate scholars by making a tax-deductible gift to the Melvin Cleveland Terrell Endowed Scholarship. The earnings from this scholarship will provide financial assistance to graduate students who qualify academically but who may not otherwise be able to attend due to financial hardship.

Gifts of Securities

Many donors make a gift through the donation of assets such as stocks or bonds. A gift of securities may allow a donor to realize an immediate income tax deduction on the appreciated value of the donated securities. These gifts can be made quickly and easily.

Many donors who have held securities for more than one year have seen those investments appreciate in value. By making a gift of those securities to the Foundation, you gain an immediate tax deduction of the market value of the gift as permitted by law. You may also be able to carry forward any unused part of the contribution over a specific period of time.

To complete a transfer, you may present securities to the Dr. Melvin C. Terrell Educational Foundation with a “stock power” or endorse each certificate on the back. Endorsed certificates should be hand-carried or sent by registered mail to the Foundation. The specific value of a securities gift is determined by the average price between the highest and lowest quoted selling prices on the valuation date. If the securities have depreciated in value, it may be advisable to sell them at a loss and then give the proceeds to the Foundation. The proceeds will be treated as a cash gift and a capital loss may be claimed on your income tax return.

Gifts of stocks or bonds held for more than six months may be the easiest and most advantageous way to help the organization. If the securities have gained in value, you can, by giving them outright, avoid paying capital gains tax and also claim a deduction for the fair market value (what you paid, plus the appreciated value).

General Scholarship Fund

One-time donations below the $750 level may be given to the general scholarship fund of the foundation. The foundation will utilize the scholarship funds for the following areas:

Categories of Giving:

• • • Academic Scholarships
    • Book Scholarships
    • Operating Services
    • Staff Development
    • Technological Enhancements
    • Unrestricted (Area of Greatest Need)
    • Special Program Services

Donations provide the organization with a way to increase the size of its endowment, acquire additional equipment and resources, and increase student and staff development through scholarships, and sponsored research. Its purpose is to identify, cultivate, and solicit major gifts.

Information on other named endowment opportunities is available from the Foundation. Gifts of all sizes are encouraged. The amounts shown above can be achieved through the accumulation of gifts over a reasonable period of time.

Real Estate & Tangible Property

Real Estate

Donations of real estate, whether residential, commercial, or income-producing, can support foundation needs. The foundation performs an administrative review of all real estate donations to determine such factors as environmental quality and marketability.

You may donate your home or farm to foundation and retain a lifetime right to use the property, or stipulate that certain family members may have a life interest in the property, through an arrangement called a life estate contract. This approach has attractive tax benefits because it provides an immediate income tax deduction and also reduces your estate tax liability upon death.

Land and equipment deeded to the Dr. Melvin C. Terrell Educational Foundation is not taxable in the estate of the donor. He or she may retain full income, or a percentage of the income during his/her lifetime. Cash contributions for this purpose or gift-in-kind of useful equipment are appreciated and can be receipted as donations at fair market value.

Tangible Property

Other ways to give to the foundation include: the donation of book collections, art, maps, furniture, equipment and many other items that can be used for legitimate educational purposes. The tax value of these gifts is a matter determined by you and qualified appraisers and approved by the Internal Revenue Service. Gifts such as these are charitable contributions and are deductible to the full extent allowed by law. The foundation reserves the right to refuse a gift if it does not meet the purposes of the organization.

Planned Giving

Planned Giving provides a vehicle through which many supporters and friends can be major benefactors of the organization. Each gift will be acknowledged with a receipt for your records. Donors can have a greater impact by utilizing a planned giving vehicle to make a larger gift. In some cases, tax advantages might be obtained for the donor.

Another reason to make your gift in the form of a non-cash asset is the tax savings. When you give an asset that you have owned for more than one year and a day that has increased in value since you acquired it, you are usually entitled to an income tax deduction for the full current value of the asset, not just the amount you paid. You would also bypass any capital gains tax that would have been due if you had sold the asset.

Bequests

Leaving a charitable gift to the Dr. Melvin C. Terrell Educational Foundation as part of your estate planning can be the “ultimate” gift. Bequests can be made in three different ways:  by naming a specific dollar amount to go to the foundation, by giving the foundation a percentage of the total estate, or by leaving the remainder of the estate to the foundation after all other specific bequest intentions are paid out.

Bequests, special gifts made through a will, are significant sources of support to the foundation and are the most straightforward form of estate giving. A bequest to the Dr. Melvin C. Terrell Educational Foundation is not subject to an estate tax and helps reduce the tax liability for your heirs.

One popular form of estate giving is called a residuary bequest, through which the college receives the portion of the estate that remains (the residue) after other beneficiaries are provided for in the will. Another form of estate giving is a special request through which a specified sum or property or a specified percentage of your estate is given to the foundation.

The simplest form of bequest is a provision in a will making an outright gift of money or property to the Dr. Melvin C. Terrell Educational Foundation. Gifts through your will are not subject to Federal Estate Taxes and thus substantially reduce the tax liability of your estate. If you wish, you may restrict your gift to a particular department or program. Also, you may direct that the corpus be held in trust, with only the income being used. The basic wording for your will, which your attorney will need, is (for example): I give, devise, and bequeath to the Dr. Melvin C. Terrell Educational Foundation, organized, chartered, and operated under the laws of the State of Illinois.

• Charitable Trusts: Some estate planning vehicles, such as charitable lead trusts, can help you pass assets to your children or grandchildren while providing an income stream for the foundation over a period of time. Others, such as a remainder trust, can provide income to you or your spouse during your lifetime, with the remainder passing to the Dr. Melvin C. Terrell Educational Foundation at the end of the trust period. There may be tax advantages to the donor, depending on the assets and the vehicle selected.

• Testamentary Trust or Annuity: A Testamentary Charitable Trust or Annuity may be set up to provide life income to a survivor, with the principal going to the foundation Incorporated upon the survivor’s death. Any charitable deduction for estate taxes will be subject to the same limitations that are applicable to Charitable Remainder Trusts. You may prefer to designate your gifts for specific purposes. Your gifts can provide opportunities to name scholarships, chairs and lectureships and other funds in recognition of yourself, another person, a family, or a corporation.

• Charitable Remainder Trust: You may prefer to make a deferred gift through a charitable remainder trust. This trust provides an immediate income tax deduction for the value of the remainder interest in the trust based on Internal Revenue Service life expectancy tables, your age and rate of return at that time. These trusts are individually managed with annual payments made to your named beneficiary for his or her lifetime. The Dr. Melvin C. Terrell Educational Foundation  is not chartered to serve as trustee; therefore, a third party (such as a bank or friend) should be used. After the death of the named beneficiary, the trustee will be the Dr. Melvin C. Terrell Educational Foundation.

• The two types of Charitable Remainder Trusts are:
  • • Annuity Trust: The annual payment is a fixed dollar amount based on a percentage (which must be at least 5 percent) of the initial fair market value of the trust property.
    • Unitrust: The annual payment from a unitrust is a fixed percentage (which must be at least 5 percent) of the value of the trust assets re-evaluated each year.

Both trusts are quite flexible and offer options that should be considered.

Life Income Plans

Gift Annuity:

The gift annuity is a combination of a gift to the NASAP Foundation and an annuity. In return for your gift of cash, securities and/or real estate, the Foundation provides you with a contract that will pay you a fixed amount on a scheduled basis during your lifetime.

The gift annuity provides an immediate income tax deduction for the value of the gift based on Internal Revenue Service life expectancy tables and your age. Also, a portion of the annuity payment is tax-free return of the original principal. The combination of partially tax-free income and the initial charitable tax deduction makes this agreement quite attractive.

Many planned gift vehicles, such as annuities, can provide a regular income to you, your spouse, or your designee for a number of years. At the end of the payout period the funds remaining becomes a gift to the Dr. Melvin C. Terrell Educational Foundation .

Gifts of Life Insurance: 

Donors can designate the Dr. Melvin C. Terrell Educational Foundation as the beneficiary of a life insurance plan, thus providing the Foundation with resources beyond their lifespan.

There are many ways to use life insurance to make a gift. Here are a few of the most popular methods: Purchase a policy and designate the Dr. Melvin C. Terrell Educational Foundation as the irrevocable owner and beneficiary. By paying relatively small annual premiums, you guarantee a large future gift, and your premiums are tax-deductible each year.

Change the beneficiary of an existing policy:

You may name the Dr. Melvin C. Terrell Educational Foundation to receive all or a portion of the proceeds. Add the Foundation to the list of existing policies as remainder or final beneficiary. In the event that your primary or secondary beneficiaries do not survive you, the Dr. Melvin C. Terrell Educational Foundation would receive the benefit. Assign annual dividends from policies to the Foundation as a regular means of giving tax-free income.

Name the Dr. Melvin C. Terrell Educational Foundation irrevocable owner of an existing policy, the value of the dividends is deductible as a gift. The Dr. Melvin C. Terrell Educational Foundation, Inc. is a 501(c)3 public charity as recognized by the Internal Revenue Service and all gifts are tax-deductible as permitted by law.