Frequently Asked Questions

Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

Upon your death you can make a gift through your will or revocable trust, or through a distribution from a retirement plan or life insurance policy.

You also have the option of making a gift to one of the tax-exempt organizations* that returns lifetime payments to you, your spouse, or other individuals, such as a charitable gift annuity or a charitable remainder unitrust or annuity trust.

Almost anything: cash, publicly traded securities or land, the balance in your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by us before we can accept them as gifts: real estate, closely held stock and artwork.

It depends on the form your gift takes:

• Outright gifts to one of the tax-exempt organizations* generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains - a great tax benefit!
• Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission. We can advise you on this point.
• Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax, however.
• Similarly, life insurance distributions to one of the tax-exempt organizations* are not income-tax deductible, but are exempt from estate tax.
• A lifetime gift of an insurance policy generates a deduction for the value of the policy. If you give a policy with premiums still owing, you may also deduct annual gifts that offset our premium payments (for more details on this point, see Question 5 below).
• The charitable deduction for a gift that makes payments to you, such as a charitable gift annuity or a charitable remainder unitrust or annuity trust, is the fair market value of the gift asset minus the present value of the income interest you retain.

No. State law, the limitations of our corporate powers, and our internal policies prevent us from taking such a role in your affairs.

No. The IRS would not consider that a "completed gift" - they'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. Bob Jones University must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

Under present law, any lifetime distributions from an IRA are included in your taxable income, even if these funds are transferred to us. You do, however, receive a current charitable deduction when you establish a life income gift, which would partially offset the amount included in your taxable income. Proposed legislation would make the transfer tax-free; watch our website for updates.

No, we can't. The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too - an insurance appraisal won't suffice. We can assist you on this point.

Your charitable gift annuity will be treated as a general obligation of one of the tax-exempt organizations*, backed by all its assets. The tax-exempt organizations* are in full compliance with provisions regarding non-profits' offering of gift annuities. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our financial policies.

We will, because the commitments address two different needs. Your planned gift is a significant addition to our long-term financial strength -- our ability to meet the challenges and opportunities the future will bring. The obligations and expenses that we encounter today, however, are met through your annual gift. We are very grateful that you want Bob Jones University to succeed both today and in the future.