How Can I Make a Gift?

Outright Gifts: Making an Impact Today

Cash
Cash is no doubt the easiest way to provide support for Southeastern. Checks should be made payable to Southeastern Baptist Theological Seminary. Credit cards may be used for a one-time gift or to set up recurring automatic charges. Southeastern accepts Visa, Master Card, American Express, and Discover cards.

Faith Commitment
To better manage your support, you may choose to plan your outright gift. Faith commitments are payable over as many as three years, allowing you to contribute on a schedule best suited to your circumstances. You may realize tax benefits for each payment, and the Seminary can use your payments as soon as they are received. To help manage faith commitments, the Seminary can provide you with periodic reminders of faith commitment balances and future payments if you wish.

Securities
Stocks, bonds, and mutual funds are all popular assets for gifts. Those making a choice between using cash or appreciated securities for a gift may want to review the chart that follows, where the tax benefits for giving appreciated assets are illustrated. Transferring securities for an outright gift allows the Seminary to use the assets immediately, a clear advantage for meeting current needs.
 
Stock not traded publicly may also be used as a gift, although the donor and the Seminary must both exercise greater care before such securities are donated. Before making such a gift, please contact us as (919) 761-2202. Likewise, if you are using stock (of any kind) to fund a life income gift, please contact us prior to transferring your stock.

Real Estate
Many types of real estate have good potential for gifts: a personal residence, farm, undeveloped land, or commercial property. As a donor of real estate, not only do you receive an income tax deduction and avoid capital gains tax, but you also avoid maintenance costs, property taxes, insurance, and other on-going expenses. If you are concerned with estate planning, a real estate gift may free your heirs from the worry of raising cash for possible estate taxes.

The mechanics of making a real estate gift can be more involved than other gifts. At a minimum, an appraisal, environmental review, and a deed are required. For more information, contact the Office of Financial Development at (919) 761-2202.

Matching Gifts
Many donors and/or spouses work for companies with matching gift programs. If you or your spouse qualifies, your company may match gifts to Southeastern. Typically, the match can vary from a 1:1 to 3:1 ratio! Your employer’s human resources office may provide you information and the forms you need to take advantage of this unique opportunity. It is a wonderful way to add to the value of your gift and increase support for the particular program or initiative of your choice.

Tangible Personal Property and Gifts in Kind
Books, furniture, artwork, and other types of tangible property can be valuable gifts for Southeastern. Both the value to the Seminary and your potential tax benefits depend on the use of the gift. Please contact the Office of Financial Development before making such a gift.

Life Insurance
A life insurance policy can be valuable for funding charitable initiatives at Southeastern, and there are various ways to make such a gift. Many individuals donate paid-up policies that are no longer needed for their original purpose. These policies can be cashed in to benefit the Seminary immediately, establish an endowment fund, or be put toward a capital building project or other pressing need.

A current policy (on which premiums are being paid) can be donated as well. For you to receive income tax benefits, Southeastern Baptist Theological Seminary needs to be the stated owner and beneficiary of the policy. Premiums paid on such a policy also are tax deductible.

If you wish to retain ownership of your policy, you can designate Southeastern Baptist Theological Seminary as a beneficiary. While there is no immediate tax benefit, you have the opportunity of making a future gift to benefit the seminary. Some alumni and friends find that life insurance is the least expensive way to make a significant gift, and they create a new policy with a specific purpose in mind for Southeastern.


Deferred Gifts: Looking to the Future
Your deferred gift benefits you now and provides support to Southeastern at some time in the future. With its combination of flexibility and financial advantages, a deferred gift may be your largest and most powerful charitable contribution.

Deferred gifts are often the ones which have the greatest impact because they often represent the largest gift an individual will ever make. These future gifts enable Southeastern to move ahead with confidence, knowing that we will be equipped to meet the challenges of tomorrow because of the plans our alumni and friends are making today.
Deferred gifts are those which will come to Southeastern at some time in the future. The gift might occur on a specified date or after one’s lifetime. Because of their flexibility, deferred gifts have a very strong appeal to many alumni and friends.

Some deferred gifts, such as charitable trusts and gift annuities, include the benefit of lifetime income and current tax benefits. Other deferred gifts such as bequests or retirement plan gifts will not include lifetime income but will reduce estate taxes.
If you are interested in exploring the possibility of a deferred gift, you are invited to consult the Office of Financial Development who can give guidance and provide complimentary gift plans which outline income and tax benefits.

Bequests
A bequest is your statement of affirmation that Southeastern will remain on the forefront of equipping students to serve the church and fulfill the Great Commission until Christ returns. This kind of provision assures that future students will continue to find a robust, challenging, and edifying education at Southeastern.

Who Makes Bequests?
Generally, those who make bequests are unable to contribute as much as they would like during their lifetimes, or they wish to retain control of their assets. Nothing is transferred until after death.

Simple Procedure
By having your attorney insert a sentence or two in the appropriate document(s), you can make a significant gift to the Seminary – often a gift substantially larger than would otherwise have been possible during your lifetime.

Should you wish to establish a fund with a particular purpose through your will, please contact the Office of Financial Development so we can work with you and/or your advisor(s) to create a fund agreement which ensures your bequest will be linked to a fund designed to support Southeastern in the way you desire.

Bequest Options
A cash bequest whereby Southeastern receives a specific dollar amount;
A residuary bequest, indicating that Southeastern will receive all or a percentage of the remainder of the estate after specific bequests and after payment of the expenses related to the estate;
A testamentary trust whereby you establish a charitable trust, giving lifetime income to family members and the trust remainder to Southeastern; and
A contingent bequest which makes a gift to Southeastern only in the event of the death of other named beneficiaries.

Retirement Account Gifts
An increasing number of individuals have accumulated significant savings in tax-deferred retirement accounts, such as IRAs, 401(k)s, 403(b)s, and SEPs. Assets such as these can be considered for funding deferred gifts. Since retirement accounts are subject to income taxes, in addition to possible estate taxes, they are less valuable to heirs than to non-profit organizations, which pay no income or estate taxes. Using these assets for deferred charitable gifts means that your heirs inherit more valuable and tax-favored assets. Consequently, a donor can use this means of giving to both remember his/her heirs while also maximizing his/her support for Southeastern.

Making such a gift is easy to do. Simply complete a beneficiary designation form naming Southeastern Baptist Theological Seminary as the beneficiary of your account. Retirement accounts are important assets and can be complex, so advice from an attorney or other adviser is encouraged to ensure consistency with other estate plans.

Life Income Gifts
A special type of deferred giving, life income gifts are an increasingly popular vehicle for providing support to Southeastern. These gift opportunities allow you to retain income from donated assets for your lifetime, to secure professional management of those assets, and to enjoy significant tax benefits. Gift plans are tailored to your particular situation.
Many gift plans are available, and selecting the best one for you means matching your personal, financial, and philanthropic goals with the particular plan advantages. The Office of Financial Development can assist you in this process and answer questions that you and/or your advisor may have.

Frequently selected gift plans include:
  • Charitable Remainder Unitrust
  • Charitable Remainder Annuity Trust
  • Charitable Gift Annuity
  • Charitable Deferred Gift Annuity

Characteristics of Life Income Gifts
While the gift plans vary in detail, they have characteristics in common:
• Assets are transferred to Southeastern Baptist Theological Seminary.
• During your lifetime, you receive a predetermined income stream. If desired, income can continue during a spouse’s lifetime as well. Other individuals may be named as income beneficiaries.
• When the plan ends, Southeastern uses the gift remainder as you have specified.

Payouts for Life Income Gifts
While there are various gift plans, there are basically two choices for how and when payments are received:

Fixed payments or variable payments. Payments can be either a fixed or a variable dollar amount. Variable amounts are a stated percentage of the gift’s annual value or the income (interest, dividends, and rent) earned by the gift.

Immediate payments or deferred payments. You can choose to receive payments immediately or defer them, receiving either minimal or no payments until a specified time in the future. The future date could be a retirement date or the sale of an illiquid asset that will fund the gift.

Choosing a life-income gift. Since assets are transferred during your lifetime, you qualify for an income tax deduction; however, since income is retained, only a portion of the total gift value qualifies for a deduction. In choosing a life income gift, understanding your financial goals is important, since not every gift is appropriate for a particular goal. We are ready to work with you and your professional advisor to assist you in navigating the various options.
 
Personal Goals Accomplished. Besides supporting Southeastern, a life income gift accomplishes many financial goals.
Establish a steady income stream to meet fixed obligations, such as a mortgage.
Create the opportunity for income growth to protect against inflation.
Plan an income stream for current or future retirement.
Increase income without capital gains taxes eroding the principal.
Provide payments for “wealth-replacement” insurance so that both heirs and Southeastern can be remembered.

Sample Life Income Gifts
The annual payout and tax benefits possible from a life income gift will vary according to several factors, including the type of gift, the number of beneficiaries, the payout rate, and the timing of the gift.

Selecting the Right Plan for You
The Office of Financial Development appreciates the opportunity to discuss your gift plans and make helpful suggestions. We recognize that making a gift is not a decision you will take lightly, and we appreciate your consideration. We take pride in listening to donors and holding their personal and financial information in the strictest confidence.

If a sample life income plan would aid in your analysis, our office would be delighted to provide one for you. Regardless of which method of giving is the most appealing to you, please know that your provision for Southeastern will make a significant difference for the Kingdom by enabling Southeastern to equip students to serve the church and fulfill the Great Commission. For deferred giving inquiries, contact us at (919) 761-2202.

Tax Benefits
The government rewards charitable giving by allowing valuable tax benefits to those who make gifts to specific types of organizations and institutions, such as Southeastern Baptist Theological Seminary. Understanding these benefits may impact the way you make your gifts – and the timing of them.

Gifts made during your lifetime typically qualify for an income tax deduction equal to the gift’s full fair market value. Capital gains taxes can be avoided and estate tax liability reduced. Although revocable gifts, such as bequests in a person’s Will, do not qualify for income tax benefits, they may reduce possible estate taxes.

While any income tax deduction is generally based on a gift’s full market value, tax benefits are reduced in certain gift situations. These include life income gifts, gifts of non-cash assets held less than one year, gifts of certain types of tangible personal property, and gifts in which you receive benefits in return (e.g. a golf tournament in which food/gifts are provided to the golfers). Even though your deduction may not be as great in these situations, the available tax benefits still significantly reduce the cost of your gift.

The size of your gift may affect how much of the tax deduction you might use in one year, and how much is carried forward to future years.