Gifts of Stock and Mutual Funds
For your convenience in making a gift of publicly traded shares of stock or mutual funds to the foundation, simply follow the steps below:
Please call your broker and let them know that you want to make a gift of stock/mutual fund shares to the Cabrillo College Foundation. If you don’t have a personal broker, please call us at (831) 479-6338 and we will help you get started.
Your broker will want to know the name of the stock/mutual fund and the number of shares you are contributing. In addition, your broker will request the following information.
Cabrillo College Foundation investment firm:
1585 Broadway, New York, NY 10036
For stocks: DTC number: 0015
For mutual funds: ACAT number: 0015
Cabrillo College Foundation account number: 838-010573
After you have notified your broker, please contact the Cabrillo College Foundation Executive Director, Eileen Hill at (831) 479-6338 or email Eileen Hill at firstname.lastname@example.org and provide the following information:
- the name and telephone number of your broker
- the name of the stock and number of shares you are contributing
- the purpose or designation of your gift
Please remember, do not instruct your broker to sell the stock/mutual fund and forward the proceeds to the Cabrillo College Foundation. This will jeopardize the excellent tax benefits you would receive if the college arranges for the disposition of the stock or mutual fund.
The Cabrillo College Foundation will provide a tax receipt for your gift.
Remembering Cabrillo in Your Will
Charitable bequests allow you to contribute to Cabrillo without giving away assets you may need during your lifetime. We can provide you and your legal advisor with language to include in your will that ensures that your wishes will be carried out. As with any gift, you can designate a program to support, or you can make an unrestricted bequest and let Cabrillo determine the best use for the donation. One popular option is to make a bequest in memory of a loved one. Another is to establish an endowment that will provide income in perpetuity. It is helpful if you inform the Cabrillo College Foundation of your bequest so the college can assure you that your gift is properly structured and can be used as you wish. We honor those who remember Cabrillo in their wills with membership in the Heritage Club.
Cash and Real Property
Your will can designate the Cabrillo College Foundation as the beneficiary of either a specific legacy or a bequest that is a fixed percentage of your estate. You can bequeath securities, real estate, or other property. If your first priority is your family’s well being, you can make your gift contingent on other conditions of the will being fulfilled before the foundation receives a gift. You can also bequeath the assets that remain after other bequests are met. Your estate receives the benefit of freedom from federal estate taxes for the full value of the gift. If your needs change, you can alter a bequest at any time by signing a new will or amending your will or trust.
Retirement Plan Assets
Assets you hold in individual retirement accounts, such as IRAs or Keoghs, can be bequeathed to the Cabrillo College Foundation. The advantage of bequeathing such retirement assets to a charitable institution is that the legacy escapes both deferred income tax and estate tax that come due if the assets are transferred to individuals.
Income Producing Gifts
Cabrillo has helped many donors to support programs they value highly while contributing to their own financial security and peace of mind. Income producing gift plans can allow you to make a gift to Cabrillo and provide income for yourself or your beneficiaries at the same time. These plans allow you to take advantage of government tax laws that are designed to encourage philanthropy. They offer current income tax deductions and may provide an opportunity to avoid or reduce capital gains tax on assets that have substantially appreciated. Plans can also be used to minimize estate taxes. Cabrillo’s planned giving professionals will work with you to carefully and confidentially shape a gift that meets your needs.
You may be unfamiliar with the language of planned giving, so here we provide straightforward explanations for the basic tools for structuring these gifts: Charitable Remainder Trusts, Charitable Lead Trusts, and Pooled Income Funds.
Charitable Remainder Trusts
(1) Unitrusts: When you prefer an income that varies with market conditions
A charitable remainder trust allows you to make a major gift, typically of real estate or securities, while continuing to receive the income from your gift during your lifetime. A unitrust may even allow you to earn a higher return than you now receive, though you no longer have to manage your asset. After your lifetime or the lifetime of a beneficiary, the principal of your trust goes to support Cabrillo. During the year you establish the trust, you receive a charitable income tax deduction based on the current value of the asset less the value of the income interest, not the cost basis (what you have actually invested). You can make additional gifts to a unitrust at any time. The option is appropriate for gifts of $50,000 and above.
A charitable remainder percentage unitrust pays a fixed percentage of the value of the trust. This value can change with fluctuations in asset markets, so the amount that you receive can change every year. Since the amount of income you earn is not fixed, unitrusts, unlike annuities, can be a valuable hedge against inflation.
(2) Annuity Trusts: When your goal is a fixed annual income
Annuity trusts provide an annual income that is a fixed dollar amount based on the value of your assets when you place them in the trust. You minimize market risk with an annuity trust, though your earnings may be affected by inflation. You receive the annuity during your lifetime, your lifetime and the lifetime of a beneficiary, or for a specified time up to twenty years. The amount you receive is based on forecasts of future market conditions.
If you place appreciated assets in an annuity trust, you avoid capital gains taxes on the assets. You can also take a charitable income tax deduction during the year you make the gift. You have no further responsibility for managing the assets placed in the trust. Older donors who don’t anticipate significant losses from inflation during their lifetimes, and want an income they can depend on, often choose annuity trusts as a planned gift option.
Charitable Lead Trusts
When you want to see the difference your gift makes during your lifetime
If your main financial objective is safeguarding your estate from federal estate taxes, a charitable lead trust may be the ideal gift strategy. The trust pays out income to the Cabrillo College Foundation for a term you specify. When the term of the trust expires, the principal returns to you or goes to your heirs, but estate and gift taxes have been reduced or eliminated. The advantage of a lifetime lead trust is that you can see the difference your gift makes during your lifetime.
Income for Life for you – benefit for future generations
A charitable gift annuity is an extraordinary way to make a gift, increase your income, and slice your tax bill – all in one transaction! Our charitable gift annuity program was created as a service to our many friends who have expressed a desire to make a gift of significance, while still retaining income from the gift property during their lives.
A charitable gift annuity is a contract in which you exchange a gift of cash or securities for a guaranteed, fixed income each year for the rest of your life. Your gift annuity offers five distinct advantages:
Income for life – at attractive payout rates for one or two lives;
Tax Deduction Savings – a large part of what you transfer is a deductible charitable gift;
Tax Free Income – a large part of your annual payment is tax free return of principal;
Capital Gains Tax Savings – when you contribute securities for a gift annuity, you minimize any taxes on your “paper profit”;
Personal Satisfaction – from making a gift of lasting significance.
You can choose how frequently payments will be made – quarterly, semi-annually, annually; one-life or two-life annuities; cash or securities to fund your gift. Cash gifts allow maximum tax-free income; gifts of securities allow you to minimize capital gains taxes.
Donations to Cabrillo are investments in the human potential of our students and the wider community we serve. Structuring gifts with tax consequences and income opportunities in mind, donors may be able to achieve some additional financial goals as well.
Outright gifts allow donors to see gifts at work during their lifetime. All outright gifts can result in income tax savings, and donors may realize multiple benefits by carefully structuring such gifts. Donors may give unrestricted funds or choose to target a gift to a particular program.
Checks may be made payable to the Cabrillo College Foundation and mailed to:
Cabrillo College Foundation
6500 Soquel Dr
Aptos, CA 95003
Please write the name of the area you would like to support in the memo section of the check.