Planned Giving - Define Your Legacy and Make a Difference!

Planned Giving

With thoughtful planning, anyone can provide for their financial goals and help Jacksonville University continue to be an extraordinary place to learn. Planning may allow you to:
  • Benefit family and friends while providing for the university that is important to you
  • Leave a personal legacy that reflects your values and beliefs
  • Take advantage of possible tax benefits
  • Receive the satisfaction of giving back in a meaningful way
Legacy gifts take many forms, and reasons to include JU in one's financial and estate plan are as unique as each individual, but they share a single purpose: to ensure that Jacksonville University will prosper in the future.

We appreciate the continued commitment of alumni and friends to JU students and thank them for all they do to make our good work possible. We would be honored to assist you, too. JU's success depends on your vision and generosity.
How to Make a Difference at JU
You want to make a difference at JU, but don't know where to begin? Identify your goals and review possible strategies to achieve them.
Read More...
Plan Your Gift At Any Age
Simple Planning Tips to protect your family and support JU too!
Read More...

 

Contact Us
Maria Pellegrino-Yokitis, JD
Director of Major Gifts and Planned Giving
Jacksonville University
2800 University Blvd. N.
Jacksonville, FL 32211
(904) 256-7928
mpelleg@ju.edu
Tax ID: 59-0624412

 

Missin Video
Plan Your Will
Request a Wills Guide
Sign up for eNewsletter
Jacksonville
Heritage Society
Text Resize
Print
Email
Subsribe to RSS Feed

Thursday August 27, 2015

Case of the Week

Lucky Lucy Lindstrom's "Hurricane Grants" Charity

Case:

Lucky Lucy Lindstrom finished college and headed west. She started as a financial analyst with a large company in Seattle. After just four years, she became a Registered Investment Advisor (RIA) and began advising clients. Lucky Lucy also managed her own investments. With her keen insight into financial markets, Lucy soon began to move from traditional stocks and bonds into futures and commodities markets. Lucky Lucy was so successful in these markets that she now manages only her mega-dollar personal portfolio.

Somewhat late in life, Lucky Lucy discovered the wonderful world of philanthropy. She volunteered at her favorite charity and learned that giving someone in need a helping hand is even more gratifying than making another million in the futures market.

Lucy had invested $1,000,000 in stock in a Canadian oil “wildcatter” with the name Northern Long Shot, Inc. This company has been drilling new exploratory wells in the far north. Recently, the stock rose from the $1 per share that she paid to over $5 per share. Lucy was delighted with her gain and decided to give the $5,000,000 in stock to a charitable foundation to help those in need.

Lucy discussed several options with her attorney and her favorite charity. One of the options that Lucy was very interested in was a private foundation (PF). She asked her attorney for reasons to select a private foundation. Her attorney noted that private foundations are more expensive to operate, appreciated gifts are deductible only to 20% of AGI, deductions for gifts of real estate to a PF are limited to basis, there is usually a 2% excise tax on investment income and the PF is subject to various rules on self-dealing, minimum distributions and excess business holdings. However, a private foundation would give Lucy full control. This is important to Lucy, since she wants to make grants for disaster relief directly to those in need.

Question:

Lucy said, “Wow! There are a lot of negatives about private foundations. So why set up a private foundation? And if I fund a private foundation, can I make grants to people who suffered so greatly in a hurricane?”

Solution:

Her attorney responded and noted that private foundation grants are subject to the expenditure responsibility rules. These rules will require Lucy to take specific steps. First, her private foundation must make a pre-grant inquiry before making a grant where expenditure responsibility is required. The purpose of the pre-grant inquiry is to ensure that the recipient will use the grant for proper exempt purposes.

Second, a grant agreement must then be executed and the recipient must agree to repay any unused portion of the grant, provide reports to Lucy’s private foundation on the use of funds, maintain records and receipts of expenditures and make its books and records available to the private foundation. The recipient must also agree not to use the funds for prohibited lobbying or political purposes, not to use the funds to make grants to individuals and not to use the funds for any non-charitable activity.

Next, Lucy’s private foundation must obtain follow-up reports from the recipient indicating how the funds were used, the progress being made in achieving the grant purpose and confirming that the grant terms were followed. Finally, the private foundation must report to the Internal Revenue Service that it made an expenditure responsibility grant. Reg. 53.4945-5(b).

These are rather stringent and perhaps expensive requirements. After considering the options, Lucy realized that there are many qualified Sec. 501(c)(3) nonprofits that make grants directly to those in need. Lucy decided that the best solution is for her “Hurricane Grants” private foundation to work together with public relief charities after each hurricane. She still will be able to assist those in need with grants to public charities and will avoid the potential costs of expenditure responsibility.

Published August 21, 2015
Print
Email
Subsribe to RSS Feed

Previous Articles

Lucky Lucy Lindstrom's "No Self-Dealing" Charity

Lucky Lucy Lindstrom's Long Shot Unitrust

Lucky Lucy Lindstrom's "Wheeler-Dealer Charity LLC"

Lucky Lucy Lindstrom's "Personal Loan" Charity

Lucky Lucy Lindstrom's "Cousins' Scholarship" Plan

scriptsknown