The Perfect Blend for You

You might ask, “What’s the best way to make your next contribution to the Grinnell?” Our answer is, “It’s what works best for you.”

The simplest way to help Grinnellians of today and tomorrow invent the world – as only Grinnellians can – is to contribute money or use your credit card to make a recurring gift. Or you might contribute appreciated securities, which can reduce your capital gains tax. Perhaps the best gift for you is a charitable bequest or a beneficiary designation to preserve the flexibility to change your plans if need be.

Combining several gift options can allow you to make a significant impact with maximum tax and financial benefit for you. A blended gift can allow you to enjoy the advantages of different gift types.

For example, let’s take a look at two people, Sarah and Jason, who each want to make a gift of $100,000 to Grinnell, but take different approaches in order to meet their individual objectives.

Sarah wants to see her gift at work as soon as possible, but she also has concerns about retirement and making sure she doesn’t run out of money. She decides to blend three different gifts to Grinnell:

• Sarah makes an outright gift of stock, currently worth $30,000. Her stock has increased in value over the years but pays no dividends so giving it does not affect her income. Sarah is gratified that her outright gift will make a difference right away and pleased to know that she will avoid the capital gains tax she would have paid if she had sold her stock.
• Next, Sarah contributes $20,000 in cash in exchange for a charitable gift annuity, a contract from Grinnell promising her a lifetime stream of payments which helps with her concerns about retirement income. Sarah finds particularly appealing the fact that a portion of her gift annuity payments are tax free and that, at the end of her lifetime, her gift will support the next generation of Grinnellians.
• Finally, Sarah includes a gift of $50,000 to Grinnell in her will. This gift gives Sarah the security of still having control of these assets during her lifetime.

Jason establishes a $100,000 named endowment fund but wants to spread out his giving over several years in order to accommodate his financial needs. Jason blends two different gifts to Grinnell:

• Jason pledges to contribute $10,000 each year toward his endowment with the understanding that it will not become permanent until it is fully funded.
• Then, to ensure that his endowment is fully funded, he names Grinnell as the remainder beneficiary of his retirement account, with the funds directed to his endowment.

Blended gifts offer an array of ways to meld your financial and charitable interests. As you plan your contributions to Grinnell, we would be happy to collaborate with you to make sure the blend is just right for you.