The generosity of alumni, parents and friends of Hendrix secures a legacy for both current and future generations of students. 

Many individuals choose to provide for Hendrix through deferred gifts. The following information will help guide you through the crucial planning of your charitable gift.

This page can help you get the basic facts on the ways to support Hendrix through planned gifts.

Common Planned Giving Vehicles

Income Producing Gifts

Charitable Remainder TrustsQuite simply, a charitable remainder trust provides for the payment of periodic income to a beneficiary for the beneficiary's life or specified term of years. Upon the death of the beneficiary, or the expiration of the specified term of years, the principal of the trust (remainder interest) is distributed to the charitable institution.

There are two types of charitable remainder trusts:

• Charitable Remainder Annuity Trusts
  A charitable remainder annuity trust pays a fixed income to a beneficiary, which must be at least five percent of the fair market value of the assets initially contributed to the trust. This amount does not change, and no additional gifts may be made to the annuity trust after its creation.
• Charitable Remainder Unitrusts
  A charitable remainder unitrust pays a fixed percentage (at least five percent) to the beneficiary of the fair market value of trust assets as valued annually. Because the value of assets can be expected to change from year to year, the unitrust payment will vary in amount each year. Additional contributions may be made to the trust after it is established.

Charitable Lead (Income) TrustsA charitable lead trust is the opposite of a charitable remainder trust. In a charitable lead trust, the donor irrevocably transfers the property into trust with the income from the trust being paid to the charitable institution for the life of the individual or for a specified term of years. Upon termination of the life or the term, the remainder interest (the principal of the trust) is either retained by the donor or passed to another non-charitable beneficiary (i.e., son, daughter, etc.).

Charitable Gift AnnuitiesA charitable gift annuity is similar to a charitable remainder annuity trust in that a donor transfers cash or other property to a charity in exchange for a commitment by the organization to pay the donor a specified amount each year. At the death of the donor, the remaining assets are distributed to Hendrix College.

Pooled Income FundsThe Internal Revenue code defines a pooled income fund as a trust to which a donor irrevocably transfers property and in which the property transferred by the donor is co-mingled with property transferred by other donors. The donor to a pooled income fund receives a life income interest and the remainder interest (the principal) is ultimately distributed to the charitable institution.

Revocable Trusts (Living Trusts)Revocable trusts are becoming an increasingly popular planned giving tool. Many individuals believe this to be a preferable way to transfer property in lieu of a will. However, there are many other considerations one should be aware of, such as transfer costs and titling all future acquired assets in the name of the trusts.

Wills

Six percent of Americans make gifts to charity through their wills. Individuals can make a bequest of a stated amount (e.g. $100,000), a stated percentage (e.g. 25% of my estate), a specific piece of property (e.g. 500 shares of AT&T, my real property located at...) or through the residuary clause of their will (e.g. the rest, residue and remainder of my estate I leave to Hendrix College). An unrestricted bequest of $10,000 or more is added to the College’s general endowment.

Insurance

There are various methods by which a life insurance policy may be contributed to the College. A donor may

• Assign irrevocably a paid-up policy to the College;
• Assign irrevocably a life insurance policy on which premiums remain to be paid; or
• Name the College as a primary or successor beneficiary of the proceeds.

Property

Gift of Property with Retained Life EstateAn individual may transfer to the College the title to a personal residence or other qualified real estate, and the donor, or another person, retains use of the property for a term of years or the life of the donor and/or another person. The donor shall continue to be responsible for real estate taxes, insurance, utilities and maintenance after transferring title to the property unless the College, upon prior approval of the development committee, agrees to assume responsibility for any of these items.

Gift of Property without Retained Life EstateGifts of real estate may be made in various ways: outright, charitable remainder trust, retained life estate and bargain sale. These guidelines pertain to gifts of real estate in general.

• The donor shall secure a qualified appraisal of the property.
• The College (or trustee in case of a charitable remainder trust) shall determine if the donor has clear title to the property.
• The College's real estate acceptance policy is incorporated herein by reference.

Tax Benefits of Giving

Income Tax Deduction

The donor will receive an income tax deduction for his charitable contribution when he establishes a charitable remainder trust. The amount of the charitable deduction will depend upon the following:

• The age of the donor,
• The percent or amount to be paid the beneficiary from the trust,
• The fair market value of the property used to fund the trust.

The donor will be entitled to a charitable deduction up to 50% of his/her adjusted gross income. If the entire deduction cannot be used in one year, the donor may carry forward the unused portion of the charitable deduction for five additional years. However, if the trust is funded with long-term appreciated securities or real property, the contribution is deductible only up to 30% of the adjusted gross income. The five-year carry over applies as well.

Capital Gains Tax Benefit

No capital gains tax is incurred at the time of transfer of appreciated assets to the trust.

Estate Tax Savings

Through the establishment of a charitable remainder trust, the donor has removed the fair market value of these assets from his/her estate, thus reducing the amount of the estate which would otherwise be subject to estate taxes.

Use of a charitable remainder trust can help reduce your estate taxes. 

For example:

• A donor likes the benefits available from a charitable remainder unitrust and decides to establish one with Hendrix College.
• She/he decides to fund the unitrust with $100,000 worth of common stock that originally cost her/him $25,000 and pays a low dividend rate.
• In this example, the donor would receive $7,000 of annual income from the trust, avoid capital gains tax, be entitled to a charitable income tax deduction and save estate taxes by reducing her/his taxable estate.

Designing Your Gift

When you consider making a gift to Hendrix College, you may wish to ask yourself a few questions. Careful planning is crucial when considering estate plans. We have staff at Hendrix who are prepared to provide personal and confidential support and analysis for you.

• What are your goals?
• What are your financial objectives?
• What assets would make the best gifts?

For example, would you like:

• to receive a higher rate of return on your C.D.?
• to increase the income from your stocks?
• to obtain income and estate tax savings?
• the personal satisfaction of benefiting Hendrix and benefiting your heirs?

If your answer to any of these questions is a Life Income Agreement with Hendrix can benefit both you and your family.

Through a gift, you may also establish a scholarship, named as you choose, to assist Hendrix students. You might also be interested in increasing the College's endowment, supporting the Annual Fund or a specific program or facility at Hendrix. Your gift can be a personal expression of your interest in the College, its students, and its future; it can be an enduring legacy for students into the next millennium. 

The Hendrix College Heritage Society

The Hendrix College Heritage Society was established by the Board of Trustees of the College to honor those who name the College as a beneficiary in their will, trust, or life insurance policy. All members are recognized on a plaque displayed in the lobby of  Fausett Hall on the Hendrix campus. The Hendrix College Heritage Society Resolution states:

• Whereas Hendrix College, a private liberal arts institution related to the United Methodist Church, has received gifts throughout the years from alumni and friends to assist in providing educational opportunities to students; and
• Whereas Hendrix has been privileged to be associated with individuals who have the vision to recognize the importance of benefiting future generations of students through deferred gifts such as wills, trusts, and life insurance; and
• Whereas the philanthropy of these individuals, through their deferred gifts, is enormously important to the College and to its students;
• Now, therefore, be it resolved on this 8th day of April, 1994, by the Hendrix College Board of Trustees that the Hendrix College Heritage Society is hereby established and that membership shall be open to all alumni and friends who elect to benefit Hendrix through a will, trust agreement, or life insurance policy.

For Additional Information

Lori Jones, Director of Planned Giving, assists those who would like to include Hendrix in their estate plans. (501) 450-1476.

Our address: 

Hendrix College
Office of Advancement
1600 Washington Avenue
Conway, AR 72032