Gift Planning

  1. Gift Planning
  2. Why We Give
  3. Tom Hall

Alumnus uses his interest in finance to secure his future and the University’s

Tom Hall, B.S. Business, ’70, MBA ’71, has had a keen interest in the stock market and financial markets throughout his life. While his years after Miami ranged from service in the U.S. Navy to a career in finance in Atlanta, Tom always kept close tabs on his investments and appreciated the idea that someday he would be able to enjoy the fruits of his interest.

After spending the first part of his retirement in Ecuador and Mexico, Tom returned to the U.S. and began to seriously think about ways he could use charitable tax strategies to support Miami.

“I knew I wanted to continue to give back, but the idea of being able to provide Miami with a gift that also benefits me for the rest of my life truly appealed to me,” Tom shares.

The charitable gift annuity, or CGA, is a contract between Miami University Foundation and a donor. Functionally, a CGA allows a donor to make a current gift that creates a revenue stream in the form of quarterly annuity payments for the rest of that donor’s life. At the end of the donor’s life, what remains of the initial donation is then used to support the university.

The creation of a CGA entitles the donor to a charitable deduction, whether funded with cash, appreciated securities or other assets. When coupled with existing rules for donating appreciated securities, these gifts provide an opportunity to be charitable while minimizing one’s tax liabilities.

Tom praises the ease of making these gifts, as well as the ability to target initiatives and groups that mean the most to him. “Establishing a CGA was simple,” he says, “and I get the satisfaction of knowing that someday my gift will benefit the Farmer School of Business and provide scholarships for student groups that have been historically underrepresented.”

With the passage of the Consolidated Appropriations Act in 2022, also known as SECURE 2.0, more options now exist for CGAs. A donor aged 70½ or older can now make a one-time election contribution in the form of a qualified charitable distribution from their IRA to fund a CGA, up to $50,000. While the tax ramifications differ when funded from an IRA, a donor receives the same peace of mind from a lifetime of annuity payments.

A charitable bequest is one or two sentences in your will or living trust that leave to Miami University a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to Miami University, a nonprofit corporation currently located at 725 E. Chestnut Street, Oxford, OH 45056, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Miami or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Miami as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Miami as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Miami where you agree to make a gift to Miami and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
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