Planned Giving

A charitable bequest is one of the easiest and most flexible ways that you can leave a gift to the San Mateo County Community Colleges Foundation that will make a lasting impact. 

The method used to make a bequest will depend on the kind of gift you choose to leave to the Foundation. Bequests of real estate, personal property, business interests, and cash are typically made by way of a will, revocable trust or even a simple codicil to your current estate plan. Your estate-planning attorney can assist you in preparing the necessary papers for you to complete the bequest.

Other bequests, such as those involving retirement assets, insurance policies, bank accounts and stocks and bonds, are typically made by completing the appropriate beneficiary designation form. Simply contact your retirement plan administrator, life insurance company, bank or investment broker and ask them to send you the appropriate "beneficiary designation" or "payable on death" form. To complete your bequest, you will need to complete and sign the form and then send it back to the person who originally sent the form to you.

The last step in leaving any bequest involves the transfer to charity. When you pass away, the bequest property will be transferred to the San Mateo County Community Colleges Foundation. The full value of this gift will be transferred tax-free and your estate will receive an estate tax charitable deduction.

Benefits of a bequest:

• You receive an estate tax charitable deduction - the overall reduction in estate taxes may mean a larger inheritance for your heirs
• You will reduce the burden of taxes on your family
• Your gift is revocable - which means it can be changed or modified at any time
• You will leave a lasting legacy to charity
• You can choose to designate that a bequest be used for a general or specific purpose so you have the peace of mind knowing your gift will be used as intended

How a bequest works:

bequest is one of the easiest gifts to make. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to family, friends or the San Mateo County Community Colleges Foundation as part of your estate plan, or you can make a bequest using a beneficiary designation form. Bequests can be restricted or unrestricted.

• An unrestricted bequest allows the Foundation to determine how to use the funds based on its most pressing needs - unrestricted bequests are extremely valuable because the Foundation can use them to flexibly support its mission meet the colleges' future needs. 

• A restricted bequest directs assets to a specific fund, school, or particular purpose, such as a scholarship or an endowed fund. 

Here are some ways to leave a bequest to the SMCCC Foundation:

• Include a bequest to the San Mateo County Community Colleges Foundation in your will or revocable trust
• Designate the San Mateo County Community Colleges Foundation as a full, partial, or contingent beneficiary of your retirement account (see below)
• Name the San Mateo County Community College Foundation as a beneficiary of your life insurance policy (see below)

A bequest may be made in several ways (In order to make a bequest, you should speak with your attorney. Your attorney can help you include a bequest to the SMCCCF in your estate plan. We have provided some basic bequest language to assist you and your attorney):

• Specific bequest - make a gift of a specific dollar amount or a specific asset
  • Specific bequest sample language:
    • Bequest of a specific dollar amount: I hereby give, devise and bequeath _________ and No/100 dollars ($DOLLARS) to the San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, for the San Mateo County Community Colleges Foundation's general use and purpose.
    • Bequest of specific personal property: I hereby give, devise and bequeath DESCRIPTION OF PROPERTY to the San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, for the San Mateo County Community Colleges Foundation's general use and purpose.
    • Bequest of specific real estate: I hereby give, devise and bequeath all of the right, title and interest in and to the real estate located at ADDRESS OR DESCRIPTION OF PROPERTY to the San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, for the San Mateo County Community Colleges Foundation's general use and purpose.
• Percentage bequest - make a gift of a specific percentage of your overall estate to charity
  • Percentage bequest sample language: 
    I hereby give, devise and bequeath ____ percent (___%) of my total estate, determined as of the date of my death, to the San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, for the San Mateo County Community Colleges Foundation's general use and purpose.
• Residual bequest - make a gift from the balance or residue of your estate after the will or trust has given away each of the specific bequests
  • Residual bequest sample language: 
    I hereby give, devise and bequeath to the San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, ALL OR A PERCENTAGE of the rest, residue and remainder of my estate to be used for the San Mateo County Community Colleges Foundation's general use and purpose.
• Contingent bequest- make a gift to SMCCCF if the purpose of your primary bequest cannot be met (for example, you could leave specific property, such as a vacation home, to a relative, but the bequest language could provide that if the relative is not alive at the time of your death, the vacation home will go to the SMCCCF)
  • Contingent bequest sample language: If (primary beneficiary) does not survive me, then I hereby give, devise and bequeath to he San Mateo County Community Colleges Foundation, a nonprofit organization located at 3401 CSM Dr, San Mateo, CA 94402, Federal Tax ID #94-6133905, DESCRIPTION OF PROPERTY to be used for the San Mateo County Community Colleges Foundation's general use and purpose.

Restricted Bequests:

If you are considering a bequest but would like to ensure that your bequest will be used for a specific purpose, please let us know. We would be happy to work with you and your attorney to help you identify ways to give and meet your charitable objectives. We will also work with you and your attorney to craft language to accomplish your goals.

If you are making a restricted bequest, we recommend that your attorney include the following provision to give the SMCCCF flexibility should it no longer be possible for the Foundation to use your gift as you originally intended:

• If, in the judgment of the Board of Directors of San Mateo County Community Colleges Foundation (hereinafter "Foundation"), it shall become impossible for the Foundation to use this bequest to accomplish the specific purposes of this bequest, the Foundation may use the income and principal of this gift for such purpose or purposes as the Board determines is most closely related to the restricted purpose of my bequest.

Where possible, please bring the bequest to the attention of the Foundation by downloading, filling out, and sending the Legacy Society form to the SMCCCF. 

A beneficiary designation gift is a simple and affordable way to make a gift to support the San Mateo County Community College Foundation. You can designate us as a beneficiary of a retirement, investment or bank account or your life insurance policy. Even after you complete the beneficiary designation form, you can take distributions or withdrawals from your retirement, investment or bank account and continue to freely use your account. You can also change your mind at any time in the future for any reason, including if you have a loved one who needs your financial help. 

Most beneficiary designation forms are very flexible. You can name the San Mateo County Community Colleges Foundation as a "full" or "partial" beneficiary of your account or life insurance policy. You can also name the San Mateo County Community Colleges Foundation as a "primary" or "contingent" beneficiary.

Beneficiary designation gifts allow you to provide for family and support the causes that matter most to you. With a designation form you could, for example, name your spouse as the "primary" beneficiary and each of your children and the San Mateo County Community Colleges Foundaiton as "partial contingent" beneficiaries. With this arrangement, if your spouse survives you, he or she would receive the account. If not, the account or policy would be paid out to your children and the San Mateo County Community Colleges Foundation in whatever shares (or percentages) that you chose on the designation form.

Benefits of a beneficiary designation gift: 

• Support the causes that you care about
• Continue to use your account as long as you need to
• Simplify your planning and avoid expensive legal fees
• Reduce the burden of taxes on your family
• Receive an estate tax charitable deduction

How a beneficiary designation gift works:

1. To make your gift, contact the person who helps you with your account or insurance policy, such as your broker, banker or insurance agent
2. Ask them to send you a new beneficiary designation form
3. Complete the form designating the San Mateo County Community Colleges Foundation, sign it and mail it back to your broker, banker or agent
4. When you pass away, your account or insurance policy will be paid or transferred to SMCCCF, consistent with the beneficiary designation

Types of beneficiary Designations:

You can review and adjust beneficiary designations anytime you want which means you aren't locked into the choices you make today. You can name the Foundation as a beneficiary of the following assets:

• Retirement plan assets (IRA, 401(k), 403(b), pension or other tax-deferred plan):
  • Benefits of gifts of retirement assets:
    • Avoid potential estate tax on retirement assets
    • Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis
    • Receive potential estate tax savings from an estate tax deduction

  • How to make a gift of retirement assets:
    To leave your retirement assets to the San Mateo County Community Colleges Foundation, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate the San Mateo County Community Colleges Foundation as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.

  • More on gifts of retirement assets
    Did you know that 60%-70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to the San Mateo County Community Colleges Foundation. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.

• Life insurance - If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to the San Mateo County Community Colleges Foundation; you can designate the Foundation as a partial, full, or contingent beneficiary of your life insurance policy, you will continue to own and can make use of the policy during your lifetime and your estate may benefit from an estate tax charitable deduction: 
  • Benefits of gifts of life insurance
    • Receive a charitable income tax deduction
    • If the San Mateo County Community Colleges Foundation retains the policy to maturity, you can receive additional tax deductions by making annual gifts so the Foundation can pay the premiums
    • If the San Mateo County Community Colleges Foundation cashes in the policy, you will be able to see first hand how your gift supports the Foundation's charitable work
    • If the SMCCCF retains the policy to maturity, or you name the Foundation as a beneficiary, once the policy matures, the proceeds of your policy will be paid to the Foundation so that we can use the proceeds to further our mission

  • How to make a gift of life insurance
    To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include the San Mateo County Community Colleges Foundatoin as the beneficiary of your policy.

• Commercial annuities

• Bank accounts, certificates of deposit, or brokerage accounts

You may also be able to make a gift to charity with a "qualified charitable distribution" or "IRA charitable rollover" from your Individual Retirement Account (IRA), and take advantage of tax savings.  Under Section 408(d) of the Internal Revenue Code, Americans over the age of 70 ½ may distribute an amount, not to exceed $105,000 in a calendar year, from an IRA to the Foundation or other public charities, tax-free. Effective January 1, 2020, under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, the amount allowable as a qualified charitable distribution to the Foundation or other charities will be reduced dollar-for-dollar by the total amount of deductible IRA contributions on or after an individual reaches 70 ½. 

If an IRA owner directs the IRA plan administrator to distribute an amount, not to exceed $100,000 in a calendar year, to a public charity, the distribution counts toward the owner's required minimum distribution (RMD), but is not included in his or her income for income tax purposes. Although the IRA owner is not entitled to a charitable deduction for the distribution, the distribution benefits charity and does not count as income to the owner.

Here's How a Qualified Charitable Distribution Works:

• You must be 70 ½ or older at the time of distribution.
• You may distribute an amount, not to exceed $105,000 in a calendar year, to one or more public charities, so long as it is completed by December 31 of the year in which you intend to make the charitable distribution. The amount of the distribution will be reduced by any deductible contributions made to an IRA on or after you reach 70 ½.
• Your IRA administrator must make the distribution directly to the charity, or you may write a check payable to the charity from your IRA checkbook (special rules apply when a check is written from an IRA checkbook, please contact IRA administrator for more information). For a sample letter of instruction to your IRA administrator requesting a distribution to the Foundation, click here.
• If you make a gift to the Foundation from your IRA, please include written instructions on how you would like to designate your gift. You can also contact Executive Director Megan Barber Allende at 650.358.6860 or allendem@smccd.edu with your gift designation.

Certain restrictions and requirements* must be followed when making this type of gift. If you have questions, please consult with your IRA administrator. Before proceeding, you should also consult with your tax advisor to discuss your particular situation including any impact of your state's tax laws.

*For example, the following transfers will not qualify: distributions to private foundations, to donor advised funds, for life income gifts (e.g., charitable remainder trusts), and for any purpose that entitles you to receive a benefit.

A Charitable Gift Annuity is a gift that allows you to achieve both your philanthropic goals and financial security. You can support the San Mateo Community Colleges Foundation’s work while receiving a secure source of fixed payments for life with a charitable gift annuity. You can also receive a variety of tax benefits, including a federal income tax charitable deduction.

Benefits of a charitable gift annuity

• Receive fixed payments to you or another annuitant you designate for life
• Receive a charitable income tax deduction for the charitable gift portion of the annuity
• Benefit from payments that may be partially tax-free

• Further the charitable work of the San Mateo County Community Colleges Foundation with your gift

How a charitable gift annuity works

A charitable gift annuity is a way to make a gift to support the San Mateo County Community Colleges Foundation.

1. You transfer cash or property to the San Mateo County Community Colleges Foundation

2. In exchange, we promise to pay fixed payments to you for life; the payment can be quite high depending on your age, and a portion of each payment may even be tax-free

3. You will receive a charitable income tax deduction for the gift portion of the annuity

4. You also receive satisfaction, knowing that you will be helping further our mission

If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. (The Foundation does not accept gifts of real estate to create a charitable gift annuity.)

Types of charitable gift annuities

• Current charitable gift annuity (payments begin within one year): with a current gift annuity, you may transfer cash or property in exchange for fixed payments beginning as early as this year; you will receive an income tax charitable deduction this year for the value of your gift 
• Deferred charitable gift annuity (for payments at future date): with a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future; because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity

The minimum amount to create a CGA is $10,000 and the minimum age is 60. For more information or to create a CGA, please contact Executive Director, Tykia Warden at 650.358.6860 or wardent@smccd.edu. The Foundation's CGAs are managed by the Community College League of California, using American Council on Gift Annuities rates. 

If you have a loved one who has been impacted by any of the three colleges in the District, establishing a memorial or tribute gift is a meaningful way to honor your loved one or celebrate a special occasion such as a birthday while supporting the work of our mission. Your memorial or tribute gift will be a lasting tribute to your loved one and make a difference in the lives of those we serve.

An endowment gift, such as an endowed scholarship, to the Foundation today provides a brighter picture for our future. When you make an endowed gift, you give with both immediate and long-term benefits.Here's how it works: Endowment donations are invested. A portion of the annual income from the investment is used to fund student scholarships now. The remaining funds are reinvested to ensure indefinite scholarship support. To make an endowed gift, download the Foundation's endowed scholarship agreement or contact Executive Director, Megan Barber Allende at 650.358.6860 or allendem@smccd.edu.

Donating real estate is a way of making a big gift to the Foundation without touching your bank account. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you get a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property's maintenance costs, property taxes, or insurance.You can give real estate to the Foundation in the following ways:

An Outright Gift

When you make a gift today of real estate you have owned longer than one year, you obtain a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.

A Gift in Your Will or Living Trust

A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for the Foundation continues after your lifetime and that your estate will benefit from a federal estate tax charitable deduction.

A Retained Life Estate

You can transfer your personal residence or farm to the Foundation but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though we would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home's value.

A Memorial or Endowed Gift

A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.

A Charitable Remainder Unitrust or A Charitable Lead Trust

Please consult your financial or tax advisor, or your attorney. 

The Foundation will accept gifts/assets from charitable remainder trusts, charitable lead trusts, and pooled income funds, but does not administer/manage these types of funds and will not act in the capacity of trustee for charitable trusts in which the Foundation is named as remainder beneficiary. Please consult your financial or tax advisor, or your attorney to create any of these trusts or a pooled income fund. 

Types of trusts: 

• Charitable Remainder Trusts: Charitable Remainder Trusts (CRTs) are income trusts created by transferring property irrevocably to a trustee under a trust agreement that provides the donor and/or designated beneficiary with income for life. The minimum payout rate is fixed by law. After the deaths of the income beneficiaries or at the end of the trust period, the remainder is paid to the charitable beneficiary and the institution may use the gift for charitable purposes. CRTs were created under the Tax Reform Act of 1969. By law the trustee may be the charitable institution receiving the gift. 
  
  There are two primary types of charitable remainder trusts: Annuity Trusts and Unitrusts:
  
  
  • Charitable Remainder Annuity Trust: a CRT that proves a fixed payout that must equal a sum certain of not less than 5% of the initial fair market value of the gift in trust. Whatever remains of the trust becomes the property of the beneficiary (SMCCCF) at the time of the income beneficiary’s death, at the end of a term not to exceed 20 years, or a combination of a certain number of lives plus a certain number of years. Annuity trusts do not permit additional contributions.
    
    
  • Charitable Remainder Unitrust: a CRT that proves an income that is a fixed percentage of the net fair market value of the trust assets. The trust assets are re-valued annually. This percentage must be at least 5%. The income payments of a unitrust will vary from year to year as the trust’s value changes. The unitrust may be set up for the lives of the beneficiaries or for a term not to exceed 20 years. The governing instrument may include a provision to permit additional contributions.
    
    Two variations of the unitrust are the income-only unitrust and the nimcrut. Under an income-only unitrust, the unitrust provides for distribution to the beneficiary of either the net income of the trust or the fixed percentage specified in the agreement, whichever is less. If the unitrust’s annual earnings are deficient in any given year, the corpus (principal) need not be invaded to bring up the pay-out. Instead, payments may equal the trust’s earnings for that year, and the shortfall can be made up during the years when the yield is higher.
    
    The nimcrut is a hybrid. This agreement permits a donor to create an income-only unitrust and, at some later date, to switch to a straight unitrust upon occurrence of a permissible triggering event such as a specific date — beneficiary reaches a certain age or a specific event — marriage, divorce, death, or birth.

 

• Charitable Lead Trusts: a Charitable Lead Trust (annuity or unit) provides payments to a designated charity for a term of years of any duration, after which the assets in the trust either revert to the donor or pass to a non-charitable beneficiary designated by the donor. Charitable lead trusts enable an individual to benefit a charity and pays the principal to family members with little or no tax penalty.
  
  To create a lead trust, the donor transfers assets to a trust and the trust provides payments to the charity. At the end of the term, the trust principal goes to the donor’s designated beneficiaries.
  
  A charitable lead annuity trust pays out a fixed amount each year and is more attractive when interest rates are low. A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust.
  
  
• Pooled Income Fund: through a pooled income fund, your gift will purchase shares of an investment pool that functions like a mutual fund. All of the fund's annual income is allocated proportionately between the pooled income fund participants, depending on the number of shares they hold. You can name yourself and/or other beneficiaries to receive the income from the shares for life. At the end of the income beneficiary's life, the shares of the fund are withdrawn and are used to support the Foundation for the purpose you designate. The benefits of a pooled income fund include an annual income, diversified investments, federal and possible state income tax deductions, and no immediate capital gains tax on the transfer of appreciated assets.