"We chose to make a gift to Wells through the Pooled Income Fund Plan. Many Wells alumnae have experienced good fortune in their lives, and this is an effective way to contribute to the college's endowment, while at the same time, saving taxes, improving our income, and diversifying investments during our lifetimes.
"This type of gift makes sense because it guarantees that Wells will benefit to a much larger degree than it would if we were to make a bequest of a similar amount. Here's why. In 1988 when the family company was sold we received a large capital gain.
"The stock was first given by Dave's grandfather to his mother in 1922 and had a very small cost basis. She, in turn, passed it on to him as a gift and it still carried the same low basis for tax purposes. Although this one investment was a large part of our savings, the dividend income we received from it was less than we could have gotten from other investments. We also had no capital gains tax to pay on the donated shares whereas we would if we had received cash from the sale and then donated that to Wells. The proceeds going to the pooled income fund were about five times as much as the pre-sale appraised value. This meant that we received the added benefit of that larger amount as our share of the pooled fund as well as the extra income it produces for the rest of my life. Clearly, this is a way to have your cake and eat it too!
Since 1988 the value of the fund has gone up almost 50%. The stock market bubble which burst in 2002 has not affected the fund to a greater degree because it holds a large share of high grade bonds. Although conservative, we believe this has proved to be a wise choice, and we highly recommend it to others."
For more information, contact Pamela Sheradin, Director of Leadership and Planned Giving, at 315.364.3200 or advancement@wells.edu. Please note that Wells College cannot render tax or legal advice and recommends consultation with a professional advisor before making a charitable gift.
The gift planning information presented on this site is intended as general. It is not to be considered tax, legal, or financial advice. Please consult your own personal advisors prior to any decision.
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