LIFE INSURANCE

How can I make a gift of Life Insurance to the Education Foundation?
Making gifts of life insurance are easy to do. A fully paid up policy can be donated, naming the Education Foundation irrevocable owner and beneficiary. Donors are then entitled to an income tax deduction for an amount equivalent to the cash value of the policy.

A policy on which premiums are still owed can be donated, naming the Foundation irrevocable owner and beneficiary. Here the donor is entitled to an income tax deduction for an amount equivalent to the cash value of the policy and for any additional premium payments.

What are the benefits of a gift of life insurance?
Life insurance is a useful vehicle for making a substantial gift for the future of Sigma Lambda Beta without removing major assets from your portfolio. In addition to the tax benefits to the donor, the large cash values resulting from relatively small premiums allow many donors to make more substantial gifts through life insurance than they could on a current outright basis.

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TRUSTS

What is a Charitable Remainder Trust?
A Charitable Remainder Trust is a trust under which the donor and\or a designated beneficiary receive income for life or a fixed number of years in return for the irrevocable transfer of cash or property to a trustee like the Sigma Lambda Beta Education Foundation. When the trust terminates, the remainder interest is distributed to a charitable organization, such as the Sigma Lambda Beta Education Foundation.

What are the benefits of a Charitable Remainder Trust?
By creating a charitable remainder trust, you may:

• Qualify for an immediate federal income tax deduction based on a portion of the value of the gift.
  
  
• Avoid capital gains tax on appreciated property used to fund the trust.
  
  
• Provide income for life or a term of years to the beneficiary (ies) you select (yourself, spouse, friends, adult children).
  
  
• Reduce your estate tax liability by removing assets from your estate.
  
  

What is a Charitable Lead Trust?
A Charitable Lead Trust is basically the reverse of a charitable remainder trust. Assets placed in the trust generate annual income that is distributed to an entity like the Sigma Lambda Beta Education Foundation. At the end of the trust term (a prescribed period equal to one or more person's lifetimes, a set number of years, or a combination of the two) the principal returns to the donor or is transferred to a named beneficiary (typically, children or grandchildren). By establishing a lead trust, you are, in effect, "lending" an asset to the Sigma Lambda Beta Education Foundation for the term of the trust and allowing the Foundation to benefit from the income the asset generates.

What are the benefits of a Charitable Lead Trust?
With a charitable lead trust, the donor can avoid gift or estate taxes through the ultimate transfer of assets to beneficiaries (family members). With such a transfer, the donor's taxable estate is also greatly reduced. At the same time, the donor's gift will greatly benefit the Education Foundation during the trust term.

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BEQUESTS

What is a Bequest?
A bequest is a dispositive provision in your will that transfers property such as cash, securities or tangible property to an individual or a charitable organization like the Sigma Lambda Beta Education Foundation.

What are the benefits of a Bequest?
For many donors a bequest offers the opportunity to make a more substantial gift than would be possible during the donor's lifetime. Bequests offer the ability to significantly reduce your taxable estate and are a simple way to support a specific chapter or program while helping to ensure the enduring success of Sigma Lambda Beta.

Would the Education Foundation like to know my Bequest intentions?
Yes! Please let us know. When you do mention the Education Foundation in your will, we respectfully request that you let us know. Not only will this knowledge help us better plan for the future, it will also allow us to thank you appropriately and give your gift the recognition it deserves (if that is your wish). We also want to make sure you have the opportunity to specify any specific uses of your generous gift.

Are there different types of Bequests?
Yes. You may chose from various types of bequests to achieve different objectives.

• A specific bequest is the simplest form and designates a fixed dollar amount or specific property to a beneficiary. This type of bequest is appropriate when you have an item of value (stocks or bonds, real estate, works of art) or a definite dollar amount you wish to direct to a particular beneficiary.
  
  
• A percentage bequest leaves a specific percentage of the value of your estate to a beneficiary.
  
  
• A residual bequest designates all or a percentage of your estate after specific amounts has been allocated to other beneficiaries. This type of bequest adjusts in size as your estate increases or decreases over time.
  
  
• A contingent bequest leaves a beneficiary interest in assets, which it may or may not receive, depending upon the occurrence of specific but uncertain events.
  
  

What wording is appropriate for a bequest to the Sigma Lambda Beta Education Foundation?
A bequest to the Sigma Lambda Beta Education Foundation would normally include language like this:

I hereby give, desire and bequeath to the Sigma Lambda Beta Education Foundation (Tax I.D. #42-1510096), a nonprofit, educational corporation located at 145 Iowa Memorial Union, Iowa City, Ia. 52240, the sum of _____ (or________% of the rest, residue, and remainder of my estate) to be used for the general purposes of the Foundation (or for a particular program of your choosing).

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ENDOWMENTS

What is an Endowment?
Endowments are special kinds of gifts. They celebrate the names of generous donor's families or friends in perpetuity and lock them to the life and mission of Sigma Lambda Beta for all time. Endowments are self-renewing sources of funding that enable the Education Foundation to offer financial support to our undergraduate brothers in the form of scholarships to advance their numerous scholastic and leadership endeavors.

Endowments are funds in which the principal is invested, and only portions of the investment earnings are spent. Because it is an endowment's interest income - not the principal itself - that serves as a source of available funds, the gift of an endowment represents a perpetual legacy and the resource for a variety of scholarship and leadership programs you may wish to support.

How do I create an Endowed Fund?
Gifts to endow a fund may be made at once or over a series of years and funds that have already reached an endowed level can easily be enhanced with additional gifts. You may establish an endowment with the Sigma Lambda Beta Education Foundation outright through a gift of $10,000 or more in the form of cash, securities, marketable real estate or personal property. If you wish to fund your gift in annual installments up to 3 years, income from the principal will be distributed only after your total gift reaches $10,000 or more.

Can I establish an Endowed Fund with a Planned Gift?
Yes. Endowments with the Foundation may also be established with deferred gifts through careful estate planning. Bequests in your will, charitable trusts and life insurance gifts are all ways to make a profound impact on Sigma Lambda Beta's future through endowment.

How is my endowment gift invested?
The Sigma Lambda Beta Education Foundation's Board of Trustees oversees the management of the Foundation's endowment. The overall investment objective is to obtain the best possible total return while preserving or increasing the real value of the endowment.

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