Frequently Asked Questions

• How do I leave a gift to Nova Southeastern University in my will?

  Naming NSU as a beneficiary in a will is one of the most popular planned gifts to NSU. For many donors, a bequest offers the opportunity to make a more substantial gift than would be possible during the donor's lifetime. Other donors view a bequest as an opportunity to give a lasting legacy to NSU. Bequests are one of the simplest forms of planned giving and have been important in supporting NSU's endowment, among other things.

  Bequests may include stocks, bonds, real estate, or retirement-plan assets. Other assets may also be willed to NSU. You can give a specific dollar amount or a percentage of your estate. You even can name NSU as a residual beneficiary. This means that NSU will receive the remainder of your estate after all other bequests and taxes have been satisfied.

  If you would like to remember NSU through a bequest, it is very important that this estate gift be correctly worded. Please review our suggested sample bequest language, which provides the language to record your wishes in your will.

• Does Nova Southeastern University need to know my bequest intentions?

  We recognize that you might want to keep your bequest intentions confidential. If you are willing to inform us, however, we appreciate the information. Including NSU in your will makes you eligible to become a member of the 1964 Society. Recognizing members of this society is important to NSU. Not only does it provide us with an opportunity to express our appreciation, but it may also inspire others to support NSU through their estate plans.

• What is a charitable gift annuity?

  Charitable gift annuities are types of life-income plans. Life-income plans are arrangements under which you make a gift of cash or property (stocks, bonds, real estate) in exchange for a stream of income for life. In other words, you transfer an asset but reserve the right to receive payments from the asset.

  There are several benefits from this type of gift arrangement:

  • A stream of income for life, to more than one beneficiary if you wish
  • An income-tax charitable deduction in the year you make the gift plus a carryover of up to five years of any unused deduction
  • An estate-tax charitable deduction for a portion of the gift
  • A gift that will benefit NSU in the future

  Life-income gifts may be made in the form of gift annuities or trusts. A charitable gift annuity is simply a contract between a donor and a charity, such as NSU. In exchange for a gift of a specified amount, we agree to make fixed annual payments for life to one or two beneficiaries.

  To learn more about charitable gift annuities, please check our Web site here.

• How are gift annuity rates determined?

  All charities are free to set the rates they offer, as long as the rates comply with any applicable state regulations. Generally, charities choose to follow the schedule of recommended maximum rates published by the American Council on Gift Annuities (ACGA). The ACGA is a nonprofit organization that provides education and other services to charities regarding gift annuities and other forms of planned gifts. NSU follows the ACGA rates.

  The ACGA-recommended rates change from time to time, based on a variety of economic factors. (Any changes would affect only annuities established after the rate change was recommended.)

  To learn more about charitable gift annuities, please check our Web site here.

• How do gifts in trust work?

  Gifts in trust, like charitable gift annuities, are types of life-income plans. Life-income plans are arrangements under which you make a gift of cash or property (stocks, bonds, real estate) in exchange for a stream of income for life. In other words, you transfer an asset but reserve the right to receive payments from the asset.

  There are several benefits from this type of gift arrangement:

  • A stream of income for life, to more than one beneficiary if you wish
  • An income-tax charitable deduction in the year you make the gift, plus a carryover of up to five years of any unused deduction
  • An estate-tax charitable deduction for a portion of the gift
  • A gift that will benefit NSU in the future

  Life-income gifts may be made in the form of trusts or gift annuities. In its simplest terms, a trust is an arrangement under which an individual transfers legal title to property to another (the trustee) who manages the property for the benefit of the individuals and/or organization specified in the trust agreement.

  Trusts that make lifetime payments to the specified beneficiaries and ultimately benefit a charity are known as charitable remainder trusts. At NSU these trusts may take the form of either a charitable remainder unitrust or a charitable remainder annuity trust.

  The principal difference between these trusts is the nature of the payments made to the beneficiaries: Payments from a unitrust vary according to the value of the trust each year. Payments from an annuity trust are fixed when the trust is created and will not vary over the lifetimes of the beneficiaries.

  Pointer: If you fund any of these trusts with long-term appreciated securities, you will receive the benefits listed above plus an additional tax benefit: you will avoid capital-gain tax on the appreciation, thus preserving more of your gift to produce the payments.

  To learn more about gifts in trust, please check our Web site here.

• May I name Nova Southeastern University as the beneficiary of a life insurance policy?

  Yes. An asset that is frequently overlooked is life insurance. If the original need for which a policy was purchased no longer exists (for example, to pay for a child's education in the event of one's premature death), a gift of this asset can be very rewarding. To qualify for a tax deduction, you would need to name NSU as both the beneficiary and the owner of the policy.

  You also may consider using life insurance when you make a gift of another asset (highly appreciated real estate, for example) but wish to replace the value of that asset for your family. By using the actual tax savings generated by your gift to purchase a life insurance policy, you can replace the value of the gift in your estate for the benefit of your family.

• May I name Nova Southeastern University as the beneficiary of a retirement account?

  Yes. You may use retirement-plan benefits to make a gift to NSU. And because of the estate- and income-tax treatment of retirement-plan benefits, the cost of your gift to your estate and heirs is often relatively small. Retirement-plan benefits include assets held in individual retirement accounts (IRAs) and assets held in accounts under 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans.

• Can assets other than cash be used to fund a planned gift to NSU?

  Yes. Donating long-term appreciated assets such as securities or real estate may bring even more benefits to a donor. By giving these assets to NSU to establish a planned gift such as a charitable gift annuity or charitable remainder trust, a donor can reduce capital-gain tax liability and still receive a charitable deduction and other tax and income benefits.

• Does Nova Southeastern University accept gifts of real estate?

  Yes. A personal residence, a farm, a vacation home, and commercial and rental property are often the subject of gifts. Like gifts of long-term, appreciated securities, gifts of real estate can be very attractive because of the double tax benefit: an immediate charitable deduction and the avoidance of capital-gain tax.

  However, family considerations may not permit the making of an outright gift of your personal residence or farm. In that case, you may want to consider a gift to us of a retained life estate in such property. Even though you will retain the right to possess and enjoy the property for as long as you (and your spouse) live, you'll obtain a current income-tax deduction for the present value of our remainder interest.

• Will Nova Southeastern University work with my financial advisor as I plan a gift to NSU?

  Yes. NSU encourages donors to talk with their advisors about their plans. We are willing to work with you and your advisors to determine the best course of action to achieve your wishes.