Bequest or Living Trust

The most common form of planned gift to support HMC is a bequest contained in a person’s will or revocable (living) trust. Bequests are also the most flexible and practical means of distributing one’s estate because, in contrast to other forms of planned giving, they can be amended from time to time. Charitable gifts made by will are 100 percent tax deductible. Visit our Legal Information page for sample language to use when making a bequest or including HMC in your will.

If you’ve already include HMC in your will, please contact us, so that we may thank you.

Life Insurance Policies or Retirement Plan Assets

You can make HMC a beneficiary of an already existing life insurance policy. Upon your passing, the full face value amount of the policy will go to HMC. Although the proceeds from the policy will be included in your gross estate, the full amount received may be deductible as a charitable deduction.

Tax-favored retirement plans such as Individual Retirement Accounts (IRAs), 401(k) plans, 403(b) plans, and Keogh plans have become an increasingly popular way to save money for retirement, as well as to support HMC. Although the proceeds will be included in your gross estate, they will be completely deductible as a charitable gift.

BREAKING NEWS: As a result of the Emergency Economic Stabilization Act of 2008, through December 31, 2009, individuals aged 70½ or older can make a gift from an IRA to HMC and exclude the transferred amount from taxable income. To qualify:

• The transfer must go directly to HMC from your IRA
• The gift counts toward your required minimum distribution

The gift cannot exceed $100,000 per yearCharitable Gift Annuities
A charitable gift annuity is an agreement between you and Harvey Mudd College. In exchange for your charitable gift, HMC agrees to pay you and/or your loved ones a fixed annuity for life. The size of the payment is determined at the time the gift is made and will not fluctuate with the market. HMC will issue a gift annuity in response to minimum contribution of $25,000 or more, using recommended annuity rates published from time to time by the American Council on Gift Annuities.

Charitable Remainder Trusts

A charitable remainder unitrust provides an income based on a percentage of the fair market value of the trust assets as determined annually. Typically, a unitrust will be revalued at the start of each calendar year, and if the value of the trust principal increases, so does your income. Because unitrust payments fluctuate with the market, this form of life income gift may provide a hedge against inflation. A charitable remainder annuity trust will provide a fixed payment to you and/or your loved ones for life or for a specific number of years. The size of the payment is determined at the time the gift is made. Donors seeking a higher payout will receive a lower current tax deduction and vice versa (within certain limits).

As a general rule, the College will consider serving as trustee of a charitable remainder trust with assets of at least $250,000 if the annuity or unitrust percentage doest not exceed 6%, and the trust names the College irrevocably as a beneficiary of at least 50% of the remainder. The Office of Planned Giving is pleased to assist prospective donors by providing calculations illustrating tax benefits and projecting future distributions.

Additional Ways to Give

The College is pleased to consider gifts of real estate or personal property. Such gifts are assessed on a case-by-case basis and require approval by HMC’s Vice President for College Advancement, and the Vice President for Administration and Finance.

• Real Estate
  The College may accept gifts of real estate, including houses, condominiums and commercial properties, farmland, rental property and undeveloped land. As a general rule, the College accepts gifts of real estate valued at $750,000 or more. The College will consider gifts of real estate valued at less than $750,000, but will not consider gifts of real estate with a promissory note, mortgage, deed of trust or other liens on the property.

• Personal Property
  Examples of gifts-in-kind include laboratory equipment, machinery, computer equipment, and software. The College is grateful to accept tangible personal property or equipment gifts valued at $10,000 or more, especially that which has a use related to the College’s mission and/or student activities. The College will generally not accept gifts of vehicles, art, photographs, antiques, furniture, books, jewelry, memorabilia, or clothing.

For assistance in preparing a planned gift to Harvey Mudd College, contact the Office of Planned Giving at (909) 607-0899 or legacy@hmc.edu.