There are a variety of ways you can support the American University in Cairo. Our staff is prepared to work with you to tailor a gift plan that fits your family's personal, charitable and financial goals.

Many of the deductions and examples below are based on IRS tables linked to interest/discount rates that change every month. You should always consult your advisors on tax-related matters affecting your specific situation. We welcome the opportunity to supply you with additional information about any of these methods of giving, and to discuss with you and your advisors how you might consider making a gift.

If you would like to learn more about planned giving, how to include AUC in your estate plans or about other gift options, please e-mail the development office at develop@aucegypt.edu. The development staff will provide you with information about any or all of the gift options listed here and can help you design a gift plan that will benefit both you and AUC. Gifts to AUC are tax-deductible in Egypt, Canada and the U.S.

Outright Gifts

An outright gift is a direct transfer of any asset to AUC. In most cases, you may take a charitable income tax deduction for the fair market value of the asset. More...

Bequests

A bequest by will directs that a specific amount or percentage of a donor's estate or specific assets such as stock or personal property in the estate, be paid to AUC at your death. More...

Gifts of Appreciated Securities

A gift to AUC of appreciated stock can provide substantial support. By contributing appreciated securities or real estate, you can deduct the full fair market value. More...

Life Income Gifts

Through life income giving, you can make a gift to AUC while retaining income and tax savings. This option provides you with several attractive benefits. More...

Gifts Providing Income to AUC

Instead of providing income to the donor with the assets being transferred later to AUC, the university receives the income for a specified period of time after which the assets are transferred to the donor and/or his beneficiaries at the end of the trust term. More...

Gifts of Life Insurance

A life insurance policy may offer a simple way to support AUC, particularly if your family no longer needs life insurance for financial security. More...

Gifts of Tangible Property

Gifts of tangible personal property -- gifts in kind -- can include such items as works of art, jewelry, personal library, etc. More...

Outright Gifts

An outright gift is a direct transfer of any asset to AUC. In most cases, you may take a charitable income tax deduction for the fair market value of the asset. The maximum deduction allowable for gifts of cash is limited to 50 percent of your adjusted gross income. AUC provides an acknowledgement of all gifts for income tax purposes. You may give cash, securities, closely held stock, real estate and personal property such as jewelry or art. If you donate an appreciated asset, you may avoid capital gains tax on the transfer provided the property is a liquid asset or is used to further AUC's purposes. For contributions other than cash or marketable securities, you should check with your tax advisor before making the gift.

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Bequests

A bequest by will directs that a specific amount or percentage of a donor's estate or specific assets such as stock or personal property in the estate, be paid to AUC at your death. Bequests can be restricted to benefit a specific program or unrestricted to cover general needs, and can be written so that AUC is a primary or secondary beneficiary after all other bequests and expenses have been paid. The law on estate taxes allows an unlimited deduction for gifts to public charities, such as AUC. The bequest is deductible in full from the decedent's taxable estate before the estate tax rates are applied. Frequently, a donor is able to make a more significant contribution to AUC by will than is possible during his/her lifetime.

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Gifts of Appreciated Securities

A gift to AUC of appreciated stock can provide substantial support. By contributing appreciated securities or real estate, you can deduct the full fair market value. This means you give away the capital gain without paying income tax on it. Thus, you avoid any capital gains tax and receive a charitable income tax deduction for the gift. You may deduct up to 50 percent of your adjusted gross income for gifts of securities, real estate or other property used for AUC's educational purposes. You have five years to carry over any excess. Under certain conditions, you can deduct only the cost basis of the gift if the property is tangible personal property not used for educational purposes.

Life Income Gifts

Through life income giving, you can make a gift to AUC while retaining income and tax savings. This option provides you with several attractive benefits:* Income to you and/or another beneficiary for life, the principal to AUC.

- Avoidance of all or a portion of the capital gains tax on the transfer of appreciated property.

- Management of your assets by an investment advisor or professional trustee.There are several ways to make a life income gift:

POOLED INCOME FUND
A pooled income fund is a specific kind of trust that allows irrevocable gifts from separate donors to be combined for investment purposes, much like a mutual fund, each quarter, your proportional share of the fund's income is distributed to the income beneficiaries you have named.The amount distributed varies depending on the fund's investment performance. Upon the death of the income recipient, the remainder of the fund passes to AUC. The amount of the donor's tax deduction from this gift (AUC's remainder interest) is determined from standard U.S. Treasury tables.. These fix the amount of the remainder according to the age of the income beneficiaries, the percentage rate of return of the fund and the value of the asset placed in the fund. In addition, you avoid any capital gains tax on transfer of appreciated securities. Gifts are typically made with cash or securities. Distributions to beneficiaries are taxed to the income beneficiary with the same character they are earned - dividends, interest, etc.Upon termination of the income interest of the beneficiary (or beneficiaries), a portion of the fund representing the proportionate share assigned to the beneficiary will be distributed to AUC and used for the charitable purpose you designate.AUC has had an active pooled income fund since 1986.An initial gift of $10,000 is generally required for participation. Additional gifts may be less.

Example
Seven years ago, Mr. And Mrs. Jones paid $3,000 for AZX Co. stock that is now worth $50,000. The dividends pay them two percent or $1,000 per year, and they would like to sell the stock in order to increase their income. Because they paid only $47,000 difference, for a tax of $13,160.Instead of selling the stock, they contribute it to AUC's pooled income fund. The fund sells the stock completely free of any capital gains tax, and Mr. and Mrs. Jones receive a life income that averages over 6 percent, or $3,000 per year, more than tripling their income from the investment.

CHARITABLE REMAINDER UNITRUST
A charitable remainder unitrust is an agreement in which you irrevocably place money or property with a trustee, with instructions to pay someone (yourself or another) income, generally for life. The income will be a set percentage of the trust's value at an annual valuation. when the person receiving the income dies, the property remaining -the remainder- goes to AUC. By designating AUC as the remainderman, you'll provide yourself with an income tax charitable deduction. Depending on your planning needs you can arrange for: increased income for your family, capital gains tax avoidance, tax-free income, deferral of income until retirement, avoidance of gift tax, a hedge against inflation and reduced estate settlement tax.People have been using unitrusts for many years to assist them in their personal, financial, tax and philanthropic planning. Most important, the unitrust is a proven time-tested way to provide for AUC while you satisfy personal and family financial needs at the same time.

Example
Mr. Jones purchased ABC stock 15 years ago for $20,000. This growth stock is now worth $1 million and pays him approximately 2 percent income per year, or $20,000. while selling the stock would net an impressive $800,000 profit, it would also trigger a federal capital gains tax of $224,000.Mr. Jones does not wish to incur this penalty tax, yet he would like to increase the income from his stock. His solution is to transfer the stock into a charitable remainder unitrust. The trustee then sells the highly appreciated stock free of any capital gains tax.Mr. Jones sets up the trust to pay income equal to 8 percent of the value of the trust's assets. Since the trust assets in the first year equal $1 million, his income from the unitrust is $80,000, four times more than he earned from the stock prior to making the gift.In addition to freeing him of the penalty capital gains tax, the gift also provides him with a substantial income tax charitable deduction between 40 percent and 60 percent of the value of the property transferred in the trust. He takes an income tax deduction of 50 percent of his adjusted gross income per year until the full amount is deducted. Mr. Jones has quadrupled his income from that asset. He has also saved substantial federal income tax, avoided capital gains tax and eliminated estate tax.A charitable remainder unitrust and a contribution to a pooled income fund are very similar. The pooled income fund is appropriate for modest gifts, whereas a unitrust requires establishment of a trust vehicle with a separate custody and bookkeeping capabilities. A unitrust is usually established for funds of $100,000 or more.

CHARITABLE REMAINDER ANNUITY TRUST
With a charitable remainder annuity trust, a fixed amount is paid each year regardless of the trust's value. For example, if the trust is to pay its beneficiary $80,000 each year, the trust will have to pay that amount whether the trust has a value of $700,000 or $1,000,000. The same income tax and estate tax benefits for the donor result as with a charitable remainder unitrust. While additions can be made to a unitrust from time to time, this is not true with respect to an annuity trust.

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Gifts Providing Income to AUC

CHARITABLE LEAD TRUST
Charitable lead trusts are the reverse of the charitable remainder trust or the pooled income fund. Instead of providing income to the donor with the assets being transferred later to AUC, the university receives the income for a specified period of time after which the assets are transferred to the donor and/or his beneficiaries at the end of the trust term.The charitable lead trust can benefit the donor who has surplus current income, but would like a tax effective way of providing assets to children and/or others with substantial gift tax savings.

Example
Mr. Smith would like to provide some financial assistance to AUC now, but also wants to transfer his assets to his grandchildren one day. By talking to AUC, he learn that he can create a gift that provides income to the University, but helps his grandchildren at a reduced estate and gift tax cost.

He puts $1 million of appreciated and dividend producing closely held stock of his company into a trust that pays AUC an annual income of at least 5 percent for 15 years. The income is based on the trust's assets as it is valued each year, and is expected to increase with inflation and company growth.

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Gifts of Life Insurance

A life insurance policy may offer a simple way to support AUC, particularly if your family no longer needs life insurance for financial security. You can make a gift of life insurance in three ways:

- You can make AUC the owner and beneficiary of a new policy. Your deduction equals the premium payments, and the policy's value is removed from your taxable estate.

- You can also make AUC the owner of an existing policy. This allows you an immediate tax deduction for the cash surrender value of the policy.

- You may also continue to pay the remaining premiums yourself, qualifying you for an additional charitable contribution deduction, or you may contribute the amount of the premiums to AUC. Your contribution of the premium amounts is fully deductible provided AUC is the owner and not under any obligation to pay the premiums.Alternatively you may simply name AUC as the beneficiary of the policy. since this is not an irrevocable designation, you do not receive an immediate income tax deduction. At your death, your executor, however, is entitled to take a federal tax deduction for the entire amount of the proceeds.

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Gifts of Tangible Property

Gifts of tangible personal property -gifts in kind- can include such items as works of art, jewelry, personal library, etc. The charitable gift of tangible property can be very attractive to an individual who has valuable yet unwanted items that may be costly to insure or difficult to sell. A charitable deduction is allowed on the full fair market value is AUC can put the property to related use.Tax savings are important in planning a charitable gift -no question about it. But the greatest advantage to your gift has to be your personal satisfaction in assuring the future vitality of AUC's programs.

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