Alexander Dodds created an estate plan that provided for his family then supported his philanthropic causes. Photo of Alexander is from his company's 1904 sales catalog.
In the early 1900s the Alexander Dodds Company of Grand Rapids, Michigan was exporting machinery throughout the world. Beginning in 1959 the Alexander Dodds estate was helping K students travel the globe.
The namesake of the company and estate was born in 1845 in St. Lawrence County, New York. A trained machinist, Alexander eventually made his way to Grand Rapids where he founded the woodworking machine company that continues to operate today. Alexander was frequently featured in the Grand Rapids Herald business and society pages for his involvement as an industrial, civic, religious and philanthropic leader.
Alexander also created an estate plan to achieve two objectives: take care of his family, then forever support his philanthropic causes. When Alexander passed away in 1925, his plan was set in motion. He ensured his family's financial well-being by providing them with annual income from his trust. Ever since his final heir passed in the 1950s, the yearly income from the trust has been divided equally between K and four other non-profit organizations.
Alexander did not attend K. No evidence exists he ever visited the campus. However, there is little doubt he would have been a great supporter of the K-Plan—especially study abroad. In the Grand Rapids Herald he noted it took a "10-year effort to establish a foreign trade." How much easier it could have been with a staff of learned world travelers. Thanks in part to Alexander's gift in perpetuity, today's companies now have that resource available when they hire a K graduate.
If Kalamazoo College's mission and results inspires you, please consider joining Alexander in investing in the future of the College with a planned gift. Contact Julie Kerins, CFRE, 269-337-7288 or email@example.com for more information.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.
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A charitable bequest is one or two sentences in your will or living trust that leave to Kalamazoo College a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.
an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan
"I, [name], of [city, state, ZIP], give, devise and bequeath to Kalamazoo College [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
able to be changed or cancelled
A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.
cannot be changed or cancelled
tax on gifts generally paid by the person making the gift rather than the recipient
the original value of an asset, such as stock, before its appreciation or depreciation
the growth in value of an asset like stock or real estate since the original purchase
the price a willing buyer and willing seller can agree on
The person receiving the gift annuity payments.
the part of an estate left after debts, taxes and specific bequests have been paid
a written and properly witnessed legal change to a will
the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will
A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to K or other charities. You cannot direct the gifts.
An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.
Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.
Securities, real estate or any other property having a fair market value greater than its original purchase price.
Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.
A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.
You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.
You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to K as a lump sum.
You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to K as a lump sum.
A beneficiary designation clearly identifies how specific assets will be distributed after your death.
A charitable gift annuity involves a simple contract between you and K where you agree to make a gift to K and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.