An asset which has increased in value is called an appreciated asset. It can provide greater tax benefits than an equivalent cash gift. In addition to your receiving a charitable deduction, you are protected against the capital gains tax. This principle applies to real estate and personal property.
Bequest and Endowments
A gift to the University through your will or revocable trust proclaims your confidence that the University will continue to accomplish its mission and make a lasting difference in the lives of future generations. A bequest is easy to arrange, does not affect your assets or cash flow during your lifetime, and is revocable. Learn more
Charitable Remainder Trust
A Charitable Remainder Trust is also known as a CRT, and was created by the Tax Reform Act of 1969. It is an irrevocable trust allowing the donors to convert highly appreciated assets into a lifetime income stream for them, their spouse, or another family member, without generating estate and capital gains taxes. Learn more
You can turn over an existing, current policy, purchase a new one, and convey ownership to the University, or merely name the University as beneficiary. Tax benefits will vary according to the method you use.
There are many types of outright gifts - cash, credit card, bank drafts, securities, matching gifts - and they qualify for the greatest tax benefit and savings, significantly reducing the actual cost of making a gift.
Mutual funds, corporate stock (both publicly-traded and closely-held), and government, corporate and municipal bonds are the most common types of personal property gifts. They are easy to value and they’re simple to transfer. But gifts of tangible items — paintings, photographic exhibits, sculptures, stamp and coin collections and the like — are also treasured by the University. These can be displayed in our public buildings and used in teaching and learning environments. Collections used for research and teaching must be accompanied by endowment funds to support their storage and use. Or, collections can be sold and the proceeds used as directed.
Land makes an ideal gift. Gifts of commercial property, vacant land, farmland, timberland, and personal or vacation residences have been made. On limited occasions, such land is used by the University. More often it is sold. You get gift credit and an income tax deduction for the property. You also get insulation against capital gains tax.
Retained Life Estate
If you own a home or other property you no longer wish to occupy or manage, the University will work with you to market and sell it, or keep it for the University. You can avoid the capital gains tax and take a charitable deduction on the value of the property.
A retained life estate (RLE) enables you to deed your home to the University and continue to live there for the rest of your life. The University will own the home, but you will have full rights and responsibilities to maintain it, pay the taxes, and generally take care of it. There is a mutual agreement on the outset as to what will be done with the home if you can't or don't wish to living there. You can also deed a farm to the University through a RLE. A charitable tax deduction is available and there will be no probate or other hindrances to delay the gift following your passing. With a RLE, a significant gift may be given to the University without disturbing your income or living arrangements.
If you are planning to divide your estate between the University and your heirs, there can be significant tax advantages to naming the University as beneficiary of your IRA, 401(k) or other qualified retirement plan, and leaving other assets to your heirs. The reason is that qualified retirement plans have a built-in feature called IRD — income in respect of a decedent. Inasmuch as the money was originally placed in your plan pre-tax, the tax laws dictate that it will be taxed when it comes out, either as you make withdrawals in your retirement or at your passing. However, by naming the University as a residuary beneficiary, you avoid the IRD as well as any estate taxes that may otherwise be applicable.