How to give
Make or pledge a gift now.
There are many ways to give to the College of Education & Human
Development that not only help to promote excellence, but also
contribute to your own personal and financial goals. Brief descriptions
are provide below. For complete details and benefits, please talk with
your financial advisor or contact Lynn Slifer, director of development,
at slife001@umn.edu; or
612-625-5511.
Outright gifts
Other planned giving options
Jean Illsley Clarke
Gift IMPACT: strengthening parent education and improving parents' skills
John and Judy Sullivan, Branden Sullivan, Kieran Sullivan, and
Megan Nightingale
Gift
IMPACT: to provide support for future children/family counselors
in their internship to maximize learning and minimize financial
need
Outright gifts
Cash gifts are an easy way to give. Cash gifts of any size have an
immediate impact on the College program of your choice. You may give
cash outright or, depending on the gift size, you may pledge over a
period of time.
The benefit to you: If you itemize your tax deductions, your
gift is fully deductible up to 50% of your adjusted gross income, with
the option to carry any unused balance forward for up to five years.
Four ways to make a cash gift:
Gifts of stocks, bonds, treasuries and mutual funds that have increased
in value are a "win-win" opportunity for you, and can be made to
the College with a simple transfer of ownership.
The benefit to you: Charitable
deduction and bypass of capital gains. You can make a gift with
appreciated long-term capital gains property such as securities, get a
charitable deduction for the full fair market value (upt o 30 percent of
your adjusted gross income), and pay no capital gains tax on the
appreciation.
Property, including homes, cabins, commercial buildings, and farmland
can be given to the College as a gift.
The benefits to you:
- Current income tax savings, thus lowering the cost of your gift. You
can claim charitable deductions up to 30 percent of your adjusted gross income
for gifts of appreciated property in the year you make the gift.
- Charitable deduction and bypass of capital gains. You can make this
type of gift and get a charitable deduction for the full fair market
value (up to 30 percent of your adjusted gross income), and pay no
capital gains on the appreciation.
Individual Retirement Plan (IRA) assets
When retirement plan assets are rolled over and held in an IRA account,
they are an excellent source of money for donors to make outright gifts
to the University. While the funds withdrawn from an IRA are fully
taxable, in many cases, the charitable deduction will equal the amount
withdrawn and no tax will be owed.
For more information on this option, please contact Robert Peterson of
the University of Minnesota Foundation, at 612-624-1052 or
plgiving@umn.edu.
When you leave a bequest to the College, you can make a generous gift
without reducing your current income and reduce your estate taxes. You
can make your wishes known by simply noting the College (and a specific
department, program or existing endowment) as a beneficiary in your
will. You can also create special funds in your name or in memory of
loved ones.
The following is one example of language that can be included in your
will by your attorney:
I give, devise and bequeath to the University of Minnesota
Foundation, Minneapolis, MN 55455 [sum or description of property] which
shall be known as the [your name] Fund, the principal and income to be
distributed by the Board of Trustees to the College of Education & Human
Development for [use where need is greatest] or [specific department or
program].
For more information about bequests, please contact Lynn Slifer at
612-625-5511 or slife001@umn.edu.
A frequently overlooked way you can make a charitable contribution is
by using qualified retirement plan assets. These assets are one of the
most taxed at death in larger estates, subject to both income and estate
taxes. While current tax law does not allow you to transfer these assets
directly to the College during your lifetime, naming the College as the
beneficiary on your account could avoid both income and estate taxes on
your account at your death.
The benefits to you: Retain control of these
assets over your lifetime. If your circumstances change, you can change
your beneficiary choice to reflect your new wishes. Depending on the
size of your estate, you may also save income and estate taxes.
Life income gifts
Some gifts to the College may result in additional financial benefits
to the donor. Each option is described briefly. For complete
information, please contact Lynn Slifer at
slife001@umn.edu
or call 612-625-5511.
The benefits to you: Each of these life income options is a
charitable income tax deduction, like those mentioned above, and income
is paid to a beneficiary. At the death of the beneficiaries, the balance
of the gift is transferred to the College.
A gift of money or securities can be given to the College, and in
return, up to two beneficiaries can receive a fixed amount of income
annually for their lifetime. (The annual amount is determined by the age
of the income beneficiaries at the time the gift is made.)
Similar to the charitable gift annuity, all of the benefits under a
deferred gift annuity are the same except that payments are deferred to
a future date (at least one year).
The benefits to you: By delaying payment, the donor may obtain a
larger charitable income tax deduction and increase the size of the
annual income; hence, the deferred gift annuity is an ideal retirement
planning tool.
Other planned giving options
For this option, a donor irrevocably transfers assets, such as cash,
securities, real estate, or, occasionally certain businesses, to a
trustee of his or her choice. Again, an income is paid to the
beneficiary in either a fixed dollar amount (annuity trust) or a fixed
percentage (unitrust).
A retained life estate gift allows you to make a gift of personal
residence to the College while retaining the right to live in the home
for life. The donor is responsible for the maintenance cost, insurance,
and real estate taxes. An issue affecting this gift is whether or not
there is a mortgage against the home.
The benefits to you: The donor may
receive a charitable income tax deduction, based on the value of the
property, donor’s age, and life expectancy. For a gift of appreciated
property, you may claim a charitable income tax deduction for up to 30%
of the adjusted gross income.
Charitable lead trust
For a charitable lead trust, the income is paid first to the charity
(college), and after a number of years (based on a term or a
lifetime, the remainder is returned to either the donor or another
beneficiary.
The benefits to you: For information on the advantages
associated with this type of gift, please contact Lynn Slifer at
slife001@umn.edu
or call 612-625-5511.
You can make the College the owner or beneficiary of your life
insurance policy. This can be done on an existing policy or by
establishing a new policy.
The benefits to you: If you name the
University of Minnesota Foundation, Minneapolis, Minnesota, for the
benefit of the College of Education and Human Development, the owner of
the policy, you can take an income tax deduction for its replacement
value. If you continue to pay premiums on the policy, you can deduct the
payments as well (providing you make the check out to the University of
Minnesota Foundation) and have them make the payment.
Because the tax laws regarding gifts or life insurance policies are
complex, for more information, please contact Frank Robertson at
612-624-1052 or rober038@umn.edu.
April 2006 |
