Income Producing Gifts
Several gift plans enable a donor to make a substantial gift to
the University of Minnesota Duluth and provide lifetime income for
themselves and/or others. The Foundation invests the gift, and the
donor or beneficiary receives annual payments. At the end of the
specified time for payments, the remaining principal benefits UMD
in whatever way the donor has directed. Each variation on this theme
offers distinct benefits, allowing a donor to tailor his/her giving
to meet personal needs and achieve personal financial goals.
Charitable Gift Annuities
A charitable gift annuity is one of the easiest and most popular
ways to make a planned gift. You transfer cash or appreciated
stock to UMD through the University of Minnesota Foundation,
which pays a fixed annual amount to one or two named individuals
for life. Payments made to you can be received quarterly, semi-annually,
or annually. A portion of the income is tax-free and the donor
also receives a charitable deduction for part of the gift.
Deferred Payment Gift Annuities
A variation of the charitable gift annuity is the deferred payment
gift annuity. With this option, you can make a gift to the University
as you would for a charitable gift annuity, but delay the start
of the annuity payments until a predetermined date in the future.
This increases both your initial charitable income tax deduction
and your final annuity rate. It can be an excellent way for younger
donors to supplement their future retirement income. A variation
of this plan is the college annuity, whereby you can establish
an annuity for a young child or grandchild with payments beginning
when the child reaches college age. Payments may be condensed
into four or five years, rather than life, to provide for the
child’s college education.
Charitable Remainder Trust
A charitable remainder trust makes an annual payment to one or
more individuals for life or for a term of years. A charitable
remainder trust can be funded through the transfer of assets
such as cash, stocks, or bonds or other property. The annual
payment can be a dollar amount or a fixed percentage of the annual
value of the trust property. The donor is allowed an immediate
income tax deduction for part of the value of the initial trust
property. If that property is appreciated, the trustee can sell
it without paying capital gains tax.
The Heritage Society
The Heritage Society recognizes and honors those alumni and friends
who have provided for the University of Minnesota Duluth in their
wills or have exercised one of the several giving options available.
We welcome your membership. Please contact us for more information.
For more information, please contact:
Tricia Bunten, Director of Planned Giving
(218) 726-7447
email: tbunten@d.umn.edu
toll-free 1-866-999-6995
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