Ways to Give
As you consider a gift to the University of Cincinnati, the team at the UC Foundation and College of Medicine are available to discuss the various forms your contribution can take, according to your personal financial and philanthropic goals.
The most common ways in which donors chose to give can have an immediate impact at the university. These are:
- Outright Gift
- Corporate Matching Gift
- Gift in Kind
Donors who want to prepare their UC gifts within their personal estate plans most often choose these ways of giving:
- Charitable Remainder Trust
- Charitable Gift Annuity
- Retirement Assets
- Life Insurance
- Charitable Lead Trust
- Remainder Interest in Real Estate
Outright gifts are current contributions of cash, stocks, bonds, mutual fund shares, real estate and personal property. Outright gifts can be made by credit card. Such gifts can also be made through theUC Foundation’s website.The benefits of an outright gift to UC include a tax deduction based upon the current value of the gift and the avoidance of capital-gains taxes.
Corporate Matching Gift
Many U.S. companies match gifts of cash, stocks or bonds made to higher education by their employees. Employees’ spouses and company retirees are often eligible for this program. The company’s matching gift form must accompany an individual’s gift, and both should be sent to the UC Foundation. Donors are entitled to income tax deductions for individual gifts only. However, a donor is recognized by UC for the total amount of both the personal and matching gift.
A pledge is a gift commitment intended to be paid over a period of one or more years. A donor is entitled to an income tax deduction when each pledge payment is made. Pledge payments can be made through regular mail or electronically at the Foundation website.
Gift In Kind
Donors may transfer assets such as works of art, rare books, stamps or coin collections as gift commitments. If the gift is used by UC for a university-related purpose, the donor is entitled to an income tax deduction for the current gift value. If UC sells the gift or uses it for an unrelated purpose, and deduction is limited to the cost basis. Likewise, if the donor created the gift assets, the income tax deduction is limited to the cost of producing the assets.
A bequest is made when a donor provides in a will or living trust for the transfer of a specific amount, a specific asset or a portion of the remainder of an estate. Assets may be cash, stocks, bonds, mutual fund shares, real estate or personal property. Bequests benefiting UC avoid estate taxes.
Charitable Remainder Trust
To establish one of several types of trust commitments, a donor transfers cash, securities, or real estate to the Foundation as trustee. A fixed or variable income is paid to the donor and/or other beneficiary for life or for a specified term of years. Donors are entitled to income tax deductions based upon the value of gifts and trust terms. Such gifts avoid capital gains and estate taxes. Commitments of this type appeal to donors who wish to contribute to UC and continue to receive income from investment of the gift assets.
Charitable Gift Annuity
A donor may create a gift annuity by transferring assets such as cash, stocks, bonds and mutual fund shares to the Foundation in exchange for a fixed, lifetime income. Payments can begin immediately or at a specified future date. Income received by the donor may be partially tax-free. Donors are entitled to income tax deductions based upon the value of gifts and payment terms, and they avoid estate taxes. This gift type is appealing to older donors seeking a guaranteed fixed lifetime income.
Gifts from a retirement plan or IRA are made by naming the UC Foundation as a beneficiary after a donor’s and/or spouse’s lifetime. Retirement assets can also be transferred to a charitable remainder trust to benefit UC. Gifts or retirement funds avoid estate and income taxes that would otherwise be paid if assets were distributed directly to family.
To make a life insurance gift, a donor names the UC Foundation as owner and beneficiary of a new or existing life insurance policy. Donors are entitled to income tax deductions for new policy premiums or the cash value of an existing policy.
Charitable Lead Trust
To establish this type of gift commitment, a donor transfers cash, stocks, bonds or income-producing real estate to the Foundation as trustee. For the term of the trust, income from these assets benefits the university. Thereafter, the trust principal is typically returned to the donor or passed to the donor’s family. Lead trusts enable donors to pass assets to family at significantly reduced value for gift and estate tax purposes and also can enable donors to reduce taxable income during the trust term.
Remainder Interest in Real Estate
A donor’s residence, vacation home, timberland or farm may be transferred to the university while reserving use of the property for the donor’s or another’s lifetime. An income tax deduction is earned based upon the value of the property and the donor’s life expectancy. Capital gains and estate taxes are avoided. Remainder interest gifts generate current income tax savings while allowing donors to continue lifetime use of their real estate.
The university has directed that all gifts for its colleges, departments and programs be made through the UC Foundation. The Foundation serves donors by ensuring that their gifts are managed prudently and privately. Foundation leaders assure that the uses of gift funds precisely follow donor wishes. Gifts made without restrictions are allocated only after the university determines the priority for their use. The UC Foundation was established in 1975 as a 501 (c)(3) not-for-profit corporation and has the Internal Revenue Service number 31-0896555.