Planned Giving Options
Just as there are many ways your support can enhance the University of Illinois College of Medicine Rockford, there are a variety of giving methods that will help you align your financial and philanthropic goals. We can work with you and your advisors to develop a giving plan that best fits your objectives.
Charitable giving decisions involve careful consideration of assets to be transferred and instruments used to make gifts. We invite you to review the information below to learn some common planned gift methods. (Please note that the University of Illinois Foundation and the College encourage all donors to consult with their personal tax, financial and/or legal advisors to discuss the implications associated with their decisions. This material on this site and associated links is intended to be used only for informational purposes.) Regardless of which method you choose though, please note that all gifts should be made to the University of Illinois Foundation for the benefit of the University of Illinois College of Medicine Rockford.
Gifts of Securities
Publicly traded stock and mutual funds with large unrealized profits (long-term capital gains) make great gift options. The profit on your donated securities will escape taxation and your charitable deduction will be the full market value of your investment as long as you have held your security for more than one year. Your gifts of securities may be deducted up to 30 percent of adjusted gross income with a five-year carryover for excess deductions. Please contact the Foundation’s Cash Receipts Office at [email protected] or (217) 244-0352 for updated gifts of securities delivery instructions.
Charitable IRA Rollover
After you have attained the age of 70 ½, you are permitted to transfer up to $100,000 annually from your IRA to a qualified charity like the Foundation. The funds must come directly from your IRA provider with the check written to the Foundation. The direct transfer has two main benefits: 1) Any funds transferred will count towards or cover your required minimum distribution (“RMD”) for that tax year, and 2) distributions are not added to your taxable income. (Please note that while you will not receive a charitable deduction for these gifts, excluding them from your income is more advantageous than a deduction.)
To make your rollover gift, instruct your IRA administrator to send a check payable to the “University of Illinois Foundation” to 1305 West Green Street, Urbana, IL 61801, for the benefit of the College. Please also ask your broker to include your name on the check’s stub.
A bequest is one of the simplest ways to make a deferred gift. You can make a bequest by including the Foundation — for the benefit of the College — in a provision via your will or living trust. Your bequest can be for a specific amount, a specific asset or a percentage of your estate. Any of these options allow you to make generous gifts while maintaining control of your assets during your life. Bequests given to the Foundation are not subject to estate tax.
Similar options also exist for retirement plan or whole life insurance beneficiary designations and transferable-on-death or payable-on-death accounts. Our Director of Gift Planning can work with you or your adviser to develop customized bequest language that accurately reflects your wishes to support the College and ensures your gift will be used as you intend.
Charitable Gift Annuities
A charitable gift annuity (CGA) is an easy, popular option that allows you to transfer cash or appreciated, marketable securities to the Foundation, and, in exchange, you — or up to two people you choose — receive a fixed annual payment for life. After the income beneficiaries pass away, the remaining funds are used to support the College. CGA donors also receive an immediate income tax deduction, subject to applicable limitations, and, in most cases, a portion of their payments tax-free. CGAs also offer capital gains tax savings should you decide to use appreciated securities to fund your annuity. The minimum amount necessary to create a CGA is $10,000, and all income beneficiaries must be at least 60 years of age when payments begin.
CGAs are not available in a small number of states. Please contact our Director of Gift Planning for a free, no-obligation illustration or further information.
We also have options (“remainder” trusts) that allow you to transfer assets to the Foundation to put in a trust which then makes payments to you or others for life, for a term that doesn’t exceed 20 years, or a combination of the two. When your trust terminates, its remaining assets are used to support the College. These trusts must be created with at least $50,000 in assets. The Foundation will serve as trustee where at least 50 percent of the trust’s remainder benefits the Foundation for the College and the trust’s beneficiaries are at least 55 years old.
Other options (“lead” trusts) allow you to provide annual gifts to the Foundation for the benefit of the College for a set term and, at the end of that term, pass the remaining assets to individuals you designate. You decide how long payments will be made to the Foundation and when the remaining assets will be distributed to your benefiting individuals. This option may reduce gift, estate and generation-skipping transfer taxes. Our Director of Gift Planning can also provide you with a free, no-obligation illustration or further information for any charitable trust option.
Retained Life Estate
A retained life estate allows you to gift, at your passing, your personal residence or farm to the Foundation for the benefit of the College while allowing you and other named beneficiaries to live on the property during your life. Upon the death of all beneficiaries, the Foundation will receive your property with the right to sell it to support the College. Benefits include escaping all capital gains tax on your property’s appreciation and the property being removed from you taxable estate. A retained life estate agreement is irrevocable, and the College will not realize your gift until the passing of all the named beneficiaries. Like all gifts of real estate, the Foundation collects and reviews information about each proposed retained life estate before accepting it.
For further information about any of these options, please contact UIF’s Office of Gift Planning and Trust Services at (217) 244-0473 or [email protected]; we also invite you to visit http://uic.giftplans.org/ to learn more.
The University of Illinois Foundation does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.