Gift Types: There are a lot of options when it comes to choosing the right funding strategy for your Legacy. While most gifts are made as a bequest, it’s helpful to know your options. As always, make sure to consult with your advisor when determining which Legacy Gift structure makes the most sense for you.
Bequests and Estate Plan Gifts: By far the most common gift type, bequests can be made by including a statement in your will or living trust that names your beneficiary organization. Bequests can be made as a specific dollar amount or as a percentage of your assets. You can also name your beneficiary of a retirement plan or life insurance policy. The amount left to the university (or any charity) can be expressed as a dollar amount or as a percentage of the assets to be given.
Life Income Gifts: Life income gift enable you to make a Legacy gift while, at the same time, providing income to either yourself or another for a set time period before your beneficiary can use the funds. Life income gifts can be made with securities, cash, or real estate. Your beneficiary will or trustee will manage the investment and distribute income to you and/or your designated beneficiaries for the rest of your life or a term up to 20 years.
Charitable Gift Annuities: A Charitable Gift Annuity enable you (or someone else) to receive a fixed amount annually for life.
Donor Advised Funds: Donor advised funds enable you to make tax-deductible gifts to your nonprofit beneficiaries by establishing a fund now, then advising your nonprofit beneficiary on the use of the gift at a later date. You may support multiple nonprofits through a single Donor Advised Fund.
Charitable Remainder Unitrusts and Lead Trusts: You are able to establish a trust from which you (or others) will receive variable payments annually for life or set number of years. Then, at the end of the term, the remainder in the trust assets will go to your nonprofit beneficiary. With a a charitable lead trust, you’ll makes annual payments to your nonprofit beneficiary for a set period of years, with the remaining assets going to your children (or others).