Comparing the Benefits

Use the links below to compare at a glance the major features of some of the different giving ideas. Your attorney or other professional advisor can help you to evaluate the benefits. Each person's unique circumstances make different giving plans appealing.

Bequest by Will

Donor receives: The satisfaction of knowing that a meaningful gift has been arranged.

Tax savings: Federal estate tax deduction for amount bequeathed to The University of Alabama if necessary.

Donor may designate the future use of the gift: Opportunity to make a substantial gift without depleting funds needed during life. Changes can be made during lifetime.

The University of Alabama Receives: A substantial gift to further its mission and you may designate the use of your gift.

Gift Annuity Agreement

Donor receives: Fixed annual payments to donor and/or other beneficiary. Rate of payment based on age(s) of annuitant(s).

Tax savings: Income tax charitable deduction for part of funds transferred. Payments partially tax free for a time.

Donor may designate the future use of the gift: Donor or other annuitant receives supplement to income. Minimum contribution of $10,000 is required.

The University of Alabama Receives: A portion of the amount used to fund a gift annuity will be used to further the mission of UA. You may designate the use of your gift.

Pooled Income Fund

Donor receives: Variable annual income based upon a pro rata share of the pooled investments of the trust.

Tax savings: Income tax charitable deduction for calculated value of gift to The University of Alabama. Value of fund units generally deductible from estate for tax purposes.

Donor may designate the future use of the gift: Possibility that income payments may increase over time. Minimum contribution of $10,000 is required.

The University of Alabama Receives: Distributions from the pooled fund at the death of income recipient.

Charitable Remainder Annuity Trust

Donor receives: Fixed annual income to donor and/or other beneficiary(ies). Income amount defined in trust agreement (at least 5% of initial trust assets).

Tax savings: Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes.

Donor may designate the future use of the gift: Asset preservation. Supplement to income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds.

The University of Alabama Receives: A substantial gift when the trust terminates. Knowledge of the gift helps UA in planning to meet future needs.

Charitable Remainder Unitrust

Donor receives: Variable annual income to donor and/or other beneficiary(ies). Rate of income defined in trust agreement (at least 5% of trust assets).

Tax savings: Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes.

The University of Alabama Receives: A substantial gift when the trust terminates. Knowledge of the gift helps UA in planning to meet future needs.

Charitable Lead Trust

Donor receives: Donor receives no income from the trust. Check with advisors on specific tax treatment of different types of charitable lead trusts.

Tax savings: In most cases either a current income tax charitable deduction or gift and estate tax deductions.

Donor may designate the future use of the gift: May provide a means to make a significant gift and have assets returned to donor, or transferred to loved ones at reduced cost.

The University of Alabama Receives: Either fixed or variable payments for the term of the trust.

Revocable Living Trust

Donor receives: Income earned by trust may be paid to donor, charity, or other(s).

Tax savings: No income tax benefits (unless income goes to charity). When property passes to UA at death of donor, estate tax deduction applies against any applicable federal estate tax.

Donor may designate the future use of the gift: Opportunity to change the trust (and gift), if desired. Avoidance of probate. Opportunity for professional management of assets in trust.

The University of Alabama Receives: A substantial gift, in many cases larger than the donor could comfortably give otherwise.

Cash and Appreciated Property

Cash — convenient and accessible: Income tax deductible for itemizers up to 50% of adjusted gross income (AGI). Any excess is deductible over the next five years.

Appreciated property — conserves cash for other uses: Income tax deductible as above, but up to 30% of AGI. Capital gain tax not incurred; full value of asset is deductible.

PLANNED GIVING Gift Planning What to Give Income to You Providing for Heirs Charitable Annuities Will or Living Trust Retirement Plans Reach Many Goals Gifts of Homes Compare the Benefits Information for Advisors The Denny Society Contact Planned Giving Office of University Advancement 284 Rose Administration Box 870122 Tuscaloosa, AL 35487 phone: (205) 348-4767 toll-free: (888) 875-4438 fax: (205) 348-8871 mailbox@advancement.ua.edu		Comparing the Benefits Use the links below to compare at a glance the major features of some of the different giving ideas. Your attorney or other professional advisor can help you to evaluate the benefits. Each person's unique circumstances make different giving plans appealing. Bequest by Will Gift Annuity Agreement Pooled Income Fund Charitable Remainder Annuity Trust Charitable Remainder Unitrust Charitable Lead Trust Revocable Living Trust Cash and Appreciated Property Bequest by Will Donor receives: The satisfaction of knowing that a meaningful gift has been arranged. Tax savings: Federal estate tax deduction for amount bequeathed to The University of Alabama if necessary. Donor may designate the future use of the gift: Opportunity to make a substantial gift without depleting funds needed during life. Changes can be made during lifetime. The University of Alabama Receives: A substantial gift to further its mission and you may designate the use of your gift. top of page Gift Annuity Agreement Donor receives: Fixed annual payments to donor and/or other beneficiary. Rate of payment based on age(s) of annuitant(s). Tax savings: Income tax charitable deduction for part of funds transferred. Payments partially tax free for a time. Donor may designate the future use of the gift: Donor or other annuitant receives supplement to income. Minimum contribution of $10,000 is required. The University of Alabama Receives: A portion of the amount used to fund a gift annuity will be used to further the mission of UA. You may designate the use of your gift. top of page Pooled Income Fund Donor receives: Variable annual income based upon a pro rata share of the pooled investments of the trust. Tax savings: Income tax charitable deduction for calculated value of gift to The University of Alabama. Value of fund units generally deductible from estate for tax purposes. Donor may designate the future use of the gift: Possibility that income payments may increase over time. Minimum contribution of $10,000 is required. The University of Alabama Receives: Distributions from the pooled fund at the death of income recipient. top of page Charitable Remainder Annuity Trust Donor receives: Fixed annual income to donor and/or other beneficiary(ies). Income amount defined in trust agreement (at least 5% of initial trust assets). Tax savings: Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes. Donor may designate the future use of the gift: Asset preservation. Supplement to income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds. The University of Alabama Receives: A substantial gift when the trust terminates. Knowledge of the gift helps UA in planning to meet future needs. top of page Charitable Remainder Unitrust Donor receives: Variable annual income to donor and/or other beneficiary(ies). Rate of income defined in trust agreement (at least 5% of trust assets). Tax savings: Income tax charitable deduction for a portion of the value of the assets placed in trust. Value of trust assets at death generally deductible from estate for tax purposes. Donor may designate the future use of the gift: Asset preservation. Supplement to income of the donor and/or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds. The University of Alabama Receives: A substantial gift when the trust terminates. Knowledge of the gift helps UA in planning to meet future needs. top of page Charitable Lead Trust Donor receives: Donor receives no income from the trust. Check with advisors on specific tax treatment of different types of charitable lead trusts. Tax savings: In most cases either a current income tax charitable deduction or gift and estate tax deductions. Donor may designate the future use of the gift: May provide a means to make a significant gift and have assets returned to donor, or transferred to loved ones at reduced cost. The University of Alabama Receives: Either fixed or variable payments for the term of the trust. top of page Revocable Living Trust Donor receives: Income earned by trust may be paid to donor, charity, or other(s). Tax savings: No income tax benefits (unless income goes to charity). When property passes to UA at death of donor, estate tax deduction applies against any applicable federal estate tax. Donor may designate the future use of the gift: Opportunity to change the trust (and gift), if desired. Avoidance of probate. Opportunity for professional management of assets in trust. The University of Alabama Receives: A substantial gift, in many cases larger than the donor could comfortably give otherwise. top of page Cash and Appreciated Property Cash — convenient and accessible: Income tax deductible for itemizers up to 50% of adjusted gross income (AGI). Any excess is deductible over the next five years. Appreciated property — conserves cash for other uses: Income tax deductible as above, but up to 30% of AGI. Capital gain tax not incurred; full value of asset is deductible. top of page

UA Home \| University Advancement \| Giving Opportunities \| The Donor Advised Fund

Copyright © RFSCO, Inc. \| Text Only \| Disclaimer \| Contact: webmaster@ur.ua.edu