Giving to CALA: Planned Gifts
Planned gifts are creative options for you to make an impact on CALA, and often come with immediate tax and income benefits for the donor. Many options are available:
Bequests
After providing for your loved ones, a provision in your will or living trust naming CALA as a beneficiary can give you a feeling of satisfaction by knowing that your future gift will help the your College for generations to come. Charitable bequests can include cash, securities, real estate or other property, and may be identified specifically, either as a percentage or an amount, or as that part of your estate that remains after making other specific bequests.
Your charitable bequest, in any form, is free from federal estate tax and may significantly reduce taxes assessed against your estate. This means that CALA will be able to use the full amount of your gift as you direct it to be used.
Making a new will or living trust, or changing an existing one, should be done with the assistance of your attorney. The preferred wording is as follows:
Unrestricted Gift
“…(Specific asset, dollar amount, percentage of or residue of estate) to The University of Arizona Foundation, an Arizona nonprofit corporation, Tucson, Arizona, for the benefit of the College of Architecture and Landscape Architecture to be used as determined by the then Dean.”
Endowment Gift
“…(Specific asset, dollar amount, percentage of or residue of estate) to The University of Arizona Foundation, an Arizona nonprofit corporation, Tucson, Arizona, to establish the (Name) Memorial Endowment Fund. Distributions from this fund shall benefit the College of Architecture and Landscape Architecture to be used as determined by the then Dean.”
For additional information regarding bequests, contact the CALA Office of Development & Marketing.
Charitable Gift Annuity
A charitable gift annuity (CGA) is a wonderful tool for donors, allowing you to meet your own financial needs as well as your philanthropic goals. A CGA is a contract between you as the donor and the Foundation that provides a guaranteed lifetime income for you and/or a beneficiary. An annuity may only be funded with a gift of cash or securities. After your lifetime, or that of your beneficiary, the funds transfer to CALA to support your designated intent.
Charitable Lead Trust
A charitable lead trust is a trust agreement that provides an income payment to the Foundation at a designated rate (by the donor) for the donor's life or for a pre-established number of years (typically 5-20). At the end of the trust, the remaining principal is returned to the donor or another family member as designated. The income that is generated to benefit CALA may either be a fixed amount (annuity trust) or a fixed percentage of the annual value of the trust (unitrust). At the time the trust begins, you or your estate will receive a charitable gift or estate tax deduction for the percentage payable to CALA.
A charitable lead trust can be especially valuable in estate planning because the estate tax and gift tax savings can be significant. It may even have additional value to your family if the assets are likely to appreciate substantially over the life of the trust. A variety of assets can be used to fund a charitable lead trust as well, leaving you with control of the assets you need the most.
Charitable Remainder Annuity Trust (CRAT)
A charitable remainder annuity trust is an irrevocable trust that provides a fixed income to the designated beneficiaries for life, or a term of years, after which the remainder of the trust is distributed to CALA.
Charitable Remainder Unitrust (CRUT)
A charitable remainder unitrust is an irrevocable trust that provides a variable stream of income to the designated beneficiaries for life, or a term of years not to exceed 20, after which the remainder of the trust is distributed to CALA. The variable stream of income is based on the percentage return selected by the donor based on the value of the donated asset, revalued each year.
Life Insurance
An easy tool for donors to use to create a legacy at CALA is life insurance. The University and the Foundation encourage potential donors to name The University of Arizona Foundation as the owner and beneficiary of all or a portion of the benefits of a life insurance policy.
Depending on the status of the policy, especially whether it is paid-up, the gift can entitle the donor to income tax savings. The gift can also possibly cut estate taxes as that portion of the life insurance which is designated to CALA will not count against your estate.
Retained Life Estate
A donor that owns a home, vacation home or a farm including a residence can donate the property to The University of Arizona Foundation, yet retain the right to use and enjoy the property for as long as they wish. The donor will still be responsible for maintenance, taxes and insurance on the property as long as they occupy it but can take advantage of the significant income tax savings potentially generated by a gift of a retained life estate.
Retirement Assets
Making a charitable gift of a retirement plan such as an IRA, a 401(k) or a 403(b) can benefit you and your heirs, as well as the University. By naming the Foundation as the final (or contingent) beneficiary of a qualified retirement account, you can retain full control of the funds while you are alive and generate significant tax savings for your heirs. Not only will a gift of a qualified retirement account save against estate taxes, which can reach 55%, but your heirs will not be required to pay income taxes on the transfer of the retirement plan. The total tax savings can be as much as 80% of the value of the qualified retirement plan. Recent tax changes in 2006 may also allow you to rollout $100,000 per taxpayer, per year, from your IRA to The University of Arizona Foundation.
For additional information regarding trust, annuity, life insurance, real property, or retirement asset gifts, contact the CALA Office of Development & Marketing.
Testimonials (comings soon!)
Office of Planned Giving, The University of Arizona Foundation