Planned Giving

Explore this section to discover new ways to make a gift that also take into consideration your personal circumstances and the needs of your heirs.

 

Gifts of Securities

Gifts of Tangible Personal Property

Gifts of Real Estate

Gifts of Life Insurance

Life Income Gifts

Bequests 

 

Additional Information

 

Gifts of Securities

Giving stocks and bonds that have increased in value (and which you have owned for more than one year) provides greater tax benefits than giving cash. Not only can you deduct the full market value of the securities, but you avoid paying capital gains tax on the appreciation.

The easiest way to transfer securities is to have your broker contact the University of Minnesota Foundation's Finance Office at (612) 624-3333. This office will appoint your broker as the University's agent, and will give permission to the broker to sell the securities in a separate Foundation account. The broker then sends the proceeds from the sale directly to the Foundation. Be sure to describe the securities and the purpose of your gifts in a separate letter.

Another way to transfer securities is to send the certificates by registered mail to the Foundation and mail your signed stock power, under separate cover, with the signature guaranteed. Do not write "University of Minnesota" on the certificate or on the stock power, because this will delay the processing of your gift. Also, do not have the certificate reissued in the Foundation's name, as this will cause a similar delay. A gift of securities is considered to be made on the postmarked date of mailing, or when the shares are transferred into a University of Minnesota Foundation account.

The value of your securities gift may be slightly different from the actual sale price. The gift value will be the average of the high and low selling prices of your stock or bond on the date of your gift.

You may deduct the gift value of these securities for up to 30 percent of your adjusted gross income. Any excess can be carried over for an additional five years if necessary.

Securities that have decreased in market value still make a beneficial gift to the CVM. First, sell the securities, then give the University the cash gift. You can deduct your capital loss to offset any capital gain you realize in the year of your gift.

Find out more about gifts of securities

 

Gifts of Tangible Personal Property

Gifts of tangible personal property entitle you to a deduction of the property's full fair market value-up to 30 percent of your adjusted gross income-as long as the object is related to the CVM's educational purpose and you have held it for more than one year. You need to have your gift appraised by an independent appraiser to determine the value of your deduction. Be sure to consult with the University about any items you wish to donate.

You may also give personal property that is unrelated to the College's educational purpose. In this case, your deduction equals your cost basis in the property or its fair market value, whichever is less, up to 50 percent of your adjusted gross income. The five-year carry-over provision applies to gifts of tangible personal property as well.
 

 

Gifts of Real Estate

A gift of real estate to the CVM provides you with a charitable deduction for the full fair market value of the gift, up to 30 percent of your adjusted gross income-if you have held it for more than one year-with the usual five-year carry-over. You are not subject to capital gains tax on the appreciated value of the property.

As with gifts of personal property, you will need to have your gift appraised by an independent appraiser to determine the value of your deduction. Also, be sure to consult with us to make sure your real estate is appropriate to the needs of the College. Gifts of mortgaged real estate are reduced by the amount of any debt, and have additional tax consequences.

Remainder Interest in Residence or Farm
You may give your home or farm to the CVM, and you (or anyone you designate) may have continuous uninterrupted use of the property for his or her lifetime. Because you transfer ownership of the property to the CVM, you receive an immediate charitable income tax deduction, with the usual 30 percent limitation and five-year carry- over. The amount of your deduction is based on the value of the CVM's future interest in the property. Though you benefit from the charitable deduction, in most cases you continue to be responsible for maintenance and property taxes.
As with any gift, removing this property from your estate can also lower your estate taxes and probate costs.

Partial Interest

You may also give the CVM a fractional interest in real estate you own. Your income tax deduction is based on the current fair market value of the fractional interest, and you may deduct up to 30 percent of your adjusted gross income, with the usual five-year carry-over.

Bargain Sale

Selling your property to the CVM at less than its full market value is another option. You receive a charitable deduction for the difference between the sale price and the market value. Proceeds from the sale would be considered part tax-free return of principal and part capital gain.

Learn more about giving Real Estate
 

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Gifts of Life Insurance

Naming the University of Minnesota Foundation as owner and beneficiary of a paid-up policy entitles you to a deduction equal to your cost basis in the policy, or its replacement cost-whichever is less. Naming the Foundation as owner and beneficiary of a policy that is not paid up provides you with a tax deduction approximately equal to the policy's cash surrender value.

You also may purchase a new policy and name the Foundation as owner and beneficiary. By donating the money required for the premium payments directly to the Foundation, you receive a full tax deduction for these annual gifts.

Life insurance also can be purchased for yourself to replace other donated assets. For example, if you made a gift of real estate to the Foundation, you could purchase a policy for the amount of this gift to ensure that your family will be taken care of as well.

Learn about how you can benefit from a gift of Life Insurance
 

 

Life Income Gifts

A life income gift allows you to receive income while making a significant gift to the CVM. The University of Minnesota Foundation's life income plans offer the following benefits:

  • income payments for your life and the life of your spouse (or someone else) should you choose
  • potential increase in income
  • income tax deduction
  • potential investment diversification
  • probable elimination of capital gains tax on appreciated property
  • reduced estate taxes and probate costs
  • satisfaction in supporting the CVM during your lifetime
  • knowing how your gift will be used

Gift Annuities
The gift annuity is the simplest of life income plans, and is a contract between you and the Foundation. A gift annuity offers fixed payments for life. Part of these payments is tax free, part is ordinary income, and-if the annuity is funded with appreciated securities-part of these payments is treated as capital gain income.
You receive an immediate income tax deduction based on the amount of your gift and the income your receive. You also may increase your after-tax income, particularly if stocks are used to fund the gift annuity. More information on Gift Annuities

Pooled Income Fund
Participating in our pooled income fund is easy, and requires a smaller investment than other life income gifts. The primary investment objective of the fund is to yield relatively high income to the donor. Payments to the donor are taxed as ordinary income.
Your gift to the fund is invested with money contributed by other investors, and you receive a proportionate share of the fund's net income each year. The income you receive is based on the fair market value of your gift to the fund. Your income tax deduction is based on the gift value, the ages of the beneficiaries, and the highest annual rate of return of the fund during the previous three years.

Unitrusts

A unitrust is separately invested and provides income that may vary from year to year. The unitrust is valued the first business day of every year, and a certain percent of the trust (at least 5 percent) is distributed quarterly to you or another beneficiary. You may make additional contributions to a unitrust.
Your income tax deduction is based on the amount of the gift, the ages of the beneficiaries, and the amount of income received. Generally, the more income you receive, the lower you tax deduction.

Annuity Trusts

An annuity trust is similar to a unitrust in that it is also separately invested; however, it provides fixed income. Furthermore, an annuity trust is valued only once (when the trust is established) and a certain percentage of this amount (at least 5 percent) is distributed quarterly to you or another beneficiary. You are not able to make additional contributions to an annuity trust.

Term-of-Years Trusts

A term-of-years trust is a type of unitrust or annuity which pays you income over a period of years, rather than over a lifetime. This kind of trust can provide either fixed or variable income. A term-of-years trust is often used while children are in college and extra income is needed.

Lead Trusts

With a lead trust, you make a gift of income to the CVM for a term of years. After the term is over, the principal may be passed on to your children or to your estate. Lead trusts can provide a means of passing on assets in a cost-effective way to your children or other heirs. Lead trusts do have a number of income and gift tax consequences which you should consider before making your gift.
More information about Lead Trusts


Compare the benefits of Life Income Gifts


Learn about gifts that pay you income
 

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Bequests

A bequest for the benefit of the University can be included in the body of your will or in an addition to it (a codicil). To name the CVM as the beneficiary, you should use its legal name: University of Minnesota Foundation. You also may describe a specific purpose for the use of your bequest. Bequests may be made to the CVM in several ways:

Residuary Bequest

You may state that all or a portion of your estate be given to the CVM after specific amounts are distributed to other beneficiaries.

Specific Bequest

You may stipulate that a certain percentage of your estate, a certain dollar amount, or particular securities or other assets be given to the CVM.

Testamentary Charitable Trust

You may establish a unitrust or annuity for the benefit of specific beneficiaries through your will. The trust principal is transferred to the CVM only after the death of the last trust beneficiary.
 

More information about Bequest Gifts 


Related Links

Visit the University of Minnesota Foundation website for more information about planned giving.

eBrochures

Compare Planned Giving Options 

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Additional Information

For additional information--without obligation--about planning your gift to the College of Veterinary Medicine, please contact:

Bill Venne
Chief Development Officer
College of Veterinary Medicine
University of Minnesota
1365 Gortner Avenue
St. Paul, MN 55108
Phone: 612-625-8480
Fax: 612-624-8753
E-mail: venne025@umn.edu

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  • Last modified on November 18, 2013