Planned Giving

With a little planning, your gift to the University of Maryland can help achieve your financial, philanthropic, and estate-planning goals.

Planned gifts give back, allowing you to take sizeable income, capital gains, and estate deductions on your taxes. They can provide income for you and your family for life. And planned gifts can be much larger than other gifts, so you can leave a legacy that fits your philanthropic goals.

What is planned giving?

Planned giving encompasses a variety of philanthropic strategies that help you provide for charity while also advancing your own financial and personal objectives.


 

Bequests

A charitable bequest is one of the easiest ways you can leave a lasting impact on our organization. A bequest may be made in your will or trust directing a gift to our organization.

How Do You Make a Bequest?

A bequest is one of the easiest gifts to make. With the help of an advisor, you can include language in your will or trust specifying a gift to be made to family, friends or a charity as part of your estate plan.

Your Bequest Options

  • Gift of a percentage of your estate
  • Gift of a specific dollar amount or asset
  • Gift from the balance or residue of your estate

Making a Bequest of Your Retirement Assets

A retirement asset, such as an IRA account, makes an excellent bequest to us. If the IRA were given to your family, much of the value may be lost through estate and income taxes. By designating a charity as the beneficiary of all or part of your IRA (using a beneficiary designation form provided by  your custodian), the full value of the gift is transferred tax-free at your death and your estate receives an estate tax charitable deduction.

Benefits of Your Bequest

  • Receive estate tax charitable deduction
  • Lessen the burden of taxes on your family
  • Leave a lasting legacy

 

Charitable Gift Annuity

Are you looking for a secure source of fixed income for now or your future? You may be tired of living at the mercy of the fluctuating stock and real estate markets. One solution is a charitable gift annuity.

How it Works

  • A charitable gift annuity is a contract between you and our organization
  • You transfer property to us. In exchange we pay you fixed income for life
  • The fixed income can be quite high depending on your age
  • A portion of your income stream may even be tax-free. You will receive a charitable deduction for your gift and the satisfaction of furthering our mission

Types of Assets You May Give

If you decide to fund your gift annuity with cash, a significant portion of the annuity income will be tax-free. You may make a gift of your appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax.

Start Receiving Payments Now with a Current Gift Annuity

If you desire current income, you may transfer property in exchange for our promise to pay you fixed income beginning as early as this year. You will receive a current income tax charitable deduction for the value of your gift to our organization.

Deferred Gift Annuity for Income at Future Date

Perhaps you are not ready to begin receiving income until a future date, such as when you retire. You can establish a deferred gift annuity, receive a current charitable income tax deduction and receive payments at a designated future time. Best of all, because you deferred your payments, your annual payment will be higher than with a current annuity. Contact us about flexible date options for your future income.


 

Charitable Unitrust

You may be concerned about the high cost of capital gains tax upon the sale of your appreciated property. Or perhaps you recently sold property and are looking for a way to save on taxes this year and plan for retirement. A charitable remainder unitrust might offer the solutions you need!

Benefits of a Charitable Remainder Unitrust Gift

  • Income for life, lives, or term of years
  • Avoid capital gains on the sale of your appreciated assets
  • Charitable income tax deduction for remainder portion of your gift
  • Future legacy gift to our organization

Charitable Remainder Unitrust for Income

A charitable remainder unitrust pays you income that reflects trust investments. There is the potential that your income could increase over time with growth in the trust.

 How to Select the Right Unitrust Payout for You

There are several unitrust payout options to meet your needs:

  • The standard unitrust pays out a percentage of the trust assets each year
  • Another payout option used commonly for real estate permits the trust to sell the property tax-free and then begin paying you income after the property has been sold

 

Charitable Remainder Annuity Trust

You may be concerned about the high cost of capital gains tax upon the sale of your appreciated property. Or perhaps you recently sold property and are looking for a way to save on taxes and plan for retirement. A charitable remainder annuity trust may offer the solutions you need.

Benefits of a Trust Gift

  • Fixed income for life, lives or term of years
  • Capital gains tax avoid on the sale of your appreciated assets
  • Charitable income tax deduction for a portion of your gift

 Charitable Remainder Annuity Trust for Fixed Income

If you are tired of riding the fluctuating stock market and want a fixed income, a charitable remainder annuity trust may provide you with the stability you desire. A charitable remainder annuity trust pays out a fixed amount each year based on the value of the property at the time it is gifted.


 

Charitable Lead Trust

If you are looking for a way to pass on some of your assets to your family while reducing or eliminating gift or estate taxes, a charitable lead trust is an excellent option.

How it Works

  • You make a contribution of your property to fund a trust that pays our organization income for a number of years
  • You receive a gift or estate tax deduction at the time of your gift
  • After a period of time, your family receives the trust assets plus any additional growth in value

Zero Tax Plan

It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to charity over the term of the trust, then the full value of the trust may be transferred to family with zero gift tax.

FLP/Lead Trust Plan

To discount your gift to family even more, you may consider first transferring your real estate or other assets into a family limited partnership (FLP) which will fund your lead trust. The combination of the FLP, the lead trust and a gift exemption can permit the lead trust to pay income to us for a number of years and potentially transfer substantial assets tax-free to your family.

Increasing Payment Lead Trust

With increased volatility in the stock market you may also want to consider creating a lead trust that makes fixed payments of increasing amounts to us over time. Because the payments to us are fixed, your family ultimately benefits from any growth in the trust. Low payouts in early years allows the trust to grow, thus allowing protection should the economy produce below-average returns in the future.


 

Sale and Unitrust

Are your appreciated assets (such as stock, bonds or real estate) producing little or no income? If you sell your appreciated assets, you will pay a large capital gains tax. A sale and charitable remainder unitrust may be the solution

How a Sale and Unitrust Works

  • You give a portion of your asset
  • The asset is sold, you receive cash and the rest goes to fund your charitable trust
  • The trust will provide you with income for the rest of your life
  • You receive a charitable deduction this year to offset your tax on the sale

Benefits of a Sale and Unitrust

  • You get the cash you need to purchase another residence, travel or meet your daily needs.
  • The unitrust provides you with income for the rest of your life and future retirement.
  • The unitrust deduction gives you valuable tax savings that may reduce your tax bill this year.
  • When you pass away, the remaining value in the unitrust will help us further our work.

 

Bargain Sale

We purchase your property for less than fair market value. You receive the cash and a charitable deduction for the difference between the market value and purchase price.

How a Bargain Sale Works

  • You sell us your property for a price less than fair market value.
  • You receive the cash from the sale and a charitable deduction for your gift to us (the difference between the market value and purchase price).
  • While you may owe some tax on the amount you receive from us, the charitable deduction from your gift could offset your taxes this year.

Benefits of a Bargain Sale

  • If you are considering selling your property, a bargain sale will help you meet all of your goals.
  • Avoid capital gains tax on your charitable gift.
  • The deduction from your gift will give you valuable tax savings that may reduce your tax bill this year.
  • With the cash received from the sale, you may then reinvest to create more income for your future.
  • Best of all, your gift will help us further our work.

 

Give it Twice Trust

You may be looking for a way to provide your children with income while making a gift to charity. The Give it Twice Trust is a popular option that allows you to transfer your IRA at death to a term of years unitrust. The unitrust will pay income to your family for a number of years and then distribute the balance to charity.

Benefits of a Give it Twice Trust

  • Full value of IRA invested to produce income
  • Payments made to children for a term of years
  • Estate tax deduction and savings for your gift
  • Supports our Charity’s work

How this Plan Meets Your Goals

  • The Give it Twice Trust helps you meet your goals
  • Save on income and estate taxes
  • Treat your children equally
  • Give children time to learn

 

 Life Estate Reserve

You may desire to leave your home or farm to us at your death, but would like to receive a current charitable tax deduction. A life estate reserved might offer the solution you need.

How a Life Estate Works

•You can deed your home or farm to us but keep the right to use the property for the rest of your life. You will be able to make a current gift to us and maintain use of your home or farm. Benefits of a Life Estate Reserved
•You receive a current federal income tax deduction for the present value of the remainder interest in your home or farm.
•You preserve your lifetime use and are able to use and control the home or farm while you are alive.

 Life Estate Details

  • The life estate can last for your life or your life and another person’s life
  • •t is possible for you to make a gift of your property even though there is a mortgage upon the residence
  • You will be responsible for the maintenance, insurance and taxes on the property

 

How Do I Write a Bequest to Maryland Athletics?

Making a provision in your will for Maryland Athletics is a simple process. Such bequests can be included in your will at its creation or added and updated later by a codicil.

When making a bequest, it is important to name precisely the individuals and organizations that you intend to benefit. By avoiding generalities such as a common name for an organization, you avoid confusion or possible litigation and ensure your donation reaches its intended beneficiary.

The suggested bequest language below may be adapted by your attorney for you to provide a legacy of support to Terrapin student-athletes and athletic programs.

“I give, devise, and bequeath to the University of Maryland College Park Foundation, a tax exempt organization located at 2119 Main Administration Building, University of Maryland, College Park, MD 20742, (state a percentage of estate or residue, or sum of money, or otherwise describe property) to be used for (state purpose, such as, to support the scholarship program in the Department of Intercollegiate Athletics, or to support facility renovations in the Department of Intercollegiate Athletics).

While not necessary, it is helpful to make UMCPF aware that we are being named in your will. This way you can be sure your bequest will be executed in the manner you intended. In addition, we have special means of recognizing donors who have named us in their wills. Furthermore, public recognition of your generosity can inspire others to consider supporting causes of importance to them.